Crown Castle Fiber LLC v. City of Wilmington

CourtCourt of Chancery of Delaware
DecidedJuly 8, 2021
DocketC.A. No. 2019-0656-MTZ
StatusPublished

This text of Crown Castle Fiber LLC v. City of Wilmington (Crown Castle Fiber LLC v. City of Wilmington) is published on Counsel Stack Legal Research, covering Court of Chancery of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Crown Castle Fiber LLC v. City of Wilmington, (Del. Ct. App. 2021).

Opinion

COURT OF CHANCERY OF THE STATE OF DELAWARE MORGAN T. ZURN LEONARD L. WILLIAMS JUSTICE CENTER VICE CHANCELLOR 500 N. KING STREET, SUITE 11400 WILMINGTON, DELAWARE 19801-3734

July 8, 2021

Geoffrey G. Grivner, Esquire Tara L. Lattomus, Esquire Buchanan, Ingersoll & Rooney P.C. Eckert Seamans Cherin & Mellott, LLC 919 North Market Street, Suite 1500 222 Delaware Avenue, 7th Floor Wilmington, DE 19801 Wilmington, DE 19801

RE: Crown Castle Fiber LLC v. City of Wilmington, Civil Action No. 2019-0656-MTZ

Dear Counsel,

This case stems from a wireless telecommunications company’s years-long

endeavor to install wireless network equipment in the City of Wilmington. The city

has countered the company’s efforts, requiring, among other things, that the

company enter into a license agreement with the city as a precondition to moving

forward with its proposal. The parties’ dispute is fueled by their competing views

of the city’s wireless regulations and their interplay with federal telecommunications

law. In this action, the company seeks several declaratory judgments confirming its

view of the applicable law, and two corresponding injunctions. But as I will explain,

these injunctions are unavailable to the company because it has adequate remedies

at law. Crown Castle Fiber LLC v. City of Wilmington, Civil Action No. 2019-0656-MTZ July 8, 2021 Page 2 of 16

The Court of Chancery is proudly a court of limited subject matter

jurisdiction. The Court defends that boundary and has a duty to examine issues of

subject matter jurisdiction sua sponte. In view of this mandate, I begin and end with

a question the parties did not raise: whether this Court has subject matter jurisdiction

to hear the plaintiff’s claims. I conclude that it does not. For the reasons that follow,

the case is dismissed, and the company may transfer the matter to Superior Court

under 10 Del. C. § 1902 within sixty days. If the company elects to transfer, the

remaining issues presented by the fully briefed motion for summary judgment

should be transferred as well, so a court of competent jurisdiction can pass on their

merits.

I. BACKGROUND1

Plaintiff Crown Castle Fiber LLC (“Crown Castle”) operates and installs

wireless telecommunications equipment. Its customers, major wireless service

1 Because I conclude that the Court lacks subject matter jurisdiction over this dispute, I limit my discussion of the facts to only those necessary to resolve that issue. Though this dispute was presented on summary judgment, I evaluate subject matter jurisdiction, as I must, from the face of the amended complaint, available at Docket Item (“D.I.”) 11 [hereinafter “Am. Compl.”]. See Wilm. Fraternal Order of Police Lodge #1 v. Bostrom, 1999 WL 39546, at *4 (Del. Ch. Jan. 22, 1999) (“Subject matter jurisdiction is determined from the face of the complaint as of the time it was filed, with all material factual allegations assumed to be true.” (citing Diebold Comput. Leasing, Inc. v. Com. Credit Corp., 267 A.2d 586, 590 (Del. 1970), and W. Airlines, Inc. v. Allegheny Airlines, Inc., 313 A.2d 145, 149 (Del. Ch. 1973)). Crown Castle Fiber LLC v. City of Wilmington, Civil Action No. 2019-0656-MTZ July 8, 2021 Page 3 of 16

retailers, use Crown Castle’s infrastructure to densify their networks and provide

service to consumers. Starting in 2016, Crown Castle began a project to expand its

infrastructure in the City of Wilmington (the “City”). Crown Castle seeks to install

thirty-three sets of wireless antennas and associated equipment (“Nodes”) onto new

and existing utility poles. It also seeks to install attendant underground ground rings

(“Grounding Rings”) for each Node under the utility poles for safety.

Crown Castle has sought various approvals from the City. The City has

withheld approval on many issues, including building permits for the Grounding

Rings (the “Building Permits”). The City has required that Crown Castle enter into

a license agreement in connection with the project, which the City contends is

supported by local ordinances (the “City Wireless Regulations”). Crown Castle

contends the City’s fees and conditions on installation are excessive. Crown

Castle’s approach has three prongs, distilled into three declaratory judgments and

two injunctions.

First, Crown Castle contends the City is improperly intruding on the

jurisdiction of the Delaware Department of Transportation (“DelDOT”) by requiring

and withholding building permits for Crown Castle to complete installations

allegedly on DelDOT rights of way. Crown Castle seeks a declaratory judgment

that no additional approvals or permits are required to complete those installations Crown Castle Fiber LLC v. City of Wilmington, Civil Action No. 2019-0656-MTZ July 8, 2021 Page 4 of 16

pursuant to the “Advanced Wireless Infrastructure Investment Act,” 17 Del. C.

§§ 1601 et seq.2 Crown Castle also seeks an injunction: “To the extent City permits

may be required because purportedly City-maintained sidewalks in the DelDOT

rights-of-way must be removed and replaced, Crown Castle is further entitled to a

permanent injunction requiring the City to immediately issue the Building Permits”

for completing installations on DelDOT rights-of-way (the “Building Permit

Injunction”).3 The parties agree that issuing the Building Permits is a routine,

ministerial task; counsel for Crown Castle repeatedly referred to them as “$20, over-

the-counter permits.”4

Second, Crown Castle contends the City’s handling of its requests, negotiation

tactics, and regulations as enacted and applied violate and are preempted by

2 Am. Compl. ¶ 125(A)–(F) (“As a result of the City’s action and inaction, Crown Castle is entitled to a declaration that: (A) DelDOT approval of the Small Wireless Permits under the State Wireless Act is the only approval required for installation of the DelDOT Nodes, including the work necessary to install the Grounding Rings; (B) the DelDOT Nodes are not subject to the City Wireless Regulations; (C) Crown Castle is permitted to immediately proceed with all work necessary to install the Grounding Rings for the DelDOT Nodes and bring the DelDOT Nodes online; (D) no license or other similar agreement is required for Crown Castle to install Nodes in the DelDOT rights of way where DelDOT has issued Small Wireless Permits for such facilities under the Wireless Act; (E) Crown Castle has obtained all necessary authorizations to occupy the DelDOT rights of way under Section 42-706(a) of the City Code; and (F) a Grounding Ring is not a ‘wireless telecommunications facility’ under WTC Code § 42-704(gg).”). 3 Id. ¶ 126. 4 See, e.g., D.I. 32 6:13, 17:22, 20:11 [hereinafter “Hr’g Tr.”]. Crown Castle Fiber LLC v. City of Wilmington, Civil Action No. 2019-0656-MTZ July 8, 2021 Page 5 of 16

47 U.S.C. § 253(a), which allegedly “prohibits local entities from erecting barriers

that may prohibit or may have the effect of prohibiting the ability of any entity to

provide telecommunications services, including taking actions or inactions that

result in an unreasonable delay in the deployment of the provider’s facilities and

provision of telecommunications services.”5 Crown Castle seeks a declaration that,

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