Wamego Telecommunications Co. v. Kansas Corporation Comm'n

CourtCourt of Appeals of Kansas
DecidedJune 30, 2017
Docket115406
StatusUnpublished

This text of Wamego Telecommunications Co. v. Kansas Corporation Comm'n (Wamego Telecommunications Co. v. Kansas Corporation Comm'n) is published on Counsel Stack Legal Research, covering Court of Appeals of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wamego Telecommunications Co. v. Kansas Corporation Comm'n, (kanctapp 2017).

Opinion

NOT DESIGNATED FOR PUBLICATION

No. 115,406

IN THE COURT OF APPEALS OF THE STATE OF KANSAS

WAMEGO TELECOMMUNICATIONS CO., INC., CUNNINGHAM TELEPHONE CO., INC., LAHARPE TELEPHONE CO., INC., MOUNDRIDGE TELEPHONE CO., INC., and ZENDA TELEPHONE CO., INC., Appellants,

v.

KANSAS CORPORATION COMMISSION, Appellee.

MEMORANDUM OPINION

Appeal from Pottawatomie District Court; JEFFREY R. ELDER, judge. Opinion filed June 30, 2017. Reversed and remanded.

Mark Doty and Thomas E. Gleason, Jr., of Gleason & Doty, Chtd., of Lawrence, for appellants.

Brian G. Fedotin, deputy general counsel and chief appellate counsel, of Kansas Corporation Commission, for appellee.

Before SCHROEDER, P.J., BUSER, J., and WALKER, S.J.

BUSER, J.: Five telecommunication incumbent rural local exchange carriers— Wamego Telecommunications Co., Inc., Cunningham Telephone Co., Inc., LaHarpe Telephone Co., Inc., Moundridge Telephone Co., Inc., and Zenda Telephone Co., Inc. (RLECs)—appeal the district court's dismissal of their Petition for Judicial Review of Final Agency Action and for Additional Relief (Petition for Judicial Review). The

1 RLECs sought judicial review of the failure of the Kansas Corporation Commission (Commission) to grant their "Motion to Reopen Docket, Petition for Leave to Intervene and Petition for Rescission of Orders Redefining Certain Rural Telephone Company Study Areas" (Motion to Reopen Docket). The docket in question, Docket No. 12-IWRZ- 848-ETC (2012 Docket), involved another telecommunications provider—i-wireless, LLC (i-wireless).

At the conclusion of the 2012 Docket, the Commission filed an "Order Granting Eligible Telecommunications Carrier Status" (2012 Commission Order) which, in part, redefined the RLECs' respective service areas for purposes of allowing i-wireless the authority to provide its limited services in portions of the RLECs' territory. Almost 3 years later, the RLECs filed with the Commission their Motion to Reopen Docket seeking to vacate a portion of the 2012 Commission Order. Although the Commission did not rule on this motion, the RLECs appealed to the district court, which dismissed their petition with prejudice.

On appeal, the RLECs contend the district court erred in ruling that they lacked standing to challenge the 2012 Commission Order and that they failed to exhaust their administrative remedies. The RLECs also assert the district court erred in finding they were not entitled to individual notice of the 2012 Docket, and they did not state a claim upon which relief could be granted.

The issues presented on appeal are the result of the confusion arising from the RLECs' attempt to reopen an administrative proceeding that had been concluded years ago. Because of the unusual nature of their Motion to Reopen Docket filed with the Commission, the RLECs were apparently unsure of how the administrative procedures would apply. For example, as a result of their prophylactic efforts to avoid missing potential statutory deadlines, the RLECs filed their Petition for Judicial Review before the Commission formally addressed and ruled on their pending Motion to Reopen

2 Docket. To add to the confusion, the Commission and the RLECs have focused their appellate arguments as if the 2012 Commission Order is the administrative action being challenged on appeal. Instead, the focus on this appeal can only be on the Motion to Reopen Docket that was before the Commission. Add to this confounding mixture a 2013 federal agency order addressing the issues that underlie this case, and the result is a procedural maze that our court has been asked to navigate.

We have thoroughly reviewed the parties' arguments and the record on appeal. Upon our unwinding of this procedural morass, we conclude that the district court lacked jurisdiction to address the RLECs' claims because the Commission never issued a final agency decision on the Motion to Reopen Docket. Accordingly, we reverse the district court's order dismissing the action with prejudice. We remand the case to the district court with directions to remand the matter to the Commission for further agency action on the RLECs' Motion to Reopen Docket.

FACTUAL AND PROCEDURAL BACKGROUND

I-wireless is a North Carolina Limited Liability Company that provides commercial mobile radio service and prepaid wireless telecommunications services in a variety of locales. It relies on the Sprint Spectrum, L.P. network infrastructure to provide its services. On May 29, 2012, i-wireless filed with the Commission an application for designation as an eligible telecommunications carrier (ETC). The sole purpose of this filing was to provide Lifeline service to qualifying low-income Kansas consumers throughout various areas where Sprint's infrastructure was available. I-wireless was only seeking ETC designation to participate in the federal Lifeline subsidy program. In order to qualify for low-income Lifeline subsidies, i-wireless was required to be designated an ETC by both the Commission and the Federal Communications Commission (FCC), 47 U.S.C. § 214(e)(2) (2012), and establish it could provide the level of services required under federal law. 47 U.S.C. § 214(e)(1) (2012).

3 In its application, i-wireless requested designation as an ETC "that [was] statewide in scope" and specifically for permission to provide Lifeline service within specific Southwestern Bell-Telephone Company (AT&T Kansas) wire centers and as well as within specific exchanges operated by the RLECs. While i-wireless acknowledged that its service area might overlap with rural carriers in Kansas, the company contended that its operation as an ETC in the rural carriers' service areas would serve the public interest. Towards that end, the application outlined the services it would provide its qualifying customers and committed to provide service to a specific list of "wire centers" within the other companies' territories. This list was an exhibit to i-wireless' application and identified various wire centers within portions of the RLECs' service areas.

Neither AT&T Kansas nor any of the RLECs were individually served with i- wireless' application, and the RLECs contend they did not learn of the proceeding until 2015. After considering i-wireless' application and a detailed report and recommendation from its own staff, on September 6, 2012, the Commission issued the 2012 Commission Order designating i-wireless as an ETC for low-income Lifeline-only purposes within the exchanges specified in their application. Because the wire centers identified in i-wireless' application involved only portions of the RLECs' total service areas (also known as "study areas"), the Commission approved the "redefinition" of the service areas to the exchange level for RLECs, including the parties in this case. The Commission noted, however, that i-wireless was still required to apply for and receive confirmation of its ETC status from the Federal Communications Commission (FCC) as required by 47 U.S.C. § 214(e)(5) (2012). It appears from the record that this 2012 Commission Order was only served on i-wireless and the Commission's counsel.

Following the issuance of the 2012 Commission Order, in December 2012, i- wireless filed a petition with the Wireline Competition Bureau of the FCC. In its petition, i-wireless asked the FCC to approve the Commission's ETC designation, including its redefinition of the study areas of the RLECs.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Bartlett Grain Co. v. Kansas Corp. Commission
256 P.3d 867 (Supreme Court of Kansas, 2011)
Fuller v. State
363 P.3d 373 (Supreme Court of Kansas, 2015)
Norris v. Kansas Employment Security Board of Review
367 P.3d 1252 (Supreme Court of Kansas, 2016)
Rebel v. Kansas Department of Revenue
204 P.3d 551 (Supreme Court of Kansas, 2009)
Ryser v. State
284 P.3d 337 (Supreme Court of Kansas, 2012)

Cite This Page — Counsel Stack

Bluebook (online)
Wamego Telecommunications Co. v. Kansas Corporation Comm'n, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wamego-telecommunications-co-v-kansas-corporation-commn-kanctapp-2017.