High court to hear arguments in cable fee dispute

INDIANAPOLIS -- Cable subscribers trying to recoup past late fees from Time Warner Cable will make their case before the Indiana Supreme Court Wednesday.\nTwo Indianapolis customers sued the company in 1998 for allegedly overcharging those who pay their bills late. Lawyers for plaintiffs Kelly Whiteman and Jean Wilson are still seeking class-action status for other Indiana customers.\n"There are two parts to the claim," said attorney Karl Mulvaney. "One is the past damages, and the other is injunctive relief to stop the payments in the future."\nThe plaintiffs claim that Time Warner Cable already charges more than enough to make ends meet, and the $4.65 per month late fee is excessive and is a "penalty and profit-generating device."\n"Our position is the (basic) rate allows for recovery of all costs of doing business, it allows for a profit on the business and includes the cost of having a billing department and having personnel," Mulvaney said.\nThe Indiana Court of Appeals handed the plaintiffs a partial defeat earlier this year, saying cable subscribers do not have the right to be compensated for past late fees. The ruling was based on the voluntary payment doctrine.\nAccording to a legal brief for Time Warner Cable, the plaintiffs knew they would be assessed a late fee, but nonetheless paid their bill late, were assessed late fees and paid them without protest.\n"It is well settled in Indiana and throughout the country that a party who voluntarily incurs an obligation in this manner must raise any legal challenge before paying it," the brief states.\n"Courts have explained that otherwise they would be occupied with voluntary transactions based upon claims of legal mistakes raised years after payments have been received and spent."\nTime Warner said the late fee covers expenses the company incurs when customers don't pay promptly.\n"We certainly believe the Court of Appeals was correct in their findings," said Buz Nesbit, Time Warner's Indianapolis division president. "I believe that we were correct in our position and I hope that the Supreme Court agrees with us."\nEven though oral arguments are scheduled Wednesday, the Supreme Court does not have to decide the case. If it decides to take the case, it could be several weeks or more before a ruling is issued.