Expedia 2015 Annual Report Download - page 37

travel companies are not liable to remit hotel occupancy taxes to the city of Los Angeles. The city of Los Angeles
filed a notice of appeal. The California Court of Appeals has stayed this case pending review and decision by the
California Supreme Court in the City of San Diego, California Litigation.
City of Chicago Litigation. On November 1, 2005, the city of Chicago, Illinois filed an action in state court
against a number of online travel companies, including certain Expedia companies. City of Chicago, Illinois v.
Hotels.com, L.P., et al., No. 2005 L051003 (Circuit Court of Cook County). On June 21, 2013 and subsequently
on June 28, 2013, the court entered an order denying the defendant online travel companies’ motion for summary
judgment and granted in part and denied in part the city of Chicago’s motion for summary judgment holding the
online travel companies liable for hotel occupancy taxes. After the city filed a motion for summary judgment on
damages and penalties, the court granted in part and denied in part the city’s motion, and on October 27, 2015,
the court entered final judgment in the city’s favor. Expedia, Hotels.com and Hotwire filed a notice of appeal on
November 25, 2015. All claims against Orbitz were previously resolved through settlement.
City of San Diego, California Litigation. On February 9, 2006, the city of San Diego, California filed an
action in state court against a number of online travel companies, including certain Expedia companies. City of
San Diego v. Hotels.com, L.P. et al., Judicial Council Coordination Proceeding No. 4472 (Superior Court for the
County of San Diego). On September 6, 2011, the court held that the online travel companies are not liable for
hotel occupancy taxes. The city appealed and on March 5, 2014, the California Court of Appeals ruled in favor of
the online travel companies. The city filed a petition for review by the California Supreme Court and, on July 30,
2014, the California Supreme Court accepted review.
City of Atlanta, Georgia Litigation. On March 29, 2006, the city of Atlanta, Georgia filed suit against a
number of online travel companies, including certain Expedia companies. City of Atlanta, Georgia v. Hotels.com,
L.P., et al., 2006-CV-114732 (Superior Court of Fulton County, Georgia). On July 22, 2010, the court ruled on
the parties’ cross-motions for summary judgment and held that online travel companies are not innkeepers
required to collect and remit taxes under the Atlanta ordinance. In addition, the court issued an injunction
requiring the payment of taxes going forward on the grounds that the online travel companies are third-party tax
collectors. Both parties appealed. On May 16, 2011, the Georgia Supreme Court affirmed the trial court decision.
On September 30, 2013, the court granted summary judgment in favor of the online travel companies on the
city’s remaining common law claims for recovery of taxes, and maintained its ruling that online travel companies
are not liable for past occupancy taxes. On July 9, 2015, the Georgia Court of Appeals affirmed the trial court’s
decision granting summary judgment in favor of the online travel companies. On July 29, 2015, the city filed a
petition for a writ of certiorari from that ruling to the Georgia Supreme Court. On October 5, 2015, the Georgia
Supreme Court denied the city’s petition, thereby ending the case.
City of San Antonio, Texas Litigation. On May 8, 2006, the city of San Antonio filed a putative statewide
class action in federal court against a number of online travel companies, including certain Expedia companies.
See City of San Antonio, et al. v. Hotels.com, L.P., et al., SA06CA0381 (United States District Court, Western
District of Texas, San Antonio Division). On October 30, 2009, a jury verdict was entered finding that defendant
online travel companies “control hotels,” and awarded historical damages against the Expedia companies, and
found that defendants were not liable for conversion or punitive damages. On April 4, 2013, the court entered a
final judgment holding the defendants liable for hotel occupancy taxes to counties and cities in the statewide
class. The defendants online travel companies filed a motion for judgment as a matter of law or, in the
alternative, for a new trial, and the cities filed a motion to amend the judgment regarding calculation of penalties.
On February 20, 2014, the court denied the online travel companies’ motion. On January 22, 2015, the court
granted in part and denied in part the cities’ motion regarding penalties.
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 online travel companies, including certain Expedia
companies. Nassau County, New York, et al. v. Hotels.com, L.P., et al., (United States District Court, Eastern
District of New York). The county subsequently dismissed its case on May 13, 2011 on the basis that the court
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