Global Crossing Telecommunications, Inc. v. Metrophones Telecommunications, Inc.

20 Fla. L. Weekly Fed. S 152, 127 S. Ct. 1513, 167 L. Ed. 2d 422, 550 U.S. 45, 2007 U.S. LEXIS 4334, 41 Communications Reg. (P&F) 1, 75 U.S.L.W. 4188
CourtSupreme Court of the United States
DecidedApril 17, 2007
Docket05-705
StatusPublished
Cited by106 cases

This text of 20 Fla. L. Weekly Fed. S 152 (Global Crossing Telecommunications, Inc. v. Metrophones Telecommunications, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Global Crossing Telecommunications, Inc. v. Metrophones Telecommunications, Inc., 20 Fla. L. Weekly Fed. S 152, 127 S. Ct. 1513, 167 L. Ed. 2d 422, 550 U.S. 45, 2007 U.S. LEXIS 4334, 41 Communications Reg. (P&F) 1, 75 U.S.L.W. 4188 (U.S. 2007).

Opinions

Justice Breyer

delivered the opinion of the Court.

The Federal Communications Commission (Commission or FCC) has established rules that require long-distance (and certain other) communications carriers to compensate a payphone operator when a caller uses a payphone to obtain free access to the carrier’s lines (by dialing, e. g., a 1-800 number or other access code). The Commission has added that a carrier’s refusal to pay the compensation is a “practice . . . that is unjust or unreasonable” within the terms of the Communications Act of 1934, § 201(b), 48 Stat. 1070, 47 U. S. C. § 201(b). Communications Act language links § 201(b) to § 207, which authorizes any person “damaged” by a violation of § 201(b) to bring a lawsuit to recover damages in federal court. And we must here decide whether this linked section, §207, authorizes a payphone operator to bring a federal-court lawsuit against a recalcitrant carrier that refuses to pay the compensation that the Commission’s order says it owes.

In our view, the FCC’s application of § 201(b) to the carrier’s refusal to pay compensation is a reasonable interpreta[48]*48tion of the statute; hence it is lawful. See Chevron U. S. A. Inc. v. Natural Resources Defense Council, Inc., 467 U. S. 837, 843-844, and n. 11 (1984). And, given the linkage with §207, we also conclude that §207 authorizes this federal-court lawsuit.

I

A

Because regulatory history helps to illuminate the proper interpretation and application of §§ 201(b) and 207, we begin with that history. When Congress enacted the Communications Act of 1934, it granted the FCC broad authority to regulate interstate telephone communications. See Louisiana Pub. Serv. Comm’n v. FCC, 476 U. S. 355, 360 (1986). The Commission, during the first several decades of its history, used this authority to develop a traditional regulatory system much like the systems other commissions had applied when regulating railroads, public utilities, and other common carriers. A utility or carrier would file with a commission a tariff containing rates, and perhaps other practices, classifications, or regulations in connection with its provision of communications services. The commission would examine the rates, etc., and, after appropriate proceedings, approve them, set them aside, or, sometimes, set forth a substitute rate schedule or list of approved charges, classifications, or practices that the carrier or utility must follow. In doing so, the commission might determine the utility’s or carrier’s overall costs (including a reasonable profit), allocate costs to particular services, examine whether, and how, individual rates would generate revenue that would help cover those costs, and, if necessary, provide for a division of revenues among several carriers that together provided a single service. See 47 U. S. C. §§ 201(b), 203, 205(a); Missouri ex rel. Southwestern Bell Telephone Co. v. Public Serv. Comm’n of Mo., 262 U. S. 276, 291-295 (1923) (Brandeis, J., concurring in judgment) (telecommunications); Verizon Communications [49]*49Inc. v. FCC, 535 U. S. 467, 478 (2002) (same); Chicago & North Western R. Co. v. Atchison, T. & S. F. R. Co., 387 U. S. 326, 331 (1967) (railroads); Permian Basin Area Rate Cases, 390 U.S. 747, 761-765, 806-808 (1968) (natural gas field production).

In authorizing this traditional form of regulation, Congress copied into the 1934 Communications Act language from the earlier Interstate Commerce Act of 1887, 24 Stat. 379, which (as amended) authorized federal railroad regulation. See American Telephone & Telegraph Co. v. Central Office Telephone, Inc., 524 U. S. 214, 222 (1998). Indeed, Congress largely copied §§ 1,8, and 9 of the Interstate Commerce Act when it wrote the language of Communications Act §§ 201(b) and 207, the sections at issue here. The relevant sections (in both statutes) authorize the Commission to declare any carrier “charge,” “regulation,” or “practice” in connection with the carrier’s services to be “unjust or unreasonable”; they declare an “unreasonable,” e. g., “charge” to be “unlawful”; they authorize an injured person to recover “damages” for an “unlawful” charge or practice; and they state that, to do so, the person may bring suit in a “court” “of the United States.” Interstate Commerce Act §§ 1,8, 9, 24 Stat. 379, 382; Communications Act §§ 201(b), 206, 207, 48 Stat. 1070, 1072, 1073, 47 U. S. C. §§ 201(b), 206, 207.

Historically speaking, the Interstate Commerce Act sections changed early, preregulatory common-law rate-supervision procedures. The common law originally permitted a freight shipper to ask a court to determine whether a railroad rate was unreasonably high and to award the shipper damages in the form of “reparations.” The “new” regulatory law, however, made clear that a commission, not a court, would determine a rate’s reasonableness. At the same time, that “new” law permitted a shipper injured by an unreasonable rate to bring a federal lawsuit to collect damages. Interstate Commerce Act §§ 1, 8-9; Arizona Grocery Co. v. Atchison, T. & S. F. R. Co., 284 U. S. 370, 383-386 [50]*50(1932); Texas & Pacific R. Co. v. Abilene Cotton Oil Co., 204 U. S. 426, 436, 440-441 (1907); Keogh v. Chicago & Northwestern R. Co., 260 U. S. 156, 162 (1922); Louisville & Nashville R. Co. v. Ohio Valley Tie Co., 242 U. S. 288, 290-291 (1916); J. Ely, Railroads and American Law 71-72, 226-227 (2001); A. Hoogenboom & O. Hoogenboom, A History of the ICC 61 (1976). The similar language of Communications Act §§ 201(b) and 207 indicates a roughly similar sharing of agency authority with federal courts.

Beginning in the 1970’s, the FCC came to believe that communications markets might efficiently support more than one firm and that competition might supplement (or provide a substitute for) traditional regulation. See MCI Telecommunications Corp. v. American Telephone & Telegraph Co., 512 U. S.

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20 Fla. L. Weekly Fed. S 152, 127 S. Ct. 1513, 167 L. Ed. 2d 422, 550 U.S. 45, 2007 U.S. LEXIS 4334, 41 Communications Reg. (P&F) 1, 75 U.S.L.W. 4188, Counsel Stack Legal Research, https://law.counselstack.com/opinion/global-crossing-telecommunications-inc-v-metrophones-telecommunications-scotus-2007.