Ohio Bell Tel. Co., Inc. v. Global Naps Ohio, Inc.

540 F. Supp. 2d 914, 2008 U.S. Dist. LEXIS 26244, 2008 WL 839187
CourtDistrict Court, S.D. Ohio
DecidedMarch 31, 2008
Docket06-CV-549
StatusPublished
Cited by2 cases

This text of 540 F. Supp. 2d 914 (Ohio Bell Tel. Co., Inc. v. Global Naps Ohio, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ohio Bell Tel. Co., Inc. v. Global Naps Ohio, Inc., 540 F. Supp. 2d 914, 2008 U.S. Dist. LEXIS 26244, 2008 WL 839187 (S.D. Ohio 2008).

Opinion

OPINION AND ORDER

ALGENON L. MARBLEY, District Judge.

I. INTRODUCTION

Plaintiff, The Ohio Bell Telephone Company, Inc. (“Ohio Bell”), filed a nine-count amended complaint against Defendants Global NAPs Ohio, Inc., Global NAPs, Inc., Global NAPs New Hampshire, Inc., Global NAPs Networks, Inc., Global NAPs Realty, Inc., and Ferrous Miner Holding, Ltd. (collectively, “Global”). Ohio Bell alleges that since at least February 2004, it has provided Global with certain telecommunications services and facilities, but that Global has refused to pay. The amended complaint therefore alleges violations of Ohio Bell’s federal tariffs (counts I — III) and state tariffs (counts IV-V), breach of the parties’ interconnection agreement (“ICA”) (counts VI-VIII), and a claim for quantum meruit (count IX). Global has moved to dismiss the amended complaint pursuant to Federal Rules of Civil Procedure 12(b)(1) and 12(h)(3) for lack of subject matter jurisdiction. Global argues that because Ohio Bell did not first submit its breach-of-ICA claims to the Ohio Public Utility Commission (“PUCO”), this Court lacks jurisdiction to hear them. Global asserts this same jurisdictional defect as to Ohio Bell’s federal-tariff claims, arguing that these are actually disguised breach-of-ICA claims. In the absence of a federal question properly before this Court, Global requests that the Court dismiss the action entirely.

For the reasons described below, the Court construes Global’s motion as one brought under Rule 12(c) and GRANTS it as to Ohio Bell’s breach-of-ICA claims, but DENIES the motion in all other respects. Ohio Bell may continue to litigate its federal- and state-tariff claims and its common law claim in this Court.

*917 II. BACKGROUND

A. The Telecommunications Act of 1996

The purpose of the Telecommunications Act of 1996, 47 U.S.C. §§ 251 et seq., is to promote competition in the telecommunications industry. Verizon Md., Inc. v. Pub. Serv. Comm’n of Md., 535 U.S. 635, 638, 122 S.Ct. 1753, 152 L.Ed.2d 871 (2002). Because entry into this market is often prohibitively expensive, the Act requires incumbent local exchange carriers (“ILECs”), such as Ohio Bell, to provide competing local exchange carriers (“CLECs”) with access to their networks. 47 U.S.C. § 251(c)(2). According to the amended complaint, “[ijnterconnection between different carriers’ networks allows the end-users of one carrier to make calls to and receive calls from the end-users of the interconnected carrier.”

If a CLEC requests access to an ILEC’s networks, the Act instructs the parties to enter into negotiations to establish an interconnection agreement (the aforementioned “ICA”). An ICA sets forth the terms, conditions, and pricing arrangements by which the communications traffic of the CLEC’s customers will be transported over the ILEC’s networks. 47 U.S.C. §§ 251(c)(2) & 252. Parties may establish an ICA through voluntary negotiation, mediation, or compulsory arbitration conducted by a state commission, such as PUCO. See id. at §§ 252(a) & (b). Once the parties have reached an agreement, the resulting ICA must be submitted to the state commission for approval. See id. at § 252(e). Generally speaking, a state commission may reject an ICA only if it finds that the agreement: (1) discriminates against a non-party telecommunications carrier; (2) is inconsistent with the public interest, convenience, and necessity; or (3) does not meet the requirements of § 251 or the regulations promulgated thereunder. See id. at § 252(e)(2). Finally, “any party aggrieved by [a state commission] determination may bring an action in an appropriate [federal district court to determine whether the agreement ... meets the requirements of’ §§ 251 and 252. Id. at § 252(e)(6).

B. Procedural History

Pursuant to §§ 251 and 252 of the Telecommunications Act, Ohio Bell and Global entered into negotiations to establish an ICA. They ultimately arbitrated certain unresolved issues before the PUCO and the PUCO subsequently approved the final agreement, which took effect in September 2002.

On June 30, 2006, Ohio Bell filed this lawsuit, alleging that Global has failed to pay for services — essentially the transportation and termination of various types of communications — rendered under the parties’ ICA and Ohio Bell’s state and federal tariffs. On December 19, 2006, Ohio Bell filed an amended complaint alleging the same claims, but adding affiliates of Global as defendants. Global answered the amended complaint on December 29, 2006, and now moves to dismiss Ohio Bell’s claims for lack of subject matter jurisdiction. 1

III. STANDARD OF REVIEW

Federal courts are courts of limited subject matter jurisdiction. Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375, 377, 114 S.Ct. 1673, 128 L.Ed.2d 391 (1994). Federal Rule of Civil Procedure 12(h)(3) instructs that “[w]henever it appears by the suggestion of the parties or *918 otherwise that the court lacks jurisdiction of the subject matter, the court shall dismiss the action. The party that invokes federal jurisdiction has the burden of establishing its existence.” Moir v. Greater Cleveland Reg. Transit Auth., 895 F.2d 266, 269 (6th Cir.1990). A Rule 12(b)(1) motion to dismiss for lack of subject matter jurisdiction may attack the complaint on its face or may go beyond the complaint and challenge the factual existence of subject matter jurisdiction. Golden v. Gorno Bros., Inc., 410 F.3d 879, 881 (6th Cir.2005).

IV. ANALYSIS
A. Ohio Bell’s Breach-of-ICA Claims

The central question presented by Global’s motion is this: Must Ohio Bell first litigate its breach-of-ICA claims before PUCO in order to seek review in this Court? The answer to this question depends on two things, including (1) whether the Telecommunications Act embodies an exhaustion-of-remedies requirement, and (2) if so, whether that requirement is a jurisdictional prerequisite to suit, or whether it is an affirmative defense that may be forfeited if not timely raised.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Sanchez-Knutson v. Ford Motor Co.
52 F. Supp. 3d 1223 (S.D. Florida, 2014)

Cite This Page — Counsel Stack

Bluebook (online)
540 F. Supp. 2d 914, 2008 U.S. Dist. LEXIS 26244, 2008 WL 839187, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ohio-bell-tel-co-inc-v-global-naps-ohio-inc-ohsd-2008.