Expedia 2014 Annual Report Download - page 39

unspecified damages. On December 1, 2011, the court denied defendants’ motion to dismiss. The parties filed
cross-motions for summary judgment on both lodging and car rental taxes. On March 6, 2014, the court granted
the online travel companies’ motion for summary judgment and denied the State of Montana’s motion for
summary judgment, holding that the online travel companies are not liable for tax on their services. The State of
Montana appealed to the Montana Supreme Court, which has scheduled oral argument for April 10, 2015.
District of Columbia Litigation. On March 22, 2011, the District of Columbia brought suit against a number
of online travel companies, including Hotels.com, Expedia and Hotwire. District of Columbia v. Expedia, Inc., et
al., Case No. 2011 CA 002117B (Superior Court of the District of Columbia). The complaint includes claims for
failure to pay taxes, tax penalties, failure to file monthly returns, failure to file annual returns, and failure to state
tax separately. On September 24, 2012, the court granted in part the District of Columbia’s motion for summary
judgment and denied the online travel companies’ motion for summary judgment. On December 11, 2012, the
court denied the online travel companies’ motion to amend the court’s order to permit immediate appeal and for a
stay pending appeal. On May 14, 2013, the District of Columbia filed a motion for partial summary judgment on
damages. On May 31, 2013, the defendant online travel companies filed a cross-motion for summary judgment
on damages. On December 9, 2013, the court granted the online travel companies’ motion and denied the motion
filed by the District of Columbia. The online travel companies and the District of Columbia appealed. Oral
argument before the D.C. Court of Appeals took place on September 30, 2014.
Volusia County, Florida Litigation. On April 28, 2011, Volusia County brought suit against a number of
online travel companies, including Hotels.com, Expedia and Hotwire. Volusia County v. Expedia,et al., Case
No. 2011-10834-CIDL (In the Circuit Court, Seventh Judicial Circuit, in and for Volusia County, Florida). The
complaint includes claims for tourist development tax, convention development tax, transient rentals tax, and
school capital outlay surtax. On September 31, 2011, the court denied the online travel companies’ motion to
dismiss the county’s claim for recovery of state hotel occupancy taxes.
Town of Breckenridge, Colorado Litigation. On July 25, 2011, the Town of Breckenridge, Colorado brought
suit on behalf of itself and other home rule municipalities against a number of online travel companies, including
Hotels.com, Expedia and Hotwire. Town of Breckenridge, Colorado v. Colorado Travel Company, LLC, Case
No. 2011CV420 (District Court, Summit County, Colorado). The complaint includes claims for declaratory
judgment, violations of municipal ordinances, conversion, civil conspiracy and unjust enrichment. The online
travel companies have filed a motion to dismiss. On June 8, 2012, the court granted in part and denied in part the
online travel companies’ motion to dismiss. The plaintiff moved for class certification, which was denied by the
court on March 26, 2014. The parties have filed cross-motions for summary judgment, which motions remain
pending.
State of Mississippi Litigation. On December 29, 2011, the State of Mississippi brought suit against a
number of online travel companies, including Hotels.com, Expedia and Hotwire. State of Mississippi v.
Priceline.com, et al., Case No. G-2011-002211 (Chancery Court, Hinds County, Mississippi). The complaint
includes claims for declaratory judgment, injunctive relief, violations of state sales tax statute and local
ordinances, violation of Consumer Protection Act, conversion, unjust enrichment, constructive trust, money had
and received and joint venture liability. On March 23, 2012, the defendant online travel companies filed a motion
to dismiss. On September 20, 2012, the court denied the online travel companies’ motion to dismiss.
City of Fargo, North Dakota Litigation. On February 25, 2013, the city of Fargo, North Dakota brought a
lawsuit against a number of online travel companies, including Expedia, Hotels.com and Hotwire, for hotel
occupancy taxes. City of Fargo v. Expedia, Inc., et al. (District Court, County of Cass, North Dakota). The
complaint alleges claims for failure to pay taxes in violation of municipal ordinance, conversion, unjust
enrichment, and injunctive relief. On July 1, 2013, the online travel company defendants filed a motion to
dismiss. On November 8, 2013, the court denied defendants’ motion to dismiss. The parties have filed cross-
motions for summary judgment, which motions remain pending. The case is currently scheduled for trial to begin
on September 1, 2015.
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