Los Angeles Business Journal

L.A. Sues Time Warner Cable for $10 Million

By Jonathan Polakoff Friday, March 14, 2014

The city of Los Angeles filed suit against Time Warner Cable on Friday seeking $10 million in fees.

The suit said Time Warner Cable paid just $46 million of the $52 million of franchise fees it owed the city for 2010 and 2011 and failed to pay other fees, too.

The suit claims the city is owed franchise fees since the cable operator uses public property to lay out its network of cable wire and boxes. The city said Time Warner also owes money that was due years ago to help pay for the construction of public access studios. The money would go towards the city’s general fund.

City Attorney Mike Feuer said Time Warner has benefitted from its ability to operate within the city and should pay what it owes.

“The City of Los Angeles enabled Time Warner to make billions and in turn they shortchanged the taxpayers millions,” Feuer said in a statement. “This is the day where we stand up and say enough is enough.”

Time Warner Cable said in a statement the suit is without merit.

“As a major job creator, tax contributor and service provider in the City of Los Angeles, Time Warner Cable is an active and responsible corporate citizen in the City of Los Angeles,” the statement said. “We are disappointed the City has chosen to bring this action, which we strongly believe is without merit. It will now be resolved through the legal process.”