Carolee Okland, Jeremy Rogers, Deepak Malhotra, and Dinah Leffert, Individually and on Behalf of All Others Similarly Situated v. Travelocity.com, Inc. and Travelocity.com, LP

CourtCourt of Appeals of Texas
DecidedJune 18, 2009
Docket02-08-00260-CV
StatusPublished

This text of Carolee Okland, Jeremy Rogers, Deepak Malhotra, and Dinah Leffert, Individually and on Behalf of All Others Similarly Situated v. Travelocity.com, Inc. and Travelocity.com, LP (Carolee Okland, Jeremy Rogers, Deepak Malhotra, and Dinah Leffert, Individually and on Behalf of All Others Similarly Situated v. Travelocity.com, Inc. and Travelocity.com, LP) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Carolee Okland, Jeremy Rogers, Deepak Malhotra, and Dinah Leffert, Individually and on Behalf of All Others Similarly Situated v. Travelocity.com, Inc. and Travelocity.com, LP, (Tex. Ct. App. 2009).

Opinion

COURT OF APPEALS

SECOND DISTRICT OF TEXAS

FORT WORTH

NO. 2-08-260-CV

CAROLEE OKLAND, JEREMY APPELLANTS

ROGERS, DEEPAK MALHOTRA,

AND DINAH LEFFERT,

INDIVIDUALLY AND ON BEHALF

OF ALL OTHERS SIMILARLY

SITUATED

V.

TRAVELOCITY.COM, INC. AND APPELLEES

TRAVELOCITY.COM, LP

------------

FROM THE 342ND DISTRICT COURT OF TARRANT COUNTY

MEMORANDUM OPINION (footnote: 1)

I.  Introduction

Appellants Carolee Okland, Jeremy Rogers, Deepak Malhotra, and Dinah Leffert, individually and on behalf of all others similarly situated, appeal the trial court’s orders striking Appellants’ third amended petition, denying Malhotra’s and Leffert’s motion to intervene, and granting Appellees Travelocity.com, Inc. and Travelocity.com, LP’s (collectively “Travelocity”) plea to the jurisdiction and motion to dismiss for lack of subject matter jurisdiction.  We will affirm.

II.  Factual and Procedural Background

On January 13, 2005, Bruce Deaton, Steven Polapink, and Carolee Okland filed this putative class action lawsuit against Travelocity, alleging claims for violation of the Texas Deceptive Trade Practices Act (“DTPA”), conversion, imposition of a constructive trust, and money had and received.  The original class action petition alleged that customers who reserve hotel rooms through Travelocity are automatically assessed a “Taxes and Fees” charge.  According to the petition, the “‘Taxes’ that Travelocity levies against customers are in amounts neither required by, nor tendered to, local or state taxing authorities, and [the taxes] are not directly related to what Travelocity actually contracts to pay the hotel in taxes at the time it purchases the room.”  Moreover, the “Fees” charged “do not relate to specific services, but instead serve as a hidden and/or misrepresented revenue stream on top of the revenue generated from the difference between what Travelocity charges for a room and what it actually pays for that room.”  The original class action petition alleged that the plaintiffs booked rooms through Travelocity during the class period and were charged “taxes and fees” and, consequently, “excessive room rates.” (footnote: 2)

On March 20, 2006, the trial court signed an order of nonsuit in which it noted and confirmed that Polapink had nonsuited his claims against Travelocity.  On August 11, 2006, the trial court signed an order of nonsuit noting and confirming that Deaton had nonsuited his claims against Travelocity.  This left Okland as the sole remaining named plaintiff until—according to Travelocity—Jeremy Rogers joined the lawsuit as a putative class representative on April 9, 2007. (footnote: 3)

On August 8, 2007, Appellants filed a third amended class action petition listing Okland, Rogers, Leffert, and Malhotra as named plaintiffs and asserting an additional cause of action for breach of contract. (footnote: 4)  Travelocity thereafter filed a motion to strike Appellants’ third amended class action petition, arguing that the petition unfairly surprised and prejudiced them and demonstrated a lack of diligence by Appellants.  The trial court granted Travelocity’s motion on November 30, 2007.

On February 14, 2008, Travelocity filed its plea to the jurisdiction and motion to dismiss for lack of subject matter jurisdiction, arguing that Okland, the only remaining originally-named plaintiff, lacked standing to assert her statutory and common law claims because she did not pay for the transactions made the basis of her claims and, therefore, suffered no injury capable of redress by the lawsuit.  Travelocity argued that because Okland lacked standing at the time suit was filed, the trial court lacked subject matter jurisdiction over all of the class claims, necessitating dismissal of the entire suit.  Travelocity additionally and alternatively argued that Rogers lacked standing because the only basis for the claims he asserted against Travelocity were business trips for which he was later reimbursed.

Before the trial court ruled on Travelocity’s plea to the jurisdiction, Leffert and Malhotra filed a motion to intervene in the lawsuit, contending that their claims regarded the same facts as those of Okland and Rogers and that their intervention would not result in any prejudice to Travelocity.  The trial court denied the motion to intervene.  That same day, the trial court indicated orally that Travelocity’s plea to the jurisdiction and motion to dismiss as to Okland was granted.  The trial court gave Rogers additional time to demonstrate that he used Travelocity to book a personal trip, but it ultimately signed an order granting Travelocity’s plea to the jurisdiction and motion to dismiss for lack of subject matter jurisdiction in its entirety.  This appeal followed.

III.  Travelocity’s Plea to the Jurisdiction and Motion to Dismiss

for Lack of Subject Matter Jurisdiction

In their third issue, Appellants argue that the trial court erred by granting Travelocity’s plea to the jurisdiction and motion to dismiss for lack of subject matter jurisdiction.  Appellants argue that both Okland and Rogers have standing to assert their claims for violation of the DTPA, breach of contract, imposition of a constructive trust, and money had and received.  Travelocity replies that the entire lawsuit was appropriately dismissed because Okland lacks standing.

A. Standard of Review

A plea to the jurisdiction is a dilatory plea, the purpose of which is to defeat a cause of action without regard to whether the claims asserted have merit.   Bland ISD v. Blue , 34 S.W.3d 547, 554 (Tex. 2000).  Whether the trial court has subject matter jurisdiction is a question of law that we review de novo.   Tex. Dep’t of Parks & Wildlife v. Miranda , 133 S.W.3d 217, 226 (Tex. 2004); Tex. Natural Res. Conservation Comm’n v. IT-Davy , 74 S.W.3d 849, 855 (Tex. 2002).

The determination of whether a trial court has subject matter jurisdiction begins with the pleadings.   Miranda , 133 S.W.3d at 226.  The plaintiff has the burden to plead facts affirmatively showing that the trial court has jurisdiction.   Tex. Ass’n of Bus. v. Tex. Air Control Bd. , 852 S.W.2d 440, 446 (Tex. 1993) .  We construe the pleadings liberally in favor of the pleader, look to the pleader’s intent, and accept as true the factual allegations in the pleadings.   See Miranda , 133 S.W.3d at 226, 228; City of Fort Worth v. Crockett , 142 S.W.3d 550, 552 (Tex. App.—Fort Worth 2004, pet. denied) (op. on reh’g).

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Carolee Okland, Jeremy Rogers, Deepak Malhotra, and Dinah Leffert, Individually and on Behalf of All Others Similarly Situated v. Travelocity.com, Inc. and Travelocity.com, LP, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carolee-okland-jeremy-rogers-deepak-malhotra-and-dinah-leffert-texapp-2009.