Compass Productions International LLC v. Charter Communications, Inc.

CourtDistrict Court, S.D. New York
DecidedJanuary 10, 2022
Docket1:18-cv-12296
StatusUnknown

This text of Compass Productions International LLC v. Charter Communications, Inc. (Compass Productions International LLC v. Charter Communications, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Compass Productions International LLC v. Charter Communications, Inc., (S.D.N.Y. 2022).

Opinion

USDC SDNY DOCUMENT UNITED STATES DISTRICT COURT SoutHBAN Drstarcs OF wew vor | pare _SZIOTEEE COMPASS PRODUCTIONS : INTERNATIONAL, LLC, Plaintiff, : 18 Civ. 12296 (VM) - against - : CHARTER COMMUNICATIONS, INC., DECISION AND ORDER Defendant. eee VICTOR MARRERO, United States District Judge. Plaintiff Compass Productions International, LLC (“Compass”) brought this lawsuit against Charter Communications, Inc. (“Charter”) in New York State Supreme Court, New York County (see “Complaint,” Dkt. No. 1-1), and Charter thereafter removed the action to this district on the basis of diversity jurisdiction. Compass’s Complaint alleges breach of contract (Count I), promissory estoppel (Count II), fraudulent inducement (Count III), and defamation (Count IV). (See id. FJ 126-83.) On August 8, 2019, the Court granted Charter’s motion to dismiss Counts III and IV of the Complaint pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure. See Compass Prods. Int’l LLC v. Charter Commc’ns, Inc., No. 18 Civ. 12296, 2019 WL 4198586, at **7-9 (S.D.N.Y. Aug. 8, 2019). Now before the Court is Charter’s motion for summary judgment on the remaining Counts pursuant to Rule

56(a) of the Federal Rules of Civil Procedure. (Dkt. Nos. 82– 85.) For the reasons set forth below, Charter’s motion for summary judgment is GRANTED.

I. BACKGROUND

A. FACTUAL BACKGROUND1

Charter is a multichannel video programmer distributor (“MVPD”). As an MVPD, Charter operates a cable service that allows programmers to provide channels of video content to Charter’s customers through linear or subscription video-on- demand (“SVOD”) services. Unlike linear services that make television programming constantly available on a dedicated channel, SVOD channels are typically available only to paying subscribers through a subscriber-initiated menu selection. Compass owns television programming called The Jewish Channel (“TJC”), which Time Warner Cable (“TWC”) carried as an SVOD channel. Charter has never carried TJC as an SVOD or linear channel. On May 26, 2015, Charter made public its intent to merge with TWC. Upon hearing of this news, Compass’s CEO, Elie Singer (“E.Singer”), called Charter’s head of Programming,

1 The factual recitation set forth below is confined to the facts in Charter’s Local Rule 56.1 Statement (see “Def. SUMF,” Dkt. No. 85) that Compass does not dispute. (See Dkt. No. 97.) Certain facts that the parties dispute (or purportedly dispute) are examined in Part III, infra. Unless specifically quoted or otherwise cited as necessary, no other citation to Charter’s Local Rule 56.1 Statement will be made. Allan Singer (“A.Singer”) to request that Charter carry TJC as a linear channel. A.Singer told E.Singer that Charter had a lot going on at the time and suggested E.Singer call him back during the following year. In the meantime, Compass met with lobbyists to put

pressure on Charter. To further those efforts, E.Singer engaged Howard Friedman (“Friedman”), former President and Chairman of the American Israel Public Affairs Committee, who contacted Congressman Steny Hoyer’s office about talking to the Federal Communications Commission (the “FCC”). While Charter’s merger with TWC was pending before the FCC for approval, the FCC was engaged in a separate proceeding evaluating the carriage of diverse and independent networks across all MVPDs. Thus, Compass pressed for Charter’s carriage of TJC on the basis that if Charter did not carry TJC, post-merger the Jewish communities currently served by TWC would lack a Jewish network.

Congressman Hoyer’s office put Friedman in touch with a current lobbyist in the cable industry for advice on how to proceed. This lobbyist told Friedman that before approaching the FCC, Friedman should speak with someone from Charter. The lobbyist connected Friedman to Waldo McMillan (“McMillan”), Charter’s Head of Government Affairs. During one of Friedman’s conversations with McMillan, McMillan asked Compass “not to go to the FCC because that would mess up the merger,” and instead McMillan would put E.Singer in touch with a senior executive at Charter. (Def. SUMF ¶ 38.) Following through on his promise, McMillan arranged for E.Singer to speak to A.Singer again. On the morning of

December 21, 2015, E.Singer called A.Singer and had an unrecorded conversation with no one else on the line (the “December 21 Call”). A.Singer understood Compass was seeking an agreement from Charter to carry TJC as a linear channel, and A.Singer asked E.Singer to describe the terms for such a deal. The parties dispute which terms were discussed, but they agree E.Singer asked A.Singer for a written contact and A.Singer told E.Singer that he could not send one because he did not know whether the merger would go through. After the December 21 Call, E.Singer recounted the conversation to Steven Weiss, a Compass executive, and Friedman. According to Weiss, E.Singer stated that he and

A.Singer agreed to a contract for “five years” of linear carriage of TJC. Weiss recounts that E.Singer told him the launch timing “was something that had been left entirely unclear,” but “[Charter] wouldn’t accelerate [launch] to 60 to 90 days.” (Id. ¶ 62.) Nevertheless, “[E.Singer] believed [Compass] could still get 120 days possibly, but in any case, six to nine months after the merger.” (Id.) Friedman similarly recalls that “one thing [E.Singer] was still waiting for was an agreement on the launch date.” (Id. ¶ 63.) On December 22, 2015, E.Singer emailed A.Singer a document titled “The Jewish Channel Programmer Proposal to Charter Communications” (the “Proposal”). The Proposal listed

a contract term of five years and included the following statements: “Detailed terms to be defined in a contract between Programmer and Charter Communications;” “Charter Communications will launch Programmer’s programming service on all its systems, made available to all subscribers in the ‘Silver’ tier, which will have approximately 8 million subscribers on the launch date;” and Charter would launch TJC “no later than 120 days after the closing of Charter’s merger with Time Warner Cable.” (Id. ¶¶ 77–80.) The Proposal also included a section heading titled “Rate Card” with a chart underneath listing penetration rates, which are specific rates dependent on the number of subscribers. The parties

agree E.Singer and A.Singer never discussed penetration-based rates during the December 21 Call. A.Singer forwarded the Proposal and Rate Card to other Charter employees. In his cover email, A.Singer wrote, the “[p]roposed agreement is not conditioned on close, assumes obligations we cannot accept unless the transaction is approved and closes . . . I told [E.Singer] 120 days to launch would not [be] realistic post-close, asked for a year post- close to do this but suggested perhaps say commercially reasonably efforts when [Charter] rebrand[s], no later than 6 months, ([E.Singer] did not like either apparently).” (Id. ¶¶ 99-100.)

On December 23, 2015, A.Singer responded to E.Singer’s email. A.Singer told E.Singer “[t]o clarify, I believe you understand it does not actually reflect all the points we discussed, but thank you very much nonetheless.” (Id. ¶ 91.) E.Singer responded on December 24, writing, “I really tried to draft the document to incorporate the main points of our conversation, and I thought I did.” (Id. ¶ 92.) E.Singer stated that A.Singer could be referring only to the lack of a most favored nation clause and timing for the launch of TJC. E.Singer believed he had already addressed the launch timing by proposing 120 days since A.Singer said 60 and 90 days were not possible. A.Singer never responded to

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Bluebook (online)
Compass Productions International LLC v. Charter Communications, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/compass-productions-international-llc-v-charter-communications-inc-nysd-2022.