Cooper v. Charter Communications, Inc.

945 F. Supp. 2d 233, 2013 WL 2237797, 2013 U.S. Dist. LEXIS 71724
District Court, D. Massachusetts·Decided May 21, 2013·No. C.A. No. 12-cv-10530-MAP·Published

Opinion

MEMORANDUM AND ORDER RE: MOTION TO DISMISS

(Dkt. No. 8)

PONSOR, District Judge.

I. INTRODUCTION

Plaintiffs have filed this class action lawsuit against two cable companies, seeking to recover damages for rebates not credited automatically following cable, Internet, and phone service outages caused by an unusually heavy snowstorm in October of 2011. Defendants have moved to dismiss the complaint. For the reasons discussed below, the motion will be allowed.

II. FACTS

In weighing a motion to dismiss, the court must take the allegations in the complaint as true and draw all reasonable inferences in the plaintiffs’ favor. Curran v. Cousins, 509 F.3d 36, 43 (1st Cir.2007). Beyond the complaint, facts may be considered that are contained in “documents the authenticity of which are not disputed by the parties,” including official records, documents central to plaintiffs’ claim, or documents sufficiently referred to in the complaint. Watterson v. Page, 987 F.2d 1, 3 (1st Cir.1993); Clorox Co. Puerto Rico v. Proctor & Gamble Commercial Co., 228 F.3d 24, 32 (1st Cir.2000). On the issue of subject matter jurisdiction, facts put forward by the defendants may also be taken into consideration to the extent that they are not challenged by the plaintiffs. Bluetarp Fin., Inc. v. Matrix Const. Co., Inc., 709 F.3d 72, 79 (1st Cir.2013). Here, both sides have submitted factual material that the court will take into'account in deciding the motion to dismiss.1

A. Factual Background.

Defendants Charter Communications, Inc., and Charter Communications Entertainment I, LLC, provide cable television, Internet, and telephone services to business and residential customers in Massachusetts. Before they began providing cable television services, Defendants entered into license agreements with the towns in which their consumers resided. The license agreements between the towns and Defendants set forth the terms and condi[238]*238tions under which Defendants constructed, upgraded, operated, and maintained the cable television systems in the towns. In large part, the license agreements tracked the requirements of Mass. Gen. Laws ch. 166A, §§ 1-20, & 2.2 One of the terms that had to be included in the licensing agreements described a “pro rata credit or rebate” in the event of a service interruption of twenty-four hours or more. Ch. 166A, § 5(1).

Defendants distributed their cable television signal throughout the Commonwealth out of a so-called “headend” facility in Oxford, Massachusetts. From the headend facility, the signal traveled over a network of six hubs using fiber optic cable; those six hubs distributed the signal to 972 fiber optic nodes, which in turn distributed the signals to homes and businesses within Defendants’ service area. Each node served about 500 customer locations.

Once a customer signed a contract for services with Defendants,3 the cable television signal reached the customer via a service drop line, which ran into the home or business. The system used for cable television service also carried Internet and telephone service to customers who opted for those additional services.

Plaintiffs do not dispute that, generally, when a customer loses service due to lack of power or a fallen service drop line, “[Defendants do] not possess the automated means to track when a customer loses and recovers service access, or measure the intervening time period.”4 (Second Aff. Thomas P. Cohan, Dkt. No. 41, Ex. 1 at 3 ¶ 9.)

On October 29, 2011, an unusually early, very heavy snowstorm hit western Massachusetts, dumping several inches of wet snow and causing extensive tree damage and downed power and cable lines. Many thousands of homes and businesses lost power, cable television, Internet, and phone service, some for several weeks.5 A portion of Defendants’ customers lost power and cable service; others lost only power, but were unable to access their cable service because of their lack of electricity. The damage and outages caused by the snowstorm were the topic of extensive reports by the local and regional news media.

It appears undisputed that Defendants’ statewide cable system, from the headend facility through the hubs and nodes, remained up and running without interruption through the use of backup generators throughout the storm and its aftermath. (Id. at 2 ¶ 4.) Nevertheless, many of Defendants’ customers lost access to their cable, Internet, and/or phone services because their service drop lines were downed by fallen tree limbs. Others maintained their access to Defendants’ services but [239]*239were unable to use them because of a lack of power, also due to fallen tree limbs.

Around this time, the Massachusetts Office of Consumer Affairs and Business Regulations (“OCABR”) released a notice entitled “Cable TV Consumer Bulletin: Severe Storms.” (Dkt. No. 36, Ex. 2.) In addition to warning consumers not to touch fallen wires, the bulletin informed consumers that they did not have to notify their cable company if they were without service when a severe storm was widely publicized and the cable company had deployed extra crews to restore service (which, in the case of the October 2011 storm, Defendants had). The bulletin also advised consumers of their rights to a pro rata credit or rebate for any service interruption lasting twenty-four hours or more, including interruptions that only affected one tier of service.6

Defendants’ policy for applying a credit for interrupted service required customers to call Defendants and notify them of the lost service and its duration.7 This policy was included in the customer contracts signed at the initial provision of service, as well as in the yearly customer notifications and the monthly billing statements. (Aff. Cohan, Dkt. No. 41, Ex. 1 at 4-7 ¶¶ 14-23.)

On December 9, 2011, Plaintiffs Bruce M. Cooper, John W. Romito, and Roy L. Baker served on Defendants a chapter 93A demand letter, pursuant to the Massachusetts Consumer Protection Act, notifying Defendants of their demand for a credit or rebate for the service interruption caused by the snowstorm. (Dkt. No. 36, Ex. 3.) Upon receiving the demand letter, Defendants adjusted the accounts of the three named Plaintiffs to credit them for the service outages they experienced.8 On September 27, 2012, Plaintiffs filed a Second Amended Complaint, adding Whitney Taylor Thompson as a fourth named Plaintiff. Her account with Defendants has not been, as of yet, credited for the service interruption experienced after the storm.

B. Procedural Course.

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Cooper v. Charter Communications, Inc., 945 F. Supp. 2d 233, 2013 WL 2237797, 2013 U.S. Dist. LEXIS 71724 (D. Mass. 2013).

945 F. Supp. 2d 233 (Cooper v. Charter Communications, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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