NJ Prorating Rule Preempted: State Court
A New Jersey state court agreed with a federal court that the Cable Act preempts a New Jersey Board of Public Utilities (BPU) prorating rule challenged by Altice. The Superior Court of New Jersey Appellate Division reversed the requirement in…
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an unpublished opinion Friday. The division said U.S. District Court Judge for New Jersey Brian Martinotti “reviewed the same facts and issues and determined preemption applied” in a March 23 opinion, which was challenged to the 3rd U.S. Circuit Court of Appeals (see 2104230051). “After considering the judge's cogent reasoning and the lack of New Jersey case law compelling an opposite outcome, we adopt the reasoning articulated by Judge Martinotti, finding the Cable Act expressly preempted N.J.A.C. 14:18-3.8(c).” The Cable Act authorizes states to enact only consumer protection laws that aren't specifically preempted, the division said. The New Jersey Division of Rate Counsel is disappointed and will review options for next steps, emailed acting Rate Counsel Director Brian Lipman Monday: “We continue to believe that this is a customer service issue under the BPU’s jurisdiction and that the BPU properly moved to protect the rights of New Jersey cable ratepayers.” The New Jersey attorney general’s office declined to comment. Altice didn’t comment.