APCC Services, Inc. v. AT & T CORP.

297 F. Supp. 2d 101, 2003 U.S. Dist. LEXIS 22838, 2003 WL 23025625
District Court, District of Columbia·Decided December 17, 2003·No. CIV.A. 99-0696 ESH·Published·Cited by 9 cases

Opinion

MEMORANDUM OPINION

Plaintiffs in this case, as well as in several others before the Court, seek payment from common carriers of “dial-around compensation” on behalf of payphone service providers (“PSPs”) for certain long distance phone calls originating from their payphones. 1 They claim that the carriers have violated section 276(b)(1)(A) of the Communications Act of 1934, as amended, 47 U.S.C. § 276, and its implementing regulations, codified at 47 C.F.R. § 64.1300. Plaintiffs base their claims on sections 206 and 207 that provide for the recovery of damages for violations of the Act.

All of the cases before this Court present an initial question as to whether section 276 and its implementing regulations confer a private right of action to sue for a common carrier’s alleged failure to pay adequate dial-around compensation. On September 4, 2003, the Court, upon motion to dismiss by Cable & Wireless, found that plaintiffs have a right of action and can base their claims on section 276. APCC Servs., Inc. v. Cable & Wireless, Inc., 281 F.Supp.2d 52 (D.D.C.2003) (“C & W”). Consistent with that ruling, the Court also allowed plaintiffs to amend their complaint to add additional grounds under sections 201(b), 416(c) and 407 of the Communications Act. 2 Id. at 57-59. Sprint has requested that the Court reconsider its rulings and dismiss the amended complaint, or alternatively, certify the question for interlocutory appeal, basing its motion in large part upon the Ninth Circuit’s recent holding in Greene v. Sprint Communications Co., 340 F.3d 1047 (9th Cir.2003). 3

*104 Four of these actions also present a question as to whether plaintiffs have Article III standing as assignees of the claims of numerous PSPs. 4 The Court initially dismissed one of these cases on March 28, 2003, finding that plaintiffs lacked standing (see APCC Servs., Inc. v. AT & T Corp., 254 F.Supp.2d 135 (D.D.C.2003) (“AT & T I”)), but upon reconsideration, it concluded that the assignments executed by the PSPs bestowed upon the aggregator-plain-tiffs standing sufficient to survive an Article III challenge. See APCC Servs., Inc. v.AT & T Corp., 281 F.Supp.2d 41 (D.D.C.2003) (“AT & T II”). AT & T has moved for reconsideration of the Court’s second decision on the standing issue, or in the alternative, for certification of an interlocutory appeal. 5

Whether the Act confers a private right of action to collect dial-around compensation from carriers is a controlling question of law, for it is dispositive as to all cases before the Court. 6 To the extent that a private right of action is found to exist, the issue of whether the assignees have standing to sue is also controlling, and is dispos-itive as to three of the five pending actions. 7 An immediate appeal to the Circuit Court of these issues will prevent potentially unnecessary and protracted litigation while definitively resolving these disputed jurisdictional issues. Thus, although the Court is unwilling to reconsider its prior opinions in C & W and AT & T II, it will grant the carriers’ motions for certification of an interlocutory appeal of both decisions.

LEGAL ANALYSIS

Whether to allow an interlocutory appeal of a non-final order is left to the discretion of the district court. Swint v. Chambers County Comm’n, 514 U.S. 35, 47, 115 S.Ct. 1203, 131 L.Ed.2d 60 (1995). The court may certify such an appeal if (1) the order involves a controlling question of law; (2) a substantial ground for difference of opinion concerning the ruling exists; and (3) an immediate appeal would materially advance the litigation. See 28 U.S.C. § 1292(b); Walsh v. Ford Motor Co., 807 F.2d 1000, 1002 n. 2 (D.C.Cir.1986); In re Korean Air Lines Disaster, 935 F.Supp. 10, 16 (D.D.C.1996). The party seeking interlocutory review has the burden of persuading the Court that the “circumstances justify a departure from the basic policy of postponing appellate review until after the entry of a final judgment.” In re Vitamins Antitrust Litig., No. 99-197, 2000 WL 33142129, at *1 (D.D.C.2000) (citing First Am. Corp. v. Al-Nahyan, 948 F.Supp. 1107, 1116 (D.D.C.1996)).

In deciding whether to grant interlocutory appeal, the Court of Appeals in this Circuit follows the collateral order doe- *105 trine, see Jungquist v. Sheikh Sultan Bin Khalifa Al Nahyan, 115 F.3d 1020, 1026 (D.C.Cir.1997), which allows for appeal if it “(1) conclusively determines the disputed question, (2) resolves an important issue completely separate from the merits of the action, and (3) would be effectively unre-viewable on appeal from a final judgment.” United States v. Rostenkowski, 59 F.3d 1291, 1296 (D.C.Cir.1995) (quoting Coopers & Lybrand v. Livesay, 437 U.S. 463, 468, 98 S.Ct. 2454, 57 L.Ed.2d 351 (1978)).

I. Controlling Question of Law

Under § 1292(b), a “controlling question of law is one that would require reversal if decided incorrectly or that could materially affect the course of litigation with resulting savings of the court’s or the parties’ resources.” Judicial Watch, Inc. v. Nat’l Energy Policy Dev. Group, 233 F.Supp.2d 16, 19 (D.D.C.2002). Controlling questions of law include issues that would terminate an action if the district court’s order were reversed. See Klinghoffer v. S.N.C. Achille Lauro, 921 F.2d 21, 24 (2d Cir.1990) (a question of law is controlling if it involves issues of personal or subject matter jurisdiction); United States ex rel. Wis. v. Dean, 729 F.2d 1100, 1103 (7th Cir.1984) (decision finding subject matter jurisdiction involves a controlling question of law); Katz v. Carte Blanche Corp., 496 F.2d 747

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APCC Services, Inc. v. AT & T CORP., 297 F. Supp. 2d 101, 2003 U.S. Dist. LEXIS 22838, 2003 WL 23025625 (D.D.C. 2003).

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