Orbitz 2012 Annual Report Download - page 26

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The following legal proceedings relating to hotel occupancy taxes we previously reported were concluded since
October 1, 2012:
Baltimore City, Maryland: On October 9, 2012, the parties executed a settlement agreement. On October 16, 2012, the
parties filed a stipulation of dismissal, with prejudice, ending the case.
Houston, Texas: On October 26, 2012, the Texas Supreme Court denied the City's Petition for Review.
Santa Monica, California: On November 1, 2012, the Court of Appeal of the State of California affirmed the judgment
of the Superior Court of Los Angeles County, California which found the OTCs not subject to Santa Monica's ordinance. On
January 23, 2013, the California Supreme Court denied review, thereby ending the case.
Kent County, Michigan: On December 4, 2012, the Circuit Court for the Count of Kent, Michigan granted the County's
motion to dismiss the complaint with prejudice.
Branson, Missouri: On January 23, 2013, the Missouri Court of Appeals affirmed the dismissal of Branson's complaint.
On February 19, 2013, the Court of Appeals denied Branson's petition for rehearing
Audit Related Proceedings Related To Hotel Occupancy (and Related) Taxes
We have also been contacted by several municipalities or other taxing bodies concerning our possible obligations with
respect to state or local hotel occupancy or related taxes. The following taxing authorities have issued assessments that are
subject to further review by the taxing authorities: the Colorado Department of Revenue; the City of Aurora, Colorado; the
Maryland Comptroller; the Texas Comptroller; the West Virginia Department of Revenue;; Osceola, Florida, and Lake County,
Indiana. We dispute that any hotel occupancy or related tax is owed under these ordinances and are challenging the assessments
made against us. These assessments range from approximately $20,000 to approximately $58 million, and total approximately
$80 million. Some of these assessments, including a $58 million assessment from the Hawaii Department of Taxation, are not
based on historical transaction data. On several occasions, where we have received an assessment, we have been required to
provide financial security or pay the assessment to the municipality in order to seek judicial review.
Certain assessments made in these audit proceedings are administratively final and subject to judicial review. The
following is a description of the lawsuits brought by the Company challenging such final assessments.
Orbitz, LLC v. Broward County, Florida, No. 2009 CA 000126 (Circuit Court of the Second Judicial Circuit, Leon
County, Florida): On May 20, 2008, Broward County, Florida issued an estimated assessment of approximately $0.4 million
against Orbitz, LLC and $0.08 million against Internetwork Publishing Corp. On November 13, 2008, the County finalized the
assessments. On January 12, 2009, Orbitz, LLC and Internetwork Publishing Corp. filed a complaint in the Circuit Court,
Second Judicial Circuit, Leon County, Florida, against Broward County and the Florida Department of Revenue asserting that
they are not subject to the tourist development tax. On February 2, 2009, the County filed its Answer and Counterclaim. On
March 31, 2009, the County issued additional assessments of approximately $0.05 million against Orbitz, LLC and
approximately $0.03 million against Internetwork Publishing Corp. On February 28, 2011, the County issued additional
assessments of approximately $0.2 million against Orbitz, LLC and approximately $0.04 million against Internetwork
Publishing Corp. On February 24, 2010, the Circuit Court granted in part and denied in the OTCs' motion to dismiss the
County's Counterclaim dismissing Count II (unjust enrichment), Count III (conversion), and Count IV (permanent injunction).
On July 13, 2012, the Circuit Court, Second Judicial Circuit for Leon County, Florida granted partial summary judgment in
favor of the OTCs' on their affirmative claims and all of Broward County's Counterclaims. On November 12, 2012, Broward
County filed a motion for reconsideration, which was denied on January 11, 2013. On February 4, 2013, Broward County filed
a notice of appeal.
Orbitz, LLC v. Indiana Department of Revenue, No. 49T10-0903-TA-00010 (Indiana Tax Court): On May 5, 2008, the
Indiana Department of Revenue issued estimated assessments of approximately $0.2 million against Orbitz, LLC. On
November 24, 2008, the Department of Revenue confirmed the estimated assessments as its final administrative assessment.
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, the online travel companies 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