Intercom Systems Corp. v. Bell Atlantic of Maryland, Inc.

763 A.2d 1196, 135 Md. App. 624, 2000 Md. App. LEXIS 208
CourtCourt of Special Appeals of Maryland
DecidedDecember 22, 2000
Docket154, Sept. Term, 1998
StatusPublished
Cited by5 cases

This text of 763 A.2d 1196 (Intercom Systems Corp. v. Bell Atlantic of Maryland, Inc.) is published on Counsel Stack Legal Research, covering Court of Special Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Intercom Systems Corp. v. Bell Atlantic of Maryland, Inc., 763 A.2d 1196, 135 Md. App. 624, 2000 Md. App. LEXIS 208 (Md. Ct. App. 2000).

Opinion

KRAUSER, Judge.

This is an appeal from an order of the Circuit Court for Prince George’s County, dismissing a complaint filed by appellant, Intercom Systems Corporation, against appellee, Bell Atlantic of Maryland, Inc. (“Bell Atlantic”), for tortious inter *627 ference with contract or economic relations, 1 negligence, and breach of contract. That dismissal, the circuit court declared, was compelled by this Court’s holding in Bits “N” Bytes v. C & P Telephone, 97 Md.App. 557, 631 A.2d 485 (1993), that the Public Service Commission Act (“Act”), now the Public Utility Companies Article (PUC)of the Maryland Code, 2 provides an exclusive remedy for such claims before the Public Service Commission (“Commission” or “PSC”). The circuit court’s reliance on that case was appropriate and the result it reached, under that decision, correct.

Nonetheless, in light of the decision of the Court of Appeals in Zappone v. Liberty Life, 349 Md. 45, 706 A.2d 1060 (1998), we now conclude that the remedy provided by that Act is primary and not exclusive. Accordingly, we shall reverse the judgement of the circuit court and, to the extent that our decision in Bits “N” Bytes is inconsistent with this opinion, we overrule that decision.

Background

Appellant, Intercom Systems Corporation, was an internet service provider that conducted business in Clinton, Maryland. As an internet service provider, appellant was entirely dependent on local phone access service to conduct its business. That service was provided by Bell Atlantic, the local exchange carrier for the Clinton area. Among other things, appellant relied on Bell Atlantic to provide it with regular telephone service, Centrex lines, a 56K data link, and high speed circuits such as frame relay and T-l circuits.

*628 Growing increasingly dissatisfied with the quality of the services provided by Bell Atlantic and unhappy with the seeming unwillingness of Bell Atlantic to provide other services requested, appellant began filing complaints with the Public Service Commission. The Commission is “an independent unit in the Executive Branch of State Government.” PUC § 2-101. Its function is to “supervise and regulate the public sendee companies,” PUC § 2-113, such as Bell Atlantic, pursuant to the Public Utility Companies Act.

On February 16, 1995, appellant, then Intercom Micro Systems, lodged seven informal complaints against Bell Atlantic in a letter to Frank Fulton, Director of the Consumer Assistance and Public Affairs Office of the Commission. In that letter, appellant principally claimed that Bell Atlantic: 1) provided telephone lines that repeatedly malfunctioned, thereby interrupting appellant’s service to its customers; 2) rerouted appellant’s telephone voice line to one of its competitors; and 3) refused to provide certain services ordered by appellant, such as “remote access telephone numbers,” 3 despite providing the same services to appellant’s competitors.

In response to these complaints, Fulton conducted an informal investigation. At the conclusion of that investigation, in a letter to appellant, dated August 31, 1995, Fulton stated that he had held two conferences with the parties, and that in response Bell Atlantic had agreed to “construct and install the hardware needed to expand [appellant’s] system.” He further stated that the investigation was now complete and that it appeared that “these last efforts [by Bell Atlantic] would resolve the problem.” He then concluded that letter by informing appellant that it could appeal his findings by “filing a Formal Complaint with the Public Service Commission pursuant to Code of Maryland Regulations (COMAR) 20.32.01.04M. and 20.07.03.04.” Instead, appellant sent a letter to Fulton, dated September 28, 1995, stating that “[t]he *629 Public Service Commission has fulfilled every fair aspect of this complaint.”

Nonetheless, appellant’s problems with Bell Atlantic persisted. From January 7, 1997, through February 24, 1997, appellant submitted to the Commission nine “filings” which consisted of sixteen different complaints against Bell Atlantic. In those complaints, appellant alleged, among other things, that Bell Atlantic: 1) had refused to provide new telephone service; 2) had maliciously disrupted appellant’s telephone service; 3) had refused to repair broken facilities for appellant; 4) had over-billed and incorrectly billed appellant for services rendered; 5) had refused to list appellant in both the 411 Information Directory and the Business White Pages directory; and 6) had given preferential treatment to appellant’s competitors. According to appellant, Bell Atlantic’s conduct constituted an “intentional and improper interference with the business expectations of appellant and its customers,” and was part of a deliberate attempt to put appellant, a competitor of a subsidiary of Bell Atlantic’s, out of business.

A second informal investigation by Fulton ensued. It culminated in the issuance of a final letter by Fulton, dated April 11, 1997, reviewing each of appellant’s allegations. Among other things, that letter indicated that on four occasions Bell Atlantic had agreed that it had overbilled or issued incorrect bills to appellant and, as a result, it had applied the following credits to appellant’s accounts: $1,477.33, $1,709.11, $408.00, and $1,754.34. Notwithstanding these discrepancies, Fulton concluded his letter with a statement that he did “NOT believe that [Bell Atlantic had] failed to act in good faith with the customer” and that it “ha[d] NOT violated any of its Commission-approved tariffs” (emphasis in original). He then informed appellant once again that it could appeal his findings by filing a formal complaint with the Commission.

Five days later, on April 16, 1997, appellant filed a lawsuit against Bell Atlantic in the Circuit Court for Prince George’s County, alleging tortious interference with contract relations, *630 negligence, and breach of contract. 4 The dismissal of that complaint lies at the core of this appeal.

Nine days after that, on April 25, 1997, appellant filed a formal complaint with the Commission and re-submitted the sixteen complaints it had previously filed. Appellant’s case was assigned to a hearing examiner, pursuant to PUC § 3-104. 5 While the formal investigation was pending, appellant added a seventeenth complaint, alleging that Bell Atlantic’s conduct was designed to benefit “Bell Atlantic Internet Solutions, Inc,” a subsidiary of Bell Atlantic that, like appellant, is in the business of providing internet service to the public.

In this latest complaint, appellant requested compensatory and punitive damages for Bell Atlantic’s “deliberate and malicious” conduct.

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Bluebook (online)
763 A.2d 1196, 135 Md. App. 624, 2000 Md. App. LEXIS 208, Counsel Stack Legal Research, https://law.counselstack.com/opinion/intercom-systems-corp-v-bell-atlantic-of-maryland-inc-mdctspecapp-2000.