Arbitration Clause in Contract

INTERNET LAW – Arbitration Provisions in Cable Contracts

Internet Business Law Services
July 10, 2011

Shlomo Bar-Ayal filed a claim against Time Warner Cable, Inc. alleged that they unlawfully collected franchise fees from the Plaintiff and from other similarly situated consumers. The Plaintiff alleges 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 based on the subscription agreement which included arbitration as part of the terms of the contract, and the district court granted the motion. The court ultimately determined that the Plaintiff was bound to the arbitration agreement since the Plaintiff had time and opportunity to review it and agree to it. “Before compelling arbitration on the merits of a dispute, questions regarding whether a dispute is arbitrable must be addressed.”

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