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Level 3 Communications, LLC v. TNT Construction, Inc.

220 F. Supp. 3d 812 (2016)

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Level 3 Communications, LLC v. TNT Construction, Inc.

United States District Court for the Western District of Kentucky
220 F. Supp. 3d 812 (2016)

Facts

TNT Construction, Inc. (TNT) (defendant) accidentally severed a fiber-optic cable owned by Level 3 Communications, LLC (Level 3) (plaintiff), leaving Level 3 unable to use the cable for 6.3 hours. Level 3 minimized disruption of service to its customers by using a redundant system of cables that it reserved for emergencies. The cable cost just over $61,000 to repair. Despite the damage to the cable, Level 3 did not lose any profits or any customers, and it was not required to issue any refunds for disrupted service. Level 3 sued TNT, seeking damages for its repair costs as well as more than $3 million in loss-of-use damages. Although no short-term rental market existed for fiber-optic cable, Level 3 argued that its loss-of-use damages should be measured by a theoretical cost to rent replacement cable for 6.3 hours. TNT moved for summary judgment on loss of use. After determining that Level 3 was entitled to seek loss-of-use damages for the time it was unable to use the damaged cable, the court addressed the appropriate measure of damages.

Rule of Law

Issue

Holding and Reasoning (Stivers, J.)

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