United States v. Western Electric Company, Inc., Us West, Inc.

777 F.2d 23, 250 U.S. App. D.C. 23, 1985 U.S. App. LEXIS 23727
CourtCourt of Appeals for the D.C. Circuit
DecidedNovember 19, 1985
Docket84-5687
StatusPublished
Cited by29 cases

This text of 777 F.2d 23 (United States v. Western Electric Company, Inc., Us West, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Western Electric Company, Inc., Us West, Inc., 777 F.2d 23, 250 U.S. App. D.C. 23, 1985 U.S. App. LEXIS 23727 (D.C. Cir. 1985).

Opinion

ON MOTION TO DISMISS

Opinion for the Court filed by Circuit Judge BORK.

BORK, Circuit Judge:

One of the newly-formed Bell Regional Holding Companies, US West, Inc., appeals from an opinion dated July 26, 1984 in United States v. Western Electric Co., 592 F.Supp. 846 (D.D.C.) (“Opinion”). The district court issued the Opinion in response to motions to allow the Regional Companies to enter lines of business other than the provision of local telephone service. The *24 Opinion made general observations concerning the legal implications of the motions, set forth four conditions that such motions would have to satisfy, and referred the motions to the Department of Justice for its views.

Appellee, the Department of Justice, moves to dismiss the appeal. We grant the motion because we conclude that the district court’s Opinion was neither a final decision nor an appealable interlocutory order.

I.

In 1956, the American Telephone and Telegraph Company (“AT & T”) and the Department of Justice (“DOJ”) signed a consent decree limiting AT & T to the provision of common carrier communications services. See United States v. American Telephone and Telegraph Co., 552 F.Supp. 131, 135-38 (D.D.C.1982), aff’d mem. sub nom. Maryland v. United States, 460 U.S. 1001, 103 S.Ct. 1240, 75 L.Ed.2d 472 (1983). In 1974, DOJ filed a separate action seeking further relief. See 552 F.Supp. at 139. In 1982, AT & T and DOJ agreed to a new consent decree (the “Decree”) divesting AT & T of subsidiaries supplying local telephone service. Id. at 140-43.

The Decree provided for the formation of Regional Companies providing local telephone service. 1 See 552 F.Supp. at 226-27. Section 11(D) of the Decree, as proposed jointly by AT & T and DOJ and modified by the district court, established “line of business restrictions” on the Regional Companies.

Pursuant to a waiver clause in the Decree, the district court gave permission to the Regional Companies to offer mobile radio services, United States v. Western Electric Co., 578 F.Supp. 643 (D.D.C.1983), and time and weather information, United States v. Western Electric Co., 578 F.Supp. 658 (D.D.C.1983). The mobile radio waiver was predicated upon adherence to three conditions for preserving equal access among competitors. See 578 F.Supp. at 651-52. The court ruled that the Regional Companies had carried their burden of showing that, with these conditions, there was no substantial possibility that they would use their monopoly power in local telephone service to impede competition in the mobile radio market. See id. at 649-50.

Between January and April 1984, the Regional Companies made nine more waiver requests. See United States v. Western Electric Co., 592 F.Supp. 846, 850-51 n. 3 (D.D.C.1984). BellSouth Corp. asked for permission to bid on a NASA communications services and equipment contract. 2 US West, Inc. wanted general permission to provide real estate services and engage in real estate transactions and investments, and also permission to construct and operate a cellular radio system in the Gulf of Mexico. 3 Id. In response to these requests, the district court issued the Opinion that is the subject of this appeal. United States v. Western Electric Co., 592 F.Supp. 846 (D.D.C.1984).

*25 The district court issued the Opinion because it agreed with DOJ “that general guidelines might be appropriate in order to achieve substantial uniformity in treatment, to aid the Regional Holding Companies in framing future requests, and to assist the Court in its decisions.” These objectives would be served by “describpng] the standards and procedures the Court will follow in ruling on present and future motions for waivers.” 592 F.Supp. at 851.

The district court divided waiver requests into two groups: permission to enter the long distance market, and all others. With regard to the first, in which it included BellSouth’s NASA request, it ruled that

[t]he Court will not even consider the substantive merits of a waiver request seeking permission to provide interexchange services until such time as the Regional Holding Companies lose their bottleneck monopolies and there is substantial competition in local telecommunications service. That is not now. The BellSouth motion for a waiver with respect to the NASA contract is therefore denied.

592 F.Supp. at 868 (footnotes omitted). With regard to the second category, which included the other eight requests then pending, the court conditioned its approval upon the adoption of four structural safeguards: (1) the establishment of separate subsidiaries; 4 (2) guarantees that the competitive enterprises would obtain their own debt financing on their own credit; (3) limitation of estimated net revenues of the proposed competitive enterprises to 10% of the Regional Companies’ total estimated net revenues; and (4) submission to DOJ monitoring of the enterprises. 592 F.Supp. at 870-72. The district court then referred all pending requests to DOJ, “[i]n order to encourage informal negotiation and resolution, to avoid inundation of the Court with requests, and to make use of the expertise of the Department.” Id. at 873. The waiver requests were to be returned to the court, accompanied by DOJ’s recommendation, within thirty days. Id. at 874.

US West filed a notice of appeal from the Opinion. Neither BellSouth nor any of the other Regional Companies appealed. DOJ moved to dismiss the appeal on the ground that the Opinion was not an appealable order. US West filed a response, asserting that the Opinion was appealable either as a final decision under 28 U.S.C. § 1291 (1982) or as an interlocutory decision affecting an injunction under 28 U.S.C. § 1292(a)(1) (1982). BellSouth, appearing as amicus curiae, also argued against dismissal.

In the meantime, the Regional Companies seeking waivers amended all of their proposals to adopt explicitly the four conditions set forth in the Opinion. See United States v. Western Electric Co., 604 F.Supp. 256, 260 (D.D.C.1984). DOJ returned the requests to the district court, recommending approval. 5 Id. The district court approved all the requests as amended, including the three submitted by US West. 6 See id. at 262-66.

II.

Our jurisdiction is governed by 15 U.S.C.

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Bluebook (online)
777 F.2d 23, 250 U.S. App. D.C. 23, 1985 U.S. App. LEXIS 23727, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-western-electric-company-inc-us-west-inc-cadc-1985.