At&T Corp. v. Federal Communications Commission

349 F.3d 692, 358 U.S. App. D.C. 369, 2003 U.S. App. LEXIS 23930
Court of Appeals for the D.C. Circuit·Decided November 25, 2003·No. 02-1221, 02-1240, 02-1263 & 02-1275·Published·Cited by 63 cases

Opinion

Opinion for the Court filed by Circuit Judge HARRY T. EDWARDS.

HARRY T. EDWARDS, Circuit Judge:

AT&T Corporation (“AT&T”) and Sprint Spectrum L.P. (“Sprint PCS” or “Sprint”), along with Célico Partnership, petition this court for review of a declaratory ruling of the Federal Communications Commission (“FCC” or “Commission”) responding to a primary jurisdiction referral from the United States District Court for the Western District of Missouri. The referral arose during the course of litigation between AT&T and Sprint in Missouri in which Sprint sought compensation from AT&T for its use of Sprint’s wireless network. AT&T removed the case from state court to the federal district court, which then referred specific questions to the FCC under the doctrine of primary jurisdiction. In its referral order, the district court inquired of the FCC (1) whether Sprint may charge access fees to AT&T for access to the Sprint PCS wireless network and, if so, (2) the reasonableness of Sprint’s charges.

After receiving petitions for declaratory rulings from both AT&T and Sprint, along with public comments, the Commission held that Sprint is entitled to collect access charges from AT&T only to the extent that a contract between the parties imposes a payment obligation on AT&T. The FCC declined to determine the reasonableness of any rate until after the district court determined whether the parties are bound by a contract. Both AT&T and Sprint raise numerous challenges to the Commission’s ruling, none of which are properly before this court for review. Accordingly, we dismiss the petitions for review.

I. Background

The facts underlying this case are largely undisputed. Because this information is adequately set forth in the Commission’s ruling that is the subject of review here, see In the Matter of Petitions of Sprint PCS and AT&T Corp. for Declaratory Ruling Regarding CMRS Access Charges, 17 F.C.C.R. 13,192, at 13,193-13,195, 2002 WL 1438578 (2002), reported at 67 Fed. Reg. 49,242 (F.C.C.2002) (hereinafter “De *696 claratory Ruling”), we will simply summarize the most important facts to highlight what is at issue.

In 1998, petitioner Sprint PCS, a commercial mobile telephone service (“CMRS”) provider, started billing AT&T for the costs of terminating interexchange traffic bound for its customers. AT&T refused to pay the Sprint invoices. Declaratory Ruling, 17 F.C.C.R. at 13,193. On August 8, 2000, Sprint sought to enforce payment by filing suit in state court in Missouri seeking a monetary judgment against AT&T on three causes of action: breach of contract, quantum meruit, and action on account. Id. AT&T then removed the case to federal district court in the Western District of Missouri. Sprint moved to remand the case back to state court, which AT&T opposed. Sprint denied the existence of diversity between the parties and claimed that its state-law claims in no way raised any federal question. Plaintiffs Motion to Remand at 1-2, Sprint Spectrum L.P. v. AT&T Corp., 168 F.Supp.2d 1095 (W.D.Mo.2001), Joint Appendix (“J.A.”) 61-62. In its opposition, AT&T argued, inter alia, that Sprint’s state-law claims were wholly preempted by 47 U.S.C. § 332, because they would require the court to establish a rate for terminating access. Defendant’s Suggestions in Opposition to Plaintiffs Motion to Remand at 4-11, Sprint Spectrum L.P. v. AT&T Corp., 168 F.Supp.2d 1095 (W.D.Mo.2001), J.A. 95-102.

The district court denied Sprint’s motion to remand, holding that it had jurisdiction based upon the diversity of the parties without addressing whether or not Sprint’s action raised federal claims. Sprint Spectrum L.P. v. AT&T Communications, Inc., No. 00-0973-CV-W-5 (W.D.Mo. Feb. 8, 2001) (order denying Sprint’s motion to remand), reprinted in J.A. 169. AT&T then asked the district court to refer the case to the Commission under the doctrine of primary jurisdiction. See Sprint Spectrum L.P. v. AT&T Corp., 168 F.Supp.2d 1095, 1096 (W.D.Mo.2001). Sprint opposed that motion, arguing that it was simply seeking payment for services rendered using state-law theories that do not involve the Communications Act or the FCC’s special expertise. Id. at 1099.

On July 24, 2001, the district court referred two issues to the Commission under the doctrine of primary jurisdiction. Id. at 1096. The court was very precise in setting forth the terms of its referral:

ORDERED that Defendant AT&T Corporation’s Motion for Referral of Issues to the FCC Under the Doctrine of Primary Jurisdiction and for Dismissal or a Stay Proceedings Pending the Referral is GRANTED. The questions of whether Sprint may charge access fees to AT&T for access to the Sprint PCS wireless network and, if so, the reasonableness of Sprint’s charges for such services are referred to the FCC for further consideration. It is further
ORDERED that Defendant AT&T Corporation is directed to prepare and submit the appropriate filings to bring these issues before the FCC by Friday, August 24, 2001.

Id. at 1102.

On October 22, 2001, AT&T and Sprint filed separate petitions seeking declaratory rulings from the FCC. The Commission described these filings, as follows:

In its petition, Sprint PCS asks the Commission to find that there is no federal law or Commission policy that bars Sprint PCS from recovering its call termination costs from AT&T. Sprint PCS also asks [the Commission] to find that AT&T’s refusal to pay access charges to Sprint PCS is unreasonably discriminatory under section 202(a) of the Communications Act of 1934, as amended (the Act), and unjust and unreasonable under section 201(b) of the Act. In its petition, *697 AT&T asks the Commission to find that CMRS carriers should continue to recover their costs from their end users, not by imposing access charges on IXCs. If CMRS carriers are permitted to impose access charges, AT&T asks that those charges be capped at the reciprocal compensation rate for local traffic and assessed only prospectively.

Declaratory Ruling, 17 F.C.C.R. at 13,193-94.

Because the parties’ petitions for declaratory rulings were much wider in scope than the district court’s referral order, the FCC’s Declaratory Ruling is somewhat free-wheeling in its discourse. As a consequence, there are numerous observations in the Declaratory Ruling that do not purport to respond to the district court’s referral order or to otherwise pass judgment on any issue. Cut to its core, however, the FCC Declaratory Ruling is fairly precise in responding to the referral order. The principal terms of the Declaratory Ruling are as follows:

7.

Free access — add to your briefcase to read the full text and ask questions with AI

At&T Corp. v. Federal Communications Commission, 349 F.3d 692, 358 U.S. App. D.C. 369, 2003 U.S. App. LEXIS 23930 (D.C. Cir. 2003).

349 F.3d 692 (At&T Corp. v. Federal Communications Commission) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Goetz v. Gacki
District of Columbia, 2025
Basengezi v. Gacki
District of Columbia, 2024
Olenga v. Gacki
District of Columbia, 2020
Ciox Health, LLC v. Hargan
District of Columbia, 2020
Unitedhealthcare Insurance Company v. Burwell
248 F. Supp. 3d 192 (District of Columbia, 2017)
District Title v. Warren
118 F. Supp. 3d 249 (District of Columbia, 2015)
Watson Laboratories, Inc. v. Sebelius
District of Columbia, 2012
Belmont Abbey College v. Sebelius
878 F. Supp. 2d 25 (District of Columbia, 2012)
National Restaurant Association v. Solis
870 F. Supp. 2d 42 (District of Columbia, 2012)
Cephalon, Inc. v. Sebelius
District of Columbia, 2011
Cohen v. United States
650 F.3d 717 (D.C. Circuit, 2011)