Carlin Communications, Inc. v. South Cent. Bell Telephone Co.

461 So. 2d 1208, 1984 La. App. LEXIS 10370
CourtLouisiana Court of Appeal
DecidedDecember 14, 1984
DocketCA-2489
StatusPublished
Cited by6 cases

This text of 461 So. 2d 1208 (Carlin Communications, Inc. v. South Cent. Bell Telephone Co.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carlin Communications, Inc. v. South Cent. Bell Telephone Co., 461 So. 2d 1208, 1984 La. App. LEXIS 10370 (La. Ct. App. 1984).

Opinion

461 So.2d 1208 (1984)

CARLIN COMMUNICATIONS, INC.
v.
SOUTH CENTRAL BELL TELEPHONE CO.

No. CA-2489.

Court of Appeal of Louisiana, Fourth Circuit.

December 14, 1984.
Rehearing Denied January 24, 1985.

*1209 Michael S. Fawer, Marie O. Riccio, Fawer, Brian, Hardy & Zatzkis, New Orleans, for plaintiff-appellee Carlin Communications, Inc.

Charles W. Lane, III, Veronica A. Cubit, Jones, Walker, Waechter, Poitevent, Carrere & Denegre, and George W. Byrne, Jr., New Orleans, for defendant-appellant South Central Bell Telephone Company.

Before REDMANN, C.J., and GARRISON and KLEES, JJ.

*1210 KLEES, Judge.

This is an appeal of two separate orders relating to preliminary injunctions. On March 27, 1984, appellee Carlin Communications, Inc. (Carlin) sought injunctive relief in the Orleans Parish Civil District Court against the threatened termination of its Dial-It telephone service by appellant South Central Bell (SCB). Carlin feared termination because the tariff under which the Dial-It service was operated allowed SCB to discontinue a subscriber's service any time the subscriber transmitted a message that SCB deemed "obscene or sexually explicit." Carlin claimed that this portion of the tariff was unconstitutional. After an adversary hearing, the district court refused to issue the injunction, holding that the recorded message Carlin intended to transmit to its Dial-It service customers was patently obscene and therefore devoid of constitutional protection.

Two days later, Carlin transmitted over its service a message essentially similar to the one the court had termed obscene, and SCB immediately disconnected Carlin's Dial-It service. Claiming that this transmission was the result of a clerical error, Carlin sought a preliminary injunction ordering SCB to reinstate its Dial-It service. This time, the district court issued the injunction, holding that the SCB tariff was unconstitutional to the extent that it would permit the telephone company to terminate a subscriber's Dial-It service on the basis of a single tariff violation caused by clerical error. In addition to ordering Carlin's service reinstated, however, the district court ordered that civil penalties in the amount of $20,000 per day plus $1 per message be imposed if Carlin ever again transmitted a message of the type that the court had declared obscene.

Carlin and SCB are each appealing both rulings of the lower court. SCB asserts not only that its tariff provision is constitutional, but also that the district court erred in its initial determination, made after the first hearing, that SCB's actions pursuant to the tariff constituted "state action" for purposes of the 14th Amendment. Carlin, on the other hand, asserts that the penalties prescribed by the district court pose an unconstitutional restraint on its freedom of speech, and also that the court erred in refusing to enjoin SCB from disconnecting Carlin's Dial-It service.

The issues presented on appeal are: (1) Whether SCB's termination of Carlin's Dial-It service constitutes "state action"; (2) Assuming state action, whether the tariff provision that authorizes SCB to discontinue a subscriber's Dial-It service upon the transmission of a sexually explicit message is constitutional; and (3) Whether this tariff provision has been preempted by federal law. This court finds that SCB's action must be considered "state action" for purposes of the 14th Amendment. Furthermore, we find that the tariff pursuant to which SCB acted is not in violation of the constitution, nor is it preempted by federal law.

FACTS

SCB is a public utility regulated by the Louisiana Public Service Commission (LPSC); the services it provides and the rates it charges within Louisiana are governed by tariffs on file with the Commission. LSA-R.S. 45:1161 et seq. Insofar as it deals in interstate and foreign communications, SCB is also a common carrier subject to the jurisdiction of the Federal Communications Commission (FCC). 47 U.S.C. § 151 et seq.

Carlin is a New York corporation engaged in the business of providing "Dial-It" telephone service to telephone company customers throughout the nation. Dial-It, a trademark of AT & T, allows an information provider such as Carlin to contract with the local telephone company for one or more access lines which, when connected to equipment located on the information provider's premises, permit callers to receive pre-recorded messages. The caller is charged a predetermined amount for the call (e.g., 50 cents), which appears on his local phone bill; periodically, the phone company remits a specified percentage of this revenue to the Dial-It subscriber. Well-known examples of Dial-It services include *1211 Time, Weather, Dow Jones stock market quotations, Dial-a-Prayer and Diala-Joke.

In 1983, SCB began considering offering local Dial-It service in the New Orleans area (Area Code 504), which would require amending its General Subscriber Services Tariff on file with the LPSC. About this time, SCB began having discussions with Carlin as a potential Dial-It subscriber. The evidence suggests that Carlin knew from the inception of these discussions that South Central Bell would not permit operation of a Dial-It line similar to Carlin's High Society Hotline in New York, which transmits sexually explicit messages. (SCB exhibit 4, Ltr. 8/11/83). On January 11, 1984, SCB submitted to the LPSC an amendment to the General Subscriber Services Tariff pertaining to Local Dial-It service, which was accepted and became effective on January 31, 1984. On February 1, 1984, Carlin sent SCB a check as advance payment for the establishment of Dial-It service and enclosed a list of programs Carlin intended to put in operation as soon as facilities became available. The programs listed, in order of priority, were (1) Info Line—976-2727; (2) Quiz Line—976-9467; (3) Telesports—976-4444; (4) News Line—976-2626; and (5) Hope Line—976-4673.

(SCB Ex. 9, Ltr. 2/1/84). Several weeks later, SCB advised Carlin that the tariff on file with the LPSC prohibited dissemination of recorded messages containing sexually explicit material. (SCB EX. 10, Ltr. 2/22/84). On March 1st, SCB acknowledged Carlin's order of local Dial-It service and set forth the applicable fees; SCB also enclosed a copy of the amended tariff. (SCB Exs. 11 & 12, Ltrs. 3/1/84). On or about March 27th, Carlin initiated its first Dial-It service in the New Orleans area, using telephone number 976-2727. On the same day, Carlin filed suit seeking to restrain SCB from enforcing the conditions of its tariff, which reads, in pertinent part:

The subscriber has exclusive responsibility and control over the content, quality and characteristics of speech used in the recording.... The subscriber shall exclude from the message or announcement any matter the dissemination of which is prohibited by law. Since neither the Company nor the subscriber can control access to the subscriber's messages by the general public, including minors, no message which, in the opinion of the Company, contains material of an obscene or sexually explicit nature shall be permitted on Local Dial-It Service. The dissemination of obscene or sexually explicit messages by a subscriber shall be grounds for immediate discontinuance of subscriber's service without advance notice, and the Company shall have no liability, in tort or contract, to anyone as a result of its action in this regard.

PROCEEDINGS IN THE DISTRICT COURT

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Cite This Page — Counsel Stack

Bluebook (online)
461 So. 2d 1208, 1984 La. App. LEXIS 10370, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carlin-communications-inc-v-south-cent-bell-telephone-co-lactapp-1984.