BellSouth Telecommunications, Inc. v. Kerrigan

55 F. Supp. 2d 1314, 1999 U.S. Dist. LEXIS 10469, 1999 WL 485438
CourtDistrict Court, N.D. Florida
DecidedMay 28, 1999
Docket3:97CV554
StatusPublished
Cited by4 cases

This text of 55 F. Supp. 2d 1314 (BellSouth Telecommunications, Inc. v. Kerrigan) is published on Counsel Stack Legal Research, covering District Court, N.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
BellSouth Telecommunications, Inc. v. Kerrigan, 55 F. Supp. 2d 1314, 1999 U.S. Dist. LEXIS 10469, 1999 WL 485438 (N.D. Fla. 1999).

Opinion

*1316 ORDER

VINSON, Chief Judge.

Pending is the plaintiffs motion for summary judgment, (doc. 48) Also pending is the defendants’ motion for partial summary judgment, (doc. 79)

I. BACKGROUND

In 1992, plaintiff BellSouth Telecommunications, Inc. (“BellSouth”) introduced a new “Nil” service in the state of Florida. The Nil service is a three-digit local dialing arrangement available in specified areas for the delivery of general information over the telephone. BellSouth made available for assignment in specified areas the Nil telephone numbers 211, 811, 511, 711, and 811. Nil Subscribers who contracted with BellSouth and were assigned an Nil number could provide information services and charge end users for calls, while Bell-South would record and rate the calls on behalf of the subscribers. Only one Nil number could be assigned to an Nil subscriber per local calling area. The intended target market for the service consisted of subscribers making available on a pay-per-call basis such information as sports scores, weather, time, stock quotes, and classified services. Service in Florida was to be offered in specified local calling areas, with area designations ranging from Tier 1 (highly-populated areas) to Tier 4 (the least-populated areas).

The various telephone services provided by BellSouth in Florida are governed by the Florida General Subscriber Service Tariff (“Tariff’), as approved by the Florida Public Service Commission (“PSC”). BellSouth filed a modification to the Tariff consisting of Section A.39, a section that set forth the service requirements and conditions of Nil abbreviated dialing, (doc. 48, ex. D) The Florida Public Service Commission approved the A.39 tariff on November 4, 1992. (doc. 48, ex. E)

In 1994, defendant Robert Kerrigan and his partner, defendant George Estess, decided to apply to BellSouth for the ability to provide Nil service in multiple regions in the state of Florida. The defendants requested “811” as their three digit dialing code. The defendants signed letters of agreement with BellSouth for seven Nil lines in Florida, and received copies of the BellSouth General Service Subscriber Tariff, which was incorporated into the agreements by reference. The defendants incorporated 811, Inc. for the purpose of operating the Nil business. To provide information to callers, the defendants ordered a satellite-based information system, and hardware was installed in several locations in Florida.

Under the Tariff, a “minimum usage charge” is incurred by an Nil provider if six months after the Nil line is installed, the line usage has not risen to a specified level. The parties dispute whether the charge is a one-time charge or a monthly charge. In 1995, the plaintiff billed the defendants monthly for minimum usage charges on all the Nil sites operated by the defendants. The defendants paid the charge for one month for each site. (Miller dep., at 40-41) The plaintiff billed the defendants for minimum usage charges for subsequent months on the sites, and the defendants refused to pay the charges on the basis that the minium usage charge was a one-time charge, rather than a monthly charge.

BellSouth continued to apply minimum usage charges to 811, Inc., and after five months of non-payment BellSouth informed 811, Inc. that service would be disconnected if the balance owed was not immediately paid. On May 30, 1996, an attorney for BellSouth sent 811, Inc. a letter stating that according to BellSouth’s interpretation of the tariff, 811, Inc. was required to pay minimum usage charges for every period in which 811, Inc. fell below the minimum usage charges, and that 811, Inc. had an outstanding balance of $85,474. (doc. 48, ex. K) The telephone lines were eventually disconnected on the basis that 811, Inc. had made no arrangements to pay the outstanding balance.

*1317 The plaintiff filed the present action on December 29, 1997, and filed an amended complaint on May 21, 1998. (doc. 27) Count I alleges breach of contract. Count II, entitled “Statement of Account,” alleges that the defendants owe the plaintiff $107,-730.28 and $14,608.39 on two accounts. In their counterclaim, the defendants alleged that plaintiff breached the Nil agreements by improperly cutting off the defendant’s Nil service without prior notice.

II. ANALYSIS

A. Summary Judgment Standard

A motion for summary judgment should be granted when “the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.” Rule 56(c), Fed.R.Civ.P. “[T]he plain language of Rule 56(c) mandates the entry of summary judgment, after adequate time for discovery and upon motion, against a party who fails to make a showing sufficient to establish the existence of an element essential to that party’s case, and on which that party will bear the burden of proof at trial.” Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 2552, 91 L.Ed.2d 265, 273 (1986); see also Everett v. Napper, 833 F.2d 1507, 1510 (11th Cir.1987).

However, summary judgment is improper “[i]f a reasonable fact finder could draw more than one inference from the facts, and that inference creates a genuine issue of material fact.” Cornelius v. Highland Lake, 880 F.2d 348, 351 (11th Cir.1989), cert. denied, 494 U.S. 1066, 110 S.Ct. 1784, 108 L.Ed.2d 785 (1990). An issue of fact is “material” if it might affect the outcome of the case under the governing law. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 2510, 91 L.Ed.2d 202, 211 (1986). It is “genuine” if the record taken as a whole could lead a rational trier of fact to find for the non-moving party. Id.; see also Matsushita Electric Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 586, 106 S.Ct. 1348, 1356, 89 L.Ed.2d 538, 552 (1986).

Conclusory allegations based on speculation, subjective beliefs, or bald assertions based upon unsubstantiated hearsay are insufficient to create a “genuine issue of material fact.” Carter v. Miami, 870 F.2d 578, 585 (11th Cir.1989); Ramsey v. Leath, 706 F.2d 1166, 1170 (11th Cir.1983). On a summary judgment motion, the record and all reasonable inferences that can be drawn from it must be viewed in the light most favorable to the non-moving party. McCabe v. Sharrett, 12 F.3d 1558, 1560 (11th Cir.1994).

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Bluebook (online)
55 F. Supp. 2d 1314, 1999 U.S. Dist. LEXIS 10469, 1999 WL 485438, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bellsouth-telecommunications-inc-v-kerrigan-flnd-1999.