Carlin Communication, Inc., Etc. v. Southern Bell Telephone and Telegraph Company, Etc.

802 F.2d 1352, 61 Rad. Reg. 2d (P & F) 600, 1986 U.S. App. LEXIS 32547
CourtCourt of Appeals for the Eleventh Circuit
DecidedOctober 23, 1986
Docket85-5956
StatusPublished
Cited by181 cases

This text of 802 F.2d 1352 (Carlin Communication, Inc., Etc. v. Southern Bell Telephone and Telegraph Company, Etc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carlin Communication, Inc., Etc. v. Southern Bell Telephone and Telegraph Company, Etc., 802 F.2d 1352, 61 Rad. Reg. 2d (P & F) 600, 1986 U.S. App. LEXIS 32547 (11th Cir. 1986).

Opinion

CORRECTED OPINION

JOHNSON, Circuit Judge:

Appellant, Carlin Communication, Inc. (“Carlin”), appeals the grant of a motion for summary judgment in favor of appellees Southern Bell Telephone and Telegraph Company (“Southern Bell”) and Florida Public Service Commission (“PSC”). We affirm.

I. BACKGROUND

Southern Bell filed an amendment to its Florida General Subscriber Service Tariff with the PSC on November 14, 1983, proposing to offer a new service in its North Dade County and Jacksonville exchanges known as Local Dial-It Service. Dial-It is an announcement service provided by local telephone companies that allows telephone customers to call a specified number and receive a prerecorded message supplied by a subscriber to the service. The telephone company bills the customer for the call at a rate set by the subscriber. The telephone company deducts flat rate and usage charges, and then forwards the rest of the collected billings to the subscriber. The FCC has classified Dial-It as an enhanced service that is not required to be made available on an equal access basis. Computer & Communications Industry Ass’n v. FCC, 693 F.2d 198, 205 (D.C.Cir.1982), cert. denied sub nom. Louisiana Public Service Comm’n v. FCC, 461 U.S. 938, 103 S.Ct. 2109, 77 L.Ed.2d 313 (1983).

Carlin is a New York corporation engaged in providing Dial-It messages throughout the United States. Among the types of messages provided by Carlin are sexually suggestive messages, which are commonly referred to as “Dial-a-Pom.” Carlin recently has been involved in a number of lawsuits in various states in connection with attempts by telephone companies to discontinue Carlin’s Dial-It service because of the content of Carlin’s messages. One of these lawsuits involves appellee Southern Bell. Carlin Communication, Inc. v. Southern Bell Telephone and Telegraph Company, Civil No. C84-510 (N.D.Ga. March 21, 1984).

As originally filed, Southern Bell’s proposed Dial-It tariff contained no restriction on message content, other than the requirement that the subscriber exclude “any matter, the dissemination of which is prohibited by law.” At the beginning of the public hearing held with regard to the Dial-It pro *1355 posal, Mr. Varner, Southern Bell’s District Manager for Rates and Tariffs, read a proposed amendment into the record that changed the message content provision from one excluding only illegal messages to one also excluding any message that “implicitly or explicitly invites, describes, simulates, excites, arouses, or otherwise refers to sexual conduct, or which contains sexual innuendo which arouses or attempts to arouse sexual desire.” The purpose of this amendment was to divorce the standard for refusal to accept messages from the standard of legal obscenity. The Dial-It tariff, including the proposed amendment, was finally approved at a Commission agenda conference on July 3, 1984.

Carlin initially advised Southern Bell of its interest in obtaining Florida Dial-It service in January 1984. Carlin made formal application for Dial-It service on August 10, 1984. After review of the three transcripts Carlin proposed using on its Dial-It lines, Southern Bell notified Carlin that it would not be able to provide service for two of the transcripts because they did not conform to its tariff provision.

On October 5,1984, Carlin filed a Section 1983 action, 42 U.S.C.A. § 1983, against Southern Bell and the PSC alleging violation of the First and Fourteenth Amendments through prior restraint of free speech without constitutionally required procedural safeguards. Carlin sought (1) a declaratory judgment that the failure to activate Carlin’s numbers was unconstitutional prior restraint of free speech and that Southern Bell’s tariff was unconstitutional to the extent it permitted termination of service based solely on message content;

(2) an injunction requiring Southern Bell to activate Carlin’s Dial-It numbers and enjoining Southern Bell and the PSC from interfering with Carlin’s Dial-It service because of message content without first complying with the procedural requirements for prior censorship; and (3) damages in excess of $1,000,000 from Southern Bell for failure to activate Carlin’s Dial-It numbers.

Carlin was denied a preliminary injunction, and that decision was upheld on appeal by this Court. Carlin Communication, Inc. v. Southern Bell Telephone and Telegraph Company, 755 F.2d 174 (11th Cir.1985). The district court bifurcated the proceedings to consider the issue of state action first. Southern Bell and the PSC filed motions for summary judgment on this issue July 8 and 9, 1985. Sapphire Communications of Florida, Inc., a Carlin affiliate, was added by stipulation as a necessary party on July 10, 1985. The district court granted appellees’ motions for summary judgment on October 5, 1985, and this appeal followed.

II. DISCUSSION

A. Subject Matter Jurisdiction

As a threshold consideration, we must determine if the district court lacked subject matter jurisdiction over this dispute under the Johnson Act, 28 U.S.C.A. § 1342. The Johnson Act provides that:

The district courts shall not enjoin, suspend or restrain the operation of, or compliance with, any order affecting rates chargeable by a public utility and made by a State administrative agency or a rate-making body of a State political subdivision, where:
(1) Jurisdiction is based solely on diversity of citizenship or repugnance of the order to the Federal Constitution; and,
(2) The order does not interfere with interstate commerce; and,
(3) The order has been made after reasonable notice and hearing; and,
(4) A plain, speedy and efficient remedy may be had in the courts of such State.

Although the Johnson Act explicitly applies only to injunctive relief, it has been judicially extended to bar declaratory judgment and damage actions as well. Tennyson v. Gas Service Co., 506 F.2d 1135, 1139 (10th Cir.1974).

We find that the Johnson Act did not prevent the district court’s exercise of *1356 jurisdiction in this case. Although the Johnson Act has been broadly construed to prohibit federal court actions that indirectly as well as directly affect rate orders, e.g., Tennyson, 506 F.2d at 1139; DeKalb County v. Southern Bell Telephone and Telegraph Co., 358 F.Supp. 498, 504 (N.D. Ga.1972), aff'd, 478 F.2d 700 (5th Cir.1973), the Act does not apply when the action is not in any manner a challenge to the rates charged by the regulated industry. E.g., Alabama Public Service Comm’n v. Southern Railway Co.,

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Bluebook (online)
802 F.2d 1352, 61 Rad. Reg. 2d (P & F) 600, 1986 U.S. App. LEXIS 32547, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carlin-communication-inc-etc-v-southern-bell-telephone-and-telegraph-ca11-1986.