Priceline settles with Fairview Heights; Orbitz remains as last defendant in room tax case

By Steve Korris | Feb 19, 2009



EAST ST. LOUIS – Fairview Heights and online travel agent Priceline have resolved a dispute over hotel room taxes, leaving Orbitz as the last defendant in the case.

Richard Burke of St. Louis, representing Fairview Heights, reported on Feb. 11 that the city settled with Priceline and two subsidiaries, Lowest Fare and Travelweb.

U.S. District Judge David Herndon signed an order Feb. 12, dismissing all three.

Fairview Heights sued Orbitz, Priceline and other online travel agents in 2005, claiming they owed taxes on rooms they booked.

Fairview Heights sought to certify a class action on behalf of every city in Illinois that collects room taxes except Chicago.

Last year Herndon denied class certification, leaving Fairview Heights to pursue its claims alone.

The city has settled with every defendant but Orbitz and three of its subsidiaries, Trip Network, Travelport America and Internetwork Publishing.

More News

The Record Network