HomeMy WebLinkAboutREOLUTION AUTHORIZING THE PARTIAL SETTLEMENT OF THE CLASS ACTION LAWSUIT AGAINST ONLINE TRAVEL COMPANIES IN CITY OF ROME,ET,A. V HOTELS.COM,ET.ALRESOLUTION AUTHORIZING THE PARTIAL SETTLEMENT OF THE
CLASS ACTION LAWSUIT AGAINST ONLINE TRAVEL COMPANIES IN
CITY OF ROME, ET. AL, V. HOTELS.COM, ET. AL
WHEREAS, on November 18, 2005, Plaintiffs City of Rome, Hart County and City of
Cartersville, individually and on behalf of a statewide putative class of all cities and counties in
the State of Georgia which had enacted hotel excise tax ordinances pursuant to O.C.G.A. § 48-
13-50, et. seq. (the "Enabling Act "), filed a Complaint captioned City of Rome, et. al. v.
Hotels.com, et. al, Civil Action No. 4 05 -CV- 249 -HLM, Northern District of Georgia, Rome
Division (the "Lawsuit ") against the Defendants; and
WHEREAS, on June 8, 2006, Plaintiffs filed an Amended Complaint, inter alia, adding
additional named representatives, to -wit: City of Hartwell, Georgia; Cobb County, Georgia; City
of Cedartown, Georgia; City of Dalton, Georgia; Gwinnett County, Georgia; Fulton County,
Georgia; City of Rockmart, Georgia; City of East Point, Georgia; City of Warner Robins,
Georgia; City of Tybee Island, Georgia; DeKalb County, Georgia; City of College Park,
Georgia; City of Alpharetta, Georgia; City of Macon, Georgia; Augusta - Richmond County,
Georgia; Clayton County, Georgia (collectively, including City of Rome, Hart County and City
of Cartersville, "Plaintiffs" and together with Defendants, the "Parties "); and
WHEREAS, the local governments alleged in the Lawsuit that certain online sellers of
hotel rooms, such as Hotels.com, Hotwire, Priceline, Orbitz, Travelocity and Expedia (Online
Travel Companies "OTCs ") are, and have been, negotiating discount rates with local hotels, and
then selling rooms at marked up rates to consumers but paying excise taxes to local governments
based on the discounted rates; and
WHEREAS, the Parties in the Lawsuit desire to compromise and settle certain issues and
claims relating to the allegations made in the Lawsuit concerning certain prospective injunctive
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relief and Defendants' alleged obligations, rights and duties concerning the payment of Hotel
Tax to the Class after May 16, 2011 and going forward as set forth herein, while continuing to
litigate all issues regarding: (i) Defendants' alleged obligation to pay Hotel Tax, damages,
interest, penalties, and attorneys' fees to the Class for hotel room transactions that were booked
through a Defendant for occupancy of hotel rooms within the Class jurisdictions prior to and
including May 16, 2011; (ii) whether the Plaintiffs are entitled to additional recoveries based on
Breakage as defined in the Class Partial Settlement Agreement, cancellation fees and extra
person fees; and (iii) whether the Plaintiffs are entitled to additional recoveries based on the
taxable amount(s) being different than the Room Rate (as defined in said Class Partial Settlement
Agreement) after May 16, 2011;
WHEREAS, Augusta, Georgia, a/k/a Augusta - Richmond County, Georgia and the
Consolidated Government of Augusta - Richmond County, Georgia, as one of the lead Plaintiffs
and Class Representatives in the Lawsuit believe that the terms of the partial settlement set forth
in the attached Class Partial Settlement Agreement are fair, reasonable and adequate; and
NOW, THEREFORE, BE IT RESOLVED, that the Augusta- Richmond County
Commission, as the governing authority of Augusta, Georgia, hereby agrees to and approves the
attached Class Partial Settlement Agreement, and hereby authorizes the Mayor of Augusta be
authorized to execute the Class Partial Settlement Agreement,
IT IS SO RESOLVED, this the 2-,i of t 47 -C , 2012.
AUGUSTA, GEORGIA
BY: � �
(� ,-- — , Mayor
279907 /JAD /Resolution Page 2
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