Qwest Communications Corp. v. City of Berkeley

208 F.R.D. 288, 2002 U.S. Dist. LEXIS 8236, 2002 WL 987842
CourtDistrict Court, N.D. California
DecidedApril 30, 2002
DocketNo. C 01-0663 SI
StatusPublished
Cited by30 cases

This text of 208 F.R.D. 288 (Qwest Communications Corp. v. City of Berkeley) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Qwest Communications Corp. v. City of Berkeley, 208 F.R.D. 288, 2002 U.S. Dist. LEXIS 8236, 2002 WL 987842 (N.D. Cal. 2002).

Opinion

ORDER DENYING MOTIONS FOR JUDGMENT ON THE PLEADINGS AND DENYING MOTION FOR TEMPORARY STAY OF DISCOVERY

ILLSTON, District Judge.

On April 12, 2002, the Court heard argument on plaintiffs motions for judgment on the pleadings and motion for temporary stay of discovery. Having carefully considered the arguments of the parties and the papers submitted, the Court hereby DENIES plaintiffs motion for judgment on the pleadings; DENIES plaintiffs motion for judgment on the pleadings re: the Interim Ordinance; and DENIES plaintiffs motion for a temporary stay of discovery for the reasons set forth below.

BACKGROUND1

Plaintiff Qwest Communications Corporation (“Qwest”) is a telephone company defined as a public utility under California Public Utilities Code § 216. FAC, If 4. The California Public Utilities Commission (“PUC”) has granted Qwest certificates of public convenience and necessity (“CPCN”) to provide interexchange, or long distance, telecommunication services. Id. Qwest provides broadband Internet-based data, voice and image connectivity to businesses, consumers and other communications service providers. Id. at If 28.

In December 1999, Qwest won a competitive bidding process and entered into a government contract to provide faster and expanded telecommunications capacity to the Lawrence Berkeley National Laboratory (“LBN Laboratory”). Id. at 1130. LBN Laboratory is the technical administrator and central hub of a program operated by the United States Department of Energy (“DOE”) known as the Energy Sciences Network (“ESNET”). Id. at f 21. The ESNET is a high-speed communication network that allows Department of Energy researchers and collaborators throughout the nation access to a community of research facilities, resources and information. Id. at 1122.

In order to upgrade LBN Laboratory’s telecommunications capacity, Qwest must install a “local loop” between LBN Laboratory and Qwest’s central system. Id. at 1131. This involves constructing a conduit — “a pipeline of sorts” — through which fiber optic cable is strung. Id. at H32. Sometime in March 2000, Qwest began to formulate a construction plan to lay its conduit through public rights-of-way in the City of Berkeley (“City” or “Berkeley”). Id. at 1132. Qwest met and communicated with city officials from April through December 2000 to negotiate an acceptable construction plan to encroach upon the City’s public rights-of-way. [290]*290See id. at HIT 33, 35, 41-45. The parties were unable to agree, and Qwest consequently did not obtain the necessary permits to begin construction. Qwest claims that the City refused to process its application after July 10, 2000, pursuant to a de facto moratorium on telecommunications infrastructure construction pending enactment of an ordinance affecting installation of telecommunication services in Berkeley. Id. at HH 35^40.

On December 22, 2000, Berkeley enacted Ordinance No. 6608-N.S. (codified at Berkeley Municipal Code §§ 16.10 et seq.) (“Ordinance”), effective January 21, 2001. Id. at 1146. On January 23, 2001, the City passed a Fee Schedule to accompany the Ordinance. Id. at 1148. The Ordinance creates a comprehensive scheme intended “to more specifically regulate Telecommunications carriers providing telecommunications services using public rights of ways and other public property.” Ordinance § 16.10.010 (attached at FAC, Ex. B).

The Ordinance applies to all telecommunications carriers seeking to encroach upon Berkeley’s public rights-of-way to provide telecommunication services. Ordinance § 16.10.030. All carriers must first obtain registration and pay related registration fees, which must be updated annually. Id. at § 16.10.040; see also Fee Schedule 2-3 (attached at FAC, Ex. C). All carriers must also obtain a Special Telecommunications Permit pursuant to § 16.10.050 of the Ordinance and pay additional fees. See also Fee Schedule 3-4. Unless a carrier claims exemption under § 16.10.070, and the City affirmatively determines that an exemption does indeed apply, all carriers are subject to a franchise fee to provide telecommunications services using the City’s public rights-of-way. See also id. 5-7.

Qwest filed this lawsuit against the City on February 13, 2001, seeking primarily to invalidate the new Ordinance and Fee Schedule pursuant to the Supremacy Clause of the United States Constitution, U.S. Const, art. VI, cl. 2, and the “conflict with general laws” provision of the California Constitution. Cal. Const, art. XI, § 7. According to Qwest, Berkeley’s Ordinance is preempted by the Federal Telecommunications Act of 1996 (“FTA”), 47 U.S.C. §§ 253(a) and (c), the California Public Utilities Code §§ 7901 and 7901.1, and California Government Code § 50030. Qwest also asserted claims of violations of the Fourteenth Amendment and Commerce Clause, brought pursuant to 42 U.S.C. § 1983; intentional interference with contractual relationship; ultra vires conduct; and a claim for declaratory judgment of its rights with respect to the City’s Ordinance and Fee Schedule.

On May 23, 2001, this Court enjoined Berkeley from enforcing the Telecommunications Carriers Ordinance, Berkeley Municipal Code § 16.10 et seq., and its accompanying Fee Schedule, pending resolution of this lawsuit based in large part upon its finding that the Ordinance creates barriers to entry in violation of § 253(a) that do not fall within the safe harbor provision of § 253(c). Qwest Communications Corp., 146 F.Supp.2d 1081. This Court also declined to exercise supplemental jurisdiction over Qwest’s state preemption claim. Id. at 1101-02. Soon afterwards, Berkeley passed Resolution No. 61,102-N.S., adopting Ordinance No. 6630-N.S. and its accompanying Fee Schedule to regulate telecommunications companies “pending resolution of the legality of the City’s current telecommunication ordinance.” FAC, Ex. D. (“Interim Ordinance”).

Qwest finds fault with a number of provisions of this Interim Ordinance and Fee Schedule, and maintains that, like its predecessor, it imposes an unlawful “third tier” of regulation that is prohibited by both the FTA and California’s telecommunications statutes. Accordingly, Qwest filed a first amended complaint challenging this Interim Ordinance and adding new claims. Qwest also added a new cause of action arising directly under § 253 of the FTA and included § 253 as a substantive basis for its cause of action under 42 U.S.C. § 1983. In an Order dated November 15, 2001, this Court dismissed Qwest’s claim for relief under § 253, holding that no implied private right of action exists directly under that provision of the FTA.

Now before the Court are plaintiffs motions for judgment on the pleadings under Rule 12(c) relating to both the Ordinance and [291]*291the Interim Ordinance, respectively. Qwest asks this Court to invalidate both the Ordinance and the Interim Ordinance as preempted by the FTA and California telecommunications statutes. Also before the Court is plaintiffs motion for temporary stay of discovery pending resolution of the motions for judgment on the pleadings.

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Bluebook (online)
208 F.R.D. 288, 2002 U.S. Dist. LEXIS 8236, 2002 WL 987842, Counsel Stack Legal Research, https://law.counselstack.com/opinion/qwest-communications-corp-v-city-of-berkeley-cand-2002.