Qwest Corporation v. City of Tucson

OVERVIEW

Qwest Corporation (Qwest) appeals the district court’s grant of summary judgment in favor of City of Tucson, City of Miami, City of Globe, and City of Nogales (collectively “the Cities”). Qwest contends that the Cities’ telecommunications licensing and franchise ordinances are preempted by § 253 of the Federal Telecommunications Act of 1996(the FTA). Qwest argues also that the Cities charge an improper rental fee for use of the Cities’ rights-of-way. We have jurisdiction pursuant to 28 U.S.C. § 1291 , and we disagree with Qwest. The Cities’ subsequent amendments to the ordinances exempt Qwest from the licensing and franchise ordinances, rendering moot Qwest’s claims challenging these ordinances. Additionally, the charges that the Cities impose upon Qwest are taxes, not fees, so the Tax Injunction Act deprived the district court of jurisdiction to consider their validity.

BACKGROUND

Qwest provides communication services to residents in the Cities. Qwest, in conjunction with its predecessors-in-interest, has provided telecommunications services throughout Arizona since prior to Arizona’s statehood. In January 2002, Qwest filed an amended complaint alleging that the…