Expedia 2010 Annual Report Download - page 38

Case No. CJ-2010-8952 (In the District Court of Oklahoma, State of Oklahoma). The complaint includes claims for
declaratory judgment, right of action for sales tax owed, injunctive relief and damages. The complaint seeks
unspecified damages. Defendants have moved to dismiss the complaint.
State of Montana Litigation. On November 8, 2010, the state of Montana filed suit against a number of
online travel companies, including Hotels.com, Expedia and Hotwire. State of Montana Department of Revenue
v. Priceline.com, Inc., et al. Case No. CD-2010-1056 (Montana First Judicial District, Lewis and Clark County).
The complaint includes claims for declaratory relief, injunctive relief, violation of the Lodging Facility Use Tax
Statute, violation of the Lodging Facility Sales and Use Tax Statute, violation of the Rental Vehicle Sales and
Use Tax, conversion, unjust enrichment, imposition of a constructive trust, and damages. The complaint seeks
unspecified damages. On January 31, 2011, defendants brought a motion to dismiss.
Montgomery County, Maryland Litigation. On December 21, 2010, Montgomery County filed suit against
a number of online travel companies, including Hotels.com, Expedia and Hotwire. Montgomery County,
Maryland v. Priceline.com, Inc., et al., Case No. 8:10-cv-03558-AW (United States District Court for the
Northern District of Maryland, Northern Division). The complaint includes claims for declaratory judgment,
injunctive relief, violation of Montgomery County’s Transient Occupancy Tax Code, conversion, unjust
enrichment/assumpsit, imposition of a constructive trust, and damages. The complaint seeks recovery of
unspecific damages. Defendants have not been served.
Notices of Audit or Tax Assessments
At various times, the Company has also received notices of audit, or tax assessments from municipalities
and other taxing jurisdictions concerning our possible obligations with respect to state and local hotel occupancy
or related taxes. The states of South Carolina, Texas, Pennsylvania, Florida, Georgia, Indiana, New Mexico, New
York, West Virginia, Wisconsin, Kansas, Colorado, Wyoming, Alabama, Montana, Louisiana, Ohio and Hawaii;
the counties of Miami-Dade, Broward, Duvall, Palm Beach and Brevard, Florida; the cities of Alpharetta,
Atlanta, Augusta, Cartersville, Cedartown, College Park, Columbus, Dalton, East Point, Hartwell, Macon,
Richmond, Rockmart, Rome, Tybee Island and Warner Robins, Georgia; the counties of Cobb, DeKalb, Fulton,
Clayton, Hart, Chatham and Gwinnett, Georgia; the cities of Los Angeles, San Diego, San Francisco, Anaheim,
West Hollywood, South Lake Tahoe, Palm Springs, Monterey, Sacramento, Long Beach, Napa, Newport Beach,
Oakland, Irvine, Fresno, La Quinta, Dana Point, Laguna Beach, Riverside, Eureka, La Palma, Twenty-nine
Palms, Laguna Hills, Garden Grove, Corte Madera, Santa Rosa, Manhattan Beach, Huntington Beach, Ojai,
Orange, Sacramento, Sunnyvale, Truckee, Walnut Creek, Bakersfield, Carlsbad, Carson, Cypress, San Bruno,
Lompoc, Mammoth Lake, Palm Springs, San Jose, Santa Barbara, Santa Monica Bishop, Buena Park, Milpitas,
Palmdale, Santa Rosa, and Pasadena, California; the county of Monterey, California; the cities of Phoenix,
Scottsdale, Tucson, Peoria, Apache Junction, Avondale, Chandler, Glendale, Flagstaff, Mesa, Nogales, Prescott
and Tempe, Arizona; Santa Fe, New Mexico; undisclosed cities in Alabama; Jefferson County, Arkansas; the city
of North Little Rock, Arkansas; the cities of Chicago and Rosemont, Illinois; the cities of New Orleans and
Lafayette Parish, Louisiana; the city of Baltimore, Maryland, the county of Montgomery, Maryland; New York
City; Suffolk County, New York; the counties of Mecklenburg, Brunswick and Stanley, North Carolina; Hilton
Head, South Carolina, the city of Philadelphia, Pennsylvania; Lawrence County, Pennsylvania; the city of
Madison, Wisconsin; the cities of Denver and Colorado Springs Colorado, the counties of Salt Lake, Weber,
Davis and Summit, Utah; Osceola, Florida and St. Louis County, Missouri, among others, have begun or
attempted to pursue formal or informal audits or administrative procedures, or stated that they may assert claims
against us relating to allegedly unpaid state or local hotel occupancy or related taxes.
The Company believes that the claims in all of the above proceedings relating to hotel occupancy taxes lack
merit and will continue to defend vigorously against them.
Actions Filed by Expedia
New York City Litigation. On December 21, 2009, Expedia, Hotels.com, Hotwire and other online travel
companies brought suit against the city of New York Department of Finance and the city of New York. The
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