The Houston Business Journal‘s Jenna Colley reports that Mayor White has suffered a setback in his bid to sue internet travel firms:
Prominent Houston law firm Gibbs & Bruns LLP has bowed out of plans to represent the City of Houston in its fight to recapture Hotel Occupancy Taxes from online travel companies, forcing the city to choose another firm from scratch.
According to Houston City Attorney Arturo Michel, Gibbs & Bruns’ decision centered around information contained in a memo issued by Houston City Controller Annise Parker to Houston City Councilmembers on April 11 that questioned the city’s ability to recapture back HOT taxes from online travel companies such as Expedia and Travelocity.
So far, no formal legal action has been filed by the city.
According to Michel, Gibbs & Bruns attorneys expressed concern over the effects that such a memo from a high-ranking city official like Parker could have on any potential litigation.
Officials with Gibbs & Bruns could not immediately be reached for comment.
Michel called the firm’s decision an overreaction and pledged to work toward hiring another firm to take the case.
For weeks, the contract with Gibbs & Bruns has faced delays as some city councilmembers wrangled over the possibility of securing a legal victory against the online travel companies.
It’s doubtful that Mayor White will be deterred in his pursuit of this new revenue stream.
PREVIOUSLY: Mayor White concocts creative new revenue stream, White plan to sue internet travel companies delayed by council.
