NEW ORLEANS (Legal Newsline) – Lawyers with government contracts to sue Netflix scored a small victory at the end of March when a federal court judge sent their case back to a Louisiana state court.
Kenner City is one of several governments to hire lawyers on contingency fees to sue Netflix and Hulu in an effort to make them pay franchise fees that have traditionally been paid by cable companies because they are video service providers.
But courts have so far rejected this argument, finding the franchise fees don’t apply to video delivered over the public internet.
Kenner City argued to Louisiana federal judge Greg Gerard Guidry that its case belongs in state court because it concerns local jurisdictions collecting revenue.
“This action… seeks to require Defendants to pay a small percentage of their gross revenue to local governments in which they do business, and (other) federal courts interpreted the term ‘tax’ broadly to apply to franchise fees collected by state municipalities that in turn provides a general benefit to the public,” Guidry wrote.
“Where there is power to decline jurisdiction and dismiss, there is power to remand. This court possesses such power to decline jurisdiction.”
Kenner City is represented by lawyers at Bruno & Bruno in New Orleans, as well as Elkin Leland Kistner, Joshua Joseph and Malvern Clopton Burnett.
The plaintiff lawyers resisted federal jurisdiction, but dismissals around the country have come from both state and federal judges.