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Presentation to the Board of County Commissioners June 29, 2010

Orange County, Florida and Martha O. Haynie, Orange County Comptroller, vs. Expedia, Inc., Orbitz, LLC and Orbitz, Inc. (“Dot.Com Case”). Presentation to the Board of County Commissioners June 29, 2010. Case Filed. County files a declaratory action lawsuit against Dot.Coms

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Presentation to the Board of County Commissioners June 29, 2010

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  1. Orange County, Florida and Martha O. Haynie, Orange County Comptroller, vs. Expedia, Inc., Orbitz, LLC and Orbitz, Inc. (“Dot.Com Case”) Presentation to the Board of County Commissioners June 29, 2010

  2. Case Filed • County files a declaratory action lawsuit against Dot.Coms • Theory is that Dot.Coms are not paying the full amount of tourist development taxes (TDT) • Dot.Coms acquire rooms at a wholesale room rate but they are sold to customers at a higher retail rate • County seeks legal determination that Dot.Coms owe TDT (taxes) on retail rate

  3. Dot.Com Case • County and Comptroller retain outside counsel • County vs. the “Dot.Coms” • Larry Brown of Brown, Garganese, Weiss & D’Agresta, P.A. retained • Retained at an hourly rate rather than a contingent fee

  4. Status of Dot.Com Case • Filed in 2006 • Pending in Business Division of Circuit Court • County feels case can be decided as a matter of law • Tourist Development law sets forth obligation to remit the tax • Summary Judgment appropriate – August 2010 Hearing

  5. Legal Effort to Date • Research law • Retain experts • Draft pleadings • Successfully appeal an adverse ruling to 5th District Court of Appeal • File Motion for Summary Judgment with supporting affidavits • Participate in discovery

  6. Case To Be Set for Trial • This case will be set for trial at an August 9, 2010 hearing • If Summary Judgment is successful, then Defendants may appeal • If summary judgment is denied, then the case will be set for trail in 2011 • In any event, outside counsel must prepare for trial

  7. Critical Moment in Litigation • Critical time in litigation • Significant time by law firm • Prepare for Summary Judgment Motion Hearing • Responsive Pleadings to Defendants • Participate in discovery filed by Defendants

  8. Invoice Review • The County Attorney and Comptroller’s General Counsel are lead coordinators with outside counsel • I began reviewing invoices from the firm in February, 2008.

  9. Invoice Review Continued • Contract amended by Purchasing & Contracts Division to name me as contact under the contract with County • Invoices reviewed by me, Comptroller’s General Counsel and Convention Center Accounts Payable staff

  10. Requested Action Authorize up to $300,000.00 in additional attorneys fees and costs for prosecution of matter determining County’s entitlement to past due, unpaid tourist development taxes

  11. Orange County, Florida and Martha O. Haynie, Orange County Comptroller, vs. Expedia, Inc., Orbitz, LLC and Orbitz, Inc. (“Dot.Com Case”) Presentation to the Board of County Commissioners June 29, 2010

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