Poplar Bluff Internet, Inc. v. City of Poplar Bluff

427 S.W.3d 343, 2014 WL 1576900, 2014 Mo. App. LEXIS 437
CourtMissouri Court of Appeals
DecidedApril 21, 2014
DocketNo. SD 32823
StatusPublished
Cited by4 cases

This text of 427 S.W.3d 343 (Poplar Bluff Internet, Inc. v. City of Poplar Bluff) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Poplar Bluff Internet, Inc. v. City of Poplar Bluff, 427 S.W.3d 343, 2014 WL 1576900, 2014 Mo. App. LEXIS 437 (Mo. Ct. App. 2014).

Opinion

WILLIAM W. FRANCIS, JR., C.J.

This is an appeal by Poplar Bluff Internet, Inc. (“PBI”), from the trial court’s entry of “Partial Summary Judgment” and “Judgment” against PBI in favor of City of Poplar Bluff (“City”).1 We affirm the “Judgment” of the trial court.2

Facts and Procedural History

We begin by noting that PBI in its brief stated, “Indeed, this is possibly the strangest procedural case in which [PBIj’s counsel has been involved.”3

In 2001, City established its “Open Access Policy” under which it exercised its discretion to sell access to its cable system to private companies independently offering internet services. PBI is an internet service provider that began purchasing access to City’s system in 2002. City, pursu[345]*345ant to an ordinance, discontinued Open Access and PBI’s use of its system on May 9, 2011.

On March 18, 2011, PBI filed a “Petition” 4 alleging that City had violated section 392.410,5 committed tortious interference with a business expectancy, and violated Missouri anti-trust laws. On March 29, 2011, prior to any responsive pleading by City, PBI filed its “First Amended Petition” adding a count for violation of the Missouri Merchandising Practices Act. Also on March 29, 2011, PBI filed a motion for temporary restraining order seeking to prohibit City from terminating its Open Access Policy.

On April 6, 2011, City filed its answer and counterclaims seeking payment of the amount owed by PBI to City for use of the Open Access.

On April 28, 2011, the trial court denied PBI’s request for preliminary injunctive relief.

On May 13, 2011, PBI filed its “Second Amended Petition,” in part because City had by then terminated PBI’s use of Open Access.

This case was eventually heard and fully resolved on two different and separate motions for summary judgment.6

“[Cityj’s [First] Motion for Summary Judgment”

In the first motion for summary judgment and responses, the parties admitted the following facts in their respective motions.

City is a third-class municipal corporation under Missouri law. In 2000, after receiving voter and circuit court approval of general obligation bonds, City financed and constructed a broadband cable television system through which it subsequently offered cable television and ancillary internet services in and around City. City held a “Video Service Authorization” issued by the Missouri Public Service Commission (“PSC”), authorizing it to provide video service within Butler County, pursuant to section 67.2679.7 City did not have any other form of authority from the PSC, and specifically none for telecommunications service. City provided cable television services called “City Cable,” and internet services called “MyCityCable.com,” over its broadband cable system subject to FCC regulation.

In 2001, City established its Open Access Policy, pursuant to which it exercised [346]*346its discretion to sell wholesale access to some of the capacity of its cable system to companies independently offering retail internet services. PBI began purchasing access to City’s system in 2002, as did several other such companies.

PBI did business as an internet service provider; PBI did not have any form of telecommunications service authority from the PSC. Landline and wireless telecommunications companies and satellite providers were also involved in the internet services market in and around Poplar Bluff, including companies like AT & T and Big River Telephone. PBI also used other means of providing service to its customers like dial-up/telephone, DSL, and wireless, both before and after it began using City’s cable system.

There was no written agreement between City and PBI regarding a franchise or name license. There has never been a vote of the people pursuant to section 78.630, RSMo 2000 to grant PBI a franchise. PBI admitted its use of City’s name on its webpage did not create a license or franchise with City. City was not involved in PBI’s marketing of services.

In August 2010, City enacted Ordinance No. 7208, which established a revised rate structure under the Open Access Policy that took effect in September 2010. Pursuant to that Ordinance, City provided notice of the new rate schedule to PBI, announcing in the notice that the new rate schedule would take effect as of September 15, 2010.

After receiving notice of the new rates and even after the new rates took effect, PBI continued to request and receive Open Access services from City subject to the new rates. However, PBI failed to pay the full amount billed in the monthly invoices for the fees required by City for access to its system; PBI paid less than the full amounts billed under protest. Other internet service providers paid these fees and over time, transitioned to other solutions and stopped using City’s system.

On April 4, 2011, City enacted Ordinance No. 7247, which accelerated the termination of City’s Open Access Policy. Pursuant to that ordinance, City discontinued the Open Access Policy, and therefore PBI’s use of City’s system effective May 9, 2011.

PBI could and did negotiate access to systems of other video and telecommunications companies.8

In its response to City’s motion for summary judgment, PBI “Contested”9 some of City’s facts. City stated as a fact that it voluntarily provided internet access to its system to service providers such as PBI, and the relationship between City and PBI was based solely on the Open Access Policy. Furthermore, City stated as a fact that it never made a commitment to continue offering Open Access to its system for any specific period of time, and the tax exempt status of the bonds that financed the construction of the system precluded any such commitment.

[347]*347PBI responded that “City and City Cable knew of the symbiotic relationship between the parties and remained committed to Open Access until [PBI] entered into direct competition with City Cable.” However, PBI acknowledged there was “no evidence of this [] currently before the court due to lack of discovery!.]”

City argued it never granted a license to PBI to use a trade name, trademark, service mark, or related characteristic. City further argued there was “no community of interest — instead the City and [PBI] are competitors.”

While PBI contended its use of “City Cable’s name, and the City’s continued assent to that use, demonstrated that the City has granted [PBI] a license to use the name City Cable in the marketing, sale, and provision of [PBI] ’s Services.” PBI further argued City and City Cable profited from the relationship with PBI, which created expectations of services continuing to be made available through Open Access. PBI argued City was committed to Open Access until PBI entered into direct competition with City Cable.

City stated as a fact that Ordinance No. 7208 provided for the termination of the Open Access Policy within one year in lieu of City continuing to expend public monies to expand the capacity of the system to meet the ever-growing needs of the private internet service providers.

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

Related

Shaw v. Administrative Hearing Commission
537 S.W.3d 881 (Missouri Court of Appeals, 2018)
Clay Chastain and Vincent Lee v. Sylvester James
463 S.W.3d 811 (Missouri Court of Appeals, 2015)
Big A LLC v. Lindworth Investments, LLC
458 S.W.3d 340 (Missouri Court of Appeals, 2014)

Cite This Page — Counsel Stack

Bluebook (online)
427 S.W.3d 343, 2014 WL 1576900, 2014 Mo. App. LEXIS 437, Counsel Stack Legal Research, https://law.counselstack.com/opinion/poplar-bluff-internet-inc-v-city-of-poplar-bluff-moctapp-2014.