Communications Telesystems International v. California Public Utility Commission

Plaintiff Communications Telesystems International (“CTS”) sued in district court (“CTS 1 ”) to set aside sanctions imposed upon it by the California Public Utilities Commission (“CPUC”). CTS claimed that the sanctions violated the Telecommunications Act of 1996, 47 U.S.C. § 253 (the “Act”). The district court eventually dismissed the action in deference to state proceedings under the doctrine of Younger v. Harris, 401 U.S. 37 , 91 S.Ct. 746 , 27 L.Ed.2d 669 (1971). See CTS v. CPUC, 14 F.Supp.2d 1165, 1166-67 (N.D.Cal.1998). CTS appeals that decision in Appeal No. 98-16400. CTS then filed a second challenge (“CTS 2") raising the same issues. The district court again dismissed, this time concluding that the state proceedings barred the claim under the doctrine of res judicata. CTS appeals the second dismissal in Appeal No. 99-15940. CTS 1 and CTS 2 have been consolidated for the purpose of disposition.

I. FACTUAL AND PROCEDURAL BACKGROUND

CTS is a California-based corporation that provides intrastate long-distance telecommunications services under authority granted by the CPUC. This case began after the CPUC received more than 56,000 complaints from California consumers that…