Setbacks and countersuits: Worldspan-Orbitz litigation continues

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Worldspan suffered two setbacks in its litigation with Orbitz, and filed a new lawsuit against the online agency earlier this month.

U.S. District Court Judge John Grady last month dismissed the suit, which was filed in the U.S. District Court for the Northern District of Illinois and alleged that Orbitz accessed Worldspan data, including seat-map information for direct-connect bookings, without authorization.

Grady agreed with Orbitzs contention that the Worldspan-Orbitz agreements permitted Orbitz to access Worldspan data. Worldspan also failed to prove, the judge wrote, that Orbitzs access to Worldspans data did any damage.

That setback apparently prompted Worldspan to file a new lawsuit against Orbitz in state court, the Circuit Court of Cook County, in Chicago.

In this latest suit, Worldspan seeks damages from Orbitz of more than $50 million, alleging that Orbitz improperly accessed Worldspan seat-map data for direct-connect bookings and improperly used the services of two GDSs, Galileo and ITA Software.

Worldspan also seeks injunctions barring Orbitz from using data from ITA and Galileo because Worldspan believes its agreements with Orbitz make Worldspan the exclusive GDS provider for Orbitz.com.

Unlike the federal suit, which alleged violations of the Computer Fraud and Abuse Act, Worldspans state court lawsuit merely alleges breach of contract. Violations of the federal statute can bring criminal penalties.

Meanwhile, federal Judge Elaine Bucklo remanded a suit that Orbitz filed against Worldspan in September back to state court, where it initially was filed.

Last September, Orbitz had sued Worldspan in the Circuit Court of Cook County, but Worldspan had the suit successfully moved to federal court, arguing that federal issues were raised in the suit, including an Orbitz allegation that a 2002 contract amendment violated a then-DOT regulation barring GDSs from requiring minimum-transaction volumes and prevented their subscribers from using other GDS systems.

The judge ruled that a determination of whether Worldspan duped Orbitz into extending their contract through 2011 does not require a determination of whether the contract violated DOT regulations at that time.

Orbitz also claimed in its suit that Worldspan violated the Illinois Consumer Fraud and Deceptive Business Practices Act by allegedly misleading Orbitz when the parties amended their contract and extended it to 2011.

Orbitz had alleged that Worldspan believed at the time of the contract extension that Orbitz was violating their contract but withheld that information so the agreement could be extended and Worldspan could later file legal claims against Orbitz.

To contact reporter Dennis Schaal, send e-mail to [email protected].

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