Expedia 2013 Annual Report Download - page 41

companies, including Expedia, Hotels.com and Hotwire. Department of Revenue, Finance and Administration
Cabinet, Commonwealth of Kentucky, v. Expedia, Inc. et al., Case No. 13-CI-912 (Franklin Circuit Court,
Commonwealth of Kentucky). The complaint alleges claims for declaratory judgment, injunctive relief,
violations of state sales tax laws, breach of fiduciary duty requiring an accounting, conversion, assumpsit for
money had and received, imposition of a constructive trust, damages and punitive damages. On September 23,
2013, the defendant online travel companies filed a motion to dismiss. On January 15, 2014, the court denied the
defendants’ motion to dismiss.
City of Bedford Park Litigation. On April 5, 2013, a group of Illinois municipalities (City of Warrenville,
Village of Bedford Park, City of Oakbrook Terrace, Village of Oak Lawn, Village of Orland Hills, City of
Rockford and Village of Willowbrook) filed a putative class action in Illinois federal court against a number of
online travel companies, including Expedia, Hotels.com and Hotwire. City of Warrenville, et al. v. Priceline.com,
Incorporated, et al., Case No. 1:13-cv-02586 (USDC, N. D. Ill., Eastern Division). The complaint seeks
certification of a class of all Illinois municipalities (broken into four alleged subclasses) that have enacted and
collect a tax on the percentage of the retail rate that each consumer occupant pays for lodging, including service
costs, denominated in any manner, including but not limited to occupancy tax, a hotel or motel room tax, a use
tax, a privilege tax, a hotel or motel tax, a licensing tax, an accommodations tax, a rental receipts tax, a hotel
operator’s tax, a hotel operator’s occupation tax, or a room rental, lease or letting tax. The complaint alleges
claims for relief for declaratory judgment, violations of municipal ordinances, conversion, civil conspiracy,
unjust enrichment, imposition of a constructive trust, damages and punitive damages. On July 8, 2013, the
plaintiff municipalities voluntarily dismissed their federal court lawsuit and filed a similar putative class action
lawsuit in Illinois state court. City of Bedford Park, et al. v. Expedia, Inc., et al. (Circuit Court of Cook County,
Illinois, Chancery Division). The online travel companies removed the case to federal district court. On
September 13, 2013, the online travel companies filed a motion to dismiss plaintiffs’ common law claims.
City of Columbia, South Carolina, et al. Litigation. On July 26, 2013, the City of Columbia, South Carolina
on behalf of itself and other local governments in the state of South Carolina filed a lawsuit in state court against
a number of online travel companies, including the Expedia companies. City of South Carolina, et al. v.
Hotelguides, Inc., et al., Case No. 2013-CP-10-4368 (In the Court of Common Pleas Ninth Judicial Circuit). The
complaint alleges claims for conversion, voluntary undertaking to collect tax pursuant to hotel tax ordinances,
contractual undertaking to collect taxes pursuant to hotel tax ordinances, existence or imposition of trust and/or
constructive trust, unjust enrichment, demand for legal accounting, and civil conspiracy.
State of New Hampshire Litigation. On October 16, 2013, the State of New Hampshire filed a lawsuit
against a number of online travel companies, including Hotels.com, Expedia, Hotwire and Egencia. State of New
Hampshire v. Priceline.com, et al., Case No. 217-2013-CV-00613 (Merrimack Superior Court, New Hampshire).
The complaint alleges claims for declaratory judgment, injunctive relief, violation of state meals and rooms tax
law, violation of Consumer Protection Act, breach of fiduciary duty, accounting, conversion, unjust enrichment,
assumpsit for money had and received, civil conspiracy, and constructive trust. On December 23, 2013, the
defendant online travel companies filed a motion to dismiss.
Notices of Audit or Tax Assessments
At various times, the Company has also received notices of audit, or tax assessments from municipalities
and other taxing jurisdictions concerning our possible obligations with respect to state and local hotel occupancy
or related taxes. The states of Texas, New York, West Virginia, Colorado, Montana, Hawaii, Maryland,
Arkansas, Kentucky and Maine; the counties of Miami-Dade and Broward, Florida; the cities of Los Angeles,
San Diego, San Francisco, West Hollywood, South Lake Tahoe, Palm Springs, Monterey, Sacramento, Long
Beach, Napa, Newport Beach, Oakland, Irvine, Fresno, La Quinta, Dana Point, Laguna Beach, Riverside, Eureka,
La Palma, Twenty-nine Palms, Laguna Hills, Garden Grove, Corte Madera, Santa Rosa, Manhattan Beach,
Huntington Beach, Ojai, Orange, Sacramento, Sunnyvale, Truckee, Walnut Creek, Bakersfield, Carlsbad, Carson,
Cypress, San Bruno, Lompoc, Mammoth Lakes, Palm Springs, San Jose, Santa Barbara, Bishop, Buena Park,
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