Thrifty Car Rental 2008 Annual Report Download - page 26

ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
The Company owns its headquarters located at 5330 East 31st Street, Tulsa, Oklahoma. This location is
a three building office complex that houses the headquarters for Dollar and Thrifty. These buildings and
the related improvements were mortgaged to Deutsche Bank Trust Company Americas (“Deutsche
Bank”), as administrative agent for a syndicate of banks under the Senior Secured Credit Facilities.
In connection with the Senior Secured Credit Facilities, the Company also executed mortgages in favor of
Deutsche Bank encumbering its real property located in Tampa, Las Vegas, Ft. Lauderdale, Dallas,
Houston and Salt Lake City.
The Company owns or leases real property used for company-owned stores and office facilities, and in
some cases owns real property that is leased to franchisees or other third parties. As of December 31,
2008, the Company’s company-owned operations were carried on at 400 locations in the U.S. and
Canada, the majority of which are leased. Dollar and Thrifty each operate company-owned stores under
concession agreements with various governmental authorities charged with the operation of airports.
Concession agreements for airport locations, which are usually competitively bid, are important for
securing air traveler business.
ITEM 3. LEGAL PROCEEDINGS
On July 20, 2007, a purported class action lawsuit was filed against DTG Operations, Inc. and the
Company in the Superior Court for Los Angeles County, California by Marquis Smith, on his behalf and
on behalf of all others similarly situated, seeking to recover amounts alleging overcharges to California
renters for loss damage waivers on complimentary upgrade rentals and for the issuance of a permanent
injunction. A settlement was reached on this matter requiring the Company to distribute discount
coupons to all participants in the class action lawsuit.
On September 23, 2007, a purported class action was filed against the Company and DTG Operations,
Inc., et al., by Maria Albayero, individually and on behalf of all similarly situated employees in California,
in the Superior Court for Orange County, California. This lawsuit is an action for alleged violations of
wage and hour laws including not providing and/or compensating for missed meal and rest periods,
failure to reimburse uniform maintenance, as well as other things. The suit seeks payment of wages,
damages, penalties and injunctive relief. This matter was settled in an amount not material to the
Company’s consolidated financial statements.
On November 14, 2007, a purported class action was filed against the Company, by Michael Shames and
Gary Gramkow, individually and on behalf of all others similarly situated, in the Southern District Court of
California, claiming that the pass through of the California Trade and Tourism Commission and airport
concession fee authorized by legislation effective in January 2007 constitute antitrust violations of the
Sherman Act and the California Unfair Competition Act. The case is styled 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 (No. 07 CV 2174 H BLM (S.D. Cal.)). The defendants filed
a motion to dismiss the amended complaint, and on July 25, 2008 the Court issued an order denying the
motion as to the antitrust claims but granting the motion to dismiss state law claims. The Court also
dismissed The California Travel and Tourism Commission from the litigation based on state action
immunity. The Company intends to vigorously defend this matter.
On December 13, 2007 and December 14, 2007, purported class actions were filed against the
Company, by Thomas Comisky and Isabel Cohen, respectively, individually and on behalf of all others
similarly situated, in the Central District Court of California. These lawsuits claim (among other matters) a
violation of rights guaranteed under the Free Speech and Free Association Clauses by compelling out-of-
state visitors to subsidize the Passenger Car Rental Tourism Assessment Program. On February 19,
2009, these actions were dismissed with prejudice.
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