Soule v. Hilton Worldwide, Inc.

1 F. Supp. 3d 1084, 2014 U.S. Dist. LEXIS 25475, 2014 WL 794801
CourtDistrict Court, D. Hawaii
DecidedFebruary 26, 2014
DocketCiv. No. 13-00652 ACK-RLP
StatusPublished
Cited by17 cases

This text of 1 F. Supp. 3d 1084 (Soule v. Hilton Worldwide, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Hawaii primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Soule v. Hilton Worldwide, Inc., 1 F. Supp. 3d 1084, 2014 U.S. Dist. LEXIS 25475, 2014 WL 794801 (D. Haw. 2014).

Opinion

ORDER GRANTING IN PART AND DENYING IN PART DEFENDANT’S MOTION TO DISMISS AND DENYING PLAINTIFF’S MOTION TO STRIKE

PROCEDURAL BACKGROUND

ALAN C. KAY, Senior District Judge.

On November 5, 2013, Plaintiff Kathleen Soule (“Plaintiff’ or “Soule”) filed a First Amended Complaint (“FAC”) on behalf of herself and all others similarly situated against Hilton Worldwide, Inc. and Doe Defendants 1-50 (“Defendant” or “Hilton”) in the Circuit Court of the First Circuit, State of Hawaii. Notice of Removal at ¶ 2, [1087]*1087ECF No. 1. Hilton removed to this Court on November 27, 2013. Notice of Removal, ECF No 1.

Plaintiffs FAC pleads two claims arising out of alleged wrongs suffered by consumers who reserved Hilton hotel accommodations through Hilton.com and other third-party websites: (1) violation of Hawaii Revised Statutes § 480 et sect.1; and (2) unjust enrichment. FAC at 14, ¶¶ 75-90.

Hilton filed the instant Motion to Dismiss (“Motion” or “Def.’s Mot”) on December 4, 2013, pursuant to Federal Rules of Civil Procedure 8, 9(b) and 12(b)(6). ECF No. 9. On January 28, 2014, Plaintiff filed an Opposition to Defendant’s Motion (“PL’s Opp.”). ECF No. 22. Also on January 28, 2014, Plaintiff filed a motion to strike the declaration of Kathryn O’Leary and Exhibit 1 attached thereto, which were filed in support of Defendant’s Motion. ECF No. 23. The Court issued a minute order stating that “Plaintiffs Motion to Strike will be considered at the hearing for the underlying Motion to Dismiss” and “Defendant’s opposition to Plaintiffs motion to strike should be filed by the due date for its reply to the underlying Motion to Dismiss.” ECF No. 25. On February 4, 2014, Defendant filed its Reply. ECF No. 26. Also on February 4, 2014, Defendant filed an opposition to Plaintiffs Motion to Strike. ECF No. 27.

This Court held a hearing regarding Defendant’s Motion on February 18, 2014.

FACTUAL BACKGROUND2

A. Hilton’s Resort Fee

Hilton owns and operates 3,900 hotels around the world, including eight in Hawaii. FAC at 8-9, ¶¶ 31-32. At some of its Hawaiian hotels, Hilton charges a mandatory “resort fee” in addition to the disclosed room rate. Id. at 9, ¶¶ 33-34. Hilton purports to charge this fee for “amenities,” which may include local and toll-free phone calls, high-speed internet, wireless internet connections, access to movies and games, and audio tours. Id. ¶ 35 & Ex. A at 2.

The proposed class is defined as: “All consumers who, within the applicable statute of limitations preceding the filing of this action to the date of class certification, were charged one or more resort fees at a Hilton property in the state of Hawaii (the ‘Class’).” Id. at 5, ¶ 19. Plaintiff and all class members were charged the resort fee after booking a hotel through Hilton’s website, Hilton.com, or other websites. Id. at 9, ¶ 36. Hilton uses a uniform system of disclosures and procedures for reservations at every one of its Hawaiian properties. Id. ¶ 37. On Hilton’s and third-party websites, consumers enter either manually or through a drop-down box their destination and requested lodging dates. Id. ¶ 38. Consumers are then directed to a booking page which displays room options and prices. Id. After book[1088]*1088ing a hotel room, Hilton typically sends consumers a confirmation email breaking down the “Rate Per Night” to give a “Total for Stay.” Id. ¶ 39 & Ex. A.

On January 31, 2013, Soule made a res7 ervation through Hilton.com for a two-night stay at the Hilton Hawaiian Village Waikiki Beach Resort (“Waikiki Resort”). FAC at 9, ¶ 40. Hilton quoted her a rate of $237.15 per night, plus taxes of $66.21, for a total of $540.51. Id. at 10, ¶ 41. After booking the room through Hilton’s website,3 Soule saw the following in a confirmation email from Hilton4:

Rate Information:
Rate Type:
ANY WEEKEND ANYWHERE
Rate per night: 237.15 USD
Total for Stay per Room:
Rate 474.30 USD
Taxes 66.21 USD
Total 540.51 USD
540.51 USD Total for Stay:
Includes estimated taxes and service charges. (Gratuities not included.)
Tax:
• There is a 4.71% per room per night tax and a 9.25% per room per night secondary tax.
Resort Charges:
• Daily Resort Charge of $25.00 plus tax per room, per night will be added to the room rate and includes: Local, Toll-Free and Credit Card calls (no access fee); High Speed Internet access/WIFI access; PlayStation 3 with Unlimited Movies and Games; Hawaiian Cultural Activities and Resort Audio Tour.
Additional Charges:
• Valet parking: $33.00/night Self parking: 27.00/night
Rate Rules and Cancellation Policy:
• Your reservation is non-refundable, non-cancelable and non-changeable.
• Your credit card will be charged immediately for the total amount shown for the entire stay as reserved.

Id. Ex. A at 2.

Soule booked the room using Hilton’s [1089]*1089“Any Weekend Anywhere” sale rate. Id. Per the Any Weekend Anywhere “Rate Rules and Cancellation Policy,” Hilton charged Soule’s credit card $540.41 immediately after she booked the Waikiki Resort room online. Id. As indicated above in the confirmation email, the Rate Rules and Cancellation Policy also stated that Plaintiffs reservation was “non-cancela-ble.” Id. When Soule checked out of the hotel, Hilton imposed a resort fee of $25.00 per night in addition to the amount she already had paid to Hilton for the reservation. Id. at 10, ¶ 45.

B. FTC Warning Letter5

On November 26, 2012, the Federal Trade Commission (“FTC”) sent a “Warning Letter” to 22 hotel operators warning that their online reservation sites may violate the law by providing a misleading estimate of what consumers can expect to pay for their hotel rooms. FAC Ex. B. The Warning Letter notes consumer complaints about mandatory resort fees. Id. at 1. Specifically, “consumers complained that they did not know that they would be required to pay resort fees in addition to the quoted hotel room rate” and only learned of the fees after they arrived at the hotel. Id. After reviewing a number of online hotel reservation sites, the Warning Letter states that some hotels do not adequately inform consumers about the existence of resort fees. Id. The FTC concludes that these practices may violate the law by misrepresenting the price consumers can expect to pay and, accordingly, online hotel reservation sites should in-elude in the quoted total price any mandatory resort fees. Id. at 2.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
1 F. Supp. 3d 1084, 2014 U.S. Dist. LEXIS 25475, 2014 WL 794801, Counsel Stack Legal Research, https://law.counselstack.com/opinion/soule-v-hilton-worldwide-inc-hid-2014.