First Central Service Corp. v. Mountain Bell Telephone

623 P.2d 1023, 95 N.M. 509
CourtNew Mexico Court of Appeals
DecidedJanuary 27, 1981
Docket4826
StatusPublished
Cited by6 cases

This text of 623 P.2d 1023 (First Central Service Corp. v. Mountain Bell Telephone) is published on Counsel Stack Legal Research, covering New Mexico Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
First Central Service Corp. v. Mountain Bell Telephone, 623 P.2d 1023, 95 N.M. 509 (N.M. Ct. App. 1981).

Opinion

OPINION

SUTIN, Judge.

Through legal proceedings, First Central Service Corporation and Dona Ana Inns, Inc., its wholly owned subsidiary, obtained possession of Las Cruces Inn, not a party to this action, the telephone number of which was 524-3671. First Central wanted continued and uninterrupted service of this telephone number. Mountain Bell claimed a prior indebtedness of Las Cruces Inn in the amount of $5,581.00 for service rendered this telephone number. It agreed to continue the service under this telephone number if the prior bill were paid, or if the bill were not paid, it would render continued service under a different number.

First Central filed a verified complaint for damages and an application for a temporary restraining order. On the same day, and without notice, a temporary restraining order was issued and the matter set for hearing.

At the hearing, the president of First Central testified that, in dealing with the public interest, its business would be seriously affected if there was a change in phone number. He also testified that First Central did not owe the money.

Mountain Bell, without any objection, introduced in evidence Mountain Bell’s General Exchange Tariff, Section 20, Sixth Revised Sheet, approved by the State Corporation Commission. Paragraphs N(l) and N(2) read:

1. The subscriber has no property right in the telephone number nor any right to continuance of service through any particular central office, and the Telephone Company may change the telephone number or central office designation of a subscriber whenever it considers it desirable in the conduct of its business.
2. In any case where existing service is continued for a new subscriber, the telephone number may be retained by the new subscriber only if the former subscriber consents and an arrangement acceptable to the Telephone Company is made to pay all outstanding charges against the service.' [Emphasis added.]

The trial court entered a Final Judgment in "which it made findings of fact. Among them were:

8. That if plaintiffs are not willing to pay the outstanding charges against said phone service, Mountain Bell Telephone has an absolute right to discontinue use of the same phone number.
10. That within five days from the entry of this judgment plaintiffs are required to elect whether or not they will pay to the defendant, Mountain Bell Telephone, the outstanding charges ... or . . . elect to not pay ... (First Central elected not to pay).
11. ... In the event the plaintiffs decide or determine that they will appeal this decision ... this judgment is stayed and the temporary restraining order will continue in effect until the further order of an appellate court.

These findings were carried forward in the judgment from which First Central appealed. We affirm.

The only issue on this appeal is whether the trial court’s construction of the applicable tariffs was erroneous.

Mountain Bell is subject to the provisions of the “Telephone and Telegraph Company Certification Act.” Section 63-9-1, N.M.S. A.1978, et seq.

Section 63-9-7(B) provides in pertinent part:

The holder of a certificate [Mountain Bell] shall render continuous and adequate service to the public and shall not discontinue, reduce or impair service ... except ordinary discontinuance of service for nonpayment of charges.... [Emphasis added.]

It is a matter of public policy that Mountain Bell can discontinue service for nonpayment of the charges incurred by Las Cruces Inn. It is also the law that a tariff required to be filed is not a contract. It is the law. Shehi v. Southwestern Bell Telephone Company, 382 F.2d 627 (10th Cir. 1967); Carter v. American Telephone and Telegraph Co., 365 F.2d 486 (5th Cir. 1966). “As such, it is binding upon subscribers whether the customer actually knows of the regulation or not.” Essex County Welfare Bd. v. New Jersey Bell Tel. Co., 126 N.J.Super. 417, 315 A.2d 40, 42 (1974), or whether the subscriber has specifically agreed to it or not, Clarke v. General Tel. Co. of Southeast, 268 S.C. 92, 232 S.E.2d 26 (1977).

A telephone utility “has the right to establish reasonable rules and regulations for furnishing service to patrons and for the conduct of its business. Ordinarily regulations so made will be presumed to be reasonable and necessary, unless the contrary is shown.” Southwestern Bell Tel. Co. v. Reeves, 578 S.W.2d 795, 799 (Tex.Civ.App. 1979).

First Central is a subscriber for telephone service. It has no property right in telephone number 524-3671. It knows that Mountain Bell may change the telephone number whenever it considers it desirable in the conduct of its business. Mountain Bell decided that First Central can retain the existing service it if pays all outstanding charges against the service. First Central refused to pay contrary to Tariff N(2). Mountain Bell had an absolute right to discontinue use of the same telephone number.

The trial court’s construction of the unmistakably clear language of the tariffs was not erroneous. It was the only conclusion to reach under the various rules used to construe the meaning of the language of the law.

First Central argues that a telephone company cannot deprive a subscriber of the use of a telephone number because it is a valuable asset of a business. It relies on Clayton Home Equip. Co. v. Florida Tel. Corp., 152 So.2d 203 (Fla.App.1963), and Johnson v. Southern Bell Telephone and Telegraph Company, 169 So.2d 36 (Fla.App. 1964). This rule is applicable where, after a telephone number is given a subscriber in business, the telephone company, without any justifiable cause, assigns the telephone number to another subscriber, or refuses to assign to his new business a subscriber’s telephone number listed in his name. These are contract cases, not affected by statutes or tariffs.

In Shehi, supra, the telephone company cut off Shehi’s service for his failure to pay. It reactivated the telephone number, formally held by Shehi, and assigned it to a competitor. The telephone company asserted that, when the phone service was properly terminated for nonpayment of charges, it had an unqualified right to treat the disconnected number as its sole property. It relied on paragraph N(l), “no property right” tariff, supra. The court said:

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Bluebook (online)
623 P.2d 1023, 95 N.M. 509, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-central-service-corp-v-mountain-bell-telephone-nmctapp-1981.