SW Bell Telephone Co v. City of El Paso

Court of Appeals for the Fifth Circuit·Decided September 19, 2003·No. 02-50899·Published

Opinion

United States Court of Appeals Fifth Circuit F I L E D IN THE UNITED STATES COURT OF APPEALS September 19, 2003 FOR THE FIFTH CIRCUIT Charles R. Fulbruge III Clerk

No. 02-50825

SOUTHWESTERN BELL TELEPHONE COMPANY,

Plaintiff-Appellant,

versus

CITY OF EL PASO; ET AL,

Defendants,

EL PASO COUNTY WATER IMPROVEMENT DISTRICT NO. 1,

Defendant-Appellee.

No. 02-50899

Plaintiff-Appellee,

Defendant-Appellant.

Appeals from the United States District Court for the Western District of Texas Before JOLLY, HIGGINBOTHAM, and STEWART, Circuit Judges.

HIGGINBOTHAM, Circuit Judge:

Southwestern Bell Telephone Co. (“SWBT”) brought a suit under

42 U.S.C. § 1983 for declaratory and injunctive relief against the

City of El Paso and El Paso County Water Improvement District No.

1 (“EPCWID”), claiming that EPCWID’s application process and fees

for the use of its facilities constituted an illegal taking in

violation of the Fifth Amendment as well as the Contract Clause of

the Constitution, and a violation of the Federal Telecommunications

Act of 1996 (“FTA”).1 SWBT also alleged that EPCWID’s actions

violated state law, particularly Texas Utility Code § 181.082. The

district court granted summary judgment in favor of SWBT, but

denied its request for attorney’s fees pursuant to 42 U.S.C. §

1988. We affirm the grant of summary judgment in favor of SWBT,

but reverse the district court’s denial of attorney’s fees. We

therefore remand the case to the district court for a determination

of reasonable attorney’s fees pursuant to § 1988.

I.

SWBT is a provider of telecommunications services and holds a

certificate of convenience and necessity issued by the Public

Utility Commission of Texas (“PUC”). EPCWID is a water district

operating under Article XVI, Section 59, of the Texas Constitution.

At the center of the controversy between SWBT and EPCWID is a

1 47 U.S.C. §§ 151, et seq. The City and SWBT have settled their claims, leaving only EPCWID in the case.

2 series of irrigation canals, laterals and ditches deeded from the

United States Bureau of Reclamation to EPCWID in January 1996.

Development in the area of EPCWID’s facilities has resulted in a

number of roads being built across the facilities and has also

resulted in an increase in the demand for telephone services.

EPCWID established application procedures for entities wanting

to cross its facilities, including the completion of an

application, payment of an application fee of $500, and the

obtaining of a survey at the applicant’s expense. Before the

survey is ordered, EPCWID’s Board of Directors must preliminarily

approve the application. After the survey is completed, if the

application is approved, the Board assesses an ad hoc charge for

the crossing, based on the length of the crossing to be used and

the nature of the applicant.

SWBT has placed its lines and cables across EPCWID’s

facilities without submitting to EPCWID’s application process. The

current dispute arose when SWBT began laying a new fiber optic

cable along Texas State Highway 20, crossing one of EPCWID’s

facilities. EPCWID threatened to arrest the line crews for

trespass and remove the cables there and elsewhere if SWBT did not

comply with EPCWID’s application process and pay a fee for use of

EPCWID’s facilities.

SWBT sought declaratory relief against EPCWID, arguing that

(1) EPCWID’s application fees violate the FTA and state law; (2)

roads and highways crossing EPCWID’s ditches, laterals, and canals

3 are public roadways; (3) EPCWID has no right to charge for

telephone lines crossing its canals, ditches and laterals when

those lines are within the rights-of-ways of public roadways; (4)

the water flowing through EPCWID’s canals and ditches is public;

and (5) EPCWID has no right to charge for telephone lines crossing

public waters. EPCWID filed a counterclaim, alleging that SWBT has

trespassed on its property.

EPCWID and SWBT moved for summary judgment, and EPCWID

requested leave to file a second amended counterclaim. The

district court denied EPCWID’s motion for leave to amend.

Following a stay for an interlocutory appeal of EPCWID’s Eleventh

Amendment defense,2 the district court granted summary judgment in

favor of SWBT and denied EPCWID’s motion for summary judgment on

its counterclaims. Following entry of judgment, SWBT filed a

motion for attorney’s fees and EPCWID moved to alter or amend the

judgment. The court denied both motions, and SWBT appeals the

denial of attorney’s fees. EPCWID cross-appeals the grant of

summary judgment in favor of SWBT, the denial of its summary

judgment motion, and the denial of its motion to alter or amend the

judgment.

II.

2 EPCWID sought dismissal of SWBT’s claims on the ground that, as an arm of the State, it was entitled to Eleventh Amendment immunity. The district court denied the motion to dismiss, and we affirmed. Southwestern Bell Tel. Co. v. City of El Paso, 243 F.3d 936, 940 (5th Cir. 2001).

4 A.

We begin by addressing EPCWID’s assertion that the district

court abused its discretion by not giving the parties ten days

notice prior to taking the summary judgment motions under

consideration, a notice it argues is required by Rule 56(c)3.

We rejected that argument in Jackson v. Widnall.4 There we

stated:

Rule 56(c) merely requires the court to give the non-movant an adequate opportunity to respond prior to a ruling. We have previously rejected [this] very argument, noting that rule 56(c) requires neither an oral hearing nor advance notice of a “date certain” on which a motion for summary judgment is to be decided; instead, “if there is not a hearing, the adverse party must have at least ten days to respond to the motion for summary judgment.”5

The local rules of the Western District of Texas, the ones at issue

here, satisfy the notice requirements of Rule 56(c) by requiring

that a response to a summary judgment motion be filed within a

specified period of time.6 Here, EPCWID filed a response, which it

3 Fed. R. Civ. P. 56(c) provides in part, “The motion shall be served at least 10 days before the time fixed for the hearing. The adverse party prior to the day of hearing may serve opposing affidavits.” 4 99 F.3d 710, 713 (5th Cir. 1996). 5 Id. (quoting Daniels v. Morris, 746 F.2d 271, 274-75 (5th Cir. 1984)). 6 Rodriguez v. Pacificare of Tex., Inc., 980 F.2d 1014, 1020 (5th Cir. 1993); see also W.D. Tex. R. CV-7(e) and (g) (requiring a response to a motion to be filed within eleven days, and providing that oral argument is at the sole discretion of the court).

5 had ample opportunity to supplement before the court ruled. The

court delayed consideration of the motions, but there is no

evidence that it lulled EPCWID into prejudicial inaction, and this

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