Expedia 2012 Annual Report Download - page 44

November 20, 2012, the New York Court of Appeals granted the city’s motion. The city’s appeal of the
Appellate Division’s ruling remains pending.
Broward County, Florida Litigation. On January 12, 2009, Expedia, Hotels.com, and Hotwire filed separate
actions against Broward County, Florida and the Florida Department of Revenue. Expedia, Inc. et al. v. Broward
County Florida, et. al., Case Nos., 37 2009 CA 000131, 37 2009 CA 000129, and 37 2009 000128 (Second
Judicial Circuit Court, State of Florida, Leon County). The complaints contest the assessments against plaintiffs
on the grounds that plaintiffs are not subject to the tourist development tax, among other claims. Defendants
answered and asserted counterclaims on February 2, 2009. Plaintiffs’ motion to dismiss defendants’
counterclaims is pending. On May 13, 2009, the court consolidated all cases brought by the online travel
companies for all purposes except trial on any of Broward County’s counterclaims. On February 9, 2011, the
court granted in part and denied in part plaintiffs’ motion to dismiss defendant’s counterclaims. The court denied
Broward County’s motion to amend its claims to assert a claim for punitive damages. On July 13, 2012, the court
granted the online travel companies’ motion for partial summary judgment and motion for summary judgment as
to Broward County’s counterclaims and held that the online travel companies have no obligation to collect and
remit hotel occupancy taxes. The court denied Broward County’s cross motion for summary judgment.
Indiana State Sales Tax and County Innkeeper Tax Assessments. On March 2, 2009, Travelscape, LLC
(“Travelscape”), Hotels.com and Hotwire filed petitions in Indiana Tax Court appealing the final determination
of the Indiana State Department of Revenue and seeking to enjoin the collection of the tax. Travelscape, LLC v.
Indiana State Department of Revenue, Cause No. 49T10-0903-TA-11; Hotels.com LP v. Indiana State
Department of Revenue, Cause No. 49T10-0903-TA-13; Hotwire, Inc. v. Indiana State Department of Revenue,
Cause No. 49T10-0903-TA-12.
Miami-Dade County, Florida Litigation. On December 18, 2009, Expedia, Inc., Hotwire and Hotels.com
brought suit against Miami-Dade for refund of hotel occupancy taxes assessed against the companies. Expedia,
Inc. v. Miami-Dade County, Florida and Florida Department of Revenue, Cause No. 09CA4978 (In the Circuit
Court of the Second Judicial Circuit in and for Leon County); Hotwire, Inc. v. Miami-Dade County, Cause
No. 09CA4977 (In the Circuit Court of the Second Judicial Circuit in and for Leon County); Hotels.com, L.P. v.
Miami-Dade County, Florida and Florida Department of Revenue, Cause No. 09CA4979 (In the Circuit Court of
the Second Judicial Circuit in and for Leon County). The companies moved to dismiss Miami-Dade’s
counterclaims. These cases have been consolidated with the cases brought by other online travel companies for
refund of hotel occupancy taxes. Miami-Dade County’s claims were settled as a part of the Monroe class action
settlement. The claims relating to tourist development tax have been dismissed. The claims relating to convention
development tax remain. On September 25, 2012, the court issued an order staying all further proceedings in the
case pending a final appellate determination in the Leon County litigation.
Osceola, Florida Litigation. On January 24, 2011, Expedia, Hotels.com and Hotwire, along with other
online travel companies, filed complaints against Osceola County, Florida and the Florida Department of
Revenue challenging the county’s assessment of taxes. Expedia, Inc. v. Osceola, Florida and Florida
Department of Revenue, Case No. 2011 CA 000206 (In the Circuit Court of the Second Judicial Circuit, Leon
County); Hotels.com, L.P. v. Osceola, Florida and Florida Department of Revenue, Case No. 2011 CA 000196
(In the Circuit Court of the Second Judicial Circuit, Leon County); Hotwire, Inc. v. Osceola, Florida and Florida
Department of Revenue, Case No. 2011 CA 000202 (In the Circuit Court of the Second Judicial Circuit, Leon
County). The online travel companies have asserted claims that they are not subject to the county tax ordinance,
Commerce Clause violation, due process, breach of confidentiality, fundamental bias of assessment, and Internet
Tax Freedom Act and Supremacy Clause violation. Defendant online travel companies have moved to dismiss
the County’s counterclaims and to strike certain affirmative defenses.
State of North Carolina Litigation. In February 2011, Travelscape, Hotels.com and Hotwire, along with
other online travel companies, brought suit in state court in North Carolina challenging the state of North
Carolina’s amended sales tax statute that seeks to tax the revenue generated from the services provided by the
38