Orbitz 2010 Annual Report Download - page 30

City or County Filing
Litigation
Date Litigation
Instituted Court Where Litigation is Pending
Leon County, Florida November 5, 2009 Circuit Court of the Second Judicial
Circuit in and for Leon County, Florida
Leon County, Florida December 14, 2009 Circuit Court of the Second Judicial
Circuit in and for Leon County, Florida
County of Lawrence, Pennsylvania* November 20, 2009 Court of Common Pleas of Lawrence
County, Pennsylvania
Birmingham, Alabama December 11, 2009 Circuit Court of Jefferson County,
Alabama
* Indicates purported class action filed on behalf of named City or County and other (unnamed) cities, coun-
ties, governments or other taxing authorities with similar tax ordinances.
** Indicates court certified class action on behalf of named City or County and other (unnamed) cities, coun-
ties, governments or other taxing authorities with similar tax ordinances.
The following legal proceedings relating to hotel occupancy taxes previously reported by us were
dismissed since October 1, 2009:
On November 17, 2009, the County of Lawrence, Pennsylvania filed a notice of voluntary dismissal of
the complaint which had been pending in the United States District Court for the Western District of
Pennsylvania. On November 20, 2009, the County re-filed its claim in Pennsylvania state court.
On December 22, 2009, the United States Court of Appeals for the Sixth Circuit affirmed the United
States District Court for the Western District of Kentucky’s dismissal of Louisville/Jefferson County Metro
Government, Kentucky’s complaint finding that the defendant Internet travel companies are not subject to the
hotel occupancy tax.
On December 29, 2009, the Nineteenth Judicial Circuit Court of Cole County, Missouri dismissed the
City of Jefferson, Missouri’s complaint with prejudice following the parties’ confidential settlement of the
case.
On January 19, 2010, the District Court of Harris County, Texas granted the defendant Internet travel
companies’ motion for summary judgment on the City of Houston, Texas’ complaint.
On January 19, 2010, the Circuit Court of Jefferson County, Arkansas, Fifth Division, granted the
defendant Internet travel companies’ motion to dismiss Pine Bluff Advertising and Promotion Commission and
Jefferson County, Arkansas’ complaint.
In addition, the following other material developments in the legal proceedings relating to hotel
occupancy taxes occurred during the quarter ended December 31, 2009:
On October 30, 2009, in the case titled City of San Antonio, Texas v. Hotels.com, L.P., et. al.,the
defendant Internet travel companies received a jury verdict finding that each has been or currently are
“controlling hotels” under the local hotel occupancy tax ordinances. The jury’s verdict further found that
Orbitz, LLC, Trip Network, Inc. (d/b/a Cheaptickets.com) and Internetwork Publishing Corp. (d/b/a
Lodging.com) did not convert any alleged tax monies belonging to the City of San Antonio or any other class
member, and the jury therefore rejected the City of San Antonio’s request for punitive damages. The final
amount of any judgment that may be rendered in the future against Orbitz, LLC, Trip Network, Inc. (d/b/a
Cheaptickets.com) and Internetwork Publishing Corp. (d/b/a Lodging.com) has not been determined. The jury’s
verdict found that Orbitz, LLC, Trip Network, Inc. (d/b/a Cheaptickets.com) and Internetwork Publishing
Corp. (d/b/a Lodging.com), combined, owed the City of San Antonio and the other 172 class members
approximately $1.9 million in hotel occupancy taxes through May, 2009. The court will conduct further
proceedings, including among other things, determining the amount of any taxes, interest and penalties owed,
which may be substantial. At this time, we are unable to estimate the final amount of any judgment that may
be rendered in the future. Orbitz, LLC, Trip Network, Inc. (d/b/a Cheaptickets.com) and Internetwork
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