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<br />There is no basis for any order or finding that AT&T Broadband violated the <br />Franchises. <br /> <br />a. No Franchise provision prohibits our Arbitration Provisions. <br /> <br />The basis for the LFA Communications appears to be a belief of the LFAs that 1) <br />the Arbitration Provisions violate a constitutional provision regarding jury trials and 2) <br />violate state contract law prohibiting contracts of adhesion. As a result, the .LFA <br />Communications .suggest that there has been a failure to meet general requirements in <br />the Franchises that AT&T Broadband "comply with all laws affecting the cable system," <br />(Columbia Heights Order at Finding 7) or "comply with all applicable state and federal <br />laws and regulations." (Ramsey/Washington Order at Finding 5). <br /> <br />As an initial matter, we note that no provision in the Franchise expressly provides <br />that a violation of constitutional provisions or state contract laws by AT&T Broadband <br />would constitute a distinct violation of the Franchise.30 More importantly, there simply is <br />no support for the implication in the LFA Communications that the Arbitration Provisions <br />violate constitutional provisions or any other provisions of state or feeleral law. As <br />demonstrated above, all applicable statutes and judicial precedent support the fact that <br />the Arbitration Provisions comply with state and federal statutes and rules. The LFAs do <br />not and cannot point to any judicial or other determinations finding that AT&T <br />Broadband's implementation of the Arbitration Provisions violate any provision of state or <br />federal law. Instead, the LFA Communications appear to rely solely on the LFAs own <br />subjective assessment that the Arbitration Provisions somehow violate constitutional <br />rights and state contract law. <br /> <br />Neither the Franchises nor any provision of applicable law gives the LFAs <br />jurisdiction or authority to so. adjudicate matters of constitutional or state contract law. <br />See aenerallv Minn. Stat. 99 238.01 et sea., 412.211; Welsh v. City of Orono, 355 <br />N.W.2d 117 (Minn. 1984) ("A municipality has no inherent powers, but only such powers <br />as are expressly conferred by statute or are implied as necessary in aid of those powers <br />which are expressly conferred."). Rather, authority to adjudicate constitutional rights and <br />contractual dispute remains constitutionally vested in the appropriate state and federal <br />courts. See. e.a., Minn. Const. Art VI, 99 1 & 3 (vesting judicial power exclusively in the <br />judiciary and providing the district courts with original jurisdiction over civil and criminal <br />matters); Holmbera v. Holmbera, 588 N.W.2d 720 (Minn. 1999) (holding that the original <br />jurisdiction of the courts over core judicial matters may not be encroached upon by non- <br />jUdicial bodies). Simply put, the LFAs have no authority to make a determination that the <br />Arbitration Provisions violate an applicable law. <br /> <br />30 As noted above, only two provisions in the Franchise could be interpreted as addressing <br />matters of AT&T Broadband compliance with constitutional provisions or state contract laws <br />applicable to the Arbitration Provisions. First, Section 2.7 of the Franchise expressly <br />acknowledges the authority of AT&T Broadband to adopt rules, regulations, terms and <br />procedures governing its business; at least so long as such rules, regulations, terms and <br />procedures .shall not be in conflict with... the laws of the state of Minnesota... or any other body <br />having lawful jurisdiction." Section 13.4 of the Franchise provides that the Company shall comply <br />with any changes in state or federal law, regardless of whether they conflict with the Franchise. <br />Neither of these provisions imposes any express or distinct Franchise obligation with respect to <br />compliance with state and federal laws or provides that a failure to comply with such laws would <br />constitute a separate Franchise violation. <br /> <br />8 <br />P.43 <br />