Starpower Communications LLC v. Crown Castle Fiber LLC

CourtDistrict Court, District of Columbia
DecidedOctober 27, 2025
DocketCivil Action No. 2025-2582
StatusPublished

This text of Starpower Communications LLC v. Crown Castle Fiber LLC (Starpower Communications LLC v. Crown Castle Fiber LLC) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Starpower Communications LLC v. Crown Castle Fiber LLC, (D.D.C. 2025).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

STARPOWER COMMUNICATIONS, LLC, Plaintiff, Civil Action No. 25-2582 (JDB) v. CROWN CASTLE FIBER LLC, Defendant.

MEMORANDUM OPINION

This is a contract dispute about the installation of fiber optic cable. Starpower and Crown

Castle contracted for Starpower to build fiber optic cables in the Washington, D.C., area that

Starpower would then lease to Crown Castle on an ongoing basis. The contract soured and

Starpower sued Crown Castle, alleging failure to pay invoices, breach of contract, and breach of

warranty. Crown Castle now moves to dismiss Starpower’s suit.

Starpower plainly states a claim for breach of contract based on its unpaid invoice but fails

to state a claim for other contractual breaches or for breach of warranty because it does not point

to any specific contractual terms or warranties that Crown Castle is alleged to have breached.

Moreover, because the parties contracted to limit liability absent gross negligence or willful

misconduct—which Starpower fails to plausibly allege—Starpower fails to state a claim for

consequential, indirect, special, or punitive damages. Therefore, the Court will grant in part and

deny in part Crown Castle’s motion to dismiss.

1 Background

I. The Contract

In May 2017, Starpower and Crown Castle entered into a fiber optic cable lease agreement

for Starpower to build a fiber optic network to connect Crown Castle small cell antenna sites—or

nodes—to hubs. Compl. Ex. A ¶¶ 1-2, 4, 13, at 15 (Agreement), Dkt. 1; see also Compl. ¶ 7;

Def.’s Mem. in Supp. of Mot. to Dismiss 3 (Def.’s Mot.), Dkt. 8.1 In turn, Crown Castle leases

those sites to cell-carrier customers. Def.’s Mot. 3.2 The Agreement was for a term of at least 10

and up to 25 years. Compl. Ex. A. ¶ 12(a).

Under the contract, Starpower was to build 270 segments of cable. Compl. Ex. A,

Attach. 5. Starpower was to build the first 100 segments by the end of 2017, 80 percent of the

total (i.e., 216 segments) by mid-2018, and all segments by the end of 2018. Compl. Ex. A, Attach.

1 § 3. If Starpower missed a target date by over 30 days “for any reason other than a force majeure

event or the wrongful act or omission” of Crown Castle, then Crown Castle would receive $50 per

day of delay up to a total of $3,000 per late segment. Id. § 4. Starpower could only begin building

a segment upon receipt of Crown Castle’s final notice to proceed, which would trigger Starpower

“to begin the permitting and construction process.” Id. § 2(c); see also Compl. ¶ 16; Def.’s Mot. 3.

Changes by Crown Castle to node or hub locations after the final notice to proceed “may result in

incremental fees” based on Starpower’s “direct, external, out-of-pocket costs reasonably incurred

at actual cost plus ten percent . . . .” Compl. Ex. A, Attach. 1 § 2(c) (citation modified).

1 Starpower is a Delaware limited liability company (LLC) with its principal place of business in New Jersey. Compl. ¶ 3. Crown Castle is a New York LLC with its principal place of business in Texas. Id. ¶ 4. Starpower does business as Astound Business Solutions, formerly known as RCN Business. Id. ¶ 3. 2 In March 2025, Crown Castle announced that it was selling its small cells and fiber solutions businesses. Kritika Lamba and Jaspreet Singh, Crown Castle to Sell Fiber Assets to EQT Active Core and Zayo in $8.5 Billion Deal, Reuters (March 13, 2025), https://www.reuters.com/markets/deals/crown-castle-sell-fiber-assets-two-entities- 85-billion-deal-2025-03-13/ [https://perma.cc/DEX9-YPMC]. For now, it appears that Crown Castle still owns this part of its business.

2 Starpower warrantied that it had obtained all “required rights,” defined as “any and all

agreements, rights, licenses, permits, authorizations, rights of way and easements of every kind

and description, including any necessary municipal, state, tribal or federal authorizations such as

environmental permits, necessary for the use of the Crown Castle fibers, associated Starpower

property or other physical plant facilities, and for the installation, maintenance, use of and access

to the Starpower network and Crown Castle fibers . . . .” Compl. Ex. A ¶¶ 23, 27 (citation

modified). Crown Castle warrantied that it had obtained “or by the applicable Acceptance Date

w[ould] obtain all necessary licenses, permits and authorizations from governmental authorities

and third persons required for Crown Castle to conduct the Crown Castle activities authorized and

contemplated under th[e] Agreement.” Id. ¶ 24. The Acceptance Date for a segment was the

earlier of the date that Crown Castle confirmed that the segment met its specifications or 15 days

after delivery if Crown Castle failed to reject the segment. Id. ¶ 17.

Payment was structured in three tranches. First, Crown Castle would pay Starpower

$67,500 for each segment (Initial Non-Recurring Charge), with half invoiced on or after the date

of the Agreement and half invoiced upon the Acceptance Date. Compl. Ex. A, Attach. 2 (Fee

Schedule) § 1(a); Ex. A at 1, 15, ¶ 17. Second, Crown Castle would pay Starpower $17,500 for

each segment (Subsequent Non-Recurring Charge) on the later of 18 months after the Agreement

or completing construction of 80 percent of the segments “scheduled to be constructed hereunder.”

Compl. Ex. A., Attach. 2 § 1(b). Third, Crown Castle would pay Starpower $150 per month for

each segment (Monthly Recurring Charge or MRC). Id. § 1(c).

Crown Castle could terminate the Agreement in whole or in part at its “convenience” upon

30 days’ notice. Compl. Ex. A ¶ 12(b). If Crown Castle terminated after acceptance of segments

but during the initial 10-year term, Starpower’s “sole and exclusive remedy” was to receive a

3 schedule of the unpaid, undisputed MRCs: 100 percent for the first year, 50 percent for the second

year, and 25 percent for the other eight years. Id. If Crown Castle terminated before acceptance

of segments, it was to “reimburse [Starpower] for all documented, direct, external out-of-pocket

actual costs plus ten percent” for all costs prior to cancellation, which was also to be Starpower’s

“sole and exclusive remedy.” Id. ¶ 12(c). As relevant here, the parties also limited liability for

“indirect, special, punitive, or consequential damages” absent “gross negligence or willful

misconduct.” Id. ¶ 34.

In the event of invoice disputes, Crown Castle had to pay undisputed amounts and provide

a written basis for any dispute. Id. ¶ 7. If Starpower determined that the disputed amount was

properly invoiced, Crown Castle had to pay that amount plus interest immediately upon receipt of

Starpower’s notice that the dispute was denied. Id. However, if Crown Castle “initiate[d] formal

dispute resolution in accordance with the provisions of the Agreement” within 30 days after

Starpower’s denial in writing, it could continue withholding the disputed amount until formal

resolution of the dispute. Id. The Agreement’s dispute resolution provision states that the parties

could “pursue any remedies available at law or in equity not expressly limited by the terms” of the

Agreement. Id. ¶ 11. The Agreement further provided—and the parties now agree—that it shall

be governed by Massachusetts law. Id. ¶ 49; see also Def.’s Mot. 1; Pl.’s Opp’n ¶ 1.

II. The Dispute

Crown Castle issued its final notice to proceed as to 46 segments on March 1, 2018, and

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Starpower Communications LLC v. Crown Castle Fiber LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/starpower-communications-llc-v-crown-castle-fiber-llc-dcd-2025.