Western Union Telegraph Co. v. RCA Global Communications, Inc.

83 Misc. 2d 964, 373 N.Y.S.2d 432, 33 Rad. Reg. 2d (P & F) 27, 1975 N.Y. Misc. LEXIS 3022
CourtNew York Supreme Court
DecidedMarch 17, 1975
StatusPublished
Cited by1 cases

This text of 83 Misc. 2d 964 (Western Union Telegraph Co. v. RCA Global Communications, Inc.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Western Union Telegraph Co. v. RCA Global Communications, Inc., 83 Misc. 2d 964, 373 N.Y.S.2d 432, 33 Rad. Reg. 2d (P & F) 27, 1975 N.Y. Misc. LEXIS 3022 (N.Y. Super. Ct. 1975).

Opinion

Arnold L. Fein, J.

In the action entitled Western Union Telegraph Company (Western) v RCA Global Communications, Inc., (Global), assigned to I. C. Part 9, Western moves for an order pursuant to CPLR 3211 (subd [b]) dismissing affirmative defenses fourth through eighth in Global’s verified answer. Global cross-moves for summary judgment dismissing both causes of action pleaded by Western.

Prior to submission, counsel informed the court of the pendency of three other actions commenced by Western [966]*966against other carriers, all raising common issues of law and fact, in which similar motions were about to be made. The other actions, Western Union Telegraph Company v TRT Telecommunications Corp.; Western Union Telegraph Company v ITT World Communications, Inc.; and Western Union Telegraph Company v Western Union International, Inc., had been assigned to other I.C. parts. In each action, except Western v TRT Telecommunications, issue had been joined. By stipulation dated December 31, 1973, counsel for all parties agreed that the issues of law and fact in all the actions are predominantly common issues and that the actions are "re: lated” within the meaning of subdivision 9-c of order 636.2 of the Rules of the Supreme Court (22 NYCRR 636.2). By consent order dated January 30, 1974 the actions were transferred to I. C. Part 9.

Western then moved to strike the third, fourth, fifth and seventh affirmative defenses interposed by ITT World Communications, Inc., (ITT) and defenses third through eighth interposed by defendant Western Union International, Inc. (WUI).

Defendants ITT and WUI by separate applications joined Global’s motion to dismiss the complaint.

All motions are consolidated and treated together for disposition.

All of the parties are common carriers of communications, subject to regulation under the Communications Act of 1934 (US Code, tit 47, § 151 et seq.). Each defendant is an international record carrier of communications between the United States and foreign points. Western is the sole supplier of public domestic teleprinter exchange services, designated as domestic TWX and domestic Telex.

Western’s complaint asserts two causes of action. The first seeks to recover the reasonable value of such teleprinter communication services rendered to defendants. The second seeks to recover for such services based upon a public tariff filed with the Federal Communications Commission. Defendants assert similar affirmative defenses upon which each bases its argument that the complaint should be dismissed. Western’s motion for summary judgment in each action is addressed to these affirmative defenses.

In substance, defendants’ basic contention is that the issues raised in all of the actions are within the context of the regulatory scheme embodied in the Federal Communications Act and are consequently within the jurisdiction of the Fed[967]*967eral Communications Commission (FCC), requiring Western to proceed only before that forum. In sum defendants urge dismissal on the ground that (1) Western has failed to exhaust its administrative remedies, and (2) primary jurisdiction is vested in the FCC.

As to the defendant Global, Western seeks a dismissal of defenses fourth through eighth. Defenses numbered fourth through sixth plead that the tariff under which Western seeks a recovery is invalid, as here sought to be applied, in that it does not apply to Global because it has not been approved by the FCC for the teleprinter services involved. Global’s seventh defense is that the FCC has not determined or approved either the division of rates or through routes for the services rendered by plaintiff. Global’s eighth defense pleads that (1) Western has failed to exhaust its administrative remedies; (2) primary jurisdiction over the causes pleaded by plaintiff rests with the FCC; and (3) a prior unresolved proceeding is pending before the FCC in which the applicable rates can be determined. With respect to ITT, Western has moved to dismiss the affirmative defenses numbered third, fourth, fifth and seventh. However, by reason of the affirmative statement made by ITT that its fifth defense pleads the defense of payment and not accord and satisfaction Western has withdrawn so much of its motion as is addressed to the fifth defense.

ITT’s third, fourth and seventh defenses are substantially the same as the defenses asserted by Global.

Western’s motion addressed to WUI’s answer seeks to have stricken affirmative defenses fourth through eighth, substantially the same as the affirmative defenses pleaded by Global and ITT.

On the surface, it appears that Western has premised its right to recover upon two relatively uncomplicated causes of action. However, it is abundantly clear that the historical relationship among the parties to these lawsuits and the assigned role of the FCC in overseeing and regulating their operations cannot be overlooked or disregarded in determining the jurisdiction and competence of the Supreme Court to entertain and determine these actions.

It cannot be disputed that all of the parties to the multiple actions are common carriers of communications and, as such, subject to regulation under the Communications Act of 1934. Each is engaged primarily in processing communications in record form, i. e., telegraph and teletype messages. Western [968]*968handles communications between various points within the United States. The defendants provide services between foreign countries and four areas in the United States called gateway cities. Defendants as overseas carriers provide the links between the domestic system operated and maintained by Western in this country and compatible systems in foreign countries.

As stated in section 1 of title I, the Communications Act of 1934 established the Federal Communications Commission: "For the purpose of regulating interstate and foreign commerce in communication by wire and radio so as to make available, so far as possible, to all the people of the United States a rapid, efficient, Nation-wide, and world-wide wire and radio communication service with adequate facilities at reasonable charges”. (US Code, tit 47, § 151.)

Subdivision (a) of section 201 of title II of the act, which governs the operations of all communications common carriers, provides in part: "(a) It shall be the duty of every common carrier engaged in interstate or foreign communication by wire or radio to furnish such communication service upon reasonable request therefor; and, in accordance with the orders of the Commission, in cases where the Commission, after opportunity for hearing, finds such action necessary or desirable in the public interest, to establish physical connections with other carriers, to establish through routes and charges applicable thereto and the division of such charges”. (US Code, tit 47, § 201, subd [a].)

Consonant with the statutory regulatory scheme developed pursuant to the Communications Act, it is evident that the evolution of Western as the primary domestic carrier and the requisite interconnection of its services with the overseas teleprinter facilities of the international carriers and the determination of their respective rate structures proceeded for the most part by agreement between the parties under the watchful eye of the FCC. From time to time, either as a result of complaints filed by one or more of the parties or on its own initiative, the FCC has conducted inquiries into the relationships and operating practices of these carriers (see Matter of American Tel.

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Related

Western Union International, Inc. v. Western Union Telegraph Co.
110 Misc. 2d 78 (New York Supreme Court, 1981)

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Bluebook (online)
83 Misc. 2d 964, 373 N.Y.S.2d 432, 33 Rad. Reg. 2d (P & F) 27, 1975 N.Y. Misc. LEXIS 3022, Counsel Stack Legal Research, https://law.counselstack.com/opinion/western-union-telegraph-co-v-rca-global-communications-inc-nysupct-1975.