DALLAS, Texas (KAMR/KCIT) — United States Magistrate Judge David L. Horan recently ruled in the Dallas Federal Court that the streaming-related lawsuit that the city of Amarillo is a plaintiff in will be remanded back to state court.

According to documents filed on Dec. 14 in the United States District Court of the Northern District of Texas Dallas Division, Horan released his findings, conclusions and recommendation for the matter, This comes after the lawsuit was filed in state court by 25 Texas cities and eventually removed to federal court per the request of the defendants, Disney, Hulu and Netflix.

The initial lawsuit, which included the city of Amarillo as a plaintiff, alleged that the three entertainment streaming services did not pay municipal franchise fees to 25 Texas cities, according to previous reports by MyHighPlains.com. The plaintiffs allege that the fees are required to be paid to the cities under the Texas Public Utility Regulatory Act, or PURA.

According to previous reports, the cities previously requested that the case be moved back to the state court from the federal court, arguing that the litigation centers around state statute. In the defendant’s response, they argued that similar cases to this one have been “fully and finally adjudicated” and should stay in federal court.

In Horan’s recommendation, he cited various reasons why the case should be remanded back to state court, including that the comity doctrine “‘counsels lower federal courts to resist engagement in certain cases falling within their jurisdiction… (and) restrains federal courts from entertaining claims for relief that risk disrupting state tax administration.'”

Overall, the doctrine makes it hard for a federal court to interfere in a matter that the lawsuit outlines, with the documents stating that federal courts are reluctant to interfere with a matter like this because it deals with the fiscal operations of a state government.

“One class of cases in which abstention is appropriate is cases ‘presenting challenges to ‘state taxation of commercial activity,’ on the understanding that revenue collection is a core function of state governments,'” the documents read.

The documents state that the case will be remanded back to the 14th Judicial District Court of Dallas County, the court from which it was removed.

This is a developing story. MyHighPlains.com will update this article as new information becomes available.

Download the KAMR Local 4 News app on the App Store or Google Play for updates on the go.
Sign up for MyHighPlains.com email updates to see top stories, every day.
Check with MyHighPlains.com to see the latest updates for local news, weather, and events.