Spectrum Pacific West, LLC v. Imperial Irrigation District

CourtDistrict Court, S.D. California
DecidedAugust 26, 2025
Docket3:25-cv-00520
StatusUnknown

This text of Spectrum Pacific West, LLC v. Imperial Irrigation District (Spectrum Pacific West, LLC v. Imperial Irrigation District) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Spectrum Pacific West, LLC v. Imperial Irrigation District, (S.D. Cal. 2025).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 SOUTHERN DISTRICT OF CALIFORNIA 10 11 Case No.: 25-cv-520-DMS-MMP SPECTRUM PACIFIC WEST, LLC, a

12 Delaware limited liability company, ORDER GRANTING IN PART AND 13 Plaintiff, DENYING IN PART DEFENDANTS’ v. MOTION TO DISMISS 14

IMPERIAL IRRIGATION DISTRICT; 15 GINA DOCKSTADER, in her official 16 capacity as Chairwoman of the Imperial Irrigation District Board of Directors; and 17 J.B. HAMBY; ALEX CARDENAS; 18 LEWIS PACHECO; and KARIN EUGENIO, in their official capacities as 19 members of the Imperial Irrigation District 20 Board of Directors, 21 Defendants.

22 23 Plaintiff Spectrum Pacific West, LLC claims to be an industry-leading 24 communications provider offering broadband, voice, video, and mobile services to 25 communities across the United States. (Compl., ECF No. 1, ¶ 19). Plaintiff alleges 32 26 million people in 41 states—including nearly 5.2 million in California—rely on its 27 broadband network to contact emergency services; communicate with family, friends, and 28 coworkers; work remote jobs; attend telehealth appointments, virtual interviews, and 1 online classes; and enjoy digital media, including everything from reading the local 2 newspaper to watching streaming programs. (Id.). Given the importance of public 3 communication and networking, Plaintiff alleges the Supreme Court has recognized that 4 access to legacy utility poles by communications providers to attach their cables is 5 “essential,” Nat’l Cable & Telecomms. Ass’n, Inc. v. Gulf Power Co., 534 U.S. 327, 330 6 (2002), as those poles provide “virtually the only practical physical medium of the 7 installation” of such cables. (Compl. ¶ 23 (citing FCC v. Fla. Power Corp., 480 U.S. 245, 8 247 (1987))). 9 Plaintiff alleges its dependence on public electric utilities for access to essential 10 infrastructure leaves it vulnerable to exploitation by public utilities like Defendant Imperial 11 Irrigation District (“IID”), who can leverage its dominant position and impose excessive 12 fees through “monopoly rents,” Gulf Power, 534 U.S. at 330, for pole access. (Compl. ¶ 13 25). According to Plaintiff, that is why California law requires public electric utilities to 14 provide communication service providers with utility pole space to attach their cables and 15 to do so for cost-based fees set by a statutory formula, and through codified procedures. 16 (Id. ¶¶ 27–31). Plaintiff alleges Defendants have defied this mandate and denied Plaintiff 17 entitlement to guaranteed pole access on statutorily mandated terms by imposing an 18 unlawful pole attachment fee without the cost-based justification and procedures that state 19 law and federal due process require. (Id. ¶ 32). Defendants dispute that federal due process 20 applies, contending Plaintiff has no protected property interest in legislative ratemaking. 21 (Mot., ECF No. 12, 14–15). Defendants also contend that Plaintiff has failed to plead 22 plausible procedural claims under California law. (Id. at 16–24). 23 Pending before the Court is Defendants IID and its Board of Directors’ Motion to 24 Dismiss Plaintiff’s Complaint. (See generally id.). Plaintiff filed a response in opposition, 25 (Opp’n, ECF No. 22), and Defendants filed a reply, (Reply, ECF No. 24). The matter was 26 submitted on the briefs under Civil Local Rule 7.1(d)(1). For the following reasons, 27 Defendants’ Motion is granted in part and denied in part. 28 // 1 I. BACKGROUND 2 IID is a public electric utility that owns and operates tens of thousands of utility poles 3 in Imperial County. (Compl. ¶ 24). IID charges telephone and power companies for access 4 to those poles. (Id. ¶¶ 24, 26). Plaintiff, which is managed by Charter Communications, 5 Inc. (“Charter”), is one of the communications providers that pays IID for access to those 6 utility poles and use of IID’s rights-of-way. (Id. ¶¶ 5, 24). As of the filing of Plaintiff’s 7 Complaint, IID charged Charter an annual fee of $14.17 per pole for access to “nearly 8 21,000 IID-owned poles.” (Id. ¶ 24). 9 On May 20, 2024, IID informed Charter that it planned to increase the annual access 10 fee to $22.63 per pole (“First Fee Proposal”)—“nearly a 60% increase from the then- 11 applicable fee of $14.17.” (Id. ¶ 33). The proposed increase would become final after 12 presentation to and vote by IID’s Board of Directors. (Id.). An information session about 13 the fee increase was scheduled for June 4, 2024. (Id.). Charter then emailed IID to request 14 IID’s calculation of the proposed fee. (Id. ¶ 34). IID “responded with a list of the ‘new 15 fee rates’—including the annual $22.63 per foot attachment fee—stating that the proposed 16 attachment fee was a ‘rough estimate’ and that ‘there may be a slight difference depending 17 on new attachments and removal after the audit.’” (Id.). This response did not provide 18 IID’s exact calculation of the proposed fee. (Id.). Then, on May 30, 2024, IID canceled 19 the June 4, 2025 information session due to “unforeseen circumstances.” (Id.). 20 On June 5, 2025, Charter sent another email to IID, “explaining that Charter’s pole 21 attachment team had reviewed the fee schedule but did not have the underlying data to 22 verify that the calculation complied with California Public Utilities Code1 [section] 23 9512(a)(1)-(3).” (Id. ¶ 35). Without the data, Charter “could not confirm the accuracy of 24 IID’s calculations.” (Id.). IID never responded to Charter’s requests for data nor its 25 concerns about IID’s potential noncompliance with the Utilities Code. (Id. ¶ 36). 26

27 1 The California Public Utilities Code is hereinafter referred to as “Utilities Code” unless otherwise 28 1 On August 23, 2024, IID informed its pole attachment customers by certified mail 2 that it intended to present a revised pole attachment fee after its October 1, 2024 Board of 3 Directors meeting. (Id.). The notice did not disclose the exact proposed fee or how the fee 4 would be calculated. (Id.). The notice only stated that IID would make a “report study” 5 available “upon written request” and on IID’s website ten days before the October 1, 2024 6 meeting. (Id.). Charter emailed IID on September 5, 2024, to formally request the report 7 study. (Id. at ¶ 37). IID never responded to this request. (Id.). Seven days before the 8 October 1, 2024 meeting, Charter renewed its request by email to IID. (Id.). IID again did 9 not respond to Charter’s request. (Id.). Charter eventually found the report study (“First 10 Draft Report”) on IID’s website, which was posted on September 19, 2024. (Id.). 11 The First Draft Report proposed a $24.88 pole attachment fee (“Second Fee 12 Proposal”). (Id. ¶ 38). This report was allegedly prepared by consultants at NewGen 13 Strategies and Solutions (“NewGen”) and did not provide the relevant information, 14 calculations, and raw data that served as the basis for the new proposed fee. (Id.). Charter 15 again relayed its concerns about the fee calculation to IID and requested that IID postpone 16 the October 1, 2024 meeting until the missing information could be disclosed to and 17 scrutinized by Charter. (Id. ¶ 39). Charter’s efforts to get any response from IID continued 18 until minutes before the October 1, 2024 meeting commenced, where IID partially clarified 19 some aspects of its fee calculation. (Id. ¶¶ 40–41). IID never produced all the data Charter 20 requested and had NewGen present the proposed $24.88 attachment fee to its Board of 21 Directors at the meeting. (Id. ¶¶ 41–42).

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Spectrum Pacific West, LLC v. Imperial Irrigation District, Counsel Stack Legal Research, https://law.counselstack.com/opinion/spectrum-pacific-west-llc-v-imperial-irrigation-district-casd-2025.