State Ex Rel. Bell Atlantic-West Virginia, Inc. v. Ranson

497 S.E.2d 755, 201 W. Va. 402
CourtWest Virginia Supreme Court
DecidedJuly 17, 1997
Docket23942
StatusPublished
Cited by29 cases

This text of 497 S.E.2d 755 (State Ex Rel. Bell Atlantic-West Virginia, Inc. v. Ranson) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. Bell Atlantic-West Virginia, Inc. v. Ranson, 497 S.E.2d 755, 201 W. Va. 402 (W. Va. 1997).

Opinions

McHUGH, Justice:

Petitioners Bell Atlantic-West Virginia and Bell Atlantic Corporation invoke this Court’s original jurisdiction pursuant to W.Va. Const, art. VIII, § 3 and W.Va.Code, 51-1-3 [1923] and request that a writ of prohibition be directed against the Honorable Lyne Ranson, Judge of the Circuit Court of Kanawha County. Petitioners had filed motions to dismiss plaintiffs’ class action1 complaint, which complaint alleges that petitioners violated the West Virginia Antitrust Act, W.Va.Code, 47-18-1, et seq., and the West Virginia Consumer Credit and Protection Act, W.Va.Code, 46A-6-101, et seq., and further alleges various common law claims, all rooted in the inside wire maintenance service plans offered to plaintiffs and others by a “negative option.” Plaintiffs essentially allege that petitioners used false, misleading and deceptive sales tactics and made similar representations to its telephone customers with regard to the inside wire maintenance service plans.

Petitioner Bell Atlantic-West Virginia (hereinafter “BA-WV”) filed a motion to dismiss pursuant to W.Va.R.Civ.P. 12(b)(1) on the ground that the West Virginia Public Service Commission (“PSC”) rather than the circuit court has subject matter jurisdiction of this case. Petitioner Bell Atlantic Corporation (hereinafter “BAC”) filed a motion to dismiss pursuant to W.Va.R.Civ.P. 12(b)(2), alleging that the circuit court does not have personal jurisdiction over it, a nonresident and foreign corporation. BAC also moved to dismiss under Rule 12(b)(6), on the ground that plaintiffs have failed to state a claim upon which relief can be granted. In separate orders entered July 30, 1996 (hereinafter referred to as “BA-WV order” and “BAC order”), the circuit court denied the petitioners’ motions to dismiss. It is enforcement of these orders that petitioners seek to prohibit.

I.

Prior to 1985, BA-WV, formerly the Chesapeake and Potomac Telephone Company of West Virginia (“C & P”),2 maintained its customers “inside wiring,” which term “generally refers to the telephone wires within a customer’s home or place of business that are on the customer’s side of the point of intersection between the telephone company’s communications facilities and the customer’s facilities.” National Ass’n of Regulatory Utility Com’rs v. Federal Communications Com’n, 880 F.2d 422, 425 (D.C.Cir.1989). The cost of maintaining a customer’s inside wiring was included in the customer’s basic service rates. Under this system, “each customer pa[id] a portion of the costs for [C & P’s] inside wire maintenance work even if that customer perform[ed] the work himself or use[d] someone other than [C & P].” AT [406]*406& T Communications of W.Va. v. C & P Telephone Co. of W.Va., 73 ARPSCWV 702, 771 (Case No. 84-244-T-C) (September 6, 1985).

In 1985, the PSC authorized the optional wire maintenance plan proposed by C & P, under which the charges for inside wire maintenance were “unbundled,” that is, no longer included in the basic service rates charged C & P telephone customers. See generally Id. Instead, customers could subscribe to the plan for a monthly charge. Id. In exchange for this monthly charge, C & P would maintain the inside wire at no extra charge. Id. This plan was designed “so that the [monthly] option will apply automatically to any customer unless that customer affirmatively acts to ‘opt out’ of the plan.” Id. at 772.3 Customers could choose to maintain the inside wire themselves or to retain another vendor to perform the maintenance, thereby “opting out” of the plan. Id. Though these customers could engage C & P to maintain or repair their inside wire, the cost of such maintenance or repair could be considerable.

Subsequently, in 1986, C & P filed with the PSC a petition for consent to detariff rates and regulations governing the provision of inside wiring services. The C &P Telephone Co. of W.Va., a corporation. Petition for consent to detariff rates and regulations governing the provision of inside wiring service, 73 ARPSCWV 3148 (June 3, 1986). The detariffing proposed by C & P’s petition constituted a partial detariff and was not full deregulation. See Id. at 3149. The PSC approved C & P’s petition, indicating, inter alia, that “C & P will hereinafter furnish inside wiring services at such prices and upon such terms as it shall from time-to-time determine^]” Id. The PSC further required C & P to refile the revised tariff pages, id. at 3150, which it did on or about July 8, 1986. The PSC further stated that “in approving C & P’s petition, [the PSC] retains the right to reimpose the more traditional forms of regulation on C & P’s provision of inside wiring services until the same is preempted by either [the Federal Communications Commission] order or further order of [the PSC].” Id. at 3149-50.4

BA-WV filed additional tariffs resolving issues regarding inside wire and power companies, effective September 16, 1987. See finding of fact no. 4 of BA-WV order. According to the circuit court, this September 16, 1987 PSC order “was the last substantive regulatory action taken by the PSC with respect to [inside wire maintenance service].” Id. (emphasis added).

[407]*407On April 27, 1988, the PSC adopted a “Flexible Regulation Plan” which changed the manner in which it regulated certain BA-WV services. This plan detariffed the inside wire maintenance service but indicated the PSC’s reservation of the right to regulate this service. Reservation of this right to regulate notwithstanding, plaintiffs point out and the trial court found, that at the time the April 27,1988 order was entered by the PSC, the FCC’s order preempting regulation, see n. 4, supra, was in effect. Thus, “the FCC preemption order would have effectively prevented any such regulation of [inside wire maintenance service.]” Finding of fact no. 6 of BA-WV order.

Upon expiration of the Flexible Regulation Plan, the PSC adopted C & P’s proposed Incentive Regulation Plan. [PSC] Order, Case No. 90-613-T-PC, 1991 WL 519803 (December 20,1991) reflects the division of C & P’s services into four categories, “each subject to varying degrees of regulatory oversight and pricing flexibility.” Id. at p. 5. “For services designated as Category 111(b) [which category includes inside wiring services], C & P will not be required to file tariffs.” Id. The PSC order further states however “that for those services contained in Category 111(b), the fact that tariffs are not required does not mean that these services are totally deregulated. Therefore, the [PSC] still retains the authority to entertain and rule upon matters involving Category 111(b) services.” Id. at p. 11.

The trial court found, in the July 30, 1996 BA-WV order, that

[u]nder the terms of the current[ ] regulatory structure, BA-WV can, without even notifying the PSC, change the rates, terms, and conditions applicable to [inside wire maintenance service] and provide its customers with notice of the changes on such terms and in such form as it deems appropriate. Similarly, there is no provision in the regulatory scheme for regulation of the marketing of the ‘optional’ [inside wire maintenance service] plans.

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Cite This Page — Counsel Stack

Bluebook (online)
497 S.E.2d 755, 201 W. Va. 402, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-bell-atlantic-west-virginia-inc-v-ranson-wva-1997.