Expedia 2008 Annual Report Download - page 37

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Buncombe County Litigation. On February 1, 2007, Buncombe County, North Carolina filed a lawsuit in
state court against a number of internet travel companies, including hotels.com, Hotwire, and Expedia
Washington. See Buncombe County v. Hotels.com, et al., 7 CV 00585 (General Court of Justice, Superior Court
Division, Buncombe County, North Carolina). 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. The complaint seeks damages in an
unspecified amount. The deadline for defendants to respond to the lawsuit has not yet been established. 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 Buncombe County lawsuit. Trial is
scheduled for February 1, 2010.
Dare County, North Carolina Litigation. On January 26, 2007, Dare County, North Carolina filed a
lawsuit in state court against a number of internet travel companies, including hotels.com, Hotwire, and
Expedia Washington. See Dare County v. Hotels.com, L.P., et al., 07 CVS 56 (General Court of Justice,
Superior Court Division, Dare County, North Carolina). 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, injunction, conversion,
constructive trust, accounting, unfair and deceptive trade practices and agency. The complaint seeks damages
in an unspecified amount. The deadline for defendants to respond to the lawsuit has not yet been established.
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 Dare County lawsuit. Trial is
scheduled for February 1, 2010.
Myrtle Beach, South Carolina Litigation. On February 2, 2007, the city of Myrtle Beach, South Carolina
filed an individual lawsuit in state court against a number of internet travel companies, including hotels.com,
Hotwire and Expedia. City of Myrtle Beach v. Hotels.com, LP, et al., 2007 CP26-0738 (Court of Common
Pleas, Fifteenth Judicial Circuit, County of Horry, South Carolina). The complaint alleges that the defendants
have failed to pay to the county hotel accommodations taxes as required by municipal ordinances. The
complaint purports to assert a claim for declaratory judgment that the accommodations tax at issue is owed by
the defendants. The complaint seeks damages in an unspecified amount. The defendants moved to dismiss the
lawsuit due to the plaintiff’s failure to exhaust its administrative remedies prior to filing its lawsuit. On
March 18, 2008, the court denied the defendants’ motion. On August 14, 2008, the defendants filed a motion
to dismiss the lawsuit for lack of a justiciable controversy. On September 17, 2008, the court denied the
defendants’ motion to dismiss the lawsuit. Trial is scheduled to begin in November 2009.
Horry County, South Carolina Litigation. On February 2, 2007, Horry County, South Carolina filed an
individual lawsuit in state court against a number of internet travel companies, including hotels.com, Hotwire
and Expedia. Horry County v. Hotels.com, LP, et al., 2007 CP26-0737 (Court of Common Please, County of
Horry, South Carolina). The complaint alleges that the defendants have failed to pay to the county hotel
accommodations taxes as required by municipal ordinances. The complaint purports to assert a claim for
declaratory judgment that the accommodations tax at issue is owed by the defendants. The complaint seeks
damages in an unspecified amount. On April 23, 2007, the defendants filed a motion to dismiss the county’s
complaint due to the plaintiff’s failure to exhaust its administrative remedies prior to filing its lawsuit. On
January 7, 2008, the court denied the defendants’ motion. On August 14, 2008, filed a motion to dismiss the
lawsuit for lack of a justiciable controversy. On September 17, 2008, the court denied the defendants’ motion
to dismiss the lawsuit.
City of Fayetteville, Arkansas Litigation. On February 28, 2007, the city of Fayetteville filed a putative
class action in state court against a number of internet travel companies, including hotels.com, Hotwire and
Expedia. City of Fayetteville v. Hotels.com, L.P., et al., CV 07 567-1 (Circuit Court of Washington County,
Arkansas). 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,
unjust enrichment, conversion, imposition of a constructive trust, and declaratory judgment. The complaint
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