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City of Atlanta v. Hotels.com LP

The City of Atlanta's claim for conversion of monies allegedly owed to the City in the way of hotel occupancy taxes collected by online travel companies but not remitted failed because such property was not subject to a civil action for conversion.

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This is the latest chapter in litigation between the City of Atlanta, Georgia the City and several online travel companies OTCs regarding occupancy taxes due on hotel rooms in the City that are booked by customers through the OTCs pursuant to contracts between the OTCs and hotels. In earlier proceedings, our Supreme Court affirmed the trial court’s summary judgment rulings on most of the claims brought by the City against the OTCs. City of Atlanta v. Hotels.com, 289 Ga. 323 710 SE2d 766 2011. This appeal challenges the trial court’s grant of summary judgment to the OTCs on the two remaining claims in the case: conversion and breach of trust. We affirm the grant of summary judgment because the undisputed evidence shows that the City seeks to recover property not subject to a conversion claim and because earlier proceedings in the case preclude the breach of trust claim. The City also appeals from the trial court’s denial of its motions seeking additional discovery. We affirm that ruling as well because the City has shown no abuse of discretion.

1. Facts and procedural posture.

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