Free Motion to Dismiss - District Court of California - California

Case 3:07-cv-02174-H-BLM

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Michael L. Weiner (Pro hac vice) SKADDEN ARPS SLATE MEAGHER & FLOM LLP Four Times Square New York, New York 10036-6522 Telephone: (212) 735-7000 Douglas B. Adler (Cal. Bar No. 130749) SKADDEN ARPS SLATE MEAGHER & FLOM LLP 300 South Grand Avenue, Suite 3400 Los Angeles, California 90071-3144 Telephone: (213) 687-5000 Sara L. Bensley (Pro hac vice) SKADDEN ARPS SLATE MEAGHER & FLOM LLP 1440 New York Avenue, N.W. Washington, D.C. 20005-2111 Telephone: (202) 371-7000 Attorneys for Defendant AVIS BUDGET GROUP, INC. [Additional Counsel Listed on Signature Page] UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF CALIFORNIA MICHAEL SHAMES; GARY GRAMKOW, on behalf of themselves and on behalf of all persons similarly situated, Plaintiffs, v. THE HERTZ CORPORATION, a Delaware corporation; DOLLAR THRIFTY AUTOMOTIVE GROUP, INC., a Delaware corporation; AVIS BUDGET GROUP, INC., a Delaware corporation; VANGUARD CAR RENTAL USA, INC., an Oklahoma corporation; ENTERPRISE RENT-A-CAR COMPANY, a Missouri corporation; FOX RENT A CAR, INC., a California corporation; COAST LEASING CORP., a Texas corporation; THE CALIFORNIA TRAVEL AND TOURISM COMMISSION and CAROLINE BETETA Defendants. Case No. 07 CV 2174 H BLM [Class Action]

NOTICE OF MOTION AND MOTION TO DISMISS OF RENTAL CAR DEFENDANTS Date: March 17, 2008 Time: 10:30 a.m. Place: Courtroom 13 Honorable Marilyn L. Huff

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PLEASE TAKE NOTICE that on March 17, 2008, at 10:30 a.m., or as soon thereafter as the matter may be heard, in Courtroom 13, of the above-entitled Court, located at 880 Front Street, No. 4290, San Diego, California 92101-8900, Defendants The Hertz Corporation, Dollar Thrifty Automotive Group Inc., Avis Budget Group Incorporated, Vanguard Car Rental USA Inc., Enterprise Rent-A-Car Company, Fox Rent-A-Car Incorporated, and Coast Leasing Corp. (collectively, the " Rental Car Defendants" will and hereby do, move the Court for ) an order to dismiss with prejudice the First and Second Causes of Action for failure to state a claim. This Motion is made on the basis that the allegations that Rental Car Defendants violated Section 1 of the Sherman Act, 15 U.S.C. § 1, fail to satisfy the pleading requirements articulated by the Supreme Court in Bell Atlantic Corp. v. Twombly, 127 S. Ct. 1955 (2007). Alternatively, to the extent that Plaintiffs' Section 1 allegations are based on the Rental Car Defendants' lobbying activities or their participation in a state-mandated industry referendum, the allegations fail to state a claim because the challenged conduct is immune from antitrust liability under the Noerr-Pennington doctrine, the challenged conduct is specifically authorized by state law, or, alternatively, the Plaintiffs have not suffered antitrust injury and therefore lack standing. The Rental Car Defendants also move to dismiss Plaintiffs' purported claims under California' s Unfair Competition Law, Cal. Bus. & Prof. Code § 17200 et seq., and the False Advertising Law, Cal. Bus. & Prof. Code § 17500 et seq., on the ground that their alleged conduct is immune from liability pursuant to Section 13995.90 of the California Government Code. Alternatively, Plaintiffs fail to state a claim under the Unfair Competition Law and the False Advertising Law because they do not and cannot show that the Rental Car Defendants' alleged conduct, which Plaintiffs admit was permitted under the California Tourism Marketing Act, was unlawful, unfair or fraudulent; Plaintiffs do not and cannot show that the conduct at issue violated the Sherman Act or any other law.
07cv2174

TO ALL PARTIES AND THEIR ATTORNEYS OF RECORD:

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 By:

This Motion is based on this Notice, the accompanying Memorandum of Points and Authorities in Support of the Motion to Dismiss, the Request for Judicial Notice and attached exhibits filed concurrently herewith, the Declaration of Gregory D. Call in Support of Rental Car D f dn ' t no i i , the pleadings and papers filed in this action, and such further e nat Moi t Ds s e s o m s evidence or argument as may be presented at or prior to the hearing on this matter. Dated: January 25, 2008 Respectfully submitted,

FOLGER LEVIN & KAHN LLP

SKADDEN ARPS SLATE MEAGHER & FLOM, LLP By: /s/ Michael L. Weiner Michael L. Weiner (Pro hac vice) Four Times Square New York, New York 10036 Tel.: (212) 735-2632 Douglas B. Adler (Cal. Bar No. 130749) 300 South Grand Avenue Suite 3400 Los Angeles, California 90071 Tel.: (213) 687-5120 Sara L. Bensley (Pro hac vice) 1440 New York Avenue, N.W. Washington, D.C. 20005-2111 Tel.: (202) 371-7000 Counsel for Defendant AVIS BUDGET GROUP, INC.

Gregory D. Call (Cal. Bar No. 120484) Beatrice B. Nguyen (Cal. Bar No. 172961) Embarcadero Center West 275 Battery Street, 23rd Floor San Francisco, California 94111 Tel.: (415) 986-2800 Jennifer S. Romano (Cal. Bar No. 195953) 1900 Avenue of the Stars 28th Floor Los Angeles, California 90067 Tel.: (310) 556-3700 Counsel for Defendants ENTERPRISE RENT-A-CAR COMPANY and VANGUARD CAR RENTAL USA, INC.

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