Crown Castle Fiber LLC v. City of Wilmington

CourtSuperior Court of Delaware
DecidedOctober 3, 2022
DocketN21C-08-126 PRW
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 Superior Court 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. 2022).

Opinion

IN THE SUPERIOR COURT OF THE STATE OF DELAWARE

CROWN CASTLE FIBER LLC, ) ) Plaintiff, ) ) v. ) C.A. No. N21C-08-126 PRW ) CITY OF WILMINGTON and ) DELAWARE DEPARTMENT OF ) TRANSPORTATION, ) Defendants. )

Submitted: July 26, 2022 Decided: October 3, 2022

MEMORANDUM OPINION AND ORDER

Upon Crown Castle Fiber LLC’s Motion for Summary Judgment, DENIED.

Geoffrey G. Griver, Esquire, BUCHANAN INGERSOLL & ROONEY, PC, Wilmington, Delaware; Shawn N. Gallagher, Esquire, BUCHANAN INGERSOLL & ROONEY, PC, Philadelphia, Pennsylvania. Attorneys for Plaintiff Crown Castle Fiber LLC.

Gary W. Lipkin, Esquire, ECKERT SEAMANS CHERIN & MELLOTT, LLC, Wilmington, Delaware; Charles A. Zdebski, Esquire, ECKERT SEAMANS CHERIN & MELLOTT, LLC, Washington, DC. Attorneys for Defendant City of Wilmington.

Bradley S. Eaby, Esquire, Deputy Attorney General, STATE OF DELAWARE DEPARTMENT OF JUSTICE, Dover, Delaware. Attorney for Defendant Delaware Department of Transportation.

WALLACE, J. Crown Castle Fiber, LLC has long sought to install 5G-related wireless

network infrastructure in the City of Wilmington. In its way, says Crown Castle, is

the City’s untoward obstinacy, requiring, among other things, that the parties enter

into a license agreement as a precondition to moving forward with the project. The

parties’ dispute is fueled by their competing views of state laws, city ordinances and

regulations, and that local rubric’s interplay with the Federal Telecommunications

Act.

For the reasons set forth below, Crown Castle’s Motion for Summary

Judgment is DENIED.

I. FACTUAL AND PROCEDURAL BACKGROUND

A. THE PARTIES

Crown Castle Fiber, LLC (“Crown Castle”) is a Delaware Public Service

Commission-certified public utility that provides infrastructure to wireless carriers

in Delaware.1 Its operations include the installation of distributed antenna systems,

e.g., small antennas and related equipment, a/k/a “nodes,” on utility poles in the

public rights-of-way.2 Crown Castle provides its infrastructure to wireless carriers

1 Second Am. Compl. ¶ 13, Crown Castle Fiber LLC v. City of Wilm., N21C-08-126 PRW (Del. Super. Ct. Feb. 18, 2022) (D.I. 32). 2 Tr. of Oral Arg. on Pl.’s Mot. for Summ. J. at 4 (hereinafter “Del. Ch. Arg. Tr.”), Crown Castle Fiber LLC v. City of Wilm., C.A. No. 2019-0656-MTZ (Del. Ch. July 7, 2021) (D.I. 32).

-1- to broaden the 5G network to the wireless carriers’ subscribers.3

The City of Wilmington (the “City”) is a Delaware municipality.4 The City

regulates municipal activity, including the handling and processing of permit

applications for construction-type projects in its rights-of-way.5

The Delaware Department of Transportation (“DelDOT”) is an agency

organized under the laws of Delaware responsible for regulating and maintaining

statewide transportation systems.6 Delaware’s Advanced Wireless Infrastructure

Investment Act tasks DelDOT with “the absolute care, management and control of

the state rights-of-way” with respect to statewide 5G deployment.7

B. THE FEDERAL TELECOMMUNICATIONS ACT OF 1996

Congress enacted the Federal Telecommunications Act (“FTA”) “to provide

for a pro-competitive, de-regulatory national policy framework designed to

accelerate rapidly private sector deployment of advanced telecommunications and

information technologies and services by opening all telecommunications markets

3 Id. at 5, 29. 4 Second Am. Compl. ¶ 14. 5 See Pl.’s Am. Opening Br. in Supp. of Mot. for Summ. J. at 1, 34, Oct. 29, 2021 (D.I. 19). 6 Second Am. Compl. ¶ 15; see also DelDOT’s Answer to Second Am. Compl. ¶ 15, Mar. 11, 2022 (D.I. 33). Though originally omitted from the initial pleadings, DelDOT has since been joined as a necessary party to this action because it issued authorization permits central to this litigation. See Judicial Action Form, Jan. 28, 2022 (D.I. 29). 7 DEL. CODE ANN. tit. 17, § 1602 (2019) (findings of public policy).

-2- to competition.”8 The FTA created a dual system of federal and state regulation in

modern telecommunications law. The Federal Communications Commission

(“FCC”) is vested with broad regulatory authority.9 And some regulatory authority

has been reserved to the states; though the FCC’s preemption authority prevails

when a conflict between the two regulatory regimes arises.10

Invoked by Crown Castle here, Sections 253 and 332 of the FTA expressly

limit the states’ regulatory authority over a particular technology or service.11

Section 253(a) preempts the enforcement of state or local government acts that

“prohibit or have the effect of prohibiting the ability of any entity to provide any

interstate or intrastate telecommunications service.”12 States may “impose, on a

competitively neutral basis[,] . . . requirements necessary to preserve and advance

8 Cellular Tel. Co. v. Town of Oyster Bay, 166 F.3d 490, 493 (2d Cir. 1999) (quoting H.R. REP. NO. 104-458, at 206 (1996)) (cleaned up). 9 47 U.S.C. § 151 et seq.; see also CHRIS LINEBAUGH & ERIC HOLMES, CONG. RSCH. SERV., R46736, STEPPING IN: THE FCC’S AUTHORITY TO PREEMPT STATE LAWS UNDER THE COMMUNICATIONS ACT 1 (2021). 10 See, e.g., La. Pub. Serv. Comm’n v. FCC, 476 U.S. 355, 374 (1986) (“[A] federal agency may pre-empt state law only when and if it is acting within the scope of its congressionally delegated authority.”); Mozilla Corp. v. FCC, 940 F.3d 1, 75 (D.C. Cir. 2019) (“[I]n any area where the Commission lacks the authority to regulate, it equally lacks the power to preempt state law.”). 11 See 47 U.S.C. § 253(a) (1996) (removal of barriers to entry); 47 U.S.C. § 332 (2018) (mobile services). 12 47 U.S.C. § 253(a). Telecommunications service is the “offering of telecommunications for a fee directly to the public . . . regardless of the facilities used.” Id. § 153(53) (2010). And “telecommunications” is “the transmission, between or among points specified by the user, of information of the user’s choosing, without change in the form or content of the information as sent and received.” Id. § 153(50).

-3- universal service, protect the public safety and welfare, ensure the continued quality

of telecommunications services, and safeguard the rights of consumers.”13

Violations thereof may be saved by Section 253(c)’s “safe harbor,” that allows local

governments “to require fair and reasonable compensation from telecommunications

providers” for the use of public rights-of-way so long as the fees are “competitively

neutral and nondiscriminatory.”14

Similarly, Section 332 provides that state or local zoning regulations shall

neither unreasonably discriminate among providers of functionally equivalent

services, nor effectively prohibit the provision of personal wireless services.15 Aside

from these limitations, however, Section 332 leaves decisions concerning the

“placement, construction, and modification of personal wireless service facilities” to

state and local authorities.16

Both sections provide mechanisms through which a party subject to a state or

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