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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 279907 /JAD /Resolution Page 1 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 ATTE • C1er S G • ! • EST V • • Nt <> • �j �j • i • 1996 279907 /JAD /Resolution Page 3