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Case ID: 4494 | Family | 10/20/2005
The City of Fairview Heights, Illinois filed a class action lawsuit against companies that operate Internet travel sites for failing to reimburse it for taxes on gross receipts.
Defendants Priceline.com, Orbitz, Hotels.com, Hotwire, Cheap Tickets, Expedia, Travelnow.com, Travelocity.com, Travelweb, LowestFare.com and Site 59.com are accused of charging consumers taxes based on retail room rates, while only paying taxes on wholesale room rates--then pocketing the difference. The suit was filed in St. Clair County Circuit Court on Oct. 5. "Defendants have sold hotel rooms to the public and collected taxes on those rooms, but failed to pay the taxes due and owing to the City of Fairview Heights and other class members on these transactions," the complaint states. Fairview Heights claim the defendants are charging and collecting taxes from consumers that are not being remitted to the appropriate municipal class members They also claim in addition to the rental price of the hotel rooms, the occupants are required to pay a transient occupancy tax. According to the complaint, the defendants contract with hotels for rooms and sell the rooms to members of the public and charge and collect taxes from occupants based on the marked up rooms rates, but only remit tax amounts based on the lower negotiated rate, unlawfully retaining the difference. "All taxing authorities in the State of Illinois authorized to impose a tax upon persons engaging in the business of renting, leasing or letting rooms in a hotel or motel on the gross rental receipts from such renting, leasing or letting," are eligible to join the class. "Defendants acted willfully, wantonly, with oppression, and with a conscious disregard of the rights of plaintiff and class, such that plaintiff requests that the trier of fact, in the exercise of sound discretion, award plaintiff and the class additional damages for the sake of example and in sufficient amount to punish defendants for their conduct," the complaint states.
At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Family Cases of Interest Consumers Allege United Guaranty Residential Insurance Conceals Use of Derogatory Credit Information A national class action has been filed in Texas against insurance giant United Guaranty Residential Insurance Company on behalf of all consumers for whom United Guaranty issued a mortgage insurance policy at a disadvantageous rate due to derogatory information contained in a credit report, and who did not receive notice that derogatory information obtained from a credit report was used in setting the insurance premium. The insureds claim that United Guaranty uses credit reports to set premiums but does not provide any information to consumers when an adverse decision has been made against them based on that report. The insureds allege that this violates the federal fair credit reporting act and are seeking actual damages as well as statutory damages and declaratory relief.
The class has been certified in a nationwide lawsuit filed against Trex Company, Inc., on behalf of persons who purchased Trex decking materials between 1992 and 2004. The action alleges that Trex is defective and does not meet its marketing and warranty assertions, in violation of state consumer protection laws. Persons eligible to take part in the action may contact the attorney for the class for more information. U.S. District Judge John Corbett O’Meara ruled that the city of Detroit’s anti-ticket scalping ordinance is unconstitutional and unenforceable where sellers are offering tickets to sports and concert events for face value or less. The parties have reached a $1.6 million settlement in an action filed against Ameriquest Mortgage Company, on behalf of all persons who obtained Ameriquest, Argent Mortgage Company, Town & Country Credit Corporation; or Olympus Mortgage Company variable rate loans between June 1, 1998, and June 30, 2003, which were secured by real properties in the State of California, and who paid a prepayment charge in excess of that permitted by the California Civil Code. Persons with outstanding loans, who might still be subject to prepayment charges from these companies should also submit claim forms. Claim forms must be postmarked no later than November 19, 2004, to be considered valid. Lead-containing paints have been banned by the U.S. Environmental Protection Agency since 1978. A class action has been filed against the Louisville, Kentucky, Housing Authority on behalf of children who were allegedly exposed to toxic levels of lead when they played on soil that the Authority knew was polluted, in violation of state and federal environmental laws.
A settlement in a class action lawsuit filed two years ago by owners of condos in Mount Laurel's Stonegate community calls for the builder to install a piece of equipment to prevent water leaks from air conditioning units.
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