Puerto Rico v. Telecommunication

CourtCourt of Appeals for the First Circuit
DecidedAugust 19, 1999
Docket98-2228
StatusPublished

This text of Puerto Rico v. Telecommunication (Puerto Rico v. Telecommunication) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Puerto Rico v. Telecommunication, (1st Cir. 1999).

Opinion

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<pre>                  United States Court of Appeals <br>                      For the First Circuit <br>                       ____________________ <br> <br> <br>No. 98-2228 <br> <br>                  PUERTO RICO TELEPHONE COMPANY, <br> <br>                      Plaintiff, Appellant, <br> <br>                                v. <br> <br>        TELECOMMUNICATIONS REGULATORY BOARD OF PUERTO RICO <br>       and CELLULAR COMMUNICATIONS OF PUERTO RICO, INC., <br> <br>                      Defendants, Appellees. <br> <br>                                  <br>                       ____________________ <br> <br>                 <br>           APPEAL FROM THE UNITED STATES DISTRICT COURT <br> <br>                 FOR THE DISTRICT OF PUERTO RICO <br> <br>          [Hon. Jos Antonio Fust, U.S. District Judge] <br> <br>                       ____________________ <br>                      <br>                              Before <br> <br>                      Lynch, Circuit Judge, <br>                 Noonan, Senior Circuit Judge, <br>                   and Lipez, Circuit Judge. <br>                       ____________________ <br>                      <br>          <br> <br>  Philip J. Mause, with whom Joaqun A. Mrquez, Jeffrey J. <br>Lopez, and Drinker Biddle & Reath LLP were on brief, for appellant. <br>  Robert F. Reklaitis, with whom Veronica M. Ahern, Laurin <br>H. Mills, Lydia P.A. Turnipseed, Nixon, Hargrave, Devans & Doyle <br>LLP, Jose R. Gaztambide, and Gaztambide & Plaza were on brief, for <br>appellee Telecommunications Regulatory Board of Puerto Rico. <br>  William A. Davis, with whom Sara F. Seidman, Mintz, <br>Levin, Cohn, Ferris, Glovsky and Popeo, PC, and Francisco Silva <br>were on brief, for appellee Cellular Communications of Puerto Rico, <br>Inc. <br>  Donald B. Verrilli, Jr., Jodie L. Kelley, Katherine A. <br>Fallow, Jenner & Block, Thomas F. O'Neil III, Adam H. Charnes, and <br>Mark B. Ehrlich on brief for amicus curiae MCI Worldcom, Inc. <br>   <br> <br>                       ____________________ <br>                      <br>                      <br>                       ____________________

 LYNCH, Circuit Judge.  This appeal raises tricky <br>questions of the limits on federal court jurisdiction under 47 <br>U.S.C.  252(e)(6), a provision of the Telecommunications Act of <br>1996, Pub. L. No. 104-104, 110 Stat. 56.   <br>  Two telecommunications companies (one primarily a <br>landline local exchange carrier and one a cellular carrier) reached <br>an interconnection agreement; the agreement in turn was approved by <br>the Telecommunications Regulatory Board of Puerto Rico ("the <br>Board") under the Act.  A dispute arose over responsibility for <br>certain charges and the landline company, Puerto Rico Telephone <br>Company ("PRTC"), started charging its customers long-distance <br>rates for calls to the cellular phone company's customers.  The <br>cellular company, Cellular Communications of Puerto Rico, Inc. <br>("CCPR"), struck back, filing a complaint with the Board.  The <br>Board found that PRTC had not violated the agreement but <br>nonetheless had violated its obligations of prior notice to its <br>customers under Puerto Rico law.  The Board ordered PRTC to make <br>refunds.  Faced with the loss of an alleged several million dollars <br>in revenue, PRTC sued in federal court, raising claims under the <br>Act and under the Constitution. <br>  Focusing closely on the particular facts, as alleged by <br>PRTC, of the dispute between PRTC, CCPR, and the Board, we conclude <br>that  252(e)(6) does not provide the federal courts with <br>jurisdiction over PRTC's claims.  That is because the challenged <br>Board order lacks a sufficient nexus with the parties' <br>interconnection agreement to be a determination which is subject to <br>review; also, the provision for federal judicial review does not <br>authorize review of Board actions for compliance with Puerto Rico <br>law.  We further conclude that PRTC's takings and procedural due <br>process causes of action fail to state a claim on which relief can <br>be granted.  We therefore affirm the dismissal of all claims, on <br>different reasoning than that of the district court. <br>                               I <br>  PRTC's complaint and the attached exhibits state the <br>following facts.  CCPR makes use of PRTC's landline network to <br>route and complete calls.  When a landline PRTC customer places a <br>call to a CCPR cellular customer, PRTC routes the call over its <br>landline facilities to CCPR's switch, and CCPR then forwards the <br>call to its final destination.  At the times relevant to the <br>complaint, the CCPR switch was in San Juan, and so calls from PRTC <br>customers to CCPR customers originating outside San Juan were long- <br>distance toll calls, regardless of the location in which the call <br>was ultimately received. <br>  For some time, CCPR paid PRTC a per-minute fee for <br>delivering these long-distance calls, and PRTC did not bill its <br>customers any long-distance charges.  When the Telecommunications <br>Act of 1996 was enacted, the parties worked out new arrangements.  <br>After engaging in extensive negotiations and an arbitration, PRTC <br>and CCPR reached an "interconnection agreement," which provided in <br>paragraph IV that PRTC customers would be charged the applicable <br>long-distance rates unless CCPR chose to pay PRTC a fee for each <br>call or chose to have PRTC charge its customers a flat rate of 35 <br>cents for each call.  The agreement was executed on September 2, <br>1997 and approved by the Board on September 11, 1997.  The Board <br>stated that the agreement was "consistent with section 252 of the <br>Act, local law, and the rules of this Board," as well as "non- <br>discriminatory and . . . consistent with the public interest, <br>convenience and necessity." <br>  CCPR never exercised either one of its options under <br>paragraph IV of the agreement.  In November 1997, PRTC began <br>charging its customers long-distance charges for the relevant <br>calls, retroactive to September 2, 1997.  Customers complained.  On <br>November 25, 1997, CCPR filed a complaint with the Board seeking a <br>cease and desist order prohibiting PRTC from imposing these <br>charges.  This matter was captioned "In the matter of Enforcement <br>and Implementation of the Interconnection Agreement between [CCPR] <br>and [PRTC]." <br>  CCPR says that PRTC imposed these charges, and so angered <br>customers who sought to call CCPR's customers, to hurt CCPR and did <br>so out of self-interested and anti-competitive motivations.

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