Guglielmo v. WorldCom et al.

2000 DNH 169
CourtDistrict Court, D. New Hampshire
DecidedJuly 27, 2000
DocketCV-00-160-B
StatusPublished
Cited by1 cases

This text of 2000 DNH 169 (Guglielmo v. WorldCom et al.) is published on Counsel Stack Legal Research, covering District Court, D. New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Guglielmo v. WorldCom et al., 2000 DNH 169 (D.N.H. 2000).

Opinion

Guglielmo v. WorldCom et a l . CV-00-160-B 07/27/00

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW HAMPSHIRE

Michael Guglielmo, Sr., et al.

v. Civil N o . C-00-160-B Opinion N o . 2000 DNH 169 WorldCom, Inc., et al.

MEMORANDUM AND ORDER

Five family members and/or friends of a New Hampshire State

Prison inmate filed a class action complaint in the Rockingham

County Superior Court, naming as defendants three providers of

interstate telephone services. The complaint alleges that the

defendants -- WorldCom, Inc., ILD Teleservices, Inc., and ILD

Telecommunications, Inc.1 -- had agreements with the state of New

Hampshire under which they enjoyed the exclusive right to provide

interstate telephone services to inmates in the state prison

1 Although defendant WorldCom, Inc. is currently known as MCI WorldCom, Inc., I follow the parties’ lead by referring to the entity as “WorldCom” in this order. I also refer to ILD Teleservices, Inc. and ILD Telecommunications, Inc. collectively as “the ILD Defendants.” system.2 According to the complaint, these agreements, which

required inmates wishing to communicate by telephone with out-of-

state persons to make collect calls using the defendants’

services, resulted in the recipients of the calls being charged

at excessive rates.

Plaintiffs assert that as a result of the arrangement

between the defendants and the state, the defendants are liable

for (1) negligence committed by them and/or their employees

(Counts I and I I ) , (2) violation of the New Hampshire

Combinations and Monopolies Act, N.H. Rev. Stat. Ann. Chapter

356 (Count I I I ) , and (3) violation of the New Hampshire Consumer

Protection Act, N.H. Rev. Stat. Ann. Chapter 358-A (Count I V ) .

WorldCom removed the action to this court pursuant to 28

U.S.C. § 1441(b), which permits removal of “[a]ny civil action of

2 The complaint is not entirely clear as to which defendants were parties to contracts with the state. It can most reasonably be read to allege that WorldCom was a party to certain contracts with the state, that the ILD defendants were assignees of WorldCom’s rights under some or all of these contracts, and that at least one of the ILD defendants also was a party to an amended contract with the state. See Compl. (appended as Ex. A to Notice of Removal (Doc. #1)) ¶¶ 1 , 3-10, 1 5 , 2 5 , 2 6 , 2 7 .

-2- which the district courts have original jurisdiction founded on a

claim or right arising under the Constitution, treaties or laws

of the United States.”3 28 U.S.C. § 1441(b) (1994). WorldCom

asserted in its notice of removal that plaintiffs’ claims arise

under federal law even though they purport to be based on state

law because the claims are completely preempted by the Federal

Communications Act, 47 U.S.C. § 151 et seq. (the “FCA”).

Plaintiffs have moved to remand pursuant to 28 U.S.C. §

1447(c). 4 For the reasons set forth below, I reject WorldCom’s

complete preemption argument and remand the complaint to state

3 WorldCom’s notice of removal relied entirely on federal question jurisdiction and did not assert that this court has subject matter jurisdiction based on diversity of citizenship. See Notice of Removal (Doc. #1) ¶ 5 . Accordingly, I do not address diversity. Moreover, although plaintiffs argue in their motion for remand that federal antitrust law does not completely preempt their claims, see Pls.’ Mot. for Remand (Doc. #8) ¶ 1 8 , I need not address this argument because “WorldCom never asserted that the complete preemption doctrine applied to federal antitrust law.” WorldCom’s Mem. in Opp’n to Pls.’ Mot. for Remand (Doc. #13) at 2 n.1. 4 Under 28 U.S.C. § 1447(c), an action removed to federal court shall be remanded “[i]f at any time before final judgment it appears that the district court lacks subject matter jurisdiction.” 28 U.S.C. § 1447(c) (Supp. 1996).

-3- court.

I.

WorldCom’s complete preemption argument necessarily depends

upon an invocation of the filed rate doctrine, sometimes called

the “filed tariff” doctrine. See WorldCom’s Mem. in Opp’n to

Pls.’ Mot. for Remand (Doc. #13) at 5-10. In its original form,

as developed under the Interstate Commerce Act, this doctrine

“forbids a regulated entity to charge rates for its services

other than those properly filed with the appropriate federal

regulatory authority.” Arkansas Louisiana Gas C o . v . Hall, 453

U.S. 571, 577 (1981). Where the filed rate doctrine applies,

state law claims are preempted. See Nantahala Power & Light C o .

v . Thornburg, 476 U.S. 953, 963 (1986) (“In this application, the

doctrine is not a rule of administrative law designed to ensure

that federal courts respect decisions of federal administrative

agencies, but a matter of enforcing the Supremacy Clause.”).

The FCA’s filed rate provisions are contained in § 203 of

the Act. Under § 203(a), common carriers are required to file

-4- with the FCC “schedules” or tariffs “containing all their

‘charges’ for interstate services and all ‘classifications,

practices and regulations affecting such charges.’” American

Tel. and Tel. C o . v . Central Office Tel., Inc., 524 U.S. 214, 217

(1998) [hereinafter “Central Office”] (quoting 47 U.S.C. §

203(a)). Section 203(c) essentially prohibits a carrier from

charging a customer any rate other than that specified in the

carrier’s filed tariff. See 47 U.S.C.A. § 203(c) (West 1991).

Relying upon these provisions, the Supreme Court recently held

that the filed rate doctrine applies to the FCA. See Central

Office, 524 U.S. at 222. The Court construed the doctrine

broadly, concluding that it applies not only to the rate charged

for tariffed services, but also to the terms and conditions upon

which those services are provided. See id. at 223-24.

According to WorldCom’s line of reasoning, because a

carrier’s filed tariff has the force of federal law, see Fax

Telecommunicaciones Inc. v . AT&T, 138 F.3d 479, 488 (2d Cir.

1998); Marcus v . AT&T Corp., 138 F.3d 4 6 , 56 (2d Cir. 1998);

-5- Cahnmann v . Sprint Corp., 133 F.3d 484, 488-89 (7th C i r . ) , cert.

denied, 524 U.S. 952 (1998), and is “the exclusive source of the

terms and conditions by which the common carrier provides to its

customers the services covered by the tariff,” Central Office,

524 U.S. at 230 (Rehnquist, C.J., concurring); see also Marcus,

138 F.3d at 5 6 , any claim by a telecommunications customer

relating to the rates, terms, or conditions of tariffed services

must arise under the tariff and the FCA. See Cahnmann, 133 F.3d

at 489-90; MFS Int’l, Inc. v . International TelCom Ltd., 50 F.

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