Expedia 2005 Annual Report Download - page 30

restitution of, disgorgement of, and the imposition of a constructive trust upon all ""excess'' occupancy
taxes allegedly collected by Hotels.com. On September 25, 2003, the plaintiff filed a demand for
arbitration containing substantially the same factual allegations as the Olvera lawsuit. On September 2,
2004, the arbitrator issued a final award granting Hotels.com's motion to dismiss the arbitration claim.
On May 6, 2003, a purported class action was filed in Texas state court against Hotels.com, L.P.
(""Hotels.com''), Mary Canales, Individually and on Behalf of All Others Similarly Situated v. Hotels.com,
L.P., No. DC-03-162 (District Court, 229th Judicial District, Duval County). The complaint, as amended,
alleges that Hotels.com charges customers ""taxes'' that exceed the amount required by or paid to the
applicable taxing authorities and that Hotels.com charges customers ""fees'' that do not correspond to any
specific services provided. The complaint seeks restitution of, disgorgement of, and the imposition of a
constructive trust upon all ""excess'' occupancy taxes allegedly collected by Hotels.com. On April 29, 2005,
the court issued an order granting the plaintiff's motion for class certification. On February 1, 2006, the
court of appeals reversed the holding certifying the class and remanded the case to the trial court.
Expedia. On February 18, 2005, three actions filed against Expedia, Inc. (""Expedia'') Ì C. Michael
Nielsen et al. v. Expedia, Inc. et al., No. 05-2-02060-1 (Superior Court, King County), Bruce Deaton
et al., v. Expedia, Inc. et al., No. 05-2-02062-8 (Superior Court, King County), each of which was filed
January 10, 2005 and Jose Alba, on Behalf of Himself and All Others Similarly Situated v. IAC/
InterActiveCorp et al., No. 05-2-04533-7 (Superior Court, King County) filed February 3, 2005 Ì were
consolidated under the caption In re Expedia Hotel Taxes and Fees Litigation, No. 05-2-02060-1, pending
in King County Superior Court. The consolidated complaint alleges that Expedia is improperly charging
and/or failing to pay hotel occupancy taxes and engaging in other deceptive practices in charging
customers for taxes and fees. The complaint seeks certification of a nationwide class of all persons who
were assessed a charge for ""taxes/fees'' when booking rooms through Expedia. The complaint alleges
violation of the Washington Consumer Protection Act and common-law conversion and seeks imposition of
a constructive trust on monies received from the plaintiff class, as well as damages in an unspecified
amount, disgorgement, restitution, interest and penalties.
Hotwire. On April 19, 2005, three actions filed against Hotwire, Inc. (""Hotwire'') Ì Bruce Deaton,
on Behalf of Himself and All Others Similarly Situated v. Hotwire, Inc. et al., No. 05-437631 filed
January 10, 2005, Jana Sneddon, on Behalf of Herself and All Others Similarly Situated v. Hotwire, Inc.
et al., No. 05-437701 filed January 13, 2005 and Ashley Salisbury, on Behalf of Herself and All Others
Similarly Situated and the General Public v. Hotwire, Inc. et al., No. 05-438781 filed February 17, 2005
against Hotwire and IAC Ì were consolidated and now are pending under the caption Bruce Deaton v.
Hotwire, Inc. et al., Case No. CGC-05-437631, pending in the Superior Court of the State of California,
County of San Francisco. The consolidated complaint, which was amended on February 17, 2006, alleges
that Hotwire is improperly charging and/or failing to pay hotel occupancy taxes and engaging in other
deceptive practices in charging customers for taxes and fees. The complaint seeks certification of a
nationwide class of all persons who were assessed a charge for ""taxes/fees'' when booking rooms through
Hotwire. The amended complaint alleges violation of Section 17200 of the California Business and
Professions Code, violation of the California Consumer Legal Remedies Act, and breach of contract, and
seeks imposition of a constructive trust on monies received from the plaintiff class, as well as damages in
an unspecified amount, disgorgement, restitution, interest and penalties.
Consumer Case against Various Internet Travel Companies. On February 17, 2005, a purported class
action was filed in California state court against a number of internet travel companies, including Expedia,
Hotels.com, Priceline.com and Orbitz. See Ronald Bush et al. v. CheapTickets, Inc. et al., No. BC329021
(Superior Court, Los Angeles County). The complaint alleges that the defendants are improperly charging
and/or failing to pay hotel occupancy taxes and engaging in other deceptive practices in charging
customers for taxes and fees. The complaint seeks certification of a statewide class of all California
residents who were assessed a charge for ""taxes/fees'' when booking rooms through the defendants and
alleges violation of Section 17200 of the California Business and Professions Code and common-law
conversion. The complaint seeks the imposition of a constructive trust on monies received from the
plaintiff class, as well as damages in an unspecified amount, disgorgement, restitution and injunctive relief.
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