A lawsuit by a customer seeking damages from an Internet Service Provider (ISP) for termination of the customer's Internet connectivity was properly dismissed pursuant to the terms of the exculpatory clause in the ISP's service agreement, the U.S. Court of Appeals for the Third Circuit ruled. The ISP notified the customer that it was terminating service for violations of its acceptable use policy, based upon numerous complaints received concerning the content of e-mails sent from IP addresses associated with the customer. The appeals court concluded that the exculpatory clause was neither adverse to the public interest nor unconscionable under New Jersey law. The court noted, among other things, that the customer was a commercial entity experienced with Internet service agreements, and that the term was “prominently presented” in the agreement and was not unreasonably oppressive.

Asch Webhosting, Inc. v. Adelphia Business Solutions Investment, LLC, No. 09-2296 (3d Cir. Jan. 25, 2010) (unpublished) Download PDF