Expedia 2009 Annual Report Download - page 34

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. On August 22, 2006, hotels.com GP, LLC was voluntarily dismissed. On April 26,
2007, the court consolidated the lawsuits filed by the city of Charleston and the town of Mt. Pleasant. On
May 14, 2007, the town filed its first amended complaint. Trial is scheduled for June 17, 2010.
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., SU-06-CV-1893-8 (Superior Curt of Muscogee County); Columbus, Georgia v. Expedia, Inc,
SU-06-CV-1794-7 (Superior Court of Muscogee County). 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 violation of that ordinance, unjust enrichment, imposition of a constructive trust, equitable accounting,
and declaratory judgment. The complaint seeks damages in an unspecified amount, restitution and disgorgement.
On August 1, 2007, Expedia and hotels.com filed motions for summary judgment based on the plaintiff’s failure to
exhaust its administrative remedies prior to filing the lawsuit. On October 5, 2007, the plaintiff filed a motion for
declaratory judgment and injunctive relief in the Expedia lawsuit. On September 22, 2008, the court denied
Expedia’s motion for summary judgment for failure to exhaust administrative remedies and granted plaintiff’s
motion for injunctive relief against Expedia. On November 7, 2008, the court denied hotels.com’s motion for
summary judgment for failure to exhaust administrative remedies and granted plaintiff’s motion for injunctive relief
against hotels.com. On October 22, 2008, Expedia filed its notice of appeal and on December 3, 2008, hotels.com
filed its notice of appeal, both challenging the trial court’s denial of Expedia and hotels.com’s motion for summary
judgment and grant of plaintiff’s injunction. On June 15, 2009, the Georgia Supreme Court denied Expedia’s appeal
and affirmed and modified in part the trial court’s ruling. On June 30, 2009, the court denied Expedia’s motion to
reconsider. Hotels.com’s appeal was denied on October 5, 2009. On November 10, 2009, the Supreme Court denied
hotels.com’s motion for reconsideration but modified its opinion. Expedia has filed both a direct and discretionary
appeal of the Special Master’s discovery report and recommendation. Both of these appeals remain pending. On
October 8, 2009, plaintiff filed a motion to enjoin Expedia from not listing Columbus, Georgia hotels. Expedia filed
its response on November 10, 2009. Trial is scheduled for May 24, 2010.
Lake County, Indiana Convention and Visitors Bureau Litigation. On June 12, 2006, the Lake County
Convention and Visitors Bureau, Inc. and Marshall County filed a putative statewide class action in federal court
on behalf of themselves and all other similarly situated political subdivisions in the state of Indiana against a
number of internet travel companies, including hotels.com, Hotwire and Expedia Washington. See Lake County
Convention and Visitors Bureau, Inc., et al. v. Hotels.com, LP, 2:06-CV-207 (United States District Court for the
Northern District of Indiana, Hammond Division). The complaint alleges that the defendants have failed to pay to
municipalities hotel accommodations taxes as required by municipal ordinances. The complaint purports to assert
claims for violation of those ordinances, conversion, unjust enrichment, imposition of a constructive trust, and
declaratory judgment. The complaint seeks damages in an unspecified amount. Defendants’ motion for summary
judgment for failure to exhaust administrative remedies is pending.
Cities of Columbus and Dayton, Ohio Litigation. On August 8, 2006, the city of Columbus, Ohio and the city
of Dayton, Ohio, 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 Columbus, et al. v. Hotels.com,
L.P., et al., 2:06-CV-00677 (United States District Court, Southern District of Ohio). The complaint alleges that the
defendants have failed to pay to counties and cities in Ohio hotel accommodation taxes as required by local
ordinances. The complaint purports to assert claims for violation of those ordinances, unjust enrichment, violation
of the doctrine of money had and received, conversion, declaratory judgment, and seeks imposition of a constructive
trust. The complaint seeks damages in an unspecified amount. Defendants filed a motion to dismiss on
September 25, 2006 and a motion to transfer venue to the Northern District of Ohio on September 27, 2006. The
case was transferred to the Northern District of Ohio and defendant’s motion to dismiss was granted in part,
consistent with the ruling in the City of Findlay, Ohio lawsuit. On February 22, 2008, plaintiffs filed a First
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