*1
(1936). In
of a waiver until
more information
ant to argues that the FCC also
PRTC failing in con discretion
abused legislature’s the directive weight to
trolling monopolistic control exercise state that the COMTRONICS, INC., Plaintiff, Appellant, equip PBX and other supply of over the is believe that FCC We do not ment. PUERTO RICO TELEPHONE COMPA- sub the Commonwealth’s ignore free al., Defendants, Appellees. etNY expansion and rapid interests in stantial telephone of an intrastate improvement No. 75-1321. network, portrayed in this case of Appeals, Court United States in languished a state serious having Circuit. First during years pri underdevelopment Rather, ownership.. the FCC must de vate 31, 1977. March monopoly PTRC in this whether a termine Rehearing on Denial of Amended As development of intra enhance case will May Clarification telephone service. and interstate state finding must be balanced Against tele countervailing interest of
asserted “reasonably to use subscribers
phone privately ways which are
telephone^] in being publicly without detrimen
beneficial 11 Carterfone, supra, 13 F.C.C.2d tal.” this record do not believe
424. On refusing to strike the erred in
the FCC The favor of PRTC. Commission in
balance additional economic data from
requested impact to the of interconnec
PRTC relative telephone on service in Puerto policies did not abuse think that FCC
Rico. We the final denial postponing in
its discretion challenges ruling in sympathetic unique position the FCC’s also We are 11. PRTC to the grounds policy of that the FCC’s utility on seeking this case fostering PRTC as a state-owned to im- contrary competition regula- is seriously telephone prove a deficient service as tory Act and of the Communications scheme step improvement the overall one toward support a refusal find that cannot therefore economy. expect We Rico’s Puerto are reasonable within actions PRTC’s weight give substantial to these will FCC inter- 201(a). dif- meaning We view the matter of § ests future determination of reasona- ferently. the FCC’s The achieved end policies. PRTC’s interconnection bleness of policy choice of consumer is the maximization simply case that decide in this We FCC quality quantity intercon- correctly that it did not have concluded suffi- require equipment. necting It would the con- strike the balance in favor cient data to economic as- of some fundamental tradiction waiver, expect that the will and we FCC now sumptions end to conclude us renewed, explicit request entertain a the means increased be achieved cannot for a waiver. policy competition. ra- FCC’s therefore However, competition tionally based. only involved in this case. factor *2 1977), in which we sustained declaratory order of the Federal Commu- (FCC)
nications Commission holding that the Puerto Rico Telephone Company (PRTC) bound a tariff permitting the *3 subscriber-owned and telephone supplied equipment. The tariff F.C.C. question, provides in No. per- in part: tinent 2.6.1 General Provision. Customer- “§ provided equipment terminal may be the facilities by used with furnished Telephone Company, for long distance message service, telecommunications in 2.6.2 specified through 2.6.6 following.” 2.6.2 Sections 2.6.6 describe the equipment which types may be connected by subscribers and enumerate restrictions designed prevent harm to telephone com- pany equipment. Tariff No. 263 clearly authorizes interconnection the equipment by appellant Comtronics, Inc., supplied viz. exchange (PBX) facilities, branch private equipment switchboard such as that by used large hotels and offices.
Appellee
privately
PRTC was
owned in
at the
early 1974
time of its concurrence in
later,
No. 263.
pur-
Tariff
Several months
legislation
by
legisla-
suant
enacted
Rico,
ture of Puerto
purchased
PRTC was
by the Commonwealth and thereafter
publicly
was run as a
owned utility.1 In
mid-1974, according to
allega-
Comtronics’
R.,
Juan,
Irizarry,
A.
P.
Sigfredo
San
PRTC,
tions,
amending
perti-
without
appellant.
plaintiff,
tariff,
policy
refusing
nent
announced a
equipment
to interconnect
its
with custom-
Pico,
Juan,
R.,
whom,
P. with
Alberto
San
er-owned
such as that supplied
Brown,
Cordova,
Juan,
&
P.
Newsom
San
Appellant
Comtronics.
sued for dam-
brief,
defendants,
R.,
appellees.
was on
ages
injunctive
and for declaratory and
re-
COFFIN,
Judge, McENTEE
Before
Chief
lief, alleging
violations
PRTC of the
CAMPBELL,
Judges.
Circuit
Act of
Communications
U.S.C.
seq.
et
and of
rights
Comtronics’
McENTEE,
Judge.
Circuit
equal
process
protection
due
under the
arises from the same events as
amendment.
case
fourteenth
The district court
This
jurisdiction.2
lack of
FCC,
Puerto Rico
dismissed
Telephone Co. v.
553 F.2d
pleadings
might
district court
filed
2. The order of
In the
the district court
be more
FCC,
maintained that its
PRTC
properly
and before
a dismissal for
termed
failure to state
in Tariff No. 263 did not survive
concurrence
upon
granted.
relief
a claim
which
company to the Commonwealth.
the sale of
Learner,
12(b)(6). See Carr v.
Fed.R.Civ.P.
finding
accept
disagreed
and we
The FCC
1976).
(1st
FCC,
respect.
Puerto Rico Tel. Co. v.
See
I. The Communications
Claim.
by the Communications Act:
carrier such as AT&T
A common
“The Act does
impose
any duty on
provides interstate
service
plaintiff.
only
It is
provisions
to all
intended to establish the
upon
conditions
Act.
Communications
Act’s
which communications services of an in-
application
non-subsidiary “connecting”
to a
terstate
will
lawfully
nature
provided
*4
PRTC,
carrier,
is “engaged
such as
in
regulates
thus only
and
the bilateral rela-
foreign
or
solely
communication
interstate
tionship between the carrier and its sub-
through physical connection with the facili
scriber.”
Id.
carrier”
ties
another
is limited. Under
We agree
with
district court
152(b), “nothing in
§
47 U.S.C.
[the Act]
Act cannot
explicitly
be read as
to apply
be construed
or to
shall
creating
damages
remedy against a con
jurisdiction
Commission
necting carrier
such as PRTC. Section
[connecting]
.
any
.
carrier
152(b) subjects
alone;
PRTC to
201-05
§§
except
sections 201-205
damages liability
by
created
206 and
§
apply”.
.
.
.
shall
Sections 201
damages remedy
by
authorized
207
alia,
through
provide,
205
inter
that tariffs
209, therefore,
and
apply
do not
to PRTC.
reasonable,”
“just
201(b),
and
and that
§
be
Ward v.
Telephone
But see
Northern Ohio
publish
and adhere to
816,
Co.,
(6th Cir.),
300 F.2d
820
cert. de
they
concurred,
tariffs in which
have
820,
nied,
37,
371 U.S.
83 S.Ct.
In the
interconnection policy
the district court
em
explicitly
noted that
Act does not
tariff
allegedly
create
bodied
which PRTC
for damages
a cause of action
caused
was to
abrogated
benefit consumers of tele
alleged
203(b)’s
See,
PRTC’s
violation of
phone
re-
services.
g.,
e.
Puerto Rico Tele-
principles
2087, quoting
3. Under the
enunciated
the Su-
Rigsby,
Texas
R.
& P.
Co. v.
241
Ash,
66,
preme
v.
422
33, 39,
482,
Court
Cort
U.S.
95
(1916)
36 S.Ct.
705 10; FCC, private at n. Hush-a- to create a supra action, cause of v.Co. phone States, U.S.App. 99 although explicit purpose v. an Corp. deny United such Phone ” 266, (1956); Carter 190, controlling. cause of would be Cort D.C. 420, 424, reconsideration Ash, 66, 82, fone, F.C.C.2d 422 U.S. v. (1968). (1975). denied, 14 F.C.C.2d L.Ed.2d 26 Turning to the stat and cheaper to obtain rights us legislative history, ute before and its consumers’ explicit purpose efficient such “an perceive deny more act suppliers, unless vindicated cannot cause of action”. [a] tariff, on the undertake in reliance provides: Section Cf. Bar equipment.4 such providing cost of do, common carrier shall or “In case Jackson, 346 U.S. v. rows done, any act, to be mat- permit cause or Bros. FCC Sanders L.Ed. ter, thing chapter prohibited in this or or Station, 309 U.S. Radio unlawful . . declared such Indeed, suppli L.Ed. 869 carrier shall be liable per- to the common tariff which a the assurance need for er’s injured persons thereby for the son demonstrably more immediate provides amount sustained . ..” full than a consumer’s. weight greater turn, 153(h), in defines “common Section of interests between a identity Given “any person engaged as a com- carrier” supplier’s consumer and the supplier hire, in foreign interstate or carrier guarantees, we mon on tariff reliance greater *5 . by wire or radio within the class of communication is that think reference is made to common 203(b). where except protected beneficiaries intended chapter”. subject to this not carriers judicially cre that no conclusion Our remedy is available is im ated terms, therefore, By its literal 206 legis as a clear perceive we by what pelled pre-eminent reaches PRTC well as such remedy. such a preclude to intent lative carriers as AT&T and ITT. How common dissenting brother that with our agree We above, ever, 152(b) provides as noted that harm flow that economic is unfortunate it chapter “nothing in this shall be construed violation of the PRTC’s asserted ing from any . apply to to [non- agree We also go unremedied. should Act subsidiary] engaged carrier in interstate or of the scheme Com the enforcement solely through foreign phys- communication vis a vis carri Act munications connection with facilities of another ical seriously flawed the ab be might ers except . . . sections 201- carrier Piper v. damages remedy. Cf. a of sence title shall . apply this 205 of Industries, Inc.,-U.S.-, Chris-Craft Thus, “connecting” carrier ..” (1977); 124 J. 51 L.Ed.2d -, explicitly PRTC is removed from such as Borak, 377 U.S. v.Co. I. Case against of which the class carriers (1964). 1555, 12L.Ed.2d 423 necessary created. The liability implica- is expand the remedial to for us not it is that chose to shield “con- tion by Congress unless ex established scheme damages liability. carriers from necting” with the evi “consistent would pansion language of the of the reading This statute Railroad intent”. National legislative dent think, is, legislative borne out Rail v. National Ass’n of Corp. Passenger history of the Communications Act of 1934. 453, 458, 94 Passengers, road reported by (1974). originally As Senate situa “[I]n Committee, the law Communications it clear that federal Commerce which tions specific exemption persons provided of certain Act a class granted “connecting” any carriers from of the Act’s necessary show an inten- to it is rights, Carterfone, action, g.,E. agency 13 F.C.C.2d reconsidera- it is notewor- of context In the 4. denied, rights policy of Hush-a- under the tion F.C.C.2d thy consumers’ (1957), Corp., on remand 22 F.C.C. have been enforced Phone liberalized brought by suppliers. U.S.App.D.C. from 99 actions primarily Rather, For example, Representative words of the Rayburn, provisions. chairman, “we have tried Chairman House Commerce Commit- committee protect tee, to explained the bill ... throughout penalties creation of civil Cong.Rec. companies.” 78 independent for violations 202: Dill). Neverthe- (remarks of Senator 202(c) is penal provision “Section Senate, objection, adopted less, without to apply those small independent will exemption a total providing amendment an made companies sections 201- connecting carriers: inclusive, but exempted from the oth- of the act Nothing act shall be construed “(b) 152(b)].” in this er provisions [§ juris- Cong.Rec. or to the commission apply charges, classifica- diction likely We provi- think “other or tions, regulations or practices, Rayburn to which Chairman sions” con- with intrastate communication connection 202(c) are the damages provisions trasted § carrier, any carrier service 206-09, and that his remarks bemay foreign in interstate or commu- engaged congressional taken reflect intent that solely through connec- physical nication 202(c) and the civil other the facilities of another carrier penalty provisions and FCC indirectly controlling or directly or 201-05 were be the exclusive method carrier, or by such under direct controlled enforcing the Act with respect con- carri- control with such other or indirect necting carriers. at 8846. er.” Id. reading of the Our statute as precluding Thus, Senate, bill passed as the damages remedy is also consistent with contemplated “connecting” legislative purpose in excluding con- wholly free of the Act’s restraints. would necting carriers from most of the Act’s provisions. primary purpose Committee, the House Senate- In 1934 Communications Act was to subject exemption was modified: passed burgeoning power of such near-monopo- “The amendment retains [House] *6 lies as AT&T to more effective reg- federal it except that makes such carri- provision Cong.Rec. 78 (remarks ulation. See 10315 205, pro- to sections 201 and subject ers Rayburn). Representative contrast, of In regulation of viding charges purpose of Senate’s total exclusion H.R.Rep. discrimination.” prohibiting “connecting” of to exempt was 1850, Cong., (1934). 73d 2d at 2 No. Sess. tiny, mostly rural companies Accord, (remarks Cong.Rec. 78 10313 of regulation. from federal Cong.Rec. 78 8846 Rayburn). With the ex- Representative (remarks of Clark). Senator The House amended, thus the bill enact- emption subjecting amendment such companies to 152(b). 48 1064. See 47 U.S.C. ed. Stat. likely represented 201-05 a compromise §§ legislative review of the From this histo- between a desire to free such small busi- Congress, it is clear to us ry, working regulation nesses federal practical and a backdrop against proposed total a realization minimum of con- federal carriers, exemption “connecting” chose necessary to regulate trol was that portion go subject company further than a companies’ local of the business which was such as PRTC to 201-05. We must §§ interstate. Since in 1934 per- the legislative assume that draftsmen were “connecting” weak, ceived carriers as rural 206 nearby conscious and that exchanges, likely it seems that Congress they provided that “ap- when it shall not was reluctant companies such 152(b), they meant ply,” § liability. Congress might have liability apply. shall not instead penalties concluded civil portions legislative Other materials 201-05 provided would be sufficient perception to us that our a compliance indicate con- In to insure with federal law. deny intent to gressional damages remedy the four decades since Communications against passed, carriers is not erroneous. “connecting” Act was carriers have
707
enterprise
large
deprived
such a
that PRTC had
it
include
of its proper
come
provided
PRTC, against which
ty
process
in violation of due
and equal
It is
ineffective.
might prove
201-05
Appellant’s
protection.
under the
however,
and not for
Congress,
fourteenth amendment raises a number of
to reflect
the statute
Court,
to rewrite
troubling
claim,
issues. To
resolve
Her
Martinez
See
changed circumstances.
decide,
necessary
would be
for example,
279,
(1st
France,
284
545 F.2d
Air
v.
nandez
PRTC’s tariff filed
whether
with the FCC
“property”
constituted
of Comtronics with
meaning of
the fourteenth amend
of Con
interpretation
Finally, our
ment, see,
g.,
Regents
e.
Board of
Roth,
v.
princi
is aided
in 1934
intent
gress’
564, 569, 577,
2701,
408 U.S.
92 S.Ct.
uni-
expressio
statutory construction
ple
(1972);
e.,
Rudman,
Medina v.
alterius,
legisla
“when
L.Ed.2d
i.
us est exclusio
remedy
1976),
particular
and whether a
provides
expressly
remedies,
expand
utility
not
such
courts should
as PRTC is a “per
state-owned
to subsume other
the statute
whom a
coverage
against
claim
son”
be stated
Passenger
Railroad
See,
National
remedies.”
under 42 U.S.C.
e. g., City
Supreme
Court
Although
Corp., supra.
Bruno,
507,
511-13,
v.
U.S.
Kenosha
princi
to this
differing weight
assigned
has
2222,
(1973). And,
if But we do that the determinative alone,3 I question think the inferral of is whether under the facilities § damages remedy is consistent with the which interstate commerce is conducted are likely any in which the financial also be instances 3. Lest there be doubt I would take advantage from the continuation the viola- Congressional seriously the solicitude for the the maximum also exceed tion will financially carriers, connecting weaker I would violating cease and desist order. strongly imply disinclined to ac- Act, proscribes tion under 201 of the which majority history upon relies is less 2. The practices”. “unjust and unreasonable Because Although Congress compelling. demon- than practice characterized, can be so carrier financially weaker strated solicitude permitting against connecting such actions car- carriers, subject connecting it made them subject riers could them to numerous lawsuits 201-05, is no indication that Con- and there would arise from the carriers’ inten- connecting gress should be felt tional, conduct. The unlawful defense of these procedures given to violate the a carte blanche place an lawsuits would enormous strain on Representa- having their tariffs amended. connecting carriers even in instances during Rayburn’s floor debate statement tive blameless, which the carriers’ conduct was applicability obviously recognizes my feeling reason for this tentative is that a connecting 202(c) It also notes carriers. 201 would be incon- 201-05, but carriers are that such statutory contrast, sistent with the scheme. In provisions. But it is not addressed not to other easily subjecting carrier can avoid happens problem of what when such a to the simply by following key provision, to suit under itself like carrier violates a *9 subject. prescribed procedure. carrier is which the Brief of under common control. Com- See 40; Rehearing Petition
tronics at Eduardo al., ZAVALA SANTIAGO et reading at 3. correct for Clarification Plaintiffs, Appellants, 152(b)(2) seems to be that the “not of § “carrier”, language directly” modifies i.e. a al., Alfredo GONZALEZ et RIVERA fully carrier is one which has a Defendants, Appellees. identity. language If the mod- independent No. 76-1034. “facilities”, then “facilities” would ified incomprehen- another carrier —an “control” Appeals, United States Court of The focus section sible construction. First Circuit. joint facilities but is not on the control of Dec. 1976. Submitted joint reading of carriers. Such a on control April Decided legislative history with the is consistent exempting which indicates concern for
small, companies independent As
from most of Act’s strictures. Com- complaint
tronics stated that PRTC subsidiary of the wholly
“is a owned Tele- Authority of Rico .
phone Puerto corporate public
which in is a instru- turn
mentality of of Puerto Commonwealth
Rico”, think it reasonable assume carrier” “connecting
that PRTC is 152(b)(2). understanding
This reinforced opinion district
fact court’s
expressly assumption on the based carrier”, “connecting is a Com- argument appeal accepted
tronics’ on
premise exception passing of two page beginning
sentences at 40 of its raised
brief. The issue was never and ad- frontally appeal. on also
dressed See Puer- FCC, 553 F.2d Telephone Co. v.
to Rico Cir.,
