Expedia 2011 Annual Report Download - page 37

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Hotels.com, and Hotwire. Pine Bluff Advertising and Promotion Commission, Jefferson County, Arkansas, and
others similarly situated v. Hotels.com LP, et. al. CV-2009-946-5 (In the Circuit Court of Jefferson, Arkansas).
The complaint alleges that defendants have failed to collect and/or pay taxes under hotel tax occupancy
ordinances. The court denied defendants’ motion to dismiss. Plaintiffs have filed a motion for class certification.
On January 12, 2012, the court entered an order staying the case for thirty days while it considers again whether
the plaintiff should be required to exhaust administrative remedies.
Leon County, Florida et. al. Litigation. On November 3, 2009, Leon County and a number of other counties
in Florida filed an action against a number of online travel companies, including Expedia, Inc., Hotels.com,
TravelNow.com and Hotwire. Leon County, et. al. v. Expedia, Inc., et. al. Case No: 2009CA4319 (Circuit Court
of the Second Judicial Circuit, Leon County, Florida). The complaint alleges that defendants have failed to
collect and/or pay taxes under the county’s tourist development tax ordinances. Flagler, Alachua, Nassau,
Okaloosa, Seminole, Pasco, Pinellas, Hillsborough, Lee, Charlotte, Escambia, Manatee, Saint Johns, Polk,
Walton and Wakulla counties have been added as plaintiffs. Trial is scheduled for May 21, 2012.
Leon County v. Expedia, Inc., Florida Department of Revenue Litigation, et al Litigation. On December 14,
2009, Leon County filed an action against a number of online travel companies and the State of Florida
Department of Revenue for recovery of state taxes for hotel occupancy. Leon County v. Expedia, Inc., et al., Case
No. 2009CA4882 (Circuit Court of the Second Judicial Circuit, Leon County, Florida). Leon County has sued the
online travel companies and the Florida State Department of Revenue for failure to collect state hotel occupancy
taxes. The court denied defendants’ motion to dismiss. On December 21, 2011, the Florida Department of
Revenue filed a second motion to dismiss.
City of Birmingham, Alabama Litigation. The city of Birmingham, Alabama and eight other cities in
Alabama, along with the Birmingham-Jefferson Civil Center Authority, have brought suit against a number of
online travel companies. City of Birmingham, et al. v. Orbitz, et al., Case No. CV200903607 (Circuit Court of
Jefferson County, Alabama). The complaint alleges that defendants have failed to collect and/or pay taxes under
local lodging tax codes. On April 1, 2010, the court denied defendants’ motion to dismiss, but expressed its
preliminary conclusion that the city’s lodging taxes do not apply to defendants’ services. On March 24, 2011, the
court granted the defendants’ motion for summary judgment. The city has appealed.
Florida Attorney General Litigation. On November 3, 2009, the Florida Attorney General announced a suit
against Expedia, Inc. and Orbitz, Inc. State of Florida, Office of the Attorney General, Department of Legal
Affairs v. Expedia, Inc., et al., Case No. 2009 CA (Circuit Court for the Second Judicial Circuit, Leon County,
Florida). The complaint includes one cause of action for hotel occupancy taxes under the Florida Deceptive and
Unfair Trade Practices Act. In November 2010, the complaint was amended to include other online travel
companies. The complaint has not been served.
City of Philadelphia Litigation. The city of Philadelphia appealed the administrative decision by its Tax
Review Board holding that Expedia is not obligated to pay hotel occupancy taxes. The Appeal of the City of
Philadelphia, Pennsylvania v. Tax Review Board, Case Nos. 00764 and 00363 (Court of Common Pleas of
Philadelphia County, First Judicial District). On January 14, 2011, the court of common pleas held in favor of
Expedia that taxes are not due on their services, and denied the city’s appeal. The city has appealed the decision
by the court of common pleas.
City of Santa Monica, California v. Expedia, Inc, et al., Case No. 108568 (Superior Court of the State of
California, County of Los Angeles, West District). On June 25, 2010, the city of Santa Monica brought suit
against a number of internet travel companies, including Hotels.com, Expedia and Hotwire. The city claims that
internet travel companies act as independent, nonexclusive sales agents for hotels and thus are obligated to
collect and remit occupancy tax on their services. The complaint includes claims for conversion, declaratory
relief, violations of California Civil Code § 2223, violations of California Civil Code § 2224, imposition of a
constructive trust, declaratory relief regarding application of the step transaction doctrine, and liability as agents
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