American Telephone & Telegraph Co. v. Delta Communications Corp.

114 F.R.D. 606, 7 Fed. R. Serv. 3d 323, 1986 U.S. Dist. LEXIS 16813
CourtDistrict Court, S.D. Mississippi
DecidedDecember 8, 1986
DocketCiv. A. No. E-1564(L)
StatusPublished
Cited by6 cases

This text of 114 F.R.D. 606 (American Telephone & Telegraph Co. v. Delta Communications Corp.) is published on Counsel Stack Legal Research, covering District Court, S.D. Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Telephone & Telegraph Co. v. Delta Communications Corp., 114 F.R.D. 606, 7 Fed. R. Serv. 3d 323, 1986 U.S. Dist. LEXIS 16813 (S.D. Miss. 1986).

Opinion

MEMORANDUM OPINION AND ORDER

TOM S. LEE, District Judge.

This cause is before the court on the motion of the plaintiff, American Telephone & Telegraph Company (AT & T), to dismiss two counterclaims by the defendant, Delta Communications Corporation (Delta). Delta has filed timely response to the motion, and the court has reviewed the memoranda with attachments submitted by the parties in considering the motion.

I. FACTS

Delta operated a UHF television station in Meridian, Mississippi from 1968 to 1970. AT & T provided television transmission services to Delta between June 1968 and February 1970. The services were rendered under two arrangements. From June 1968 to April 14, 1969, the services consisted of interexchange channel (IXC) service between Jackson, Mississippi and Meridian and station connection and local channel service at Meridian. Under this arrangement, AT & T transmitted network programming from Jackson to the Meridian telephone rate center via IXC or “long lines” service, then transmitted the programming from the Meridian telephone rate center to Delta’s studio via the station connection and local channel services.1 In April 1969, Delta installed its own intercity microwave system to transmit the signals from Jackson to its studios in Meridian, making the AT & T IXC service unnecessary. From April 14, 1969 to February 28, 1970, AT & T provided only station connection and local channel service at Jackson. Under this second arrangement, AT & T transmitted network programming from the Jackson central office facilities to Delta’s microwave transmitter in Jackson, from which the signals were sent directly to Delta’s broadcast facilities in Meridian.

Delta’s television station ceased operation in February 1970. AT & T filed suit against Delta in August 1970 to recover unpaid charges for station connection and local channel service rendered in Jackson between October 1969 and February 1970. On October 5, 1970, Delta answered, asserting as a defense the illegality of the tariffs covering the particular services. Delta also asserted a counterclaim alleging that the rates AT & T had charged for IXC service were unlawful under the Communications Act, 47 U.S.C. §§ 151-611.

As a defense to the counterclaim, AT & T contended that the counterclaim was barred by the statute of limitations provided in 47 U.S.C. § 415(b), since Delta’s claim related to services which had been rendered more than one year before Delta filed its counterclaim.2 Delta contended that the counterclaim, otherwise clearly time-barred, was preserved by section 415(d), which provides that the period of limitation on an action for damages arising from the provision of a service is extended to ninety days from the time a carrier collects or brings an action to collect charges for the “same service.” It was Delta’s position that “same service” meant the entire television transmission service provided by AT & T, which included three elements, IXC, station connection and local channel services, billed under the same heading and used to furnish a single broadcast transmission path. Thus, Delta maintained that since it filed its IXC counter[609]*609claim within ninety days after AT & T brought suit to collect charges for local channel and station connection service, the counterclaim was timely.

This court held that before the statute of limitations question could be resolved, a determination was necessary as to whether the IXC, station connection and local channel services were the “same service” within the meaning of section 415(d). The court further held that the “same service” question and the issue of the legality of the IXC tariffs were both within the primary jurisdiction of the Federal Communications Commission (FCC) and therefore dismissed without prejudice Delta’s IXC counterclaim. American Telephone & Telegraph Company v. Delta Communications Corp., 408 F.Supp. 1075, 1115 (S.D.Miss.1976) (Judge Charles Clark, Fifth Circuit Court of Appeals, sitting by designation), aff'd, 579 F.2d 972 (5th Cir.1978), partially vacated and remanded on reh'g, 590 F.2d 100 (5th Cir.1979). The United States Court of Appeals for the Fifth Circuit vacated the dismissal of the Communications Act counterclaim and remanded the case with instructions to stay the proceeding pending resolution of the Communications Act claim by the FCC. American Telephone & Telegraph Co. v. Delta Communications Corp., 590 F.2d 100, 102 (5th Cir.1979). On remand, this court ordered the proceedings stayed until Delta had filed a complaint with the FCC pursuant to 47 U.S.C. § 208 and had obtained a determination of questions which were within the primary jurisdiction of the Commission. Before submitting the IXC claim to the FCC, Delta sought to amend its counterclaim to allege that the rates for local channel and station connection services were unlawful as applied to Delta.3 This court granted leave to amend and ordered that the following questions be submitted to the FCC:

(1) Whether Delta’s claims relating to the IXC, local channel and station connection services were barred by the one year statute of limitations set forth in 47 U.S.C. § 415 prior to its amendment in 1974;
(2) If the IXC claim was not barred, whether AT & T’s IXC rates were unlawful as applied to Delta;
(3) If the local channel/station connection claim was not barred, whether AT & T’s tariffs for local channel and station connection service were unlawful as applied to Delta;
(4) If the rates in question were unlawful, whether Delta was entitled to damages and, if so, the legal standard applicable to the determination of such damages, including a determination of the burden of proof.

The FCC ruled that the IXC, station connection and local channel services were not the “same service” within the meaning of section 415(d). Therefore, the Commission held, the IXC claim was barred by the statute of limitations. The FCC also found that the district court had allowed the amendment alleging illegality of the local channel and station connection tariffs only as “an additional legal argument with respect to [Delta’s] allegations relating to interexchange channels” and not as a new claim. Since the IXC claim was time-barred, the Commission ruled, the “additional legal argument” of the unlawfulness of the local channel and station connection rates could not resurrect the barred IXC claim. Delta Communications Corp., E-80-40, slip op. at 6 (F.C.C. Common Carrier Bureau May 24, 1982). Because the FCC held that both claims were time-barred, the question of the validity of the tariffs was not considered.

On Delta’s petition for review of the FCC order, the Fifth Circuit affirmed the Commission’s ruling on the “same service” question.

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Bluebook (online)
114 F.R.D. 606, 7 Fed. R. Serv. 3d 323, 1986 U.S. Dist. LEXIS 16813, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-telephone-telegraph-co-v-delta-communications-corp-mssd-1986.