Expedia 2010 Annual Report Download - page 33

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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 asserts 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. On
April 4, 2007, the court consolidated the Wake County, Dare County, Buncombe County, Mecklenburg 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. On November 1, 2010, the parties filed cross-motions for summary judgment.
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
asserts a claim for declaratory judgment that the accommodations tax at issue is owed by the defendants, and
seeks damages in an unspecified amount.
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 asserts a claim for declaratory
judgment that the accommodations tax at issue is owed by the defendants, and seeks damages in an unspecified
amount. Plaintiff has filed a motion for summary judgment, which is scheduled for a hearing on March 8, 2011.
City of Houston, Texas Litigation. On March 5, 2007, the city of Houston filed an individual lawsuit in
state court against a number of internet travel companies, including Hotels.com, Hotwire and Expedia. City of
Houston v. Hotels.com, L.P., et al., 2007-13227 (District Court of Harris County, 270th Judicial District, Texas).
The lawsuit alleges that the defendants have failed to pay to the city hotel accommodations taxes as required by
municipal ordinance. The lawsuit asserts claims for violation of that ordinance, conversion, imposition of a
constructive trust, civil conspiracy, and demand for accounting. The complaint seeks damages in an unspecified
amount. On January 19, 2010, the court ruled in favor of defendants on their motion for summary judgment
dismissing plaintiffs’ claims with prejudice. The city has appealed.
Mecklenburg County Litigation. On January 10, 2008, the county of Mecklenburg, North Carolina filed an
individual lawsuit in state court against a number of internet travel companies, including Expedia, Hotels.com,
and Hotwire. County of Mecklenburg v. Hotels.com L.P., et al., (General Court of Justice, Superior Court
Division, Mecklenburg County, North Carolina). The complaint alleges that the defendants have failed to pay
hotel accommodations taxes as required by municipal ordinance to the county. The complaint asserts 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. 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 Mecklenburg
County lawsuit. On November 1, 2010, the parties filed cross-motions for summary judgment.
Cities of Goodlettsville and Brentwood, Tennessee Litigation. On June 2, 2008, the cities of Goodlettsville
and Brentwood, Tennessee filed a putative class action in federal court against a number of internet travel
companies, including Expedia, Hotels.com, and Hotwire. City of Goodlettsville and City of Brentwood v.
Priceline.com, Inc., et al., 3-08-0561 (United States District Court for the Middle District of Tennessee). The
complaint alleges that the defendants have failed to pay to the cities hotel accommodations taxes as required by
municipal ordinance. The complaint asserts claims for violation of the local ordinance, as well as claims for
unjust enrichment and conversion, and seeks damages in an unspecified amount. Plaintiffs have voluntarily
dismissed the City of Brentwood. Class certification has been granted. Trial is scheduled for November 29, 2011.
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