Expedia 2015 Annual Report Download - page 39

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 certain Expedia companies.
Leon County, et. al. v. Expedia, Inc., et. al. Case No: 2009CA4319 (Circuit Court of the Second Judicial Circuit,
Leon County, Florida). Flagler, Alachua, Nassau, Okaloosa, Seminole, Pasco, Pinellas, Hillsborough, Lee,
Charlotte, Escambia, Manatee, Saint Johns, Polk, Walton and Wakulla counties were added as plaintiffs. On
April 19, 2012, the court granted the defendant online travel companies’ motion for summary judgment, denied
the plaintiffs’ motion and held that online travel companies have no obligation to remit hotel occupancy taxes.
On February 23, 2013, the court of appeals affirmed the trial court decision. On April 16, 2013, the court of
appeals denied the counties’ request for rehearing en banc, but granted its petition for certification to the Florida
Supreme Court. On September 10, 2013, the Florida Supreme Court informed the parties that it would review the
decision of the court of appeals. On June 11, 2015, the Florida Supreme Court affirmed the court of appeals’
decision holding that online travel companies have no obligation to remit hotel occupancy taxes. On June 26,
2015, the counties filed a motion for rehearing. On September 22, 2015, the Florida Supreme Court denied the
counties’ motion for rehearing, thereby ending the case.
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 sued the
online travel companies and the Florida State Department of Revenue for failure to collect state hotel occupancy
taxes. On September 19, 2012, the court granted the online travel companies’ and the Florida Department of
Revenue’s motions for summary judgment dismissing all claims in the case on the basis that Leon County does
not have the right to seek recovery of state sales taxes. On August 16, 2013, the court of appeals affirmed the trial
court’s decision. On October 9, 2013, plaintiff’s motion for rehearing en banc, for certified question of great
public importance and for written opinion was denied. On October 21, 2013, plaintiffs filed a petition to invoke
discretionary review of the Florida Supreme Court. On December 31, 2013, the Florida Supreme Court stayed
this case pending review and decision in the Leon County, Florida et. al. Litigation. On September 25, 2015, the
Florida Supreme Court ordered the county to show cause why the Court’s June 11, 2015 decision in the Leon
County case is not controlling and why the Court should not decline to accept jurisdiction in this case. On
December 3, 2015, the Court issued an order declining to accept jurisdiction and denying Leon County’s petition
for discretionary review, thereby ending the case.
State of Montana Litigation. On November 8, 2010, the state of Montana filed suit against a number of
online travel companies, including certain Expedia companies. State of Montana Department of Revenue v.
Priceline.com, Inc., et al. Case No. CD-2010-1056 (Montana First Judicial District, Lewis and Clark County). 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. On August 12, 2015, the Montana Supreme Court held that the online travel companies’
compensation is not subject to the Montana Lodging Use Tax but is subject to the Montana Sales Tax, on both
hotel and car rental transactions.
Volusia County, Florida Litigation. On April 28, 2011, Volusia County brought suit against a number of
online travel companies, including certain Expedia companies. Volusia County v. Expedia,et al., Case No. 2011-
10834-CIDL (In the Circuit Court, Seventh Judicial Circuit, in and for Volusia County, Florida). 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. On December 16, 2015, the parties filed a joint stipulation of dismissal.
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
certain Expedia companies. Town of Breckenridge, Colorado v. Colorado Travel Company, LLC,
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