W. SCOTT McCOLLOUGH AND DAVID BOLDUC v. Texas Public Utility Commission

CourtCourt of Appeals of Texas
DecidedAugust 20, 2009
Docket13-07-00624-CV
StatusPublished

This text of W. SCOTT McCOLLOUGH AND DAVID BOLDUC v. Texas Public Utility Commission (W. SCOTT McCOLLOUGH AND DAVID BOLDUC v. Texas Public Utility Commission) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
W. SCOTT McCOLLOUGH AND DAVID BOLDUC v. Texas Public Utility Commission, (Tex. Ct. App. 2009).

Opinion





NUMBER 13-07-00624-CV



COURT OF APPEALS



THIRTEENTH DISTRICT OF TEXAS



CORPUS CHRISTI
- EDINBURG



W. SCOTT McCOLLOUGH AND DAVID BOLDUC, Appellants,



v.



TEXAS PUBLIC UTILITY COMMISSION, Appellee.

On appeal from the 98th District Court

of Travis County, Texas.



MEMORANDUM OPINION



Before Chief Justice Valdez and Justices Rodriguez and Vela

Memorandum Opinion by Justice Rodriguez



This is an appeal from sanctions imposed by the Texas Public Utility Commission (PUC or the Commission) against attorney appellants, W. Scott McCollough and David Bolduc, and the telecommunications company they represented in an arbitration before the Commission. Appellants challenge the final order of the trial court in favor of appellee PUC dismissing appellants' claims for judicial review of Commission orders assessing sanctions against appellants. (1) Appellants bring four issues on appeal: (1) the trial court erred in granting the PUC's plea to the jurisdiction and dismissing Bolduc from the case on the grounds that he suffered no adverse order from which to appeal; (2) the trial court erred in granting the PUC's motion to dismiss appellants' claims on the basis of collateral estoppel; (3) the trial court erred in affirming the Commission's sanctions orders on the merits; and (4) the trial court erred in granting the PUC's plea to the jurisdiction and dismissing appellants' claims for declaratory judgment. We affirm.

BACKGROUND

This case arises from a mandatory arbitration under the federal Telecommunications Act of 1996, which delegates authority to the Commission to conduct arbitrations between incumbent telecommunications companies and startup competitors negotiating interconnection agreements. (2) See 47 U.S.C. § 252(b)(4) (2006); P.U.C. Proc. R. 21.95. McCollough represented a startup company, Affordable Telecom, in its arbitration with Southwestern Bell Telephone (SBC). (3) During the arbitration, a discovery dispute arose between the parties. Affordable claimed that customer information sought by SBC through discovery contained protected, private information and objected to production of the information.

After filing Affordable's objections, McCollough sent an email to counsel for SBC conveying his disappointment with the situation. The email contained several inflammatory statements, including the following: "I guess I have to no longer be open, honest, and forthcoming with you--or any other SBC counsel--in the future"; "SBC apparently is wholly invested in making sure the system does not work, and it hires unethical lawyers to make it so"; and "When I was in the Marines, the first thing they taught me [was] that if the enemy is in your range, then you are in the enemy's range as well. Keep that in mind, culo." SBC then filed a motion to compel production of the information Affordable claimed it could withhold.

The arbitrators issued an order granting portions of SBC's motion to compel. In response to the order, Bolduc emailed the arbitrators to inform them that Affordable would be appealing the order compelling production of certain customer information. (4) The email also informed the arbitrators that Affordable had posted a warning to its customers on its website advising them of the nature of the ordered disclosure. The warning was titled "Urgent Privacy Statement" (Privacy Statement) and read in relevant part:

Consistent with [our privacy] policy, we are providing NOTICE to you that we have been ordered by the Texas PUC to disclose to Southwestern Bell Telephone ALL the information we have about you, including the services we provide to you and your use of them, and also including the content of communications you have sent or received while using our service--to the extent we have it in our possession. We are also providing you with an opportunity to protect your privacy rights. . . .



We cannot recommend that you directly contact the PUC. First, that will necessarily reveal your identity to some extent. Further, we are prohibited by law from suggesting that non-parties to the case submit comments or information unless they follow several complicated filing requirements normally not reasonably available to the public, and also provide an official copy of the communication to SBC.

Nonetheless, since this is your information--which we believe we merely possess and do not control--in the interest of complete disclosure we do provide the following information:

Case Docket 29415, CARY FITCH d/b/a FITCH AFFORDABLE TELECOM PETITION FOR ARBITRATION AGAINST SBC TEXAS UNDER § 252 OF THE COMMUNICATIONS ACT.

[contact information for arbitrators, including phone numbers and email addresses]

[contact information for Commissioners, including phone numbers and email addresses]

If you do contact the PUC then please be sure to mention the Docket number so they will know what case you are discussing. If you wish to formally intervene in the case to protect your privacy, then seek input from the Commission on how to do so. Even though this issue directly involves your personal and private information--which in our opinion you, and not we, control--we cannot provide you legal advice about how to protect your privacy and property.



It is undisputed that McCollough, alone, drafted the Privacy Statement.

Subsequent to the posting of the Privacy Statement, SBC filed a motion for sanctions against Affordable and its attorneys (appellants) with the arbitration tribunal. SBC alleged that Affordable and appellants: (1) solicited ex parte communications intended to improperly influence the arbitrators through the Privacy Statement posted on Affordable's website; (2) made false and misleading representations in the Privacy Statement; and (3) otherwise violated standards of conduct related to dignity, courtesy, and respect for persons participating in the proceedings. After a hearing on the motion for sanctions, the arbitrators issued an order imposing sanctions on McCollough for soliciting ex parte communications, making false and misleading statements to Affordable's customers, and engaging in abusive conduct by sending an email to counsel for SBC that violated the Commission's standards of conduct. (5) The order required McCollough to pay SBC's expenses related to his misconduct and excluded McCollough from further participation in the arbitration. The order expressly declined to impose sanctions against Bolduc and Affordable because the arbitrators found insufficient evidence of their involvement with the Privacy Statement or McCollough's misconduct.

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W. SCOTT McCOLLOUGH AND DAVID BOLDUC v. Texas Public Utility Commission, Counsel Stack Legal Research, https://law.counselstack.com/opinion/w-scott-mccollough-and-david-bolduc-v-texas-public-texapp-2009.