Expedia 2010 Annual Report Download - page 34

County of Monroe, Florida Litigation. On June 3, 2008, the county of Monroe, Florida filed an individual
action in federal court against a number of internet travel companies, including hotel accommodations taxes as
required by municipal ordinance. County of Monroe, Florida v. Priceline.com, Inc., et al., 08-10044-CIV (United
States District Court for the Southern District of Florida). The complaint alleges that the defendants have failed
to pay to the county hotel accommodations taxes as required by municipal ordinance. The complaint purports to
assert claims for violation of the local ordinance, as well as claims for unjust enrichment and conversion. The
complaint seeks damages in an unspecified amount. Plaintiff filed its first amended complaint on May 28, 2010.
Defendants’ motion to dismiss the first amended complaint was denied in part and granted in part by the court
and class certification was granted. Settlement was reached in August 2010 and the court granted final approval
of the settlement on January 6, 2011.
Township of Lyndhurst, New Jersey Litigation. On June 18, 2008, the township of Lyndhurst filed a
putative class action in federal court against a number of internet travel companies, including Expedia,
Hotels.com, and Hotwire. Township of Lyndhurst v. Priceline.com, Inc., et al., 2:08-CV-03033-JLL-CCC (United
States District Court for District of New Jersey). The complaint alleges that the defendants have failed to pay to
the township 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. The complaint seeks
damages in an unspecified amount. On March 18, 2009, the court granted defendants’ motion to dismiss for lack
of standing. Plaintiff’s appeal is pending.
City of Baltimore Litigation. On December 10, 2008, the city of Baltimore filed an individual action in
federal court against a number of internet travel companies, including Expedia, Hotels.com, and Hotwire. Mayor
and City Council of Baltimore v. Pricline.com, Inc. et al., MJG-07-2807 (United States District Court for the
District of Maryland). The complaint alleges that the defendants have failed to pay to the city hotel
accommodations taxes as required by municipal ordinance. The complaint asserts claims for violation of the local
ordinance, as well as claims for conversion, unjust enrichment, assumpsit, declaratory judgment, imposition of a
constructive trust, and injunctive relief. The complaint seeks damages in an unspecified amount. On
December 30, 2010, the city filed a motion for summary judgment.
Worcester County, Maryland Litigation. On January 6, 2009, the county of Worcester, Maryland filed an
individual action in federal court against a number of internet travel companies, including Expedia, Hotels.com,
and Hotwire. County Commissioners of Worcester County, Maryland v. Pricline.com, Inc. et al.,
09-CV-00013-JFM (United States District Court for the District of Maryland). The complaint alleges that the
defendants have failed to pay to the city hotel accommodations taxes as required by municipal ordinance. The
complaint asserts claims for violation of the local ordinance, as well as claims for conversion, unjust enrichment,
and assumpsit. The complaint seeks damages in an unspecified amount. On June 2, 2009, the court denied
defendants’ motion to dismiss. In July 2010, settlement was reached and on July 26, 2010, the case was
dismissed.
City of Anaheim, California Litigation. On October 10, 2007, the city of Anaheim instituted an audit of a
number of internet travel companies, including Expedia, Hotels.com, and Hotwire, for hotel occupancy taxes. On
or before May 23, 2008, the city completed its audit and issued assessments against each of those online travel
companies. The online travel companies challenged those assessments through an administrative appeals process.
On January 28, 2009, the hearing examiner issued his decision, rejecting the online travel companies’ challenges
to those assessments. On February 6, 2009, the hearing examiner issued a decision setting forth the assessed
amounts due by each online travel company, including a total of approximately $17.7 million for the Expedia
companies. On February 11, 2009, the online travel companies filed a petition for writ of mandate in the
California superior court seeking to vacate the decision of the hearing examiner and asking for a declaratory
judgment that the online travel companies are not subject to Anaheim’s hotel occupancy tax. Expedia, Inc. v. City
of Anaheim, et. al., Hotels.com L.P. v. City of Anaheim, et. al.; Hotwire, Inc. v. City of Anaheim et. al., (Superior
Court of the State of California, County of Orange). On February 17, 2009, the online travel companies filed a
motion asking the court to rule that the city is not entitled to require the companies to pay the tax assessment
prior to commencing litigation to challenge the applicability of the ordinance, commonly referred to as
“pay-to-play.” On March 30, 2009, the court overruled the city’s demurrer to the companies’ “pay-to-play”
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