Lane v. Altice USA
3:23-cv-00380
S.D.W. VaFeb 26, 2024Background
- Jackie Lane, on behalf of a putative class, sued Suddenlink (now Optimum), challenging certain internet service fees as violations of the West Virginia Consumer Credit and Protection Act.
- Defendants moved to compel arbitration based on language in their Residential Services Agreement (RSA), pointing to Lane’s receipt of bills and email notice of new arbitration terms in June 2022.
- Procedural history included prior plaintiffs who voluntarily dismissed their claims, leaving only Lane’s claims at issue.
- The relevant factual dispute centers on whether Lane ever formed a valid arbitration agreement with Suddenlink, and if so, which version controls.
- The court compared Lane’s situation to Gooch v. Cebridge Acquisition—where Suddenlink’s unilateral modification of arbitration terms was found unenforceable absent reasonable notice and mutual assent.
- The court denied Suddenlink’s motion to compel arbitration without prejudice, finding genuine factual disputes regarding contract formation and ordering discovery on the issue.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Existence of arbitration agreement | Unclear what version of RSA (if any) applies; may not have assented to any arbitration term | Lane accepted arbitration by paying bills referencing RSA; was notified via email about arbitration updates | Genuine issue of material fact exists regarding formation; discovery warranted |
| Enforceability of arbitration provision | Any applicable agreement is unconscionable, referencing Gooch precedent | Arbitration provision is binding and enforceable per service agreement and notice provided | Court declines to rule on unconscionability until contract formation is resolved |
| Notice of arbitration modification | No adequate proof of notice for RSA revisions before lawsuit | Notice was given by June 2022 email and ongoing reference in bills | Court finds June 2022 email provides reasonable notice if prior agreement existed; further facts needed |
| Stay of litigation | Request to stay pending appeal of Gooch if arbitration agreement found | Motion to compel/stay based on arbitration provision | Motion denied without prejudice as discovery is needed; stay request not reached |
Key Cases Cited
- Moses H. Cone Mem’l Hosp. v. Mercury Constr. Corp., 460 U.S. 1 (scope and application of FAA, pro-arbitration policy)
- Am. Gen. Life & Accident Ins. Co. v. Wood, 429 F.3d 83 (standard for compelling arbitration under the FAA)
- Galloway v. Santander Consumer USA, Inc., 819 F.3d 79 (burden on party denying existence of arbitration agreement)
- Chorley Enters., Inc. v. Dickey’s Barbecue Rests., Inc., 807 F.3d 553 (threshold factual issues in arbitration disputes)
- Granite Rock Co. v. Int’l Bhd. of Teamsters, 561 U.S. 287 (contract formation disputes for courts)
- Brown v. Genesis Healthcare Corp., 724 S.E.2d 250 (West Virginia unconscionability doctrine in contracts)
