Vermont National Telephone Company v. Northstar Wireless, LLC
Civil Action No. 2015-0728
| D.D.C. | Dec 12, 2017Background
- Relator sues under the False Claims Act alleging a $3.3B loss to the U.S. from an FCC wireless spectrum auction (Auction).
- Defendants Northstar Wireless, L.L.C. and SNR Wireless LicenseCo, L.L.C. allegedly misrepresented as very small businesses to obtain 25% bidding credits.
- DISH Network allegedly controlled Northstar and SNR; FCC found de facto control affecting eligibility.
- FCC initially denied bidding credits; later order remanded to consider cure options and potential restructuring.
- D.C. Circuit held DISH controlled entities; remanded to FCC for cure opportunities; court stayed case pending FCC proceedings.
- Court granted partial stay for 90 days, then extended to Jan 22, 2018, pending FCC action or resolution.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a stay is warranted given FCC proceedings. | Relator argues continued stay preserves issues and avoids unnecessary rulings. | Defendants contend cure and potential restructuring justify stay; delay may aid defense. | Stay granted in part; extended to Jan 22, 2018. |
| Impact of FCC proceedings on damages and liability. | Damages remain under FCA regardless of cure, as reverse false claims may persist. | If cure or restructuring occurs, liability and damages may change. | FCC proceedings unlikely to alter the amount due if paid; potential impact on liability/damages considered. |
| Whether to require further delay or set deadlines for response. | Further delay harms Relator's ability to present case. | Status updates allowed; further delay justified by anticipated FCC outcomes. | Limited 90-day extension; future stays require substantial justification. |
Key Cases Cited
- Air Line Pilots Ass’n v. Miller, 523 U.S. 866 (U.S. 1998) (stay power is incidental to court’s control over docket; requires hardship or inequity)
- Landis v. North American Co., 299 U.S. 248 (U.S. 1936) (standard for granting stays; balancing interests)
- Clinton v. Jones, 520 U.S. 681 (U.S. 1997) (overarching consideration for stay decisions; prejudice considerations)