Mobile County Water, Sewer & Fire Protection Authority, Inc. v. Mobile Area Water & Sewer System, Inc.

567 F. Supp. 2d 1342, 2008 U.S. Dist. LEXIS 55807, 2008 WL 2882944
CourtDistrict Court, S.D. Alabama
DecidedJuly 23, 2008
DocketCivil Action 07-0357-WS-M
StatusPublished
Cited by8 cases

This text of 567 F. Supp. 2d 1342 (Mobile County Water, Sewer & Fire Protection Authority, Inc. v. Mobile Area Water & Sewer System, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mobile County Water, Sewer & Fire Protection Authority, Inc. v. Mobile Area Water & Sewer System, Inc., 567 F. Supp. 2d 1342, 2008 U.S. Dist. LEXIS 55807, 2008 WL 2882944 (S.D. Ala. 2008).

Opinion

ORDER

WILLIAM H. STEELE, District Judge.

This matter comes before the Court on cross-Motions for Summary Judgment (docs. 37, 81). The Motions have been briefed and are ripe for disposition at this time. 1

1. Background.

A. Relevant Facts.

This lawsuit is the latest battleground in a decades-old turf war between two public utilities who provide services in overlapping territory to certain customers outside the city limits of Mobile, Alabama, but within the boundaries of Mobile County, Alabama. The relevant facts are, with few exceptions, not in dispute, so much so that it would have behooved the parties, streamlined the summary judgment process, and obviated the need for plaintiffs sizeable evidentiary submission had they submitted their Rule 56 motions on stipulated facts, given the paucity of material factual disagreements between them. 2

Plaintiff, Mobile County Water, Sewer *1345 and Fire Protection Authority (“MoCo”), 3 is a rural water authority, organized pursuant to Ala.Code §§ 11-88-1 et seq. It is authorized to sell and does sell treated water to customers within MoCo’s service area. (Doc. 85, at 18.) Defendant, Mobile Area Water and Sewer System (“MAWSS”), 4 is formally organized as a Board of Water and Sewer Commissioners pursuant to Ala.Code §§ 11-50-340 et seq. The parties agree that MAWSS sells treated water and centralized sewer service to customers both within the city limits of Mobile, Alabama, as well as outside the city limits of Mobile, including areas within MoCo’s service territory. (Doc. 85, at 12-13.) Thus, it is quite clear (and free from debate) that MAWSS and MoCo are presently selling treated water service in an overlapping geographic area, such that at some level they are vying for the same customers with regard to treated water service. The parties are likewise in full agreement that MAWSS is the sole seller of centralized sewer service in MoCo’s service area. (Doc. 85, at 12.)

The genesis of this lawsuit lies in MAWSS’s practice of requiring new customers to accept MAWSS’s treated water, should MAWSS decide to supply it, as a condition of receiving MAWSS sewer service. To be clear, there is no dispute that MAWSS in fact engages in such a practice. MAWSS does not shy away from this fact, by either denying or downplaying it, but instead readily admits it. In particular, MAWSS freely concedes in its briefs that “MAWSS requires new sewer customers to accept water service from MAWSS if such service is available” and that “MAWSS requires new customers to accept MAWSS water service, if it is made available, if said new customer wishes to receive MAWSS sewer service.” (Doc. 37, Exh. 1 at 2; doc. 85, at 11.) 5 This is not a case, then, in which there are factual issues as to whether the challenged practice exists. Everyone agrees that MAWSS has adopted such a practice. 6 The only ques *1346 tion is its legality.

B. Claims Joined in this Proceeding.

In evaluating the lawfulness of MAWSS’s “all-or-nothing” policy of supplying sewer and water services in MoCo’s service area, the Court is of course constrained by the specific theories of liability interposed by plaintiff; therefore, the framing of the issues in the pleadings is of critical importance to the summary judgment analysis. The Amended Complaint unambiguously reflects that MoCo has postured this action exclusively in terms of antitrust violations. Although the Amended Complaint is not organized by specific causes of action, the sum total of the legal grounds on which MoCo seeks relief against MAWSS in this action are set forth in that filing as follows:

“21. MAWSS has accordingly conditioned the purchase of sewer service (the tied product) in the affected area to the purchase of water service (the tying product) also from MAWSS. Since MAWSS has market power in the provision of sewer service in the affected area, and a substantial volume of commerce in the provision of water service has been affected by the policy and practices here alleged, these tying arrangements are per se unlawful under Section 1 of the Sherman Act, 15 U.S.C. sec. 1.
“22. MAWSS’ conditioning of the purchase of sewer service (the tied product) in the affected area to the purchase of water service (the tying product) also from MAWSS, where MAWSS has market power in the provision of sewer service in the affected area and a substantial volume of commerce in the provision of water service has been affected by the policy and practices here alleged, also unreasonably restrains trade in violation of Section 1 of the Sherman Act, 15 U.S.C. sec. 1.
“23. Through the policy and practices alleged, MAWSS has abused its market power in supplying sewer services in the affected area to gain a competitive advantage and foreclose competition in the supply of water services in the affected area, thereby monopolizing and attempting to monopolize trade and commerce in violation of Section 2 of the Sherman Act, 15 U.S.C. § 2.
“24. In addition, through the policy and practices alleged, MAWSS has abused its market power in supplying sewer services in the affected area to gain a competitive advantage and foreclose competition in the supply of water services in the affected area, thereby monopolizing and attempting to monopolize trade and commerce in violation of Code of Alabama (1970), § 6-5-60(a).”

(Amended Complaint (doc. 6), ¶¶ 21-24.)

Simply stated, then, MoCo brought this action contending that MAWSS’s “all-or-nothing” bundling of water services with sewer services in MoCo’s service area constitutes an unlawful tying arrangement in violation of federal and state antitrust laws. 7 The gravamen of MoCo’s antitrust *1347 claims is that MAWSS is leveraging its dominance in the centralized sewer services market to coerce its sewer customers to purchase water service from it, rather than from competitors such as MoCo. MoCo seeks a permanent injunction “restraining MAWSS from requiring any consumer of water to purchase water service from MAWSS as a condition of receiving sewer service”; restraining MAWSS from retaliating against any customer for purchasing water elsewhere; and requiring MAWSS to notify potential customers of their right to purchase water elsewhere. (Doc. 6, at 8.) 8 No other claim or cause of action has been joined by MoCo in this action.

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Bluebook (online)
567 F. Supp. 2d 1342, 2008 U.S. Dist. LEXIS 55807, 2008 WL 2882944, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mobile-county-water-sewer-fire-protection-authority-inc-v-mobile-area-alsd-2008.