New England Telephone & Telegraph Co. v. Public Utilities Commission

565 F. Supp. 949, 54 Rad. Reg. 2d (P & F) 785, 1983 U.S. Dist. LEXIS 16222, 1983 WL 821986
CourtDistrict Court, D. Maine
DecidedJune 15, 1983
DocketCiv. 83-0166-P
StatusPublished
Cited by11 cases

This text of 565 F. Supp. 949 (New England Telephone & Telegraph Co. v. Public Utilities Commission) is published on Counsel Stack Legal Research, covering District Court, D. Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
New England Telephone & Telegraph Co. v. Public Utilities Commission, 565 F. Supp. 949, 54 Rad. Reg. 2d (P & F) 785, 1983 U.S. Dist. LEXIS 16222, 1983 WL 821986 (D. Me. 1983).

Opinion

ORDER DENYING MOTION FOR TEMPORARY RESTRAINING ORDER

CYR, District Judge.

I. INTRODUCTION

In this action brought under section 401(b) of the Federal Communications Act of 1934, as amended [Communications Act], 47 U.S.C. § 401(b), New England Telephone [NET] seeks injunctive relief requiring the Maine Public Utilities Commission [PUC] to adopt, for the purpose of setting NET’S intrastate revenues, the depreciation calculations prescribed by the Federal Communications Commission [FCC]. The motion for a temporary restraining order [TRO] has been briefed and argued.

II. FACTS

On December 14, 1982 the FCC released an order prescribing the use of certain accounting practices in calculating NET’s revenues [Prescription Order]. In paragraph 26 of the Prescription Order, the FCC expressly reserved the question as to whether state utility commissions would be bound to apply the prescribed accounting practices, noting that the question “is before us' in a separate proceeding.”

Neither the PUC nor NET was a party to that “separate proceeding”, which involved (1) a petition filed by American Telephone and Telegraph Company for reconsideration of a prior FCC order declaring that FCC depreciation prescriptions do not have preemptive effect, and (2) a petition for declaratory relief filed by General Telephone Company of Ohio seeking a declaration that the Ohio Public Utilities Commission was preempted from applying depreciation rates different from those prescribed by the FCC. In its decision [Preemption Order], released on January 6, 1983, the FCC granted both petitions, holding that “inconsistent state prescribed depreciation rates are preempted by [sections 220(a) & (b) of] the ... Act.” *952 [Preemption Order at ¶43]. The FCC ordered that the Preemption Order be published in the Federal Register [¶48] and that copies be served on each state commission [¶49].

Despite having received a copy of the Preemption Order, the PUC, on April 26, 1983, issued an order [PUC Order] setting NET’s intrastate revenues by using depreciation calculations different from those prescribed in the Prescription Order.

All other things being equal the application of the accounting conventions prescribed by the FCC would increase NET’s intrastate revenues for the current year by $1,667,000.

III. DISCUSSION

A. Johnson Act

The PUC contends that the Johnson Act, 28 U.S.C. § 1342, prevents this Court from enjoining the PUC. 1 Since the Court’s jurisdiction is based upon section 401(b) of the Communications Act and not solely upon diversity of citizenship or on repugnance of the PUC order to the Federal Constitution, the Johnson Act does not apply. The PUC incorrectly contends that becáuse only the Supremacy Clause, U.S. Const, art. VI, renders state law subordinate to federal law, this Court’s jurisdiction is, for purposes of the Johnson Act, based solely on the repugnance of the PUC order to the Federal Constitution. Not only would the PUC’s interpretation of the Johnson Act render the Act’s first requirement a virtual nullity, 2 such an interpretation also tortures the plain meaning of the language of that provision. The use of the word “solely” indicates at least that where, as here, jurisdiction over a claim is based principally upon an Act of Congress the Johnson Act does not apply. The circumstances surrounding its enactment indicate that

[t]he Act, adopted in 1934, was designed to further the same policies reflected in the three-judge court requirement which had been enacted in 1910. Alabama Public Service Commission v. Southern Railway, 341 U.S. 341, 357, 358, 71 S.Ct. 762, 772, 95 L.Ed. 1002 (1951) (Frankfurter, J., concurring). Hence, the Supreme Court’s analysis of the legislative purpose of the three-judge court provision is relevant to our construction of the Johnson Act:
Their [the Congress’] ire was aroused by the frequent grants of injunctions against the enforcement of progressive state regulatory legislation, usually on substantive due process grounds.... In contrast, a case involving an alleged incompatibility between state and federal statutes ... involves more confining legal analysis and can hardly be thought to raise the worrisome possibilities that economic or political predilections will find their way into a judgment.

International Brotherhood of Electrical Workers v. Public Service Commission, 614 F.2d 206, 211 (9th Cir.1980) [quoting Swift & Co. v. Wickham, 382 U.S. 111, 127, 86 S.Ct. 258, 267, 15 L.Ed.2d 194 (1965)]. In International Brotherhood of Electrical Workers, the Court held that jurisdiction *953 over a claim that Congress by “occupying the field” had preempted state regulation was not based “solely on repugnancy to the Constitution.” The argument for finding that the first test of the Johnson Act has not been satisfied is even stronger where, as in this case, the plaintiff claims that the prohibition against state action is explicit. See id. at 210.

Finally, it is simply inaccurate to say that the first test “is always found to be satisfied.” Several cases, in addition to International Brotherhood of Electrical Workers, have held that the first test is not met where a state agency’s order is challenged as violative of federal statutory law. See, e.g., Munoz v. Porto Rico Ry. Light & Power Co., 83 F.2d 262, 267 (1st Cir.), cert. denied, 298 U.S. 689, 56 S.Ct. 955, 80 L.Ed. 1408 (1936); Beckenstein v. Hartford Electric Light Co., 479 F.Supp. 417, 420 n. 1 (D.Conn.1979); Cabot Corp. v. Public Service Commission, 332 F.Supp. 370 (S.D.W.Va.1971).

B. The Motion for a TRO

In the First Circuit, a plaintiff must satisfy four criteria in order to be entitled to a preliminary injunction. The Court must find: (1) that plaintiff will suffer irreparable injury if the injunction is not granted; (2) that such injury outweighs any harm which granting injunctive relief would, inflict on the defendant; (3) that plaintiff has exhibited a likelihood of success on the merits; and (4) that the public interest will not be adversely affected by the granting of the injunction.

Planned Parenthood League of Mass. v. Bellotti, 641 F.2d 1006, 1009 (1st Cir.1981); 3 Women’s Community Health Ctr., Inc. v.

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565 F. Supp. 949, 54 Rad. Reg. 2d (P & F) 785, 1983 U.S. Dist. LEXIS 16222, 1983 WL 821986, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-england-telephone-telegraph-co-v-public-utilities-commission-med-1983.