Texas Justices Toss Cities’ Challenge to Cable Franchise Fee Cap

Dozens of cities failed to convince the Texas Supreme Court on Friday to invalidate legislation capping the franchise fees they can charge telecommunications providers under the state constitution’s gift clauses.

The telecom companies—not the state of Texas—were the proper defendant for such a challenge, the unanimous court held. Naming the state “as an all-purpose defendant is not a cheat code for bypassing the requirement, incumbent on any plaintiff in any context, to seek a judgment against the party whose actions are the cause of the alleged injury,” Chief Justice Jimmy Blacklock wrote.

The state asked the justices to reverse ...