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Ga. court revives Web hotel price scheme challenge
Breaking Legal News |
2009/03/23
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A ruling by Georgia's top court has revived a lawsuit by the city of Atlanta claiming it's been shortchanged out of "untold" millions in taxes by online travel companies.
The Georgia Supreme Court ruling Monday throws out an appeals court's dismissal of the lawsuit and sends it back to a lower court.
Atlanta claims Travelocity, Orbitz, Expedia and 14 other online travel companies owe millions in unpaid taxes. Similar challenges have been filed by Los Angeles, Philadelphia, Miami, Chicago and Branson, Mo. The lawsuits challenge pricing schemes in which consumers are charged a higher price than what the sites pay hotels for the rooms, allowing the sites to pocket service fees. The taxes are paid on that cheaper rate — and cities say they're deprived of millions in revenues. |
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Class action or a representative action is a form of lawsuit in which a large group of people collectively bring a claim to court and/or in which a class of defendants is being sued. This form of collective lawsuit originated in the United States and is still predominantly a U.S. phenomenon, at least the U.S. variant of it. In the United States federal courts, class actions are governed by Federal Rules of Civil Procedure Rule. Since 1938, many states have adopted rules similar to the FRCP. However, some states like California have civil procedure systems which deviate significantly from the federal rules; the California Codes provide for four separate types of class actions. As a result, there are two separate treatises devoted solely to the complex topic of California class actions. Some states, such as Virginia, do not provide for any class actions, while others, such as New York, limit the types of claims that may be brought as class actions. They can construct your law firm a brand new website and help you redesign your existing law firm site to secure your place in the internet. |
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