Litigation

Fraud Allegations Cannot Create a Private Class Action Challenging Cable Rates

By H. William Allen et al.

The Eighth Circuit affirmed dismissal of a class action in Crumley v. Time Warner Cable, Inc., No. 08-2212 (2/25/09).

Crumley alleged that Time Warner Cable overcharged its customers in the Minneapolis area for network upgrades. She filed a class action under Minnesota's Consumer Fraud Act. The problem is that cable rates are governed by the Cable Act of 1992, which vests regulatory authority over these rates into local franchising authorities.

The filed rate doctrine prohibits a party from recovering damages measured by comparing the filed rate to a rate that might have been approved. The court observed that, no matter how Crumley styled her claims, she was seeking this type of damage. It affirmed dismissal because, if the case proceeded, any decision would impact agency rate determinations.

Full post as published by Arkansas Business Litigation Blog on February 27, 2009 (boomark / email).