DOBSON TELEPHONE CO. v. STATE ex rel. OKLA. CORPORATION COMM.

392 P.3d 295
CourtCourt of Civil Appeals of Oklahoma
DecidedSeptember 22, 2016
StatusPublished
Cited by39 cases

This text of 392 P.3d 295 (DOBSON TELEPHONE CO. v. STATE ex rel. OKLA. CORPORATION COMM.) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
DOBSON TELEPHONE CO. v. STATE ex rel. OKLA. CORPORATION COMM., 392 P.3d 295 (Okla. Ct. App. 2016).

Opinion

OSCN Found Document:DOBSON TELEPHONE CO. v. STATE ex rel. OKLA. CORPORATION COMM.

DOBSON TELEPHONE CO. v. STATE ex rel. OKLA. CORPORATION COMM.
2017 OK CIV APP 16
392 P.3d 295
Case Number: 113362
Decided: 09/22/2016
Mandate Issued: 03/21/2017
DIVISION IV
THE COURT OF CIVIL APPEALS OF THE STATE OF OKLAHOMA, DIVISION IV


Cite as: 2017 OK CIV APP 16, 392 P.3d 295

APPROVED FOR PUBLICATION BY THE SUPREME COURT.


IN THE MATTER OF THE APPLICATION OF DOBSON TELEPHONE COMPANY d/b/a MCLOUD TELEPHONE COMPANY FOR FUNDING FROM THE OKLAHOMA UNIVERSAL SERVICE FUND,

DOBSON TELEPHONE COMPANY d/b/a MCLOUD TELEPHONE COMPANY, Appellant,
v.
STATE OF OKLAHOMA ex rel. OKLAHOMA CORPORATION COMMISSION, Appellee.

APPEAL FROM AN ORDER OF THE CORPORATION COMMISSION

VACATED AND REMANDED FOR FURTHER PROCEEDINGS

Clyde A. Muchmore, William H. Hoch, Melanie Wilson Rughani, Mark S. Grossman, CROWE & DUNLEVY, A PROFESSIONAL CORPORATION, Oklahoma City, Oklahoma, and
Ron Comingdeer, Kendall Parrish, RON COMINGDEER & ASSOCIATES, P.C., Oklahoma City, Oklahoma, for Appellant
Robert J. Campbell, Jr., OKLAHOMA CORPORATION COMMISSION, Oklahoma City, Oklahoma, for Appellee

JOHN F. FISCHER, JUDGE:

¶1 Dobson Telephone Company, d/b/a McLoud Telephone Company, appeals a Final Order from the Oklahoma Corporation Commission denying Dobson's request for funding from the Oklahoma Universal Service Fund. Dobson sought reimbursement for costs incurred when it was required by the City of Oklahoma City to relocate its telecommunications lines to accommodate the widening of a city street. The Oklahoma Universal Service Fund was established pursuant to the Oklahoma Telecommunications Act of 1997 to make funds available to eligible telecommunications service providers like Dobson "to promote and ensure the availability of primary universal services, at rates that are reasonable and affordable . . . ." 17 O.S.2011 § 139.106(B). The Commission determined that reimbursement was not authorized unless the request to relocate had been made by a State agency. The Commission's interpretation defeats the purpose of the Fund. The Commission's Final Order is vacated, and this case is remanded for further proceedings.1

BACKGROUND

¶2 Dobson is a telecommunications provider serving nine exchanges and providing "general universal services" to approximately eleven thousand subscribers in central Oklahoma. To service its McLoud exchange, Dobson maintains telecommunications lines and other facilities in the right-of-way of Choctaw Road in the City of Oklahoma City. In September of 2012, the City notified Dobson that it would have to move its telecommunications lines and facilities to accommodate the widening of Choctaw Road. Dobson did so at a cost it represented to be $420,842.41. In December of 2013, Dobson submitted a request for reimbursement of that cost to the Oklahoma Universal Service Fund. 2 The Fund is administered by the Oklahoma Corporation Commission, and the Commission's Public Utility Division investigated Dobson's request. The Division determined that Dobson's request was governed by 17 O.S.2011 § 139.106(K)(1)(b). That section authorizes reimbursement for costs "required by existing or future federal or state regulatory rules, orders, or policies or by federal or state law . . . ." According to the Division, this provision only applies to highway right-of-way relocation costs incurred at the direction of the Oklahoma Department of Transportation or a board of county commissioners. Consequently, the Division concluded that the Fund was not authorized to pay relocation costs required as a result of the City's relocation demand. The Division recommended denial of Dobson's request for reimbursement.3

¶3 Dobson filed a Request for Reconsideration. It attached a copy of Oklahoma City Ordinance No. 23499 § 50-13. The ordinance authorizes public utilities like Dobson to use City street rights-of-way for location of telecommunications lines but also requires relocation at the utility's expense when requested to do so by the City. After further briefing, the matter was argued to the Commission en banc. The Commission found: "The City, not the State, owns the right-of-way here, and the Legislature has not enacted either a general law or a local law that applies to relocation of [Dobson's] utility line." The Commission concluded that relocation pursuant to a municipal ordinance failed to show the requisite increase in costs "arising from federal or state action" for reimbursement from the Fund because a municipal ordinance is not a "state law."4 The Commission adopted the Division's recommendation and denied Dobson's request for reimbursement from the Fund. The validity of the Commission's decision is dependent on the correctness of its interpretation of the statutory term "state law."

STANDARD OF REVIEW

¶4 The Oklahoma Constitution provides that appellate review of Corporation Commission orders "shall be judicial only, and in all appeals involving an asserted violation of any right of the parties under the Constitution of the United States or the Constitution of the State of Oklahoma, the Court shall exercise its own independent judgment as to both the law and the facts." Okla. Const. art. 9, § 20. In other appeals, appellate review "shall not extend further than to determine whether the Commission has regularly pursued its authority, and whether the findings and conclusions of the Commission are sustained by the law and substantial evidence." Id. The issue in this appeal concerns only the Commission's legal interpretation of the Fund statute. Statutory interpretation presents a question of law. Troxell v. Okla. Dep't of Human Servs., 2013 OK 100, ¶ 4, 318 P.2d 206.

¶5 The issues raised in Dobson's appeal necessarily concern its property interest in reimbursement for expenses contemplated by the Fund statute, a fundamental interest protected by the Oklahoma and United States Constitutions. However, that characterization does not determine the applicable standard of review. Whether this court exercises its "independent judgment" as to the Commission's statutory interpretation or reviews that interpretation to determine whether it is "sustained by the law," our review is the same and no different than the de novo review we employ regarding issues of law in other contexts.

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Cite This Page — Counsel Stack

Bluebook (online)
392 P.3d 295, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dobson-telephone-co-v-state-ex-rel-okla-corporation-comm-oklacivapp-2016.