Expedia 2013 Annual Report Download - page 37

an unspecified amount, restitution and disgorgement. On October 30, 2009, a jury verdict was entered finding
that defendant online travel companies “control hotels,” and awarding approximately $15 million for historical
damages against the Expedia companies. The jury also found that defendants were not liable for conversion or
punitive damages. On April 4, 2013, the court entered a final judgment holding the online travel companies liable
for hotel occupancy taxes to counties and cities in the statewide class. The online travel companies have filed a
motion for judgment as a matter of law or, in the alternative, for a new trial. The cities have filed a motion to
amend the judgment regarding calculation of penalties. These motions remain pending.
City of Gallup, New Mexico Litigation. On May 17, 2006, the city of Gallup, New Mexico filed a putative
statewide class action in state court against a number of online travel companies, including Hotels.com, Hotwire
and Expedia. City of Gallup, New Mexico, et al. v. Hotels.com, L.P., et al., CIV-06-0549 JC/RLP (United States
District Court, District of New Mexico). The case was removed to federal court on June 23, 2006. The complaint
alleges that the defendants have failed to pay to the city hotel accommodations taxes as required by municipal
ordinances. The complaint asserts claims for violation of those ordinances, conversion, and declaratory
judgment. The complaint seeks damages in an unspecified amount, restitution and disgorgement. The court
certified the class on July 7, 2009. On March 29, 2013, the court denied the city of Gallup’s claim that the online
travel companies collected taxes that have not been remitted to the city and dismissed the city’s remaining claims
in the case and entered final judgment on April 2, 2013. The parties reached a settlement in principle, which, on
October 4, 2013, the court preliminarily approved. A hearing before the court for final approval of the settlement
took place on November 19, 2013.
Nassau County, New York Litigation. On October 24, 2006, the county of Nassau, New York filed a putative
statewide class action in federal court against a number of online travel companies, including Hotels.com,
Hotwire, and Expedia. Nassau County, New York, et al. v. Hotels.com, L.P., et al., (United States District Court,
Eastern District of New York). The complaint alleges that the defendants have failed to pay hotel accommodation
taxes as required by local ordinances to certain New York cities, counties and local governments in New York.
The complaint asserts claims for violations of those ordinances, as well as claims for conversion, unjust
enrichment, and imposition of a constructive trust, and seeks unspecified damages. The county subsequently
dismissed its case on May 13, 2011 on the basis that the court lacked jurisdiction and re-filed in state court.
County of Nassau v. Expedia, Inc., et al., (In the Supreme Court of the State of New York, County of Nassau).
The defendants filed a motion to dismiss the refilled state court case. On June 13, 2012, the court denied the
online travel companies’ motion to dismiss. On November 27, 2012, plaintiff filed a motion for class
certification. On April 11, 2013, the court granted plaintiff’s motion for class certification. The online travel
company defendants have appealed both the court’s certification order and its prior order denying their motion to
dismiss. Defendants sought a stay of proceedings in the trial court pending resolution of their appeals to the
Appellate Division of the Supreme Court of the State of New York, Second Judicial Department. The Appellate
Division denied that request on June 3, 2013. Defendants’ appeal remains pending.
Wake County, Buncombe County, Dare County, Mecklenburg County, North Carolina Litigation. On
November 3, 2006, Wake County, North Carolina filed a lawsuit in state court against a number of online travel
companies, including Hotels.com, Hotwire, and Expedia. Wake County v. Hotels.com, L.P., et al., 06 CV 016256
(General Court of Justice, Superior Court Division, Wake County). On February 1, 2007, Buncombe County,
North Carolina filed a lawsuit in state court against a number of online travel companies, including Hotels.com,
Hotwire, and Expedia. Buncombe County v. Hotels.com, et al., 7 CV 00585 (General Court of Justice, Superior
Court Division, Buncombe County, North Carolina). On January 26, 2007, Dare County, North Carolina filed a
lawsuit in state court against a number of online travel companies, including Hotels.com, Hotwire and Expedia.
Dare County v. Hotels.com, L.P., et al., 07 CVS 56 (General Court of Justice, Superior Court Division, Dare
County, North Carolina). On January 10, 2008, the county of Mecklenburg, North Carolina filed an individual
lawsuit in state court against a number of online travel companies, including Expedia, Hotels.com, and Hotwire.
County of Mecklenburg v. Hotels.com L.P., et al., (General Court of Justice, Superior Court Division,
Mecklenburg County, North Carolina). The complaints allege that the defendants have failed to remit hotel
accommodations taxes as required by municipal ordinance to the counties, and include claims for violation of the
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