Firstcom, Inc. v. Qwest Corp.

555 F.3d 669, 47 Communications Reg. (P&F) 240, 2009 U.S. App. LEXIS 2504, 2009 WL 291064
Court of Appeals for the Eighth Circuit·Decided February 9, 2009·No. 07-3548·Published·Cited by 41 cases

Opinion

SHEPHERD, Circuit Judge.

Firstcom, Inc. (“Firstcom”) appeals the district court’s 1 order dismissing all of its claims against Qwest Corporation (“Qwest”). We affirm.

I.

Firstcom and Qwest, both providers of telecommunications services, were competitors within Minnesota. “The telecommunications industry is regulated by Chapter 5 of the Federal Communications Act of 1934, as amended by the Telecommunications Act of 1996, codified at 47 U.S.C. § 151 et seq.” (the “Act”). TON Servs., Inc. v. Qwest Corp., 493 F.3d 1225, 1229 (10th Cir.2007). Prior to the amendments, “local telephone service was provided by companies holding monopolies which were subject to regulation by local governments,” but, in enacting the 1996 amendments, “Congress chose to encourage competition among telephone service providers and to impose greater federal regulation.” Sw. Bell Tel., L.P. v. Mo. Pub. Serv. Comm’n, 530 F.3d 676, 680 (8th Cir.2008). In addition, the Minnesota Telecommunications Act of 1996 (“MTA”), Minn.Stat. § 237.01 et seq., facilitates “competitive entry into the local telephone market.” US West Commc’ns, Inc. v. Minn. Pub. Util. *673 Comm’n, 55 F.Supp.2d 968, 974 (D.Minn.1999).

The Act categorizes telecommunications carriers and, depending on the classification, imposes duties. Pursuant to the Act, Firstcom and Qwest are both local exchange carriers (“LECs”), of which there are two types: (1) incumbent local exchange carriers (“ILECs”), and (2) competitive local exchange carriers (“CLECs”). 2 Qwest is an ILEC, and First-com is a CLEC. The Act requires that Qwest, as an ILEC, “provide access to its network to [Firstcom, a CLEC] through interconnection agreements,” and, in exchange, Qwest is “allowed to charge reasonable and nondiscriminatory rates for this access.” Quick Commc’ns, Inc. v. Mich. Bell Tel. Co., 515 F.3d 581, 583 (6th Cir.2008); see 47 U.S.C. § 252(d). Pursuant to the Act, interconnection agreements must “be submitted for approval to the State commission,” 47 U.S.C. § 252(e)(1), which, in Minnesota, is the Minnesota Public Utilities Commission (“MPUC”), see Minn.Stat. § 237.02.

Firstcom and Qwest entered into interconnection agreements. Under those agreements, Qwest sold telephone services to Firstcom. Firstcom did not remain profitable and ceased its normal business operations in 2001. At that time, Al Jaffe & Associates (“AJA”) purchased all or substantially all of Firstcom’s assets. In 2002, Firstcom formally dissolved. AJA later assumed the Firstcom name.

In 2004, twelve shareholders of the original Firstcom filed an action against Qwest, alleging violations of the Act and the MTA as well as Minnesota common law claims of negligence, promissory estop-pel, and fraudulent misrepresentation. The action related to “secret” interconnection agreements between Qwest and two CLECs, Eschelon Telecom (“Eschelon”) and McLeod USA Telecommunications (“McLeod”). 3 Specifically, the plaintiffs alleged that Qwest provided Eschelon and McLeod with voicemail services and a greater level of customer service relative to billing, despite Qwest’s representations to Firstcom that this was not the case. The plaintiffs further asserted that, as a result of Qwest’s wrongful conduct, the original Firstcom was unable to continue its business. On September 18, 2006, the district court granted Qwest’s motion for summary judgment as the shareholders lacked standing because AJA had purchased the original Firstcom’s legal rights. See Firstcom, Inc. v. Qwest Corp., No. 04-995, 2006 WL 2666301, at *5-6 (D.Minn. Sept.18, 2006). The shareholders did not appeal.

*674 On November 21, 2006, AJA, under the name of Firstcom, 4 brought this action against Qwest asserting the same claims as the 2004 lawsuit and adding a claim of negligence. Qwest moved to dismiss the action, apd the district court granted the motion. As to Firstcom’s federal claim, the district court found that the claim was time-barred and that equitable tolling did not apply. The district court determined that, even assuming the MTA granted a private cause of action, Firstcom could not pursue it because the MTA expired three months before this action was filed. Finally, the district court found that Firstcom’s alleged state law claims were preempted by the Act. Firstcom brings this appeal.

II.

Firstcom contends that the district court erred because none of its claims were properly dismissed. We review the district court’s grant of Qwest’s motion to dismiss de novo. See Owen v. Gen. Motors Corp., 533 F.3d 913, 918 (8th Cir.2008).

A.

Firstcom contends the district court improperly dismissed its federal claim because: (1) the longer four-year limitations period in 28 U.S.C. § 1658(a), rather than the two-year limitations period in section 415 of the Act, applies so that the claim is timely; (2) even if section 415 applies, the claim is timely under the doctrine of equitable tolling. Firstcom asserts that the claim was tolled until September 2006, when it first learned that it had a cause of action against Qwest via the district court’s dismissal of the shareholders’ suit for lack of standing. Firstcom further asserts that equitable tolling applies here because the interests that statutes of limitations seek to protect have been afforded to Qwest as it received timely notice of the claim when it was asserted in 2004 in the shareholders’ lawsuit.

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Firstcom, Inc. v. Qwest Corp., 555 F.3d 669, 47 Communications Reg. (P&F) 240, 2009 U.S. App. LEXIS 2504, 2009 WL 291064 (8th Cir. 2009).

555 F.3d 669 (Firstcom, Inc. v. Qwest Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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