Texas Cities Want Netflix Case Sent to State Court
Dallas and other Texas cities urged a federal court to remand to state court their lawsuit against Disney, Hulu and Netflix. The cities claim the streamers ignored their video service provider obligations to get their state certificates of franchise authority…
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and pay required franchise fees. The companies and local governments disagree whether streaming TV is subject to the Texas Public Utility Regulatory Act (PURA), said the cities' reply Thursday at U.S. District Court for Northern Texas (case 3:22-cv-02071-L). “That core dispute will necessarily involve determining the scope of PURA and the Texas Legislature’s intent in passing it,” and “this case ultimately will require a ruling that affects the fiscal operations of Texas and Texas municipalities.” Five other federal courts weighing similar issues “have held these cases should be remanded to state courts based on the Supreme Court’s comity doctrine,” the cities said.