Expedia 2014 Annual Report Download - page 40

State of Kentucky Litigation. On July 15, 2013, the Department of Revenue, Finance and Administration
Cabinet, Commonwealth of Kentucky, filed a lawsuit in Kentucky state court against a number of online travel
companies, including Expedia, Hotels.com and Hotwire. Department of Revenue, Finance and Administration
Cabinet, Commonwealth of Kentucky, v. Expedia, Inc. et al., Case No. 13-CI-912 (Franklin Circuit Court,
Commonwealth of Kentucky). The complaint alleges claims for declaratory judgment, injunctive relief,
violations of state sales tax laws, breach of fiduciary duty requiring an accounting, conversion, assumpsit for
money had and received, imposition of a constructive trust, damages and punitive damages. On September 23,
2013, the defendant online travel companies filed a motion to dismiss. On January 15, 2014, the court denied the
defendants’ motion to dismiss.
City of Bedford Park Litigation. On April 5, 2013, a group of Illinois municipalities (City of Warrenville,
Village of Bedford Park, City of Oakbrook Terrace, Village of Oak Lawn, Village of Orland Hills, City of
Rockford and Village of Willowbrook) filed a putative class action in Illinois federal court against a number of
online travel companies, including Expedia, Hotels.com and Hotwire. City of Warrenville, et al. v. Priceline.com,
Incorporated, et al., Case No. 1:13-cv-02586 (USDC, N. D. Ill., Eastern Division). The complaint seeks
certification of a class of all Illinois municipalities (broken into four alleged subclasses) that have enacted and
collect a tax on the percentage of the retail rate that each consumer occupant pays for lodging, including service
costs, denominated in any manner, including but not limited to occupancy tax, a hotel or motel room tax, a use
tax, a privilege tax, a hotel or motel tax, a licensing tax, an accommodations tax, a rental receipts tax, a hotel
operator’s tax, a hotel operator’s occupation tax, or a room rental, lease or letting tax. The complaint alleges
claims for relief for declaratory judgment, violations of municipal ordinances, conversion, civil conspiracy,
unjust enrichment, imposition of a constructive trust, damages and punitive damages. On July 8, 2013, the
plaintiff municipalities voluntarily dismissed their federal court lawsuit and filed a similar putative class action
lawsuit in Illinois state court. City of Bedford Park, et al. v. Expedia, Inc., et al. (Circuit Court of Cook County,
Illinois, Chancery Division). The online travel companies removed the case to federal district court and filed a
motion to dismiss plaintiffs’ common law claims, which the court granted on March 13, 2014. The plaintiffs filed
a motion for class certification, which the court denied, without prejudice, on January 6, 2015.
City of Columbia, South Carolina, et al. Litigation. On July 26, 2013, the City of Columbia, South Carolina
on behalf of itself and other local governments in the state of South Carolina filed a lawsuit in state court against
a number of online travel companies, including the Expedia companies. City of South Carolina, et al. v.
Hotelguides, Inc., et al., Case No. 2013-CP-10-4368 (In the Court of Common Pleas Ninth Judicial Circuit). The
complaint alleges claims for conversion, voluntary undertaking to collect tax pursuant to hotel tax ordinances,
contractual undertaking to collect taxes pursuant to hotel tax ordinances, existence or imposition of trust and/or
constructive trust, unjust enrichment, demand for legal accounting, and civil conspiracy. The parties have
reached a settlement in principle.
State of New Hampshire Litigation. On October 16, 2013, the State of New Hampshire filed a lawsuit
against a number of online travel companies, including Hotels.com, Expedia, Hotwire and Egencia. State of New
Hampshire v. Priceline.com, et al., Case No. 217-2013-CV-00613 (Merrimack Superior Court, New Hampshire).
The complaint alleges claims for declaratory judgment, injunctive relief, violation of state meals and rooms tax
law, violation of Consumer Protection Act, breach of fiduciary duty, accounting, conversion, unjust enrichment,
assumpsit for money had and received, civil conspiracy, and constructive trust. The defendant online travel
companies filed a motion to dismiss, which the court granted in part and denied in part on June 30, 2014. The
case is currently scheduled for trial to begin on February 22, 2016.
Puerto Rico Litigation. On April 17, 2014, the Puerto Rico Tourism Company filed a lawsuit in federal
district court against a number of online travel companies, including Expedia, Hotels.com and Hotwire. Puerto
Rico Tourism Company v. Priceline.com, Incorporated, et al., Case No. 14-cv-01318 (D. Puerto Rico). The
complaint alleges claims for declaratory judgment, injunctive relief, violations of the Room Tax laws, statutory
negligence and fault, unjust enrichment, conversion, assumpsit for money had and received, and imposition of a
constructive trust. On June 20, 2014, the defendant online travel companies filed a partial motion to dismiss the
36