Plano Metropolis Council Votes Decision Approving Litigation In opposition to Netflix, Hulu, Disney +, and Different Streaming Companies | Plano Star courier
In its session on Monday, Plano City Council will vote on a resolution authorizing the city, together with Dallas and other neighboring cities, to file lawsuits against Netflix, Hulu, Disney + and other video streaming platforms for allegedly failing to pay franchise fees.
“The outcome of the litigation sought by the city is to stand out from the Damages owed to the city for failing to pay the franchise fees and receiving an order urging the VSPs to pay the franchise fees for the future, in addition to other legal relief, ”the proposed resolution reads.
The resolution expressly authorizes the city administrator to use the services of the law firms McKool Smith, PC, Ashcroft Sutton Reyes LLC and Korein Tillery LLC. If the agreement is approved, these firms will represent the city on a success basis, a form of payment where consultants get a percentage of their clients’ claw backs if monetary damages are awarded.
All three firms would collectively receive 30% of the city’s gross reimbursement if damages were awarded. If damages are awarded after the defendant has successfully appealed the judgment, the consultants receive 33.3% of the gross repayment according to the decision.
While some would find these fee structures exorbitant, the 30-33% contingency is a standard fee structure as the American Bar Association says the consultants pay court fees and provide legal services with no guaranteed compensation.
The Texas Utilities Code requires cable or video service providers to pay a quarterly franchise fee of 5% based on gross earnings. Section 66.005 (b) of the Code states: “A municipality may bring an action in a court of competent jurisdiction if there is a dispute over compensation under this section.”