Bryan v. BellSouth Communications, Inc

Procedural entryThis page is a short order in Bryan v. BellSouth Communications, Inc. Read the opinion of the Court — 492 F.3d 231
Court of Appeals for the Fourth Circuit·Decided July 3, 2007·No. 06-1746·Published

Opinion

PUBLISHED

UNITED STATES COURT OF APPEALS FOR THE FOURTH CIRCUIT

TOMI WHITE BRYAN, individually  and on behalf of all others similarly situated, Plaintiff-Appellant, v.  No. 06-1746

BELLSOUTH COMMUNICATIONS, INCORPORATED, Defendant-Appellee.  Appeal from the United States District Court for the Middle District of North Carolina, at Durham. Frank W. Bullock, Jr., Senior District Judge. (1:02-cv-00228-FWB)

Argued: March 15, 2007

Decided: July 3, 2007

Before TRAXLER, KING, and GREGORY, Circuit Judges.

Affirmed by published opinion. Judge Traxler wrote the opinion, in which Judge King and Judge Gregory joined.

COUNSEL

ARGUED: Amiel J. Rossabi, FORMAN, ROSSABI, BLACK, P.A., Greensboro, North Carolina, for Appellant. Adam Howard Charnes, KILPATRICK & STOCKTON, L.L.P., Winston-Salem, North Caro- lina, for Appellee. ON BRIEF: William F. Patterson, Jr., FORMAN, 2 BRYAN v. BELLSOUTH COMMC’NS ROSSABI, BLACK, P.A., Greensboro, North Carolina; Michael G. Wimer, WIMER AND JOBE, Asheville, North Carolina, for Appel- lant. Ashley B. Watson, BELLSOUTH TELECOMMUNICATIONS, INCORPORATED, Atlanta, Georgia; James H. Kelly, Jr., Richard S. Gottlieb, James J. Hefferan, Jr., KILPATRICK & STOCKTON, L.L.P., Winston-Salem, North Carolina, for Appellee.

OPINION

TRAXLER, Circuit Judge:

Tomi Bryan filed in North Carolina state court a putative class action against BellSouth Communications, Inc. After BellSouth removed the action to federal court, the district court rejected three of Bryan’s claims on the merits, declined to exercise supplemental juris- diction over the remaining claim, and remanded that claim to state court. On appeal, we held that the remanded claim was a federal claim that should have been dismissed on the merits as well. See Bryan v. BellSouth Commc’ns, Inc., 377 F.3d 424, 432 (4th Cir. 2004) (Bryan I). Pursuant to our remand, the district court dismissed that claim and entered judgment for BellSouth. BellSouth then filed a motion in state court, arguing that the federal court’s dismissal of the claim was enti- tled to res judicata effect and that the state court should dismiss Bryan’s action. When the state court denied BellSouth’s motion, Bell- South returned to federal court seeking an injunction of the state-court action. The district court granted BellSouth’s request and issued an order enjoining further proceedings in state court. Bryan now appeals, arguing that the injunction violated the Anti-Injunction Act. For the reasons set forth below, we affirm.

I.

Interstate telecommunication providers are "required by law to con- tribute a portion of [their] revenues to the federal Universal Service Fund ("USF") to ensure affordable telecommunications services to rural and low-income areas, schools, hospitals, and the like." Bryan I, 377 F.3d at 425. BellSouth recovers its USF contribution from its customers by way of a line item on each bill for a "Federal Universal BRYAN v. BELLSOUTH COMMC’NS 3 Service Charge" ("FUSC"). BellSouth’s FUSC is established in the tariff that it is required to file with the FCC. Before April 1, 2003, when the FCC prohibited the practice, BellSouth (and other telecom- munications carriers) charged its customers more than their propor- tional share of BellSouth’s USF contribution. See id. at 425-26.

Bryan initiated a putative class action against BellSouth in North Carolina state court. Bryan alleged that BellSouth’s FUSC was exces- sive and that BellSouth violated North Carolina’s Unfair Trade Prac- tices Act by not disclosing to its customers certain information about the FUSC. BellSouth removed the action to federal court, arguing that Bryan’s claims amounted to challenges to BellSouth’s tariff and were therefore federal claims. Bryan thereafter filed a First Amended Com- plaint in federal court. The complaint alleged that BellSouth imposed an FUSC that exceeded its required contribution to the USF, that Bell- South did not disclose how it calculated the FUSC, and that Bell- South’s use of the term "Federal Universal Service Charge" was misleading.

Bryan filed a motion to remand the complaint to state court, and BellSouth filed a Rule 12(b) motion to dismiss. BellSouth argued that all of Bryan’s claims were barred by the "filed-rate doctrine" in that they challenged BellSouth’s filed tariff. See, e.g., American Tel. & Tel. Co. v. Central Office Tel., Inc., 524 U.S. 214, 222 (1998) (explaining that under the filed rate doctrine, "the rate of the carrier duly filed is the only lawful charge. Deviation from it is not permitted upon any pretext." (internal quotation marks omitted)).

The district court concluded that removal was proper because Bryan presented a federal question by directly challenging the terms of a tariff in her allegations that BellSouth’s FUSC was excessive. The district court then concluded that two of the three claims asserted in Bryan’s complaint must be dismissed under the filed-rate doctrine, because those claims would have the effect of altering the rates set forth in BellSouth’s tariff. The district court concluded that the remaining count, "Count A," was simply a state-law unfair trade prac- tices claim. The district court declined to exercise supplemental juris- diction over that claim and remanded it to state court. BellSouth appealed the district court’s refusal to dismiss Count A under the 4 BRYAN v. BELLSOUTH COMMC’NS filed-rate doctrine; Bryan did not appeal the dismissal of the other counts.

On appeal, this court concluded that Count A also presented a fed- eral question by challenging the tariff. Because the claim challenged the tariff, we concluded that Count A should have been dismissed under the filed-rate doctrine. We therefore vacated the district court’s remand order and directed the district court to dismiss Count A. See Bryan I, 377 F.3d at 432. Bryan petitioned the Supreme Court for a writ of certiorari, which the Court denied. See Bryan v. BellSouth Telecomms., Inc., 543 U.S. 1187 (2005). On remand, the district court denied Bryan’s motion to file an amended complaint and dismissed Count A, entering final judgment in favor of BellSouth.

While BellSouth’s appeal was pending, Count A, which had been remanded to state court by the district court, was proceeding in state court.1 The parties engaged in various pre-trial proceedings, Bryan filed an amended complaint, and the North Carolina trial court even- tually certified a class of BellSouth customers. The parties thereafter agreed to stay the state-court action.

After the Supreme Court denied Bryan’s petition for certiorari in Bryan I, BellSouth filed a motion in state court seeking dismissal of Bryan’s action. BellSouth argued that when this court vacated the dis- trict court’s remand order, that rendered the remand order a nullity and deprived the state court of jurisdiction over the case. BellSouth also contended that the action should be dismissed on res judicata grounds and by virtue of the filed rate doctrine. The North Carolina court denied the motion to dismiss. BellSouth then returned to federal court seeking an injunction of the state-court proceedings under the All Writs Act. See 28 U.S.C.A. § 1651(a) (West 2006). 1 A remand is effective when the district court mails a certified copy of the remand order to the state court, see 28 U.S.C.A. § 1447(c) (West 2006), or, if the remand is based on the lack of subject-matter jurisdiction or a defect in the removal process, when the remand order is entered, see In re Lowe, 102 F.3d 731, 734-36 (4th Cir. 1996).

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