New Access Communications LLC v. Qwest Corp.

378 F. Supp. 2d 1135, 2005 U.S. Dist. LEXIS 18959, 2005 WL 1791633
District Court, D. Minnesota·Decided July 21, 2005·No. 04-3529 (JRT/FLN)·Published·Cited by 4 cases

Opinion

MEMORANDUM OPINION AND ORDER

TUNHEIM, District Judge.

Plaintiffs New Access Communications and its wholly owned subsidiary, Choicetel *1136 (together, “New Access”) requested the Court to confirm an arbitration award, which defendant/third-party plaintiff Qwest Corporation (“Qwest”) moved to vacate. In an Order dated March 31, 2005, the Court confirmed the arbitration award. New Access Communications, LLC v. Qwest Corp., 368 F.Supp.2d 952 (D.Minn.2005). New Access now moves the Court to correct certain clerical errors in the March 31 Order and for attorneys’ fees and costs. Qwest moves the Court for a stay of execution of the judgment and waiver of the supersedeas bond. For the following reasons, the Court grants in part New Access’s motion and denies Qwest’s motion.

BACKGROUND 1

New Access opted-in to a series of interconnection agreements with Qwest in eight states, including Minnesota. These interconnection agreements required Qwest to offer New Access any telecommunications service that it offers to its own customers at the wholesale rate, with the exception of promotional offerings lasting less than 90 days. Id. In February 1999, Qwest introduced a short-term promotional offer designed to “win back” customers who had switched to Qwest’s competitors. Other carriers, such as New Access, could purchase the win back promotion according to the same terms that Qwest was offering to its retail customers, but were not offered the promotion at a wholesale rate. In May 2002, at New Access’s request, the Minnesota Public Utilities Commission examined Qwest’s win back promotion and found it was unreasonably discriminatory and anti-competitive and disapproved the promotion.

On June 12, 2003, in accordance with the dispute resolution process detailed in the interconnection agreements, New Access filed a Claim and Demand for Arbitration against Qwest. New Access asserted that Qwest’s win back promotion wrongfully established an effective retail rate lower than the wholesale rate, and sought damages in the amount of the difference between the amounts actually charged to New Access and the “effective retail rate” calculated by New Access’s expert. New Access, also sought to have certain restitutional remedies ordered in a prior case instituted by the Minnesota Department of Commerce against Qwest extended to New Access, including damage payments for every month in which Qwest did not provide accurate daily usage file information.

An eight-day arbitration was held in February 2004. The arbitrators concluded that they were permitted to address New Access’s damages claims with respect to the state of Minnesota because the Minnesota Public Utilities Commission had already found the Minnesota win back promotion unlawful, but that they could not consider New Access’s claims relating to the seven other states in which New Access and Qwest had agreements. The arbitrators awarded New Access approximately $1.5 million in damages connected to the win back promotion. The arbitrators also determined that a portion of the restitution remedies awarded in the Department of Commerce case was properly extended to New Access. New Access submitted the award to the Minnesota Public Utilities Commission for approval, which Qwest contested. The Commission allowed the award to stand. Ultimately, this Court confirmed the arbitrators’ award.

*1137 DISCUSSION

I.NEW ACCESS’S MOTION TO CORRECT CLERICAL MISTAKES AND FOR REIMBURSEMENT OF COSTS AND ATTORNEYS’ FEES

A. Clerical Mistakes

1. Caption

New Access asserts that the caption of this case should be amended to identify the petitioners’ as “New Access Communications LLC and Choicetel LLC” rather than “New Access Communications, L.L.C. and Choicetel Communications, Inc.” Qwest does not object to this modification, and the Court will amend the caption accordingly. Fed.R.Civ.P. 60(a).

2. Prejudgment Interest Related to the Daily Usage Files Award

In its discussion of the background of this case in the March 31 Order, the Court stated that’“[t]he arbitrators also determined that the portion of the restitution remedies awarded in the Department of Commerce case related to daily usage file information was properly extended to New Access and awarded $184,474 in damages and prejudgment interest.” New Access, at 956-57. New Access correctly asserts that the arbitrators awarded $184,474 as the principal amount of damages, and then added prejudgment interest for a total award of $195,542 on that claim. The arbitrators noted that the interest had been calculated through the date of the award at the Minnesota statutory rate of 6% and that any additional interest should be calculated at the same rate. The Court will accordingly replace the last sentence of the eleventh paragraph of the March 31, 2005 Order to state “[t]he arbitrators also determined that the portion of the restitution remedies awarded in the DOC case related to daily usage file information was properly extended to New Access and awarded $184,474 in damages. The arbitrators also awarded prejudgment interest at the Minnesota statutory rate of 6% from the date of the filing of the claim.” Fed. R.CivJP. 60(a).

3.Specification of Damages

New Access suggests that the Court amend the Order to identify the specific amounts of principal and interest owed by Qwest for each claim, along with the applicable interest rates. The Court finds that it has insufficient data upon which to make such a change and, accordingly, declines New Access’s request.

B. Attorneys’ Fees and Costs

New Access moves for an award of attorneys’ fees and costs in the amount of $78,651.54 and has submitted an affidavit to the Court detailing its request. The arbitration clause of the interconnection agreement permits a party to recover fees and costs incurred if “it becomefs] necessary to resort to court proceedings to enforce a Party’s compliance with the dispute resolution process set forth herein.” See Minnesota Interconnection Agreement § 5.18.4. However, “[e]ach party shall bear its own costs and attorneys fees” related to the various steps of the dispute resolution process, which culminates in submission of the arbitration opinion to the Commission. Id. Qwest opposes New Access’s request, arguing that: (1) the plain language of the arbitration clause only refers to court proceedings required to achieve participation in the dispute resolution process, not court proceedings to enforce completion of the dispute resolution process; and (2) New Access’s requested fees include fees incurred for non-court proceedings. Qwest does not otherwise object to the reasonableness of New Access’s requested fees and costs.

The Court agrees with Qwest that the disputed confirmation proceedings before the Minnesota Public Utilities Commission are non-court proceedings that are includ *1138 ed in the dispute resolution process for which each party must bear its own costs.

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New Access Communications LLC v. Qwest Corp., 378 F. Supp. 2d 1135, 2005 U.S. Dist. LEXIS 18959, 2005 WL 1791633 (mnd 2005).

378 F. Supp. 2d 1135 (New Access Communications LLC v. Qwest Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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