Bell Atlantic of Maryland, Inc. v. Intercom Systems Corporation

782 A.2d 791, 366 Md. 1, 2001 Md. LEXIS 779
CourtCourt of Appeals of Maryland
DecidedOctober 10, 2001
Docket13, Sept. Term, 2001
StatusPublished
Cited by24 cases

This text of 782 A.2d 791 (Bell Atlantic of Maryland, Inc. v. Intercom Systems Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bell Atlantic of Maryland, Inc. v. Intercom Systems Corporation, 782 A.2d 791, 366 Md. 1, 2001 Md. LEXIS 779 (Md. 2001).

Opinion

BATTAGLIA, Judge.

We issued a writ of certiorari in this case to determine whether the administrative remedy before the Maryland Public Service Commission (“PSC” or “Commission”) as set forth in Maryland Code, Section 3-101 et seq. of the Public Utility Companies Article (1998) is of an exclusive, primary, or concurrent nature with respect to alleged acts of tortious interference with contractual relations, negligence, and breach of contract in connection with the provision of telephone services by petitioner Bell Atlantic of Maryland, Inc. (“Bell Atlantic”) to respondent Intercom Micro Systems, Inc. (“Intercom”). The Court of Special Appeals held that the statutory remedy provided by the Public Utility Companies Article was primary for consumer complaints against public service companies. We now affirm.

I. Facts

Respondent Intercom is an internet service provider in the Washington, D.C. metropolitan area. The company was start *4 ed in 1993 by its owner, Mark S. Ballard, who currently runs the business from his home in Clinton, Maryland. Petitioner Bell Atlantic of Maryland, Inc. (“Bell Atlantic”) serves as the local exchange carrier providing telephone service to Clinton, Maryland, which includes the business telecommunications services for Intercom. In 1995, Intercom filed seven complaints against Bell Atlantic with the PSC’s Office of Consumer Assistance and Public Affairs (“CAPA”), alleging that Bell Atlantic provided inadequate telecommunications services, engaged in improper billing, and discriminatory treatment. 1

In one complaint, Intercom alleged that Bell Atlantic service outages affecting the dedicated service line being provided to one of Intercom’s clients resulted in the loss of Intercom’s business with that client. In a separate complaint, Intercom detailed how its incoming phone calls were being routed to one of its competitors located in Laurel, Maryland. The remaining five complaints recounted the numerous losses Intercom *5 sustained which were allegedly attributable to instances of Bell Atlantic’s inadequate service and substandard customer service responses to complaints lodged by Intercom. 2

During January and February of 1997, Intercom filed an additional sixteen complaints with the PSC’s CAPA Office. Intercom asserted that Bell Atlantic had failed again to provide Intercom with adequate sendee, billed Intercom incorrectly for the services, and engaged in discriminatory practices. Bell Atlantic conducted an investigation of these complaints, and filed reports with the PSC. On April 11, 1997, the CAPA Office issued a “final response,” in which it found that Bell Atlantic had not violated any of the PSC’s approved tariffs (fee schedules) and had not acted in bad faith with respect to the provision of telecommunication services to Intercom. The PSC informed Intercom that pursuant to COMAR 20.32.01.04A and 20.07.03.04, it had a ten day period in which it could appeal the findings of the CAPA Office by filing a formal complaint with the full Commission. 3

*6 On April 21, 1997, Intercom filed a formal complaint with the PSC, in which it incorporated the sixteen original complaints it had filed previously with the CAPA Office in 1997. Intercom also filed a seventeenth complaint seeking damages for harm suffered by Intercom as a result of Bell Atlantic’s allegedly willful and intentional conduct. Intercom’s damages claimed before the PSC were of a compensatory and punitive nature. Bell Atlantic interjected jurisdictional defenses to Intercom’s claims by asserting that Intercom’s request for compensatory and punitive damages went beyond the statutory authority of the PSC.

The PSC determined that it had jurisdiction to entertain Intercom’s complaints with regard to fee schedules, since these issues were not preempted by the Federal Communications Act, 47 U.S.C. § 151 (1991). Intercom’s complaints of Bell Atlantic’s allegedly willful and intentional conduct interfering with Intercom’s business relations, were addressed by the PSC’s hearing examiner as follows:

The business relationship between [Intercom] and [Bell Atlantic] has been one in which [Intercom] has found it necessary to file repeated complaints with this Commission in order to rectify what it considered serious and willful actions taken against it by [Bell Atlantic]. [Intercom] argues that the actions of Bell Atlantic [are] evidence of its intent to destroy the business. Obviously, Bell Atlantic denies such a charge. Nonetheless, it is entirely understandable that [Intercom] would draw such a conclusion. [Bell Atlantic] is a sophisticated company with technological and management systems in place to provide reliable service to its customers. The cummulative [sic] affect[sic] of the actions described in the [Intercom] complaints certainly belie the standard of reliability expected of Bell Atlantic. *7 Therefore, it is, indeed, very troublesome that this succession of problems has occurred. Moreover, it is reasonably foreseeable that the repeated problems could and probably did have serious economic consequences to [Intercom], However, it is not necessary to decide whether Bell Atlantic’s action was taken for the intended purpose to destroy the [Intercom] business. Simply put, the [Intercom] claim for economic damage seeks to obtain a remedy that is beyond the boundary of the tariffs or the Commission’s statutory authority. Although [Intercom] argues strongly that the action against it was taken with the intent of destroying the business, that allegation cannot be the basis for providing a remedy that is not authorized by statute. There are “numerous decisions that hold that the Commission cannot award monetary damages or assess fines save those specifically provided by statute.” See [In re] Re: The Washington Post Company, 88 Md. PSC 183, 185[, 1997 WL 1008383] (1997).

Proposed Order of Hearing Examiner, In the Matter of the Complaint of IMS Intercom Against Bell Atlantic-Maryland, Inc. (Dec. 23, 1999). 4 It concluded it lacked the authority to entertain Intercom’s request for punitive and consequential damages, the PSC granted Bell Atlantic’s Motion for Summary Dismissal.

In addition to the administrative remedies available under Sections 3-101 through 3-209 of the Public Utility Companies Article of the Maryland Code, Intercom sought direct judicial relief in the form of an independent judicial action. On April 16, 1997, Intercom filed a lawsuit against Bell Atlantic in the Circuit Court for Prince George’s County, alleging tortious interference with contractual relations, negligence, and breach of contract. Intercom alleged that Bell Atlantic intentionally *8 interfered with Intercom’s business because it, either directly or through its subsidiaries, was a direct competitor of Intercom in providing internet access services to the general public.

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Bluebook (online)
782 A.2d 791, 366 Md. 1, 2001 Md. LEXIS 779, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bell-atlantic-of-maryland-inc-v-intercom-systems-corporation-md-2001.