Orbitz 2011 Annual Report Download - page 29

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On March 3, 2009, Orbitz, LLC filed a petition with the Indian Tax Court seeking to set aside the Department of Revenue's
final determination.
Orbitz, LLC v. Miami-Dade, Florida, No. 2009 CA 4977 (Circuit Court of the Second Judicial Circuit, in and for Leon
County, Florida). On December 21, 2009, Orbitz, LLC, Trip Network, Inc., and Internetwork Publishing Corp. filed a
complaint in the Circuit Court, Second Judicial Circuit, Leon County, Florida against Miami-Dade County and the Florida
Department of Revenue asserting that they are not subject to the tourist development tax and the convention development tax.
On June 2, 2010, the Circuit Court granted the parties motion to stay the action pending final determination of the Monroe
County, Florida matter. On February 11, 2011, the Circuit Court granted the parties joint motion to lift the stay and entered the
parties' joint stipulation for partial dismissal of claims in accordance with the class action settlement in the Monroe County,
Florida matter.
Orbitz, LLC v. Osceola, Florida, (Circuit Court of the Second Judicial Circuit, Leon County, Florida). On August 27,
2010, Osceola County, Florida issued estimated assessments against Orbitz, Inc., Orbitz, LLC, Trip Network, Inc. and
Internetwork Publishing Corp. On October 27, 2010, the County denied the Company's appeal and finalized assessments of
approximately $1.0 million against Orbitz, Inc. and Orbitz, LLC and $0.2 million against Trip Network, Inc. and Internetwork
Publishing Corp. On January 24, 2011, Orbitz, Inc., Orbitz, LLC, Trip Network, Inc., and Internetwork Publishing Corp. filed a
complaint in the Circuit Court, Second Judicial Circuit, Leon County, Florida against Osceola County and the Florida
Department of Revenue asserting that they are not subject to the tourist development tax.
Orbitz, LLC v. Hawaii Department of Taxation (Hawaii Tax Appeal Court). On December 30, 2010, the State of Hawaii
Department of Taxation issued a series of “proposed” assessments totaling approximately $40.8 million against Orbitz, Inc.,
Orbitz, LLC, Trip Network, Inc. and Internetwork Publishing Corp. The “proposed” assessments were not based on an
evaluation of the transaction data of any of these entities. On January 31, 2011, the Department of Revenue issued its Notices
of Assessments. On March 1, 2011, Orbitz, LLC, and Trip Network, Inc. and Internetwork Publishing Corp. filed their Notice
of Appeal to the Tax Appeal Court.
The Company disputes that any hotel occupancy or related tax is owed under these ordinances and is challenging the
assessments made against the Company. If the Company is found to be subject to a hotel occupancy tax ordinance by the
relevant taxing authority and appeals the decision in court, certain jurisdictions may attempt to require us to provide financial
security or pay the assessment to the municipality in order to challenge the tax assessment in court.
Other Actions Filed by the Company
New York City Litigation
On December 22, 2009, Orbitz, LLC, Trip Network, and other online travel companies, brought an action in the
Supreme Court of the State of New York, New York County against the city of New York Department of Finance and the City
of New York. Expedia, Inc. v. City of New York Department of Finance, No. 650761/2009 (Supreme Court, New York County,
New York). The complaint asserts two claims for declaratory judgment challenging the constitutionality and legality of the law
relating to New York City hotel room occupancy taxes passed on June 29, 2009. On October 22, 2010, the court granted
defendants' motion to dismiss. On November 29, 2011, the Supreme Court, Appellate Division, First Department reversed the
lower court's decision, finding that the City's tax law exceeded the grant of authority provided by the New York State Enabling
Act that was in place at the time New York City passed its law.
North Carolina Litigation
On February 24, 2011, Orbitz, LLC, Trip Network, Inc. and other online travel companies, brought an action in the
General Court of Justice, Superior Court Division, Wake County, North Carolina against David Hoyle, Secretary of Revenue of
the State of North Carolina, the North Carolina Department of Revenue and Durham County challenging the state of North
Carolina's amended sales tax statute that seeks to tax the revenue generated from the services provided by online travel
companies. Orbitz LLC v. Hoyle, No. 11 CV 001857 (General Court of Justice, Superior Court Division, Wake County, North
Carolina). The complaint asserts claims for violation of the Internet Tax Freedom Act, unconstitutional impairment of
contracts, violation of the Commerce Clause, violation of state uniformity clause and federal equal protection, and void for
vagueness. On April 18, 2011, defendants filed a motion to dismiss.
Consumer Class Actions
Peluso v. Orbitz.com, et al. On October 1, 2010, a putative consumer class action complaint was filed in the United