Justia Government & Administrative Law Opinion Summaries
Articles Posted in Communications Law
City of Arlington, Texas, et al. v. FCC, et al.
Petitioners, the City of Arlington and the City of San Antonio, sought review of a Declaratory Ruling and subsequent Order on Reconsideration that the FCC issued in response to a petition for a declaratory ruling by a trade association of wireless telephone service providers, CTIA. In the proceeding before the FCC, CTIA sought clarification of Sections 253 and 332(c)(7) of the Communications Act, 47 U.S.C. 253, 332(c)(7), regarding local review of wireless facility siting applications. Both cities claimed (1) the FCC lacked statutory authority to establish the 90- and 150-day time frames; (2) the FCC's 90- and 150-day time frames conflicted with the language of section 332(c)(7)(B)(ii) and (v); (3) the FCC's actions were arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with the law; and (4) the FCC violated the Administrative Procedures Act (APA), 5 U.S.C. 500 et seq., because its establishment of the 90- and 150-day time frames constituted a rulemaking subject to the APA's notice-and-comment requirements. Arlington also raised a procedural due process claim. The court denied Arlington's petition for review on the merits. The court dismissed San Antonio's petition for review because the court lacked jurisdiction because San Antonio did not timely file its petition for review.
Time Warner Cable Inc., et al. v. Hudson, et al.
Plaintiffs, a trade organization representing incumbent cable operators in Texas and an incumbent cable provider, appealed the district court's grant of summary judgment dismissing their claims that Senate State Bill 5 violated the First and Fourth Amendments of the Constitution or was preempted by federal law. SB 5 was aimed at reforming the cable service industry in Texas by creating a new state-level franchising system that obligated the Public Utility Commission (PUC) to grant a franchise for the requested areas if the applicant satisfied basic requirements. New entrants could obtain a single statewide franchise that avoided the expense and inconvenience of separate municipal franchise agreements across the state. Overbuilders could terminate their existing municipal franchise agreements in favor of the convenience of the statewide franchise. Incumbent cable providers, however, could not similarly opt out for the statewide franchise, until after the expiration of the municipal license. The court held that because the statute unjustifiably discriminated against a small number of incumbent cable providers in violation of the First Amendment, the court reversed.
Farmers and Merchants Mutual Telephone Co. v. FCC, et al.
In three challenged orders, the Commission addressed a "traffic pumping" scheme in which the holder of the filed tariff entered into contractual arrangements with conference calling companies and charged the interexchange carrier the tariff rate for providing switched access service. Farmers, the holder of the tariff, petitioned for review. As a threshold matter, Farmers, joined by intervenor, contended that the Commission lacked authority to overturn its decision in Farmers I because it failed, as 47 U.S.C. 405(b) required, to act within 90 days on Qwest's petition for partial reconsideration and consequently, Farmers I became a final appealable order. The court held that the contention was based on a misreading of the statute. The merits question was whether the Commission properly determined that Farmers was not entitled to bill Qwest for access service under Farmers' tariff because Farmers had not provided interstate "switched access service" as that term was defined in Farmers' federal access tariff. The court held that the Commission, upon considering factors within its expertise, could reasonably conclude that Farmers' relationships with the conference calling companies had been deliberately structured to fall outside the terms of Farmers' tariff and therefore reasonably rejected such services as tariffed services. Therefore, deference to the Commission's determination was appropriate. Accordingly, the court denied the petition.
Jewel, et al. v. NSA, et al.
This case arose from claims that the federal government, with the assistance of major telecommunications companies, engaged in widespread warrantless eavesdropping in the United States following the September 11, 2001 attacks. At issue was whether plaintiffs have standing to bring their statutory and constitutional claims against the government for what they described as a communications dragnet of ordinary American citizens. The court concluded that plaintiffs' claims were not abstract, generalized grievances and instead met the constitutional standing requirement of concrete injury; nor do prudential considerations bar the action; the claims did not raise a political question nor are they inappropriate for judicial resolution; and the court did not impose a heightened standing requirement simply because the case involved government officials in the national security context. Accordingly, the court reversed the district court's dismissal on standing grounds and remanded for further proceedings.
McMurray, et al. v. Verizon Communications Inc., et al.
Plaintiffs appealed from the district court's dismissal of their complaint against government officials and a group of telecommunications companies. Plaintiffs challenged section 802 of the Foreign Intelligence Surveillance Act (FISA), 50 U.S.C. 1885a, as an unconstitutional taking under the Fifth Amendment. Section 802 allowed the U.S. Attorney General to certify that a telecommunications company provided assistance at the behest of the government in connection with investigation of terrorism, thereby triggering immunity on the theory that application of section 802 required dismissal of plaintiffs' case and negated the cause of action under various federal statutes. The court held that the district court correctly dismissed plaintiffs' complaint for lack of jurisdiction where plaintiffs demanded no monetary damages. Consequently, the court need not reach the merits of the Takings Clause claim.
Hepting, et al. v. AT&T Corp., et al.
These consolidated appeals arose from claims that major telecommunications carriers assisted the government with intelligence gathering following the terrorist attacks on September 11, 2001. Plaintiffs challenged the legality of the telecommunications companies' participation in the surveillance program. At issue was the constitutionality of section 802 of the Foreign Intelligence Surveillance Act (FISA), 50 U.S.C. 1885a, which allowed for immunity for the telecommunications companies. The court concluded that the statute was constitutional and did not violate Articles I and III of the Constitution or the Due Process Clause of the Fifth Amendment. Accordingly, the district court's grant of the government's motion to dismiss was affirmed as to the challenged section 802 claims.
Alaska Exchange Carriers Assn., Inc. v. Regulatory Comm’n of Alaska
Six weeks after the Regulatory Commission of Alaska approved the 2007 Access Charge Rates long distance telephone companies pay to local telephone companies, an association of local telephone companies realized that five of the rates the Regulatory Commission approved were based upon an erroneous spreadsheet the association included in its rate filings. The association requested that the Regulatory Commission correct the rates. The Regulatory Commission corrected the rates prospectively, but concluded retrospective application was barred by the Supreme Court's case law on retroactive ratemaking. The superior court agreed that retrospective application of the adjusted rates was impermissible, and the association appealed. Upon review, the Supreme Court reaffirmed its decision in "Matanuska Electric Association, Inc. v. Chugach Electric Association, Inc." (prohibiting retroactive ratemaking in "second look" cases), but held that the Regulatory Commission has the authority to implement corrections of some procedural mistakes starting when notice of a mistake is given. The Court remanded to the Regulatory Commission to determine the type of error that occurred in this case and whether the error should be corrected retrospectively.
Ardon v. City of Los Angeles
Plaintiff, a resident of Los Angeles, filed a class action lawsuit on behalf of himself and similarly situated individuals challenging the city's telephone users tax (TUT) and seeking refund of funds collected under the TUT over the previous two years. At issue was whether the Government Code section 910 allowed taxpayers to file a class action claim against a municipal government entity for the refund of local taxes. The court held that neither Woosley v. State of California, which concerned the interpretation of statutes other than section 910, nor article XIII, section 32 of the California Constitution, applied to the court's determination of whether section 910 permitted class claims that sought the refund of local taxes. Therefore, the court held that the reasoning in City of San Jose v. Superior Court, which permitted a class claim against a municipal government in the context of an action for nuisance under section 910, also permitted taxpayers to file a class claim seeking the refund of local taxes under the same statute. Accordingly, the court reversed and remanded the judgment of the Court of Appeals.
Oklahoma Publishing Co. v. Oklahoma
The Oklahoma Publishing Company (The Oklahoman) and World Publishing Company (Tulsa World) (collectively, Publishers), filed open records requests with the Office of Personnel Management (OPM) and the Office of State Finance (OSF). Both the Oklahoman and Tulsa World sought to release of birth dates of all state employees. In addition, the Tulsa World requested employee identification numbers. The Oklahoma Public Employees Association (OPEA) filed two suits against OPM and OSF requesting declaratory judgment and injunctive relief to bar the release of employees' birth dates. The second suit also sought to bar employee identification numbers from disclosure. The district court consolidated the cases. All parties filed motions for summary judgment. Relying on an opinion of the Oklahoma Attorney General, the trial court sustained OPEA's and OPM's motions. It ordered that the state agencies be given sixty daysâ notice to report their decisions on whether disclosure of date of birth requests would be a clearly unwarranted invasion of personal privacy; whether public access could be denied to employee identification numbers; and that legislative staff records were exempt from disclosure under the Oklahoma Open Records Act. Upon review, the Supreme Court found that Oklahoma law already contains a non-exclusive list of examples of information that if released, would constitute an unwarranted invasion of State employees' personal privacy. As guidance, the Court held that where a claim of invasion of privacy is made, courts should use a case-by-case balancing test to determine whether personal information is subject to release. If significant privacy interests are at stake while the public's interest in the disclosed information is minimal, release of that information "would constitute a clearly unwarranted invasion of personal privacy."
AT&T Communications of CA, Inc., et al. v. Pac-West Telecomm, Inc., et al.
This action stemmed from the Federal Communications Commission's ("FCC") "ISP Remand Order", which imposed a new compensation regime for ISP-bound traffic, i.e., internet service provider-bound traffic. Plaintiff, which was a competitive local exchange carrier ("CLEC"), maintained that the ISP Remand Order applied when the carrier originating the call and the carrier terminating the call were both CLECs. Defendant and the California Public Utilities Commission ("CPUC") contended that the ISP Remand Order's compensation regime applied only to traffic between a CLEC and an incumbent local exchange carrier ("ILEC"). CPUC agreed with defendant's limited reading of the reach of the compensation regime, finding it inapplicable to the ISP-bound traffic originating with plaintiff and terminated by defendant, and so it assessed against plaintiff charges consistent with defendant's state-filed tariff. Plaintiff then sued defendant and the CPUC in federal district court, alleging that the ISP Remand Order preempted their attempts to assess plaintiff charges for ISP-bound traffic based on state-filed tariffs. The district court granted summary judgment to defendant and CPUC, agreeing with their argument that the ISP Remand Order did not apply to CLEC-CLEC traffic. The court agreed with plaintiff and with the analysis contained in an amicus brief filed upon its request by the FCC, that the ISP Remand Order's compensation regime applied to ISP-bound traffic exchanged between two CLECs. Accordingly, the court reversed the judgment.