Central Office Telephone, Inc. v. American Telephone & Telegraph Co.

dissenting:

I dissent because I believe that the filed-rate doctrine preempts COT’s state-law claims. I would reverse the magistrate judge’s legal conclusion that the doctrine does not do so and mandate that the court dismiss COT’s preempted state-law claims.

The majority concludes that the filed-rate doctrine does not preempt COT’s claims because: (a) the ease involves the provisioning of services rather than rate-setting; or alternatively, (b) the services at issue were not covered by the tariff. Both proffered reasons misinterpret the filed-rate doctrine.

A. Both Rates and Corresponding Services Are Covered by the Filed-Rate Doctrine.

To avoid being an empty letter, the filed-rate doctrine must encompass both rates and the services corresponding to those rates. The opinion erroneously narrows the scope of the doctrine by stating that “[b]ecause this case does not involve rates or rate-setting, but rather involves the provisioning of services and billing under several contracts, the filed-rate doctrine does not apply.”

The Communications Act provides that “[e]very common carrier ... shall ... file with the Commission and print and keep open for public inspection schedules…

American Telephone & Telegraph Company (“AT&T”) appeals the judgment of the magistrate judge, following a three-week jury trial, awarding Central Office Telephone, Inc. (“COT”) $1,154 million in damages, and denying AT&T’s claim for over $1 million in unpaid federally tariffed charges for long distance services, under the Federal Communications Act of 1934, (“Communications Act” or “Act”) 47 U.S.C. § 153 (h). COT’s action against AT&T alleged breach of contract, breach of implied covenant of good faith and fair dealing, and tortious interference with contract. COT cross-appeals the magistrate judge’s decision not to allow the jury to consider an award of punitive damages, as well as the magistrate judge’s post-trial order reducing the original jury verdict of $13 million in compensatory damages in favor of COT.

COT, a reseller of long distance services, entered into a contract with AT&T for Software Defined Network (“SDN”) services, which COT later resold to its customers. AT&T is a provider of long distance services and is classified as a common carrier under the Communications Act, 47 U.S.C. § 153 (h), and therefore, its long distance services are subject to the requirements of…