Prevails Before Sixth Circuit

Skadden achieved a key victory on behalf of Incorporated and other major Internet hotel reservation services on December 22, 2009, when the U.S. Court of Appeals for the Sixth Circuit affirmed dismissal of hotel occupancy tax claims brought by Kentucky counties against the online travel companies. The court dismissed the actions, ruling that each county's transient room tax was inapplicable to the online travel companies. The counties appealed, and the Sixth Circuit affirmed. Since 2004, dozens of cases have been brought by local governments across the United States against these Internet hotel reservation services. The Sixth Circuit joined the Fourth Circuit, which earlier last year reached the same result in construing a North Carolina county's ordinance.