Expedia 2006 Annual Report Download - page 30

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municipal ordinances. The complaint purports to assert claims for violation of the ordinance, conversion,
unjust enrichment, imposition of a constructive trust, declaratory judgment and an equitable accounting. The
complaint seeks damages and other relief in an unspecified amount. The defendants answered on June 5, 2006.
On December 11, 2006, the Court dismissed the lawsuit. The city of Atlanta filed a notice of appeal on
January 10, 2007.
City of Charleston, South Carolina Litigation. On April 26, 2006, the city of Charleston, South Carolina
filed suit in state court against a number of internet travel companies, including Hotels.com, Hotwire and
Expedia Washington. See City of Charleston, South Carolina v. Hotels.com, et al., 2:06-CV-01646-PMD
(United States District Court, District of South Carolina, Charleston Division). The case was removed to
federal court on May 31, 2006. The complaint alleges that the defendants have failed to pay the city hotel
accommodations taxes as required by municipal ordinance. The complaint purports to assert claims for
violation of that ordinance, conversion, constructive trust and legal accounting. The complaint seeks damages
in an unspecified amount. The defendants answered on July 7, 2006. On August 22, 2006, Hotels.com GP,
LLC was voluntarily dismissed. The Court entered a scheduling order on August 25, 2006, providing for a
trial in August 2007. Discovery is ongoing.
City of San Antonio, Texas Litigation. On May 8, 2006, the city of San Antonio filed a putative
statewide class action in federal court against a number of internet travel companies, including Hotels.com,
Hotwire, and Expedia Washington. See City of San Antonio, et al. v. Hotels.com, L.P., et al., SA06CA0381
(United States District Court, Western District of Texas, San Antonio Division). The complaint alleges that the
defendants have failed to pay to the city hotel accommodations taxes as required by municipal ordinance. The
complaint purports to assert claims for violation of that ordinance, common-law conversion, and declaratory
judgment. The complaint seeks damages in an unspecified amount, restitution and disgorgement. The
defendants filed a motion to dismiss on June 30, 2006. On August 28, 2006, the plaintiffs filed a motion for
class certification. Both the motion to dismiss and motion for class certification are pending.
City of Gallup, New Mexico Litigation. On May 17, 2006, the city of Gallup, New Mexico filed a
putative statewide class action in state court against a number of internet travel companies, including
Hotels.com, Hotwire and Expedia Washington. See City of Gallup, New Mexico, et al. v. Hotels.com, L.P.,
et al., CIV-06-0549 JC/RLP (United States District Court, District of New Mexico). The case was removed to
federal court on June 23, 2006. The complaint alleges that the defendants have failed to pay to the city hotel
accommodations taxes as required by municipal ordinances. The complaint purports to assert claims for
violation of those ordinances, conversion, and declaratory judgment. The complaint seeks damages in an
unspecified amount, restitution and disgorgement. On July 31, 2006, the defendants filed a motion to dismiss.
On January 30, 2007, the Court granted in part and denied in part defendants’ motion to dismiss. Certification
discovery is underway.
Town of Mt. Pleasant, South Carolina Litigation. On May 23, 2006, the Town of Mount Pleasant, South
Carolina filed suit in state court against a number of internet travel companies, including Hotels.com, Hotwire
and Expedia Washington. See Town of Mount Pleasant, South Carolina v. Hotel.com, et al., 2-06-CV-020987-
PMD (United States District Court, District of South Carolina, Charleston Division). The case was removed to
federal court on July 21, 2006. The complaint alleges that the defendants have failed to pay to the city hotel
accommodations taxes as required by municipal ordinance. The complaint purports to assert claims for
violation of that ordinance, conversion, constructive trust and legal accounting. The complaint seeks damages
in an unspecified amount. The defendants answered the complaint on September 15, 2006. On August 22,
2006, Hotels.com GP, LLC was voluntarily dismissed. Discovery is ongoing.
Columbus, Georgia Litigation. On May 30, 2006, the city of Columbus, Georgia filed suit against
Expedia, Inc. and on June 7, 2006 filed suit against Hotels.com — both in state court. See Columbus,
Georgia v. Hotels.com, Inc., et al., 4:06-CV-80; Columbus, Georgia v. Expedia, Inc., 4:06-CV-79 (United
States District Court, Middle District of Georgia, Columbus Division). The cases were removed to federal
court on July 12, 2006. During this same time period, the city of Columbus filed similar lawsuits against other
internet travel companies. The complaints allege that the defendants have failed to pay the city hotel
accommodations taxes as required by municipal ordinance. The complaints purport to assert claims for
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