Priceline 2011 Annual Report Download - page 26

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of Mississippi ex rel. Attorney General Jim Hood v. Priceline.com, Inc., et al. (Chancery Court for Hinds County, Mississippi)
was filed in December 2011. In addition, County of Kent, Michigan v. Hotels.com, L.P., et al. (Circuit Court for Kent County)
was filed in November 2011; the Priceline defendants were voluntarily dismissed in December 2011.
In addition, during the year ended December 31, 2011 and to date, appellate rulings and rulings granting dispositive
motions brought by us (or another co-defendant), e.g. motions to dismiss or for summary judgment, were issued. For example,
on June 28, 2011, in St. Louis County, et al. v. Prestige Travel, Inc., et al. (Circuit Court of St. Louis County, Missouri; filed
July 2009), the Supreme Court of Missouri affirmed the lower court's dismissal of all claims against the online travel
companies. On October 25, 2011, in City of Houston v. Hotels.com, L.P. (Harris County, Tex. Dist. Ct., filed on March 5,
2007) (Tex. App., appeal filed April 14, 2010), the Texas 14th Court of Appeals affirmed the lower court's grant of summary
judgment in favor of the defendants on all claims, holding that the statutes at issue in that case did not apply to defendants'
hotel reservation facilitation services. In January 2012, Plaintiffs filed a petition for review before the Texas Supreme Court.
In State of Oklahoma v. Priceline.com, et al. (District Court of Oklahoma County, Oklahoma, filed November 2010),
defendants' motion to dismiss was granted on March 11, 2011 and plaintiffs did not appeal. Defendants' motion for summary
judgment was granted on March 24, 2011 in City of Birmingham, Alabama, et al. v. Orbitz, Inc. et al., (Circuit Court of
Jefferson County, filed December 2009); Plaintiffs have appealed that ruling to the Alabama Supreme Court. On April 29,
2011, the Kentucky Court of Appeals affirmed the lower court's dismissal of all claims against the online travel companies in
City of Bowling Green, Kentucky v. Hotels.com, L.P., et al. (filed in Warren Circuit Court in March 2009; appeal filed April
2010; motion for discretionary review filed with Kentucky Supreme Court in May 2011). In February 2012, the Kentucky
Supreme Court denied the plaintiff's motion for discretionary review of the Court of Appeals' decision. In City of San Diego,
California v. Hotels.com, L.P., et al., JCCP 4472 (Los Angeles Superior Court, filed February 9, 2006), on September 6, 2011,
the court granted the online travel companies' petition to (i) vacate the hearing officer's prior ruling that the online travel
company defendants are liable for transient occupancy tax pursuant to San Diego's ordinance, (ii) issue a new ruling that the
online travel company defendants are not liable for such tax, and (iii) to set aside the City of San Diego's assessments. With
respect to its remaining claims, the City of San Diego has indicated it will stipulate to a consent judgment in favor of the online
travel companies. The City has indicated it plans to appeal. In City of Santa Monica v. Expedia, Inc. et al., JCCP 4472 (Los
Angeles Superior Court, filed June 25, 2010), the court granted the online travel companies' motion to dismiss all claims
without leave to amend; judgment was entered on July 26, 2011 in favor of the defendants. The case is currently on appeal. In
Township of Lyndhurst, New Jersey v. priceline.com Inc., et al. (filed in the U.S. District Court for the District of New Jersey in
June 2008) (U.S. Court of Appeals for the Third Circuit, appeal filed April 2009), the Third Circuit affirmed the District Court's
dismissal of the case. On August 24, 2011, the Third Circuit also denied the Township's motion for rehearing. On January 28,
2012, in the City of Branson, Missouri v. Hotels.com, LP., et al. (Circuit Court of Greene County, Missouri, filed December
2006), the Court granted defendants' motion to dismiss all causes of action. In City of Goodlettsville, Tennessee, et al. v.
priceline.com Incorporated, et al. (U.S. District Court for the Middle District of Tennessee; filed June 2008), the court granted
the defendants' motion for summary judgment on February 21, 2012.
Rulings granting dispositive motions or granting relief sought by a plaintiff municipality (or state) also were issued.
For example, on August 3, 2011, in County of Lawrence, Pennsylvania v. Hotels.com, L.P., et al. (Court of Common Pleas of
Lawrence County, Pennsylvania, filed November 2009) (Commonwealth Court of Pennsylvania, appeal filed in
November 2010), the Court for the Commonwealth of Pennsylvania reversed the dismissal by the Court of Common Pleas of
Lawrence of the County's declaratory relief claim, but affirmed the dismissal of the remaining counts. In The Village of
Rosemont, Illinois v. priceline.com, Inc., et al. (U.S. District Court for the Northern District of Illinois, filed in July 2009), on
October 14, 2011, the court granted plaintiff's motion for summary judgment. In City of Atlanta, Georgia v. Hotels.com L.P., et
al. (Superior Court of Fulton County, Georgia, filed March 2006), following the decision by the Georgia Supreme Court
affirming summary judgment in favor of defendants in May 2011, the Superior Court of Fulton County found that there are
unresolved claims in the case for conversion, punitive damages, and attorneys' fees. That decision is the subject of a motion for
reconsideration filed by defendants on December 29, 2011.
Lastly, in the year ended December 31, 2011 we reached agreements with the respective plaintiffs resolving the claims
for purported back taxes in the following cases: Brevard County, Florida v. Priceline.com Inc., et al. (U.S. District Court for the
Middle District of Florida, filed October 2009); County of Genesee, Michigan, et al. v. Hotels.com L.P., et al. (Circuit Court for
the County of Ingham, Michigan, filed in February 2009); City of Jacksonville v. Hotels.com, L.P., et al., 2006-CA-005393
(Circuit Court for Duval County, filed August 4, 2006); Anne Gannon v. Hotels.com, L.P., 50 2009 CA 025919 (Circuit Court
for Palm Beach County, filed July 30, 2009); City of Myrtle Beach, South Carolina v. Hotels.com, L.P., et al. (Court of
Common Pleas for Horry County, South Carolina, filed in February 2007); Town of Hilton Head Island, South Carolina v.
Hotels.com, L.P., et al. (Court of Common Pleas for Beaufort County, South Carolina, filed in April 2010) and Horry County,
South Carolina, et al. v. Hotels.com, LP, et al. (Court of Common Pleas, Horry County, South Carolina; filed in February 2007).
These cases have been dismissed. In addition, County of Monroe, Florida v. Priceline.com, Inc. et al. (U.S. District Court for