Southwestern Bell Telephone Co. v. Fitch

643 F. Supp. 2d 902, 2009 U.S. Dist. LEXIS 68021, 2009 WL 2423982
CourtDistrict Court, S.D. Texas
DecidedAugust 5, 2009
Docket5:09-po-01548
StatusPublished
Cited by2 cases

This text of 643 F. Supp. 2d 902 (Southwestern Bell Telephone Co. v. Fitch) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Southwestern Bell Telephone Co. v. Fitch, 643 F. Supp. 2d 902, 2009 U.S. Dist. LEXIS 68021, 2009 WL 2423982 (S.D. Tex. 2009).

Opinion

MEMORANDUM AND ORDER

NANCY F. ATLAS, District Judge.

Plaintiff Southwestern Bell Telephone Company d/b/a AT & T Texas (“AT & T Texas”) brings this lawsuit alleging that Defendant F. Cary Fitch d/b/a Affordable Telecom (“Affordable Telecom”) has failed to pay for various services under the parties’ contract. Plaintiff also alleges that Defendant is not a “telecommunications carrier” under the relevant statute. Defendant has filed a Motion to Dismiss or, in the Alternative, Defer to the Primary Jurisdiction of the Federal Communications Commission [Doc. # 6] (“Motion”). Plain *905 tiff has filed a response [Doc. # 9]. Defendant filed no reply, and the Motion is now ripe for decision. Having considered the parties’ briefing, the applicable legal authorities, and all matters of record, the Court concludes that the Motion should be denied.

I. BACKGROUND

On June 22, 2007, Affordable Telecom and AT & T Texas entered into a Two-Way CMRS Interconnection Agreement (“Contract”), which “called for the parties to interchange traffic for the purposes of offering telecommunications services (land-to-mobile and mobile-to-land) to their respective end users.” 1 In the months preceding the Contract, Affordable Telecom represented to the Federal Communications Commission (“FCC”) that it would be providing not only “information services” but also “telecommunications services,” such that it was entitled to “interconnection” under FCC rules. 2 Plaintiff states that these representations by Defendant were key to Plaintiffs willingness to enter the Contract, and to the Texas Public Utility Commission’s approval of the Contract.

Plaintiff alleges, however, that Affordable Telecom primarily provides dial-up internet access services to residential and/or business customers and that, although Affordable Telecom is a duly licensed Commercial Mobile Radio Service (“CMRS”) provider, it provides “negligible, if any, CMRS services.” 3 Plaintiff therefore alleges that Affordable Telecom’s representations to Plaintiff and the FCC, namely, its representations that it would provide telecommunications services in addition to information services, were false. Based upon these allegations, AT & T Texas brings claims for declaratory judgment, violation of the Telcom Act, and fraud.

AT & T Texas further claims that Affordable Telecom has failed to pay for services under the Contract. AT & T Texas states that it provided facilities and services pursuant to the Contract and submitted charges to Affordable Telecom but that, despite repeated demands for payment, Affordable Telecom has refused to pay. AT & T Texas therefore brings claims for breach of contract, quantum meruit, and anticipatory breach.

II. RULE 12(b)(6) STANDARD

A motion to dismiss under Rule 12(b)(6) of the Federal Rules of Civil Procedure is viewed with disfavor and is rarely granted. 4 The complaint must be liberally construed in favor of the plaintiff, and all facts pleaded in the complaint must be taken as true. 5

*906 The Supreme Court recently issued an opinion in Ashcroft v. Iqbal, elaborating on the civil pleading standards it announced in Bell Atlantic Corporation v. Twombly. 6 Under Iqbal, in order to survive a motion to dismiss in a civil case, “a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’ ” 7 The Court emphasized two “working principles” underlying its decisions in Iqbal and Twombly: first, while a court must accept as true all factual allegations in a complaint, the court need not accept a complaint’s legal conclusions as true; second, a complaint must state a “plausible claim for relief’ in order to survive a motion to dismiss. 8

In keeping with these principles a court considering a motion to dismiss can choose to begin by identifying pleadings that, because they are no more than conclusions, are not entitled to the assumption of truth. While legal conclusions can provide the framework of a complaint, they must be supported by factual allegations. When there are well-pleaded factual allegations, a court should assume their veracity and then determine whether they plausibly give rise to an entitlement to relief. 9

“The plausibility standard is not akin to a ‘probability requirement,’ but it asks for more than a sheer possibility that a defendant has acted unlawfully.” 10 Factual allegations are assumed to be true, even if doubtful in fact. 11 When a complaint shows on its face that it is barred by an affirmative defense, it may be dismissed for failure to state a cause of action. 12

In considering a motion to dismiss, a court must ordinarily limit itself to the contents of the pleadings and attachments thereto. However, documents attached to a motion to dismiss may be considered by the court where the complaint refers to the documents and the documents are central to the plaintiffs claim. 13

III. ANALYSIS

AT & T Texas brings claims for declaratory judgment, violation of the Telecommunications Act of 1996 (“Telecom Act”), 14 fraud, breach of contract, quantum meruit, and anticipatory breach. Defendant seeks dismissal of all claims or, in the alternative, deference to the jurisdiction of the FCC.

A. Claims Based on Alleged False Representations

1. Declaratory Judgment

AT & T Texas seeks a declaratory judgment that: (1) Affordable Telecom is not a *907 “telecommunications carrier” as defined by the Telecom Act; (2) Affordable Telecom is not offering “telecommunications services” as defined by the Telecom Act; and (3) because Affordable Telecom is not a “telecommunications carrier” offering “telecommunications services,” it is not entitled to interconnection with AT & T Texas, as provided in the parties’ Contract, under the Telecom Act. 15

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Cite This Page — Counsel Stack

Bluebook (online)
643 F. Supp. 2d 902, 2009 U.S. Dist. LEXIS 68021, 2009 WL 2423982, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southwestern-bell-telephone-co-v-fitch-txsd-2009.