Expedia 2011 Annual Report Download - page 33

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court granted the city’s motion for summary judgment and denied Expedia’s motion for summary judgment. On
July 1, 2011, the court reversed its earlier January 28, 2011 ruling and denied the city’s motion for summary
judgment. Also on July 1, 2011, the city filed a First Amended and Recast Complaint. The judge presiding over
the cases, the Honorable Douglas C. Pullen, retired on September 1, 2011 in connection with an investigation by
the Judicial Qualifications Committee. The cases have been reassigned to a new judge.
Nassau County, New York Litigation. On October 24, 2006, the county of Nassau, New York filed a putative
statewide class action in federal court against a number of internet travel companies, including Hotels.com,
Hotwire, and Expedia. Nassau County, New York, et al. v. Hotels.com, L.P., et al., (United States District Court,
Eastern District of New York). The complaint alleges that the defendants have failed to pay hotel accommodation
taxes as required by local ordinances to certain New York cities, counties and local governments in New York.
The complaint asserts claims for violations of those ordinances, as well as claims for conversion, unjust
enrichment, and imposition of a constructive trust, and seeks unspecified damages. On August 17, 2007, the court
granted defendants’ motion dismissing the lawsuit due to the plaintiff’s failure to exhaust its administrative
remedies. On August 11, 2009, the Second Circuit remanded the case for the district court to determine whether
class certification is appropriate. The district court has ordered the parties to proceed with class certification. The
county subsequently dismissed its case on May 13, 2011 for lack of jurisdiction and refiled in state court. County
of Nassau v. Expedia, Inc., et al., (In the Supreme Court of the State of New York, County of Nassau).
Wake County, North Carolina Litigation. On November 3, 2006, Wake County, North Carolina filed a
lawsuit in state court against a number of internet travel companies, including Hotels.com, Hotwire, and Expedia.
Wake County v. Hotels.com, L.P., et al., 06 CV 016256 (General Court of Justice, Superior Court Division, Wake
County). 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 or injunction, conversion, imposition of a constructive trust, demand for an 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 Wake County
lawsuit. On November 1, 2010, the parties filed cross-motions for summary judgment.
Branson, Missouri Litigation. On December 28, 2006, the city of Branson, Missouri filed a lawsuit in state
court against a number of internet travel companies, including Hotels.com, Hotwire, and Expedia. City of
Branson, MO v. Hotels.com, L.P., et al., 106CC5164 (Circuit Court of Greene County, Missouri). The complaint
alleges that the defendants have failed to pay the city 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,
conversion, and demand for an accounting, and seeks unspecified damages. On November 26, 2007, the court
denied the defendants’ motion to dismiss. On July 29, 2011, defendant online travel companies filed a second
motion to dismiss.
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.
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 asserts claims for violation of the local
ordinance, as well as claims for declaratory judgment, and seeks unspecified damages. 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 Buncombe County lawsuit. On
November 1, 2010, the parties filed cross-motions for summary judgment.
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. Dare
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