Freeman v. Priceline.com CA2/2

CourtCalifornia Court of Appeal
DecidedNovember 7, 2013
DocketB242653
StatusUnpublished

This text of Freeman v. Priceline.com CA2/2 (Freeman v. Priceline.com CA2/2) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Freeman v. Priceline.com CA2/2, (Cal. Ct. App. 2013).

Opinion

Filed 11/7/13 Freeman v. Priceline.com CA2;/2 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION TWO

MICHAEL FREEMAN, B242653

Plaintiff and Appellant, (Los Angeles County Super. Ct. No. BC444510) v.

PRICELINE.COM, INC., et al.,

Defendants and Respondents.

APPEAL from a judgment of the Superior Court of Los Angeles County. Elihu M. Berle, Judge. Affirmed. Law Office of Michael Geller Inc., Michael S. Geller and Richard A. Steward for Plaintiff and Appellant. Skadden, Arps, Slate, Meagher & Flom, Stacy R. Horth-Neubert, Jane Klinger; Sedgwick, Michael R. Davisson and Amand K. Mines for Defendant and Respondent Priceline.com, Inc. Jill A. Martin for Defendants and Respondents Trump Ruffin Tower I LLC and Trump Ruffin Commercial LLC.

****** The trial court granted summary judgment in favor of defendants and respondents Priceline.com, Inc. (Priceline) and Trump Ruffin Tower I LLC and Trump Ruffin Commercial LLC (collectively Trump) on claims for violation of the Consumers Legal Remedies Act (Civ. Code, § 1750 et seq.) (the CLRA) and violation of the Unfair Competition Law (Bus. & Prof. Code, § 17200 et seq.) (the UCL) brought by plaintiff and appellant Michael Freeman. The trial court simultaneously denied appellant’s motion for summary adjudication. Using Priceline, appellant booked a hotel room at a Trump property in Las Vegas, Nevada, and sought to hold Priceline and Trump liable for allegedly failing to disclose that he would be required to pay a resort fee and that Priceline received a service fee as part of the reservation price. We affirm. The undisputed evidence established Priceline disclosed that resort fees charged by hotels were excluded from the total charges a customer pays to Priceline and that the sum paid to Priceline included an amount designated as a service fee. In view of the disclosures, there was no triable issue of fact showing that Priceline made a false or misleading representation or omission, or that it included an unconscionable provision in its terms and conditions. Nor was there a triable issue of fact as to whether it engaged in an unfair business practice. The evidence likewise failed to establish any basis to hold Trump liable. FACTUAL AND PROCEDURAL BACKGROUND Priceline’s Reservation System. Priceline is an online travel company that allows customers to make travel arrangements, including hotel reservations, through its Web site. Priceline contracts with hotels to facilitate reservations at rates the hotels determine, in their discretion, whether they will accept. Priceline cannot require a hotel to make a room available at any particular rate. To make reservations, customers have the option of using Priceline’s Name Your Own Price (NYOP) service or the Price Disclosed service. Customers can achieve substantial savings through the NYOP service by receiving a deeply discounted rate not available through more traditional channels.

2 A customer making an NYOP hotel booking on the Priceline Web site requests a hotel by selecting the dates of stay, the general location of the hotel and the quality or “star rating” of the hotel. The customer then names the price he or she is willing to pay for a hotel that fits the selected requirements. After entering that information, the customer is shown a page entitled “Please Review Your Request,” a page known internally at Priceline as the “Contract Page,” that displays to the customer the details of the request—the desired star level, dates, number of nights and price. At the bottom of the details is an amount designated as “Total Charges,” comprised of the offered price multiplied by the number of nights and rooms requested, plus an amount reflecting “Taxes and Service Fees.” The “Total Charges” figure is the amount that will be charged to the customer’s credit card if the requested price is accepted. Directly below the amount quoted as “Total Charges,” the Contract Page contains a heading in large, bold, blue font entitled “Important Information,” followed by five bullet points in the same sized font as the charges. The fourth bullet point states: “The reservation holder must present a valid photo ID and credit card at check-in. The credit card is required for any additional hotel specific service fees or incidental charges or fees that may be charged by the hotel to the customer at checkout. These charges may be mandatory (e.g., resort fees) or optional (parking, phone calls or minibar charges) and are not included in your offer price.” The term “charges” in that bullet point is a hyperlink,1 and clicking on it leads to a single page captioned “Charges for Taxes and Fees” that provides in part: “Depending on the property you stay at, you may also be charged (i) certain mandatory hotel specific service fees, for example, resort fees (which typically apply to resort type destinations and, if applicable, may range from $10 to $40 per day), energy surcharges, newspaper delivery fees, in-room safe fees, tourism fees, or housekeeping fees and/or (ii) certain optional incidental fees, for example, parking charges, minibar charges, phone calls,

1 A hyperlink is an image or section of text referring to another document on the Internet and is in essence a system which takes people between Web sites or web pages.

3 room service and movie rentals, etc. These charges, if applicable, will be payable by you to the hotel directly at checkout. When you check in, a credit card or, in the hotel’s discretion, a debit card, will be required to secure these charges and fees that may incur during your stay. Please contact the hotel directly as to whether and which charges and service fees apply.” Clicking on the hyperlink phrase “Taxes and Service Fees” just above “Total Charges” on the Contract Page likewise leads to the same page that informs the customer in a separate paragraph: “In connection with facilitating your hotel transaction, the charge to your debit or credit card will include a charge for Taxes and Fees. The charge includes an estimated amount to recover the amount we pay to the hotel in connection with your reservation for taxes owed by the hotel including, without limitation, sales and use tax, occupancy tax, room tax, excise tax, value added tax and/or other similar taxes. In certain locations, the tax amount may also include government imposed service fees or other fees not paid directly to the taxing authorities but required by law to be collected by the hotel. The amount paid to the hotel in connection with your reservation for taxes may vary from the amount we estimate and include in the charge to you. The balance of the charge for Taxes and Fees is a fee we retain as part of the compensation for our services and to cover the costs of your reservation, including, for example, customer service costs. The charge for Taxes and Fees varies based on a number of factors including, without limitation, the amount we pay the hotel and the location of the hotel where you will be staying, and may include profit that we retain.” On the Contract Page, the final sentence toward the bottom of the page provides: “I have read, accept and agree to abide by Priceline.com’s terms and conditions and privacy policy.” The customer must place his or her initials in a box next to this sentence before proceeding to the next screen page, where the NYOP customer enters credit card information and submits an offer. A reservation cannot be completed unless the customer places his or her initials next to the final sentence.

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Freeman v. Priceline.com CA2/2, Counsel Stack Legal Research, https://law.counselstack.com/opinion/freeman-v-pricelinecom-ca22-calctapp-2013.