California Court of Appeal

In proceedings arising from city's imposition of a "transient occupancy tax" against a number of online travel companies (OTC) in the collective amount of more than $21 million, city's petition for writ of mandate challenging the overruling of its demurrers claiming that the OTCs should abide by the "pay first" rule to challenge the tax is denied as: 1) the city cannot invoke article XIII, section 32 of the California Constitution in this case because that constitutional provision applies only to actions against the state or an officer of the state; and 2) there are no alternative legal grounds upon which the city can impose a "pay first" requirement upon the OTCs in this case.

Appellate Information

• Decided 11/24/2009
• Published 11/24/2009

Judges

• CHAVEZ, J.

Court

• California Court of Appeal

Counsel

• For Appellant:
  
• Kiesel, Boucher & Larson, LLP, Paul R. Kiesel, Beverly Hills, and William L. Larson;  Baron & Budd, P.C., Beverly Hills, and Patrick J. O'Connell;  McKool Smith, Steven D. Wolens and Gary Cruciani;  City of Anaheim, Cristina L. Talley, City Attorney, and Moses W. Johnson, Assistant City Attorney, for Petitioners., Skadden, Arps, Slate, Meagher & Flom LLP, Darrel H. Hieber, Stacy R. Horth-Neubert and Daniel M. Rygorsky, Los Angeles, for Real Parties in Interest, Priceline.com Incorporated, Lowestfare.com LLC and Travelweb LLC., Jones Day, Elwood Lui, Brian D. Hershman and Erica L. Reilley, Los Angeles, for Real Parties in Interest, Expedia, Inc., Hotels.com LP, Hotels.com GP, LLC, Hotwire.com, Inc., and Travelnow.com, Inc., McDermott Will & Emery LLP, Jeffrey A. Rossman, Elizabeth B. Herrington and Matthew Oster, Los Angeles, for Real Parties in Interest, Orbitz Group., Kelly Hart & Hallman LLP and Brian S. Stagner;  K & L Gates LLP, William B. Grenner, Irvine, and Nathaniel Curral, for Real Parties in Interest, Travelocity.com Inc., Travelocity.com LP and Site59.com LLC., Burke, Williams & Sorensen, LLP, Amy E. Hoyt and Erica L. Ball, Riverside, for League of California Cities as Amicus Curiae on behalf of Petitioners.


• For Appellees:
  
• No appearance for Respondent.