Expedia 2007 Annual Report Download - page 33

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defendants’ motion to dismiss. On October 15, 2007, the defendants answered the complaint. Trial is currently
scheduled to begin on or after March 9, 2009.
Louisville/Jefferson County Metro Government, Kentucky Litigation. On September 21, 2006, the
Louisville/Jefferson County Metro Government filed a putative statewide class action in federal court against a
number of internet travel companies, including Hotels.com, Hotwire, and Expedia Washington. See Louisville/
Jefferson County Metro Government v. Hotels.com, L.P., et al., 3:06CV-480-R (United States District Court for
the Western District of Kentucky, Louisville Division). The complaint alleges that the defendants have failed
to pay the counties and cities in Kentucky hotel accommodation taxes as required by local ordinances. The
complaint purports to assert claims for violation of those ordinances, unjust enrichment, money had and
received, conversion, imposition of a constructive trust, and declaratory judgment. The complaint seeks
damages in an unspecified amount. On December 22, 2006, the defendants filed a motion to dismiss, which
was denied on August 10, 2007. On October 26, 2007, the defendants filed a motion for reconsideration or
certification of interlocutory appeal. That motion is pending.
Nassau County, New York Litigation. On October 24, 2006, the County of Nassau, New York filed a
putative statewide class action in federal court against a number of internet travel companies, including
Hotels.com, Hotwire, and Expedia Washington. See Nassau County, New York, et al. v. Hotels.com, L.P., et al.,
(United States District Court, Eastern District of New York). The complaint alleges that the defendants have
failed to pay cities, counties and local governments in New York hotel accommodation taxes as required by
local ordinances. The complaint purports to assert claims for violations of those ordinances, as well as claims
for conversion, unjust enrichment, and imposition of a constructive trust. The defendants filed a motion to
dismiss on January 31, 2007. The County’s deadline to respond to the motion was April 2, 2007. On
August 17, 2007, the court granted defendants’ motion dismissing the lawsuit due to the plaintiff’s failure to
exhaust its administrative remedies. On September 12, 2007, the plaintiff filed a notice of appeal and on
November 15, 2007 plaintiff filled its appellant brief.
Wake County, North Carolina Litigation. On November 3, 2006, the County of Wake, North Carolina
filed a lawsuit in state court against a number of internet travel companies, including Hotels.com, Hotwire,
and Expedia Washington. See Wake County v. Hotels.com, L.P., et al., 06 CV 016256 (General Court of
Justice, Superior Court Division, Wake County). The complaint alleges that the defendants have failed to pay
the County hotel accommodation taxes as required by local ordinance. The complaint purports to assert claims
for violation of the local ordinance, as well as claims for declaratory judgment or injunction, conversion,
imposition of a constructive trust, demand for an accounting, unfair and deceptive trade practices, and agency.
The defendants filed a motion to dismiss on February 12, 2007. On April 4, 2007, the court consolidated the
Wake County, Dare County, Buncombe County, and Cumberland County lawsuits. On May 9, 2007, the
defendants moved to dismiss the lawsuits. On November 19, 2007, the Court granted in part and denied in
part defendants’ motion to dismiss the Wake County lawsuit.
Cumberland County, North Carolina Litigation. On December 4, 2006, the County of Cumberland,
North Carolina filed a lawsuit in state court against a number of internet travel companies, including
Hotels.com, Hotwire, and Expedia Washington. See Cumberland County v. Hotels.com, L.P., et al., 06 CVS
10630 (General Court of Justice, Superior Court Division, Cumberland County). The complaint alleges that the
defendants have failed to pay the County hotel accommodation taxes as required by local ordinance. The
complaint purports to assert claims for violation of the local ordinance, as well as claims for declaratory
judgment or injunction, conversion, imposition of a constructive trust, demand for an accounting, unfair and
deceptive trade practices, and agency. The defendants filed a motion to dismiss on February 12, 2007. On
April 4, 2007, the court consolidated the Wake County, Dare County, Buncombe County, and Cumberland
County lawsuits. On May 9, 2007, the defendants moved to dismiss the lawsuits. On November 19, 2007, the
Court granted defendants’ motion to dismiss the Cumberland County lawsuit due to the County’s failure to
exhaust its administrative remedies. This dismissal is without prejudice and allows the plaintiff to refile its
lawsuit following exhaustion of its administrative remedies.
Branson, Missouri Litigation. On December 28, 2006, the city of Branson, Missouri filed a lawsuit in
state court against a number of internet travel companies, including Hotels.com, Hotwire, and Expedia
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