A pair of lawsuits, filed Wednesday, Sept. 6 in district court in Spencer, represent the latest chapter in a local cable franchise-holder's dispute with Spencer Municipal Utility's telecommunications system.
Mediacom, Iowa has filed suit against Spencer Municipal Utilities and the city of Spencer, asking for a preliminary injunction against the utility. In addition, a second lawsuit has been filed on behalf of Justin Campbell of Spencer, a Mediacom employee.
Both suits stem from Mediacom's contention that the local utility has violated state and federal statutes in its financing of its new telecommunications utility.
With cable, telephone and Internet services coming on-line in the next few weeks, the utility will be in direct competition with Mediacom for cable and Internet customers.
"The suit filed on behalf of Justin Campbell is a continuation of the quo warrento action we initiated with Clay County Attorney Michael Zenor," said Eric Breisach, legal counsel for Mediacom. "That suit addresses the public harm we feel is being done."
In addition, Mediacom, Iowa has filed its own suit, asking that SMU change its method of financing its telecomm-unications utility and repay funds its competitor alleges were wrongly used.