At & T Communications of the South Central States, Inc. v. Bellsouth Telecommunications, Inc.

43 F. Supp. 2d 593
CourtDistrict Court, M.D. Louisiana
DecidedMarch 29, 1999
DocketCivil Action 97-1136-A, 97-1137-A, 98-105-A
StatusPublished
Cited by12 cases

This text of 43 F. Supp. 2d 593 (At & T Communications of the South Central States, Inc. v. Bellsouth Telecommunications, Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
At & T Communications of the South Central States, Inc. v. Bellsouth Telecommunications, Inc., 43 F. Supp. 2d 593 (M.D. La. 1999).

Opinion

RULING ON SUBJECT MATTER JURISDICTION

PARKER, District Judge.

This consolidated matter is before the court, sua sponte, to consider whether the State of Louisiana through the Public Service Commission is entitled to Eleventh Amendment immunity. Ml parties have been directed to brief the issue. The defendants, the Louisiana Public Service Commission (“Public Service Commission”) and its members, argue that they are immune from suit under the Eleventh Amendment and this court is without jurisdiction to hear this case. The remaining defendant, BellSouth Central States, Inc., (“BellSouth”) and the consolidated plaintiffs, AT & T Communications of the South Central State, Inc., (“AT & T”), American Communications Services of Louisiana, Inc., American Communications Services of Baton Rouge, Inc., and American Communications Services of Shreveport, Inc. (presently known as e.spire) (“e.spire”) have filed memoranda in opposition. 1 Jurisdiction is allegedly based on 28 U.S.C. § 1831, as it relates to the Telecommunications Act of 1996, Pub.L. No. 104-104, 110 Stat. 56, (codified in scattered sections of 47 U.S.C.A (West Supp.1997)).

I. BACKGROUND

A. The Telecommunications Act

In 1996, the Congress enacted the Telecommunications Act (“the 1996 Act”). The 1996 Act was intended to dissolve monopolies granted by the states to local telephone companies and open the market for competition. 2 Prior to the 1996 Act, the existing local telephone companies (referred to by the parties as “local exchange carriers”) were regulated by the states. Louisiana regulated its local exchange carrier through the Public Service Commission.

The Congress recognized that simply removing regulatory restrictions on competition would not eliminate the economic barriers which blocked entry into the telephone markets. Therefore, in order for the 1996 Act to fulfill its purpose and to ensure that new telephone companies entered the market quickly, the Congress required all local exchange carriers to share their networks with competitors. 3 Entrants could either interconnect with the local exchange carriers’ network, lease elements of existing local networks at reasonable rates, or purchase the local exchange carriers’ services at wholesale rates and sell them to customers. 4

To ensure that local exchange carriers would be fairly compensated, the Congress *596 required that the new companies and the local exchange carriers reach a reasonable and fair interconnection agreement. The process, which is set out in 47 U.S.C. § 252, requires that new companies and local exchange carriers first try to reach voluntary interconnection agreements. 5 During negotiations, either party may request that the appropriate state commission act as a mediator. 6 If the parties are unable to negotiate, 47 U.S.C. § 252(b) requires that the parties submit the issues to compulsory arbitration. Section 252 and the Federal Communications Commission regulations set forth certain standards that must be followed by the state commission during these arbitration proceedings.

Without regard to whether the agreement was negotiated or arbitrated, the 1996 Act requires that the agreement be approved by the state commission. Subsection 252(e) provides guidelines for the acceptance or rejection of an interconnection agreement. If the parties submit to mediation or arbitration and the “state fails to act”, the FCC is given the power under the act to preempt the commission’s jurisdiction and to assume the state commission’s responsibilities. 7 However, if a state fails to approve or reject an agreement within a reasonable time, then the agreement is deemed approved. 8 Finally, and this is the problem, 47 U.S.C. § 252(e)(6) states that “any party aggrieved by [a state commission’s] determination may bring an action in an appropriate Federal district court to determine whether the agreement or statement meets the requirements of section 251 and this section”.

In addition to the negotiation of an interconnection agreement, a local exchange carrier that is a Bell Operating Company, such as BellSouth, is required to submit to the state commission for approval a Statement of Generally Available Terms (“Statement”). 9 The statement must contain “terms and conditions that such company generally offers within that State to comply -with the requirement of section 251 of [the Act] and the regulations thereunder and standards applicable under [Section 252]”. 10

B. Procedural History

The plaintiffs in this consolidated matter, AT & T and e.spire, are trying to enter the telephone market in which Bell-South is the incumbent local exchange carrier. In compliance with the procedures set forth under the 1996 Act, the plaintiffs attempted to negotiate a voluntary interconnection agreement with Bell-South. After negotiations were unsuccessful, plaintiffs petitioned the Public Service Commission for compulsory arbitration. After arbitration was conducted, the agreement was submitted to the Public Service Commission for approval. Additionally, on October 22, 1997, the Public Service Commission approved BellSouth’s Statement of Generally Available Terms (“BellSouth’s Statement”).

Both AT & T and e.spire contend that certain terms of BellSouth’s Statement and their respective interconnection agreements with BellSouth do not meet the requirements of the 1996 Act. Pursuant to Section 252(e)(6), AT & T and e.spire have brought these actions seeking judicial review of both the statement and their respective agreements.

After suits were filed in this court, they were consolidated and the magistrate judge, pursuant to a scheduling order, directed that the parties submit the case on briefs. After briefs had been submitted by the parties, this court noticed that although the Public Service Commission had *597 been named as a party, none of the parties discussed the Public Service Commission’s immunity from suit in federal court under the Eleventh Amendment. Therefore, by notice to counsel, the court directed the parties to brief the issue.

II. THE ELEVENTH AMENDMENT

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43 F. Supp. 2d 593, Counsel Stack Legal Research, https://law.counselstack.com/opinion/at-t-communications-of-the-south-central-states-inc-v-bellsouth-lamd-1999.