Hertz 2007 Annual Report Download - page 73

Nevada law, including Nevada’s Deceptive Trade Practices Act. The plaintiffs seek an
unspecified amount of compensatory damages, restitution of any charges found to be
improper and an injunction prohibiting Hertz and Enterprise from quoting or charging any of the
fees prohibited by Nevada law. The complaint also asks for attorneys’ fees and costs. In
November 2006, the plaintiffs and Enterprise stipulated and agreed that claims against
Enterprise would be dismissed without prejudice. In January 2007, we filed a motion to dismiss.
In September 2007, the court denied our motion to dismiss. We thereafter filed a motion for
certification seeking to have the interpretation of Nevada Revised Statutes Section 482.31575
certified to the Nevada Supreme Court or, in the alternative, to the United States Court of
Appeals for the Ninth Circuit. In October 2007, we answered the complaint. In February 2008,
the United States Court of Appeals for the Ninth Circuit denied our motion for certification.
Discovery will commence in 2008.
3. Telephone Consumer Protection Act
On May 3, 2007, Fun Services of Kansas City, Inc., individually and as the representative of a
class of similarly-situated persons, v. Hertz Equipment Rental Corporation was commenced in
the District Court of Wyandotte County, Kansas. Fun Services purports to be a class action on
behalf of all persons in Kansas and throughout the United States who on or after four years prior
to the filing of the action were sent facsimile messages of advertising materials relating to the
availability of property, goods or services by HERC and who did not provide express
permission for sending such faxes. The plaintiff asserts violations of the Telephone Consumer
Protection Act, 47 U.S.C. Section 227, and common law conversion and the plaintiff is seeking
damages and costs of suit. In June 2007, we removed this action to the United States District
Court for the District of Kansas. In February 2008, the case was remanded to the District Court
of Wyandotte County, Kansas.
4. California Tourism Assessments
On November 14, 2007, Michael Shames, Gary Gramkow, on behalf of themselves and on
behalf of all persons similarly situated v. The Hertz Corporation, Dollar Thrifty Automotive
Group, Inc., Avis Budget Group, Inc., Vanguard Car Rental USA, Inc., Enterprise Rent-A-Car
Company, Fox Rent A Car, Inc., Coast Leasing Corp., The California Travel and Tourism
Commission, and Caroline Beteta was commenced in the United States District Court for the
Southern District of California. Shames purports to be a class action brought on behalf of all
individuals or entities that purchased rental car services from a defendant at a California situs
airport after January 1, 2007. The complaint alleges that the defendants agreed to charge
consumers a 2.5% assessment and not to compete with respect to this assessment, while
misrepresenting that this assessment is owed by consumers, rather than the rental car
defendants, to the California Travel and Tourism Commission. The complaint also alleges that
defendants agreed to pass through to consumers a fee known as the Airport Concession Fee,
which fee had previously been required to be included in the rental car defendants’ individual
base rates, without reducing their base rates. Based on these allegations, the complaint asserts
violations of 15 U.S.C. § 1, California’s Unfair Competition Law and California’s False
Advertising Law, and seeks treble damages, disgorgement, injunctive relief, interest, attorneys’
fees, and costs. The complaint also asserts separately against the California Travel and Tourism
Commission and Caroline Beteta, the Commission’s Executive Director, alleged violations of
The California Bagley-Keene Open Meeting Act. In January 2008, we filed a motion to dismiss.
On December 13, 2007, Thomas J. Comiskey, on behalf of himself and all others similarly
situated v. Avis Budget Group, Inc., Vanguard Car Rental USA, Inc., Dollar Thrifty Automotive
Group, Inc., Advantage Rent-A-Car, Inc., Avalon Global Group, Hertz Corporation, Enterprise
Rent-A-Car, Fox Rent A Car, Inc., Beverly Hills Rent-A-Car, Inc., Rent4Less, Inc., Autorent Car
53