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Business Law
Unfair Competition

City of San Antonio, Texas, on behalf of itself and all other similarly situated Texas Municipalities v. Hotels.Com, L.P., et al.

Published: Apr. 20, 2013 | Result Date: Apr. 5, 2013 | Filing Date: Jan. 1, 1900 |

Case number: 5:06-cv-00381-OLG Bench Decision –  $55,000,000

Facts

The City of San Antonio, Texas filed a class action on behalf of itself and all other similarly situated Texas Municipalities against Hotels.Com, L.P. and several other web-based hotel booking companies for violating local taxes in failing to remit taxes to the Plaintiffs from sales of hotel room occupancy within the City and other municipalities pursuant to local ordinances.

Contentions

PLAINTIFFS' CONTENTION: Plaintiff contended that defendants had not been paying their fair share in hotel occupancy tax.

DEFENDANTS' CONTENTIONS:
Plaintiffs contended that defendants were obligated to collect and remit local hotel occupancy taxes on the amouts they charged for their travel services.

Damages

The plaintiffs sought about millions in back taxes.

Result

U.S. District Judge Orlando Garcia entered judgment against defendants for more than $55 million in back taxes.


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