Expedia, Hotels.com Try to Escape Overcharging Class Action Lawsuit

Three major travel websites, Travelscape, Hotels.com, and Expedia argue that a class action lawsuit alleging they charge excessive fees and taxes should be tossed from federal court in South Carolina.

Lead plaintiff Joseph Church, a resident of Charleston, S.C., alleges in his class action lawsuit that he and other travelers were overcharged for fees and taxes and the travel companies scooped up the excess.

The plaintiff says that Travelscape and Hotels.com, subsidiaries of Expedia, partner with the same travel website, Reservations.com, that allegedly illegally charges the excess fees and taxes.

According to the class action lawsuit, Reservations.com “receives its hotel reservations data from Expedia and its subsidiaries. Defendants charge consumers a $14.99 service fee for each booking made on the Website and illegally over-charge for taxes and local government fees and retain the overcharge as additional revenue.”

The partner websites argue that they should not be included in the Expedia class action lawsuit because the South Carolina court lacks jurisdiction and because they have no part in the alleged illegal charges.

“Plaintiff Joseph Church claims he was overcharged when he booked a reservation for a Florida hotel,” states the motion for dismissal. “The website where he booked that reservation, www.reservations.com, is owned and run by RTI. The Expedia Defendants are mere bystanders. Mr. Church does not allege any facts showing that the Expedia Defendants have any connection with the commercial dispute between him and RTI: they do not own the website, do not operate it, have no ownership interest in RTI, and have no control over RTI.”

Reservations.com has also tried to exit the class action lawsuit. The website argues that the South Carolina federal court does not have jurisdiction over the company.

“Today, nearly every business operates a website, and most websites are available to anyone with an internet connection,” said the website in its February motion to dismiss. “If [Reservations.com] can be said to be essentially at home by operating an internet business, then it can be dragged into court in any state.”

The website also pointed out that users are required to agree to an arbitration clause when they use the website to book travel plans. The arbitration clause is mandatory, said Reservations.com, and the plaintiff should have to proceed pursuant to the Federal Arbitration Act.

Church seeks to represent all individuals and entities who booked and paid for a hotel room reservation using Reservations.com since Jan. 1, 2014 and were overcharged for taxes and fees.

The plaintiff alleges Reservations.com, as well as Travelscape, Hotels.com, and Expedia, are in breach of contract, unjust enrichment, conversion, and misappropriation.

Church is seeking reimbursement, as well as punitive damages, along with attorneys’ fees and costs.

The plaintiff is represented by Ian W. Freeman and John P. Linton Jr. of Walker Gressette Freeman & Linton LLC, and James L. Ward Jr. of McGowan Hood & Felder LLC.

The Expedia, Travelscape, Hotels.com Overcharge Class Action Lawsuit is Joseph Church, et al. v. Hotels.com LP, et al., Case No. 2:18-­cv-­00018, in the U.S. District Court of South Carolina.