Tollin v. Diamond State Telephone Co.

286 F. Supp. 86, 1968 U.S. Dist. LEXIS 11538
CourtDistrict Court, D. Delaware
DecidedMay 10, 1968
DocketCiv. A. No. 3373
StatusPublished
Cited by2 cases

This text of 286 F. Supp. 86 (Tollin v. Diamond State Telephone Co.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tollin v. Diamond State Telephone Co., 286 F. Supp. 86, 1968 U.S. Dist. LEXIS 11538 (D. Del. 1968).

Opinion

OPINION

LAYTON, District Judge.

On January 31, 1968, by an unreported opinion, this Court dismissed defendant’s motion for summary judgment in the above entitled action. Thereafter, defendant filed a timely motion for re-argument, raising a point not heretofore briefed and argued.

The ground is that plaintiffs’ right of action is barred by Title 18 U.S.C. Section 1084(d) because defendant’s discontinuance of plaintiffs’ telephone service was in compliance with a proper notice received from a law enforcement agency. Based upon the provisions of this Section, and supplementary affidavits to which defendant has filed no counter affidavits, defendant’s motion for summary judgment will be granted for the reasons hereafter stated.

Title 11, Sec. 675 Del.C., reads as follows:

“Revocation of service contracts; exemption from liability
“Any public utility shall, when it is advised in writing by any law enforcement agency acting within its jurisdiction that any service furnished by it is being used in the dissemination of information in furtherance of gambling, or for gambling purposes, revoke its contract to furnish any such service.
“No public utility shall be liable at law or in equity for any damages or penalties, either civil or criminal, for such revocation of contract.”

Pursuant to this Section, on October 13, 1959, defendant received a letter from the Attorney General of Delaware stating, inter alia:

“We have reasonable grounds to believe that Delaware Sports Service is engaged in the business of, and receiving compensation for, the dissemination of information (via telephone) in furtherance of gambling and for gambling purposes.”

On November 28, 1960, this notice was re-served upon plaintiffs as the result of a decision of the Delaware Chancery Court declaring Sec. 675 unconstitutional. The basis for the source of the new notice was Title 11, Section 674 Del.C., which reads:

“No person shall engage in the business of or receive compensation * * for the dissemination of or receive information in furtherance of gambling or for gambling purposes by means of private wire or wires or by means of a call service.”

Upon defendant’s agreement temporarily to abstain from terminating plaintiffs’ service, plaintiffs then initiated what proved to be a very lengthy proceeding before the Delaware Public Service Commission resulting in a determination by that body that, based on the record before it, plaintiffs had been using defendant’s telephone service in inter[88]*88state commerce in furtherance of an illegal purpose. Accordingly, the Commission concluded that this defendant should not be enjoined from discontinuing service to plaintiffs. The Superior Court of Delaware affirmed the Commission, 196 A.2d 215 (1963), and the Delaware Supreme Court affirmed the Superior Court per curiam In Re Delaware Sports Service, 202 A.2d 568 (1964). Subsequently, the United States Supreme Court denied certiorari. Delaware Sports Service v. Diamond State Tel. Co., 379 U.S. 965, 85 S.Ct. 657, 13 L.Ed.2d 559 (1965).

A new attempt by defendant to terminate its telephone service to these plaintiffs was held in abeyance pending an effort by plaintiffs to enjoin defendant from effecting such discontinuance in the United States District Court for the District of Delaware. The plaintiffs’ action for an injunction was predicated on Title 18, U.S.C. Section 1084(d).1 Plaintiffs’ principal argument was that the holdings by the Delaware Public Service Commission and the affirming opinions by the Delaware Superior and Supreme Courts were rendered ineffective for the reason that Section 1084(d), which had been passed by the Congress of the United States subsequent to the proceeding before the Commission, had preempted the field. This Court denied plaintiffs’ bill for an injunction, 241 F. Supp. 847 (1965), the Third Circuit Court of Appeals affirmed, 355 F.2d 929 (1966), and, subsequently, the United States Supreme Court denied certiorari. 385 U.S. 817, 87 S.Ct. 38, 17 L.Ed.2d 55.

Following denial of certiorari by the United States Supreme Court, the Delaware Attorney General, on November 9, 1966, again notified defendant to discontinue its service to plaintiffs and, accordingly, on November 21, 1966, defendant advised plaintiffs that it would terminate its service as of November 30, 1966, which it did.

This action for damages was brought pursuant to Title 47 U.S.C. Sections 206 and 207. The defendant takes the position that it cannot be liable because its service to plaintiffs was terminated in accordance with the provisions of Section 1084(d) which expressly exempts telephone companies from liability for damages in situations such as this. Plaintiffs contend to the contrary that defendant did not act in accordance with the requirements of the statute.

Section 1084(d) is elsewhere quoted. It seems to be settled beyond quesion that a telephone company, upon being notified by any law enforcement agency to the effect that its facilities are or will be used to transmit or receive gambling information in interstate commerce in violation of law may, after reasonable notice, terminate its service with the alleged offending subscriber without liability in damages. Telephone News System, Inc. v. Illinois Bell Tel. Co., 220 F.Supp. 621. Also, compare Delaware Sports Service v. Diamond State Telephone Co., 241 F.Supp. 847 (D.C.Del. 1965). Upon receipt of such a notice from the telephone company, the subscriber, the plaintiffs here, if they chose, were free to seek an injunction in a state or federal court in which proceeding they would have had the alternative of at[89]*89tempting to demonstrate 2 that they were not using their facilities illegally or, that they were no longer so using them. As to the first alternative, plaintiffs may or may not have been precluded by the findings of the Delaware Public Service Commission and subsequent affirmances thereof to the effect that they were illegally using their telephone service in interstate commerce. Delaware Sports Service v. Diamond State Telephone Co., supra. But in any event, plaintiffs made no attempt-upon either ground to enjoin the defendant from terminating their service. Telephone News System, Inc. v. Illinois Bell Telephone Co., 220 F.Supp. at page 628.3 Under such facts, the plaintiffs are without recourse unless their argument that defendant did not act in accordance with the provisions of Section 1084(d) is valid.

Plaintiffs say that defendant can terminate their service without fear of liability only after notice from a law enforcement agency informing them (a) that their facilities are or will be used for the purpose of transmitting or receiving gambling information (b) in interstate commerce and (c) in violation of law. They argue that the notices fail to conform with the requirements just outlined. The defendant joins issue on this point.

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Related

Teleco, Inc. v. Southwestern Bell Telephone Co.
392 F. Supp. 692 (W.D. Oklahoma, 1974)
DiGiacomo v. Diamond State Telephone Company
356 F. Supp. 1063 (D. Delaware, 1973)

Cite This Page — Counsel Stack

Bluebook (online)
286 F. Supp. 86, 1968 U.S. Dist. LEXIS 11538, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tollin-v-diamond-state-telephone-co-ded-1968.