Arbitration Provisions in Cable Contracts

The Plaintiff, Shlomo Bar-Ayal, brought an action for damages against the Defendant, Time Warner Cable, Inc. The Plaintiff alleged that Defendant unlawfully collected franchise fees from the Plaintiff and from other similarly situated consumers. The Plaintiff alleged that Internet access services should not have been included in the calculation of the franchise fee. The Defendant moved to stay proceedings and to compel arbitration, arguing that the Plaintiff accepted the terms of the contract and was bound by the arbitration provision of the subscription agreement for Defendant’s cable-modem service. The Defendant also moved, in the alternative, to dismiss the action. Defendant's motion to stay the proceedings and to compel arbitration was granted by the Federal District Court residing in the Southern District of New York.

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