Lawsuit against cable franchise cost city $7,000

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by Tim Troglen

Reporter

Maple Heights -- The final price tag from a lawsuit settled between the city and a cable franchiser in February shows the city spent $7,000 in legal fees to get $15,000 in settlement money.

According to records from the Cuyahoga County Common Pleas Court, the civil complaint was filed by the city in September 2007 against WideOpen West Holdings Cleveland LLC Cable, the private equity firm Avista Capital Partners and Avista subsidiary Racecar Acquisition LLC, alleging they had not lived up to the terms of their contracts with the city.

While the city's complaint sought $41,000 in fines, Law Director John Montello said that through the settlement agreement, the city will get $15,000 of money owed by the franchise.

He added WideOpen West will continue providing cable service to the city.

Finance Director Tom Zammikiel said the city spent $7,000 in legal fees for the action, which was filed by the previous mayor and law director.

Court records show both parties were ordered to pay their own $139 court costs.

"I believe that both parties arrived at a resolution that will serve the best interest of the parties we represent," said Craig Martin, a Michigan attorney representing WideOpen West.

"We were pleased with the opportunity the administration gave us to sit down and discuss a resolution," Martin said.

He declined to discuss the terms of the agreement.

According to the complaint, WideOpen West began supplying cable service to Maple Heights in 2001.

Martin said at the time, the franchise agreement with WideOpen West did not include the requirements the city cited in its complaint, such as maintaining a $50,000 performance bond and paying a $5,000 transfer fee when the cable franchise was transferred from WideOpen West to Avista in 2006.

A few months later, Council voted to reject that transfer, then passed legislation in February 2007 fining WideOpen West Holdings LLC and Racecar Acquisitions LLC $100 a day, retroactive to Aug. 16, 2006.

From Aug. 16, 2006 until Oct. 1, 2007, the fine tally had reached approximately $41,000, said Tim Toma, former Maple Heights law director.