Marriott Corp. v. Chesapeake & Potomac Telephone Co.

723 A.2d 454, 124 Md. App. 463, 1998 Md. App. LEXIS 211
CourtCourt of Special Appeals of Maryland
DecidedDecember 30, 1998
Docket1749, Sept. Term, 1997
StatusPublished
Cited by15 cases

This text of 723 A.2d 454 (Marriott Corp. v. Chesapeake & Potomac Telephone Co.) 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
Marriott Corp. v. Chesapeake & Potomac Telephone Co., 723 A.2d 454, 124 Md. App. 463, 1998 Md. App. LEXIS 211 (Md. Ct. App. 1998).

Opinion

RALPH M. BURNETT, Judge,

Specially Assigned.

This appeal involves a multi-million dollar law suit based on four hours of lost long distance telephone service. The appellant is the Marriott Corporation (“Marriott”). The appellee is the Chesapeake and Potomac Telephone Company of Maryland 1 (“C & P”) which, along with various co-defendants 2 , was sued by Marriott for negligence and gross negligence in connection with the lost service.

Marriott is a well known owner and operator of hotels throughout the world. Reservations for its hotels are pro *467 cessed at the Frederick Computer Data Center located in Frederick, Maryland. This center provides information as to the status of reservations and room availability at the Marriott hotels to travel agents and customers seeking reservations at Marriott hotels. All long distance communications with the Frederick Center via telephone and data communication services are provided by the American Telephone and Telegraph Company (“AT & T”) under written contract between AT & T and Marriott. AT & T bills Marriott and Marriott pays AT & T for these services. The services are provided to Marriott via a fiber optic cable installed and maintained by C & P. Marriott is not a party to any agreement regarding this cable.

On Friday, April 7, 1989, the fiber optic cable was severed by a Brandenberg Electric, Inc. crew that had been hired by the State Highway Administration (“SHA”) to drill holes for the placement of new road signs along State Highway 874. The result was a four-hour interruption of long distance telephone service throughout western Maryland. SHA had given notice of the sign location operation to Miss Utility 3 , which in turn had given notice to C & P. Thereafter, C & P employee Robert Carwithen had marked the supposed location of the underground cable with a painted, dashed line. Through its own investigation, C & P determined that the “C & P locator did not mark the cables correctly,” concluding that its own locator, Carwithen, was at fault.

Marriott filed a complaint in the Circuit Court for Montgomery County against C & P alleging negligence and gross negligence. 4 Marriott claimed damages stemming from the loss of service occasioned by the severance of the fiber optic cable. C & P moved lor summary judgment, arguing that its liability for negligence and gross negligence, if any, was limited by General Regulation Tariff P.S.C. [Public Service *468 Commission] Md. No. 201 (“the Tariff’ or “Tariff No. 201”), on file with the Maryland Public Service Commission. Under certain circumstances, the Tariff limits C & P’s liability to “an amount equivalent to the proportionate charge to the customer for the service or facilities affected.” C & P also argued that it was entitled to summary judgment as to gross negligence because, as a matter of law, Marriott was unable to allege facts sufficient to constitute gross negligence. Marriott responded by arguing that the Tariff was not applicable to C & P’s liability to Marriott for interruption of the long distance service because Marriott was AT & T’s customer and not C & P’s. Marriott added that summary judgment should not be granted as to gross negligence because (i) a party cannot exculpate itself from gross negligence, and (ii) the claim was supported by sufficient facts. After oral argument, the trial court granted partial summary judgment in C & P’s favor, finding that Marriott was C & P’s customer in regard to the affected service “by virtue .of the use of C & P’s lines in delivering AT & T’s calls.” The court concluded that any liability on C & P’s part on the negligence claim was limited by the Tariff. The court also ruled that Marriott had failed to set forth “facts to support a claim of gross negligence.”

Marriott moved under Md. Rule 2-602(b) to have the ruling on the motion for summary judgment certified as a final judgment. It argued that, under the ruling, it could not recover any damages from C & P. The trial court agreed and granted the motion over C & P’s objection. In apparent contradiction to its earlier ruling on the motion for summary judgment to the effect that Marriott was C & P’s customer in regard to the affected service, the court explained that “[t]he only service provided to Marriott by C & P was local telephone service,” and “[t]he service allegedly interrupted for four hours was AT & T’s long distance service .... ”

Marriott then noted an appeal, but this Court granted C & P’s motion to dismiss in light of the many remaining claims and cross-claims involving Brandenberg Electric, Inc. and the State. Thereafter, Marriott moved to dismiss Brandenberg Electric, Inc. and the State from the case and to re-enter the *469 summary judgment as final. The trial court granted the motion and Marriott filed the instant appeal. 5 C & P noted a cross-appeal.

ISSUES

Marriott presents several questions on appeal, which we consolidate and rephrase as follows:

— Was Marriott a C & P customer, such that C & P’s liability for negligence was limited under General Regulation Tariff No. 201?
— Did the trial court err in holding that there were no facts to support the claim for gross negligence?
C & P adds the following question in its cross-appeal:
— Did the trial court err in granting Marriott’s motion for entry of final judgment?

We shall first address the issue raised by C & P in its cross-appeal.

DISCUSSION

I

Finality of Judgment

C & P argues that the trial court erred by purporting to enter a final judgment without first having made a determination as to whether C & P was negligent and, if so, what limited damages could be assessed against it under the Tariff. The applicable portion of the Tariff reads:

E. LIABILITY OF THE TELEPHONE COMPANY
In view of the fact that the customer has exclusive control over the use of service and facilities furnished by the Telephone Company, and because of unavoidableness of errors incident to the services and to the use of such *470 facilities of the Telephone Company, services and facilities are furnished by the Telephone Company subject to the terms, conditions and limitations herein specified:
1. Service Irregularities

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Bluebook (online)
723 A.2d 454, 124 Md. App. 463, 1998 Md. App. LEXIS 211, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marriott-corp-v-chesapeake-potomac-telephone-co-mdctspecapp-1998.