Gallivan v. AT & T CORP.

21 Cal. Rptr. 3d 898, 124 Cal. App. 4th 1377, 2004 Daily Journal DAR 14928, 2004 Cal. Daily Op. Serv. 11079, 2004 Cal. App. LEXIS 2150
CourtCalifornia Court of Appeal
DecidedDecember 15, 2004
DocketB170830
StatusPublished
Cited by9 cases

This text of 21 Cal. Rptr. 3d 898 (Gallivan v. AT & T CORP.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gallivan v. AT & T CORP., 21 Cal. Rptr. 3d 898, 124 Cal. App. 4th 1377, 2004 Daily Journal DAR 14928, 2004 Cal. Daily Op. Serv. 11079, 2004 Cal. App. LEXIS 2150 (Cal. Ct. App. 2004).

Opinion

Opinion

DOI TODD, J.

The issue presented is whether the federal filed rate doctrine applies to a telephone charge that is included in a tariff voluntarily filed with the Federal Communications Commission (FCC). We find that it does and that the charge is therefore not subject to a claim for damages. The trial court’s judgment of dismissal after sustaining a demurrer without leave to amend is affirmed.

*1380 FACTUAL AND PROCEDURAL BACKGROUND

On appeal from a judgment of dismissal following a demurrer sustained without leave to amend, we assume the truth of all well pleaded facts, as well as those that are judicially noticeable, but not contentions, deductions or conclusions of fact or law. (Howard Jarvis Taxpayers Assn. v. City of La Habra (2001) 25 Cal.4th 809, 814 [107 Cal.Rptr.2d 369, 23 P.3d 601]; Blank v. Kirwan (1985) 39 Cal.3d 311, 318 [216 Cal.Rptr. 718, 703 P.2d 58].)

The Complaint

Plaintiff and appellant Jennifer Gallivan sued to recover telephone charges she alleged were imposed fraudulently and in breach of contract by defendants and respondents AT&T. 1 According to Gallivan’s complaint, respondents are local telephone companies that provide telecommunications services and products in California. Gallivan is a customer of AT&T, and included in her monthly bill from AT&T is a network access charge of $4.35 for interstate calls. This charge is sometimes referred to as a Subscriber Line Charge (SLC). Gallivan alleged that respondents deceived their customers by advertising a monthly service charge that did not include the SLC and then including the SLC on the bill labeled as an amount “imposed by the FCC.” She alleged that this falsely represented to the public that the SLC was collected by the FCC, when in truth the amount was neither mandated by the FCC nor passed through respondents to the FCC. Rather, the SLC paid by appellant was retained by respondents. According to Gallivan, respondents were not authorized by the FCC to assess the SLC. Gallivan sought to represent a class of all California customers of AT&T who were charged the SLC.

On behalf of the class, Gallivan asserted causes of action for breach of contract, unjust enrichment, and fraud by concealment, and sought recovery of all funds paid for the SLC, plus costs and interest. 2

The Demurrer

Respondents demurred to the complaint, asserting several grounds: the claims were barred by the federal filed rate doctrine; the claims were preempted by federal law; and the claims were insufficiently pled. Alternatively, respondents requested that the matter be referred to the FCC for determination under the doctrine of primary jurisdiction.

*1381 The parties do not dispute that the SLC was part of a rate tariff that respondents had filed with the FCC. Respondents argued that because the SLC is an FCC-sanctioned charge for an interstate telecommunications service, it is not an “overcharge” or a component of the local rate. They further asserted that under the filed rate doctrine, customers may not bring an action against a telephone company that would invalidate, alter, or add to the terms of an approved tariff. As such, respondents asserted that no cause of action for breach of contract, unjust enrichment or fraud had been stated against them.

In opposition, appellant argued that the filed rate doctrine should have no application because respondents had “never been subject to tariffing requirements” regarding the SLC, that the doctrine did not apply to state law claims for fraud and misrepresentation, that her state law claims did not conflict with federal law and were therefore not preempted, and that she had adequately pled her claims. Appellant also argued that the matter should not be referred to the FCC because resolution of her state law claims would not require any specialized agency expertise.

The trial court sustained the demurrer without leave to amend on the ground that the claims were barred by the filed rate doctrine because monetary damages were sought in the form of a rebate. As an additional ground, the court found that the contract and fraud claims were insufficiently pled. This appeal followed.

DISCUSSION

Standard of Review

We review the trial court’s sustaining of a demurrer without leave to amend de novo, exercising our independent judgment as to whether a cause of action has been stated as a matter of law. (People ex rel. Lungren v. Superior Court (1996) 14 Cal.4th 294, 300 [58 Cal.Rptr.2d 855, 926 P.2d 1042]; Moore v. Regents of University of California (1990) 51 Cal.3d 120, 125 [271 Cal.Rptr. 146, 793 P.2d 479].) We “give the complaint a reasonable interpretation, reading it as a whole and its parts in their context. [Citation.]” (Blank v. Kirwan, supra, 39 Cal.3d at p. 318.) A judgment based on a dismissal must be affirmed if any of the grounds for demurrer raised by the defendant is well-taken and disposes of the complaint. (Aubry v. Tri-City Hospital Dist. (1992) 2 Cal.4th 962, 967 [9 Cal.Rptr.2d 92, 831 P.2d 317].)

The Filed Rate Doctrine

The filed rate doctrine, also referred to as the filed tariff doctrine, is a court-created rule that derives from the tariff-filing requirements of the *1382 Federal Communications Act of 1934. Under the Act, a common carrier is required to file with the FCC and keep open for public inspection “schedules [also known as tariffs] showing all charges . . . and showing the classifications, practices, and regulations affecting such charges.” (47 U.S.C. § 203(a).) “Under this doctrine, once a carrier’s tariff is approved by the FCC, the terms of the federal tariff are considered to be ‘the law’ and to therefore ‘conclusively and exclusively enumerate the rights and liabilities’ as between the carrier and the customer. Not only is a carrier forbidden from charging rates other than as set out in its filed tariff, but customers are also charged with notice of the terms and rates set out in that filed tariff and may not bring an action against a carrier that would invalidate, alter or add to the terms of the filed tariff.” (Evanns v. AT&T Corp. (9th Cir. 2000) 229 F.3d 837, 840.)

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21 Cal. Rptr. 3d 898, 124 Cal. App. 4th 1377, 2004 Daily Journal DAR 14928, 2004 Cal. Daily Op. Serv. 11079, 2004 Cal. App. LEXIS 2150, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gallivan-v-at-t-corp-calctapp-2004.