Richard Chaty v. Cebridge Acquisition, LLC

132 F.4th 716
CourtCourt of Appeals for the Fourth Circuit
DecidedMarch 27, 2025
Docket23-1145
StatusPublished
Cited by4 cases

This text of 132 F.4th 716 (Richard Chaty v. Cebridge Acquisition, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Richard Chaty v. Cebridge Acquisition, LLC, 132 F.4th 716 (4th Cir. 2025).

Opinion

USCA4 Appeal: 23-1145 Doc: 63 Filed: 03/27/2025 Pg: 1 of 29

PUBLISHED

UNITED STATES COURT OF APPEALS FOR THE FOURTH CIRCUIT

No. 23-1142

BENJAMIN MEADOWS,

Plaintiff – Appellee,

v.

CEBRIDGE ACQUISITION, LLC; CEQUEL III COMMUNICATIONS I, LLC; CEQUEL III COMMUNICATIONS II, LLC; ALTICE USA, INC.,

Defendants – Appellants.

No. 23-1145

RICHARD CHATY,

CEBRIDGE ACQUISITION, LLC; CEQUEL III COMMUNICATIONS I, LLC; CEQUEL III COMMUNICATIONS II, LLC; ALTICE USA, INC.,

No. 23-1146

ROXIE GOOCH, Plaintiff – Appellee, USCA4 Appeal: 23-1145 Doc: 63 Filed: 03/27/2025 Pg: 2 of 29

CEBRIDGE ACQUISITION, LLC; CEQUEL III COMMUNICATIONS I, LLC; CEQUEL III COMMUNICATIONS II, LLC; ALTICE USA, INC.,

Appeals from the United States District Court for the Southern District of West Virginia, at Charleston. Thomas E. Johnston, District Judge. (2:22-cv-00193; 2:22-cv-00188; 2:22- cv-00184)

Argued: November 1, 2024 Decided: March 27, 2025

Before WYNN and RUSHING, Circuit Judges, and Mary Geiger LEWIS, United States District Judge for the District of South Carolina, sitting by designation.

Reversed and remanded by published opinion. Judge Rushing wrote the opinion, in which Judge Lewis joined. Judge Wynn wrote an opinion concurring in part and concurring in the judgment.

ARGUED: Archis Ashok Parasharami, MAYER BROWN LLP, Washington, D.C., for Appellants. Jonathan Franklin Mitchell, MITCHELL LAW PLLC, Austin, Texas, for Appellees. ON BRIEF: Daniel E. Jones, Carmen N. Longoria-Green, MAYER BROWN LLP, Washington, D.C., for Appellants. Talcott J. Franklin, TFPC, Portland, Maine, for Appellees.

2 USCA4 Appeal: 23-1145 Doc: 63 Filed: 03/27/2025 Pg: 3 of 29

RUSHING, Circuit Judge:

These consolidated appeals arise from the denial of motions to compel arbitration

in three almost identical lawsuits. Three West Virginia residents who were unhappy with

their cable and internet service, provided under the brand name “Suddenlink,” sued

Cebridge Acquisition, LLC, Cequel III Communications I, LLC, Cequel III

Communications II, LLC, and Altice USA, Inc. (collectively, Suddenlink). Suddenlink

moved to compel arbitration in each case, relying on the arbitration agreement in its 2021

Residential Services Agreement. The district court denied Suddenlink’s motions,

concluding that a 2017 arbitration agreement controlled, was unconscionable, and could

not be enforced. That was error. The 2021 arbitration agreement governs, and it is valid

and enforceable. We therefore reverse and remand with instructions to compel arbitration

of all three disputes.

I.

A.

Suddenlink provides broadband internet, television, and telephone services to

residential customers in West Virginia, among other States. In providing these services,

Suddenlink requires each customer to agree to its Residential Services Agreement (RSA),

which details the terms and conditions of the parties’ commercial relationship. Suddenlink

generally has its service technicians present new customers with an electronic copy of the

RSA to review and sign at the initial in-home service installation.

Plaintiffs Richard Chaty, Benjamin Meadows, and Roxie Gooch are Suddenlink

customers who are dissatisfied with the quality and reliability of Suddenlink’s internet and

3 USCA4 Appeal: 23-1145 Doc: 63 Filed: 03/27/2025 Pg: 4 of 29

video services. Chaty became a Suddenlink customer in 2011, Meadows in 2013, and

Gooch in 2017. Each plaintiff has been a party to multiple versions of Suddenlink’s RSA,

which Suddenlink has modified at least five times since Chaty first became a customer.

See J.A. 257–265 (May 15, 2010); J.A. 245–255 (January 2013); J.A. 221–243 (June 1,

2016); J.A. 205–219 (September 19, 2019); J.A. 189–203 (October 1, 2021); and S.A. 1–

32 (July 20, 2022). The parties do not dispute that each plaintiff initially assented to the

operative RSA at the time of his or her respective service installation and later assented to

modified versions either during service visits, by paying monthly bills, or by receiving

email notifications.

As relevant here, Suddenlink’s RSA has included an arbitration provision since as

early as 2010. The October 2021 RSA, which was operative when all three plaintiffs sued,

states on the first page: “THIS AGREEMENT CONTAINS A BINDING

ARBITRATION AGREEMENT THAT AFFECTS YOUR RIGHTS, INCLUDING

THE WAIVER OF CLASS ACTIONS AND JURY TRIALS.” J.A. 189. The

arbitration agreement, located at paragraph 24 of the RSA, provides:

Any and all disputes arising between You and Suddenlink, or Your or it’s [sic] respective predecessors in interest, successors, assigns, and past, present, and future parents, subsidiaries, affiliates, officers, directors, employees, and agents, shall be resolved by binding arbitration on an individual basis in accordance with this arbitration provision. This agreement to arbitrate is intended to be broadly interpreted. It includes, but is not limited to:

• Claims arising out of or relating to any aspect of the relationship between us, whether based in contract, tort, statute, fraud, misrepresentation or any other legal theory; • Claims that arose before this or any prior Agreement, • Claims that may arise after the termination of this Agreement. 4 USCA4 Appeal: 23-1145 Doc: 63 Filed: 03/27/2025 Pg: 5 of 29

J.A. 194 ¶ 24(a). By consenting to arbitration, Suddenlink and its customers “each waive

the right to a trial by jury and the right to participate in a class, representative, or private

attorney general action.” J.A. 194 ¶ 24(a) (capitalization and boldface omitted).

The arbitration agreement outlines the procedure to initiate arbitration. “A party

who intends to commence arbitration must first send the other party a written Notice of

Dispute and engage in a good-faith negotiation of the dispute in an effort to resolve it

without the need for arbitration.” J.A. 194 ¶ 24(c)(i). If the parties do not resolve their

dispute within 60 days, then a party may submit a written demand for arbitration to the

American Arbitration Association (AAA). J.A. 194 ¶ 24(c)(ii), (d). If a customer initiates

arbitration, he is responsible for a portion of the arbitration fees up to a certain amount

depending on the size of his claim, with fees being “allocated in accordance with the AAA

rules” for claims exceeding $10,000. J.A. 195 ¶ 24(f). By contrast, if Suddenlink initiates

arbitration, Suddenlink pays all AAA filing, administrative, and arbitrator fees. J.A. 195

¶ 24(f).

Once initiated, an arbitration “will be administered by the AAA under the AAA’s

Consumer Arbitration Rules, as modified by [the] arbitration agreement.” J.A. 195 ¶ 24(e).

The agreement “explicitly prohibits the arbitration of consolidated, class, or representative

disputes of any form,” and prohibits an arbitrator from awarding “non-individualized relief

that would affect other account holders.” J.A. 195 ¶ 24(h) (“[T]he arbitrator may award

any relief that a court could award that is individualized to the claimant and would not

affect other Suddenlink account holders . . . .”). A single arbitrator will resolve the dispute

5 USCA4 Appeal: 23-1145 Doc: 63 Filed: 03/27/2025 Pg: 6 of 29

and decide all issues, “except that issues relating to arbitrability, the scope or enforceability

of this arbitration provision, or the interpretation of its prohibitions of class, representative,

and private attorney general proceedings and non-individualized relief shall be for a court

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