Expedia 2013 Annual Report Download - page 39

on April 16, 2013, the court of appeals denied the counties’ request for rehearing en banc, but granted its petition
for certification to the Florida Supreme Court. On September 10, 2013, the Florida Supreme Court informed the
parties that it will review the decision of the court of appeals. The appeal remains pending before the Florida
Supreme Court. Oral argument before the Florida Supreme Court is scheduled for April 30, 2014.
Leon County v. Expedia, Inc., Florida Department of Revenue Litigation, et al. Litigation. On December 14,
2009, Leon County filed an action against a number of online travel companies and the State of Florida
Department of Revenue for recovery of state taxes for hotel occupancy. Leon County v. Expedia, Inc., et al., Case
No. 2009CA4882 (Circuit Court of the Second Judicial Circuit, Leon County, Florida). Leon County has sued the
online travel companies and the Florida State Department of Revenue for failure to collect state hotel occupancy
taxes. The court denied defendants’ motion to dismiss. On December 21, 2011, the Florida Department of
Revenue filed a motion for summary judgment. The online travel companies also moved for summary judgment.
On September 19, 2012, the court granted the online travel companies and the Florida Department of Revenue’s
motions for summary judgment dismissing all claims in the case on the basis that Leon County does not have the
right to seek recovery of state sales taxes. On August 16, 2013, the court of appeals affirmed the trial court’s
dismissal of all claims on the basis that Leon County does not have the right to seek recovery of state taxes for
hotel occupancy. On October 9, 2013, plaintiff’s motion for rehearing en banc, for certified question of great
public importance and for written opinion was denied. On October 21, 2013, plaintiffs filed a petition to invoke
discretionary review of the Florida Supreme Court. On December 31, 2013, the Florida Supreme Court stayed
this case pending review and decision in the case previously brought by Leon County and a number of other
counties in the state of Florida currently pending before the court.
State of Montana Litigation. On November 8, 2010, the state of Montana filed suit against a number of
online travel companies, including Hotels.com, Expedia and Hotwire. State of Montana Department of Revenue
v. Priceline.com, Inc., et al. Case No. CD-2010-1056 (Montana First Judicial District, Lewis and Clark County).
The complaint includes claims for declaratory relief, injunctive relief, violation of the Lodging Facility Use Tax
Statute, violation of the Lodging Facility Sales and Use Tax Statute, violation of the Rental Vehicle Sales and
Use Tax, conversion, unjust enrichment, imposition of a constructive trust, and damages. The complaint seeks
unspecified damages. On December 1, 2011, the court denied defendants’ motion to dismiss. The parties have
filed cross-motions for summary judgment on both lodging and car rental taxes. The court held a hearing on
those motions on December 5, 2013. The case is currently set for trial beginning July 14, 2014.
Montgomery County, Maryland Litigation. On December 21, 2010, Montgomery County filed suit against a
number of online travel companies, including Hotels.com, Expedia and Hotwire. Montgomery County, Maryland
v. Priceline.com, Inc., et al., Case No. 8:10-cv-03558-AW (United States District Court for the Northern District
of Maryland, Northern Division). The complaint included claims for declaratory judgment, injunctive relief,
violation of Montgomery County’s Transient Occupancy Tax Code, conversion, unjust enrichment/assumpsit,
imposition of a constructive trust, and damages. The complaint sought recovery of unspecific damages. On
March 11, 2011, the online travel companies brought a motion to dismiss the complaint. The court denied that
motion on July 20, 2011. The Expedia companies and the county reached a settlement and, on November 21,
2013, the court entered an order dismissing the case.
McAllister Arkansas Citizen-Taxpayer Litigation. On February 22, 2011, two citizens representing a
proposed class of all citizen-taxpayers in the State of Arkansas brought suit against a number of online travel
companies, including Hotels.com, Expedia and Hotwire. McAllister v. Hotels.com, et al., Case No. CV
2011-125-2 (Circuit Court of Saline County Arkansas). The complaint includes claims for declaratory and
injunctive relief. On May 22, 2013, the court granted the online travel companies’ motion for reconsideration of
the court’s February 6, 2012 denial of their motion to dismiss or, in the alternative, for judgment on the pleadings
and dismissal of the lawsuit. On June 19, 2013, plaintiffs filed a notice of appeal to the Arkansas Supreme Court.
Thereafter, the plaintiffs later moved to voluntarily dismiss their appeal and, on January 9, 2014, the Arkansas
Supreme Court granted that motion and dismissed the appeal, thereby terminating the case.
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