SUBSTITUTE                                                                                                  ADOPTED - JANUARY 27, 2009

                                                                                                            Agenda Item No. 22

Introduced by the County Services and Finance Committees of the:

INGHAM COUNTY BOARD OF COMMISSIONERS

RESOLUTION APPROVING ENTERING INTO AN AGREEMENT WITH KELLEY CAWTHORNE, PLLC AND JOHN CRONGEYER, ESQ. TO JOIN IN A CLASS ACTION LAWSUIT AGAINST ON-LINE HOTEL BOOKING COMPANIES

RESOLUTION #09-010

WHEREAS, on-line hotel booking companies purchase blocks of rooms at area hotels at a discounted rate and book the rooms on-line at a higher rate; and

WHEREAS, the on-line hotel booking companies pay the County hotel excise tax dollars at the discounted rate, rather than the rate actually charged for the rooms; and

WHEREAS, the Ingham County Treasurer requests that the County join with the law firms of Kelley Cawthorne, PLLC and John Crongeyer, Esq. in a proposed class action hotel lawsuit against on-line hotel booking companies to recoup some of these tax dollars; and

WHEREAS, if this is approved by the Board, the County would be entitled to make a claim for the difference in hotel excise tax dollars collected by the on-line hotel booking companies and the tax dollars actually paid to the County by these companies; and

WHEREAS, the County Attorney has reviewed the proposed litigation arrangement; and

WHEREAS, the County will incur no costs by participating in this class action lawsuit.

THEREFORE BE IT RESOLVED, that the Board of Commissioners authorizes entering into an agreement with Kelley Cawthorne, PLLC and John Crongeyer, Esq. to join with others in a Class Action lawsuit against on-line hotel booking companies for the purpose of making a claim for tax dollars, including without limitation hotel excise taxes pursuant to State of Michigan Public Act 263 of 1974, MCL 141.861, et seq.

BE IT FURTHER RESOLVED, that fees and expenses incurred by Kelley Cawthorne, PLLC and John Crongeyer, Esq. will be paid out of the proceeds, if any, obtained in the Class Action on behalf of Ingham County and other class members in the amounts and conditions as determined by the Court in the Class Action.

BE IT FURTHER RESOLVED, that if a Class Action is not certified by the Court, in no event shall counsel fees exceed one-third of any proceeds and if there are no proceeds, the County is not responsible for any legal fees and expenses related to this action.

SUBSTITUTE                                                                                                ADOPTED - JANUARY 27, 2009

                                                                                                Agenda Item No. 22

RESOLUTION #09-010

BE IT FURTHER RESOLVED, that the Board Chairperson is authorized to sign any necessary agreements upon approval as to form by the County Attorney.

COUNTY SERVICES:  Yeas:  Celentino, Koenig, Holman, Copedge, Grebner, Vickers

    Nays:    None               Absent:  None         Approved 1/20/09

FINANCE:  Yeas:  Grebner, Bahar-Cook, Tennis, Davis, Dougan

    Nays:  None                 Absent:  Nolan       Approved 1/21/09