BellSouth Telecommunications, LLC v. Halo Wireless, Inc.
2:11-cv-00758
M.D. Ala.Jan 26, 2012Background
- Plaintiff Bellsouth Telecommunications, LLC d/b/a AT&T Alabama sued Halo Wireless, Inc. in the Middle District of Alabama challenging Halo’s alleged ICA breaches.
- Halo previously filed a voluntary bankruptcy petition in the Eastern District of Texas on August 8, 2011, triggering related bankruptcy-removal concerns.
- Halo removed the Alabama PSC action to federal court under 28 U.S.C. § 1452, asserting related relief to its bankruptcy case.
- Halo sought to transfer the actions to the Eastern District of Texas to consolidate as adversary proceedings in its bankruptcy case.
- The bankruptcy court ruled that state PSC proceedings are exempt from automatic stay but monetary-judgment collection is not, and Halo planned to appeal.
- The court analyzed whether remand or transfer was appropriate under § 1452 and related equitable considerations.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether removal under § 1452 was proper. | Halo contends removal is proper under § 1452(a). | Halo argues federal jurisdiction exists under bankruptcy-related removal for related proceedings. | Removal proper to assess equity of remand. |
| Whether the case should be remanded under § 1452(b) or transferred. | Remand to Alabama PSC better serves efficiency and state expertise. | Transfer to bankruptcy court would consolidate actions and stay issues. | Remand to Alabama PSC granted under § 1452(b). |
| Whether Alabama PSC proceeding is a removable civil action under § 1452(a). | Alabama PSC action fits civil action removable under § 1452(a). | State regulatory actions may not be treated as removable civil actions. | Alabama PSC proceeding is removable as a civil action under § 1452(a). |
Key Cases Cited
- Leonard v. Enterprise Rent-A-Car, 279 F.3d 967 (11th Cir. 2002) (burden on removal jurisdiction; ambiguities resolved in favor of remand)
- Burns v. Windsor Insurance Co., 31 F.3d 1092 (11th Cir. 1994) (removal statutes construed narrowly; uncertainties resolve in favor of remand)
- BellSouth Telecomms., LLC v. MCIMetro Access Transmission Servs., Inc., 317 F.3d 1270 (11th Cir. 2003) (federal court may review state commission orders post-remand)
- Core Communications, Inc. v. Verizon Pa., Inc., 493 F.3d 333 (3d Cir. 2007) (meaning of agency-approved ICA considerations in federal review)
- Comm'rs of Road Improvement Dist. No. 2 v. St. Louis Southwestern Ry. Co., 257 U.S. 547 (Supreme Court 1921) (describes essential characteristics of a judicial controversy)