Charter Communications, Inc. v. County of Santa Cruz

ORDER DENYING MOTION TO DISMISS IN PART

Charter Communications, LLC (“Charter”), a wholly owned subsidiary of Charter Communications, Inc. (“CCI”), holds the franchise for a cable television system in Santa Cruz County (“the County”). Buyer Paul G. Allen sought to acquire CCI as part of a nationwide acquisition of various cable operations. Under the franchise agreement, the County’s consent was required for the transfer but, by contract, could not be unreasonably withheld. Charter asked for consent and supplied the information required by the FCC form used for such transfers. The County asked for more information. The company supplied responsive information. The County then asked for yet more information. Charter refused to comply with the request, contending the County was demanding, unreasonably, irrelevant information. The County then denied consent “without prejudice.” Charter closed anyway. Charter, CCI and Allen (“plaintiffs”) now assert the claims discussed.

I.

Plaintiffs’ first claim under 42 U.S.C. § 1988 asserts infringement of the First and Fourteenth Amendment rights of free speech. The First Amendment imposes some restrictions on a local government’s power to deny…