*1 Brаyman dispute argues at issue. therefore reverse the decision of the arbitrable, § claim is not District proceedings 8371 bad-faith Court and remand for however, § consistent may opinion. 8371 claims be with this only by judge as a matter of entertained
Pennsylvania Nealy v. law. See State Ins., 790,
Farm Mut. Auto. 695 A.2d 793- (“[W]e (Pa.Super.1997) conclude that
original jurisdiction to decide issues of
§ 8371 bad faith is vested our trial panel
courts.... [T]he arbitration did not jurisdiction § have to decide the 8371 bad OMNIPOINT COMMUNICATIONS ”). faith claim.... ENTERPRISES, L.P., with, Nealy directly But conflicts Appellant by, preempted therefore is the FAA.3 The FAA prevents undermining state law from ZONING HEARING BOARD OF
parties’ contracts to arbitrate. Mastro
EASTTOWN TOWNSHIP
Hutton, Inc.,
buono v. Shearson Lehman
52, 58-59, 63-64,
1212,
U.S.
S.Ct.
No. 02-2194.
(1995) (upholding
L.Ed.2d 1 legisla intended to
FAA] foreclose state attempts
tive to undercut the enforceabili
ty agreements.”); of arbitration Road cf.
way Package Sys., Kayser, Inc. v. (3d Cir.2001) (holding
F.3d 287 that a clause, more,
choice-of-law without did opt
evidence contractual intent into
Pennsylvania governing law arbitration
standards).4
IV. Conclusion context, dispute this we hold that the Brayman
between and Home is arbitrable. Cas., 01-CV-6784, Nealy only Corp. Prop. considered whether a v. Travelers No. Dec.9, Pennsylvania (E.D.Pa. claim was arbitrable under the 2002 WL at *5. Act, Nealy, Arbitration not the FAA. 695 A.2d 2002) (“Section apply 8371 ... does not at 791. claim.”). conduct unrelated to the denial of a viability Brayman's § 8371 cause of 4. We also note that it is whether unclear us, before action is not however. Brayman may bring §an 8371 claim on the Leasing facts оf this case. See Berks Mut. *4 Carlson, Jay (Argued), Lawrence
Paul J. Ellis, Seattle, WA, James & Preston Gates Schubert, Dalton, Riley Christopher H. C. Paoli, PA, P.C., Riper Colagreco, & Hollín for Appellant. Gawthrop, (Argued), D.H. Rau
Andrew Halsted, Cor- A Professional Greenwood & Chester, PA, Tripodi Paula poration, West Associates, Media, Kaczynski, Holsten & PA, Appellee. SLOVITER, McKEE, point Enterprises,
Before
and
Communications
L.P.
ROSENN,
Judges.
Hearing Bd. Easttown
Circuit
Town
(3d Cir.2001) (Omni
ship,
ROSENN, Judge. Circuit cause he concluded that Omnipoint had important ques- This case raises several failed to “significant gap” establish a or concerning burgeoning tions wireless unreasonable discrimination under industry telecommunications and the inter- TCA, or unconstitutional exclusion under pretation application of the Telecom- Pennsylvania part, law. We affirm in va Act, seq. munications 47 U.S.C. 151 et part, cate in Magistrate remand to the (TCA). Omnipoint is a wireless telecom- Judge for further proceedings. provider munications claims that I. gap is a in the wireless telecommuni-
there
cations services available to remote users
provider
is a licensed
of wire-
Township, Pennsylvania.
digital telephone
less
communications ser-
*5
Omnipoint
Zoning Hearing
sued the
Board
such,
power
vices. As
it uses a low
radio
(ZHB
Board) in
or
the United
that
signal
porta-
is transmitted between a
States District Court for the Eastern Dis-
telephone
ble
Omnipoint
and an
antenna.
Pennsylvania, claiming
trict of
that
the The antenna then feeds
signal
the radio
ZHB
prohibition
violated the
and anti-dis-
an electronic
nearby.
device that is located
provisions
by
crimination
of the TCA
de-
turn,
signal
that device connects the
nying Omnipoint’s
for a
request
variance
ordinary
an
telephone line and
it
routes
to locate a telecommunications
in
tower
a
anywhere in the world. The combination
residential
district.
See 47 U.S.C.
equipment
of antenna and
is known
aas
332(c)(7)(B)(i). Furthermore,
§
Omnipoint
signal
cell site. Because of the low radio
alleges that the ordinance under which its
by Omnipoint,
range
used
of the cell
application
variance
was denied violates
quite
example,
site is
small.
in
For
East-
Pennsylvania
law because
is either de
Township,
maximum coverage
town
jure
exclusionary and
or de
fails to
a
cell site is two miles. When wireless
facto
provide
a “fair share” of
land for
(WCF)
facility
communication
is not avail-
telecommunications uses.
area,
specific geographic
able to cover a
in
through
customers who live
or travel
initially
The District Court
issued a writ
experience
that area will
unreliable ser-
ordering
grant
of mandamus
the ZHB to
vice,
calls,
dropped
inability
anor
to con-
variance because the Court held
nect to the Personal Communication Ser-
exclusively
ZHB decision relied
on aesthet-
(PCS)
vice
network.1
in
ic concerns
its denial and not on sub-
rejection.
Omnipoint
place
stantial evidence
supporting
sought to
PCS tower
(E.D.Pa.1999).
F.Supp.2d 512
in
gap
We vacated
because of the
Omnipoint hoped
this writ and remanded the case to
in
its wireless service.
in light
flagpole
District Court for reconsideration
to construct a 110-foot stealth
tower,
Pittsburgh
Township,
designed
of APT
Ltd. v. Penn
24 inches in diameter
PCS
(3d Cir.1999).
tapering
II.
in
users
the southern area of Easttown
Township,
we
Township. Dugan
Penn
established
testified: “I know with-
if
two-prong
question
test
determine
the deci out
this area
Southern
zoning authority
of a local
has “the
sion
footprint
Easttown
within the
of
prohibiting
provision
per
effect of
proposed facility
currently
is
lacking
sonal
services.”
wireless
U.S.C.
coverage.” A consideration of all users
332(c)(7)(B)(i)(II).
A
provider
service
must
existing Omnipoint
include
users at
facility
“show that its
fill an
must first
will
the time of
inquiry. Omnipoint
is not
existing significant gap
ability
already
a newcomer: it
an existing
licen-
remote users to access the national tele
see in
Township. Omnipoint
Easttown
has
Township,
Penn
phone network.”
an existing facility in the business district.
met,
F.3d at 480.
If this burden is
the This is not a case
where newcomer seeks
provider
prove
must still
“that the manner
potential
to have its
customers cаlculated
fill
proposes
significant
which it
existing
contrary,
as
users.
On
is a
gap in
is the least intrusive on the
service
provider
expand
seeks to
who
its service to
sought
values that
the denial
to serve.”
existing
by remedying
signifi-
customers
Id.
gap
cant
in the southern
area
Township.
prong
now turn to the
first
there is a
that test to determine whether
test, therefore,
proper
for determin-
ability
in the
remote
significant gap
ing
significant gap
whether
there is
is to
the national
users to access
telecommuni
users,
telephone
look at all wireless
includ-
focus, therefore, on
cations network. We
Instead,
ing
plaintiffs
customers.
available to all remote users of
service
only
non-Omnipoint
MJ looked
at
users
*7
specific
all
in the
area where Om
services
non-Omnipoint
expe-
and found that
users
significant
a
in
nipoint
gap
asserts there is
problems only 1.96% of
time in
rienced
reliable service offered to remote wireless
F.Supp.2d at
Township.
Easttown
See 189
by
existing providers.
users
There
finding, Magistrate
265. Based on this
gap
perspective,
must
a
from the
be
users’
erroneously
that
Judge
concluded
Omni-
particular provider’s
rather
than from a
point
carry
had
to
its burden of
failed
perspective.
Corp. Unity
Nextel
v.
W.
proving significant gap.
a
(3d Cir.2002).
257,
Township, 282 F.3d
provided by
pro
figure
A
in
The relevant
in the Penn
gap
the service
one
in
Township analysis
aggregate,
is the
prohibition
vider is not sufficient for a
of
cluding Omnipoint
including
under
users and
service
claim
U.S.C.
332(c)(7)(B)(i)(II)
Township,
§
if
but with
the telecommunica
calls outside
community
provider’s
coverage
in
a
in each
area.
tions needs of users
as
WCF’s
standard,
proper
are served.
Under
MJ’s
whole
legal
Magistrate's
conclu
April
2002 decision was a final
8. We review the
The MJ’s
plenary
sions under a
standard. See Warner-
purposes
order for the
of 28 U.S.C.
BreathAsure, Inc.,
204 F.3d
Lambert Co. v.
(3d
1999).
89 n. 1
Cir.
(2d Cir.1999),
Willoth,
opinion.10 IV. Pennsylvania, a land use re
III.
municipali
striction is valid exercise of a
police power
it
ty’s
promotes public
when
Judge found as a
Magistrate
health, safety, and welfare and is substan
flagpole
stealth
was
fact that
tially
purpose
purports
to
related
possible
of the
alterna
the least intrusive
Kirk
Hearing
serve. See
v.
Bd. of
F.Supp.2d at 262. We do
tives. See 189
(Pa.
Brook,
Honey
713 A.2d
finding
it is not
not disturb this
because
Commw.1998).
zoning
pre
A
ordinance is
“clearly erroneous.” See Warner-Lаm
party challenging
sumed valid and a
it has
Co.,
two forms: facto. ordinance, necessarily on a does not pressly permit where “the use exists exclusion Id. face, legitimate a use.” APT totally negates bans that use. its mean that Cf. “where an ordi- exists P’ship De exclusion v. Lower Yoder Pittsburgh Ltd. facto face, on its but when permits nance a use 664, 670 Township, F.Supp.2d 111 prohibit throughout the use applied acts to (W.D.Pa.2000). Otherwise, would the TCA Id.13 The MJ held municipality.” every change in localities to enshrine force 160-80 was Township Ordinance industry into local the telecommunications exclusionary. jure de nor de neither unrealistically rapid rate. facto at an ordinances agree. id. See facially The ordinance is not not de The ordinance was facto it does not exclusionary. interpreted, As exclusionary Omnipoint argues either. Although use. totally legitimate ban a height contained restrictions explicitly provide for ordinance did zoning effectively prohibit ordinance towers, the ZHB twice telecommunications of functional telecommu the establishment granted variances telecommunications Township. nication facilities in Easttown under a towers the business district thirty-five contained a foot The ordinance F.Supp.2d at 266. provision. catch-all 189 height restriction in residential areas and that a Omnipoint argues telecommunica fifty-foot height in business dis restriction does not fall within the catch tions tower F.Supp.2d See 189 at 267. The tricts. provision all because it is not of the same rejected Magistrate Judge argument this any character” as of the enumer “general рreviously granted the ZHB had because However, interpre ated uses. the ZHB’s facili height variances for communications municipality’s zoning ordinance tation of 268; Township, ties. Id. at see also Penn weight it reflects the is entitled to (explaining 476 that “to suc 196 F.3d at entity an construction of a statute ... exclusionary zoning claim ceed charged application. its execution and with prove had to that no other Sprint Spectrum Zoning Hearing [the Plaintiff] v. including it Township, provider, 46 D. & telecommunications Mahoning Bd. Pa. of ”).14 2000). (CCP 187, Furthermore, self, ... could build a functional tower C.4th regulation general ordinance to the at issue. 53 P.S. morals and welfare than an ble (2002). merely 10910.2 confines that business to a cer which municipality.”). tain area in the Exclusionary impact can invalidate an or exclusionary in dinance without evidence of Omnipoint argues that Easttown Zoning Hearing tent. Overstreet v. Bd. of exclusionary cannot circumvent an otherwise 90, Schuylkill Township, 152 Pa.Cmwlth. zoning by relying ordinance on the availabili- 1108, (1992). party A.2d If rebuts high ty of the hurdles of a variance because constitutionality by presumption presenting of normally applicants face to obtain a must evidence that an ordinance is exclu sufficient 237, Appeal, Girsh 437 Pa. variance. Cf. sionary, burden then shifts to the state to (1970). greater A.2d 395 This has zoning that the ordinance bears dеmonstrate variance, plaintiffs seek a use as force when health, relationship public a substantial Appeal, height vari- in Girsh rather than a Id.; Quar safety and welfare. see also Exton ance. at 268. A use vari- See 189 ries, Adjustment Inc. v. Bd. W. to obtain than a ance is more burdensome Township, Whiteland 425 Pa. 228 A.2d height Hertzberg Zoning variance. Board (1967) (“[A] zoning ordinance which Adjustment City Pittsburgh, Pa. totally particular excludes a business from an (1998). Although 721 A.2d Omni- municipality entire must bear more substan variance, health, safety, sought height relationship public point both a use and a tial to the
637 inability argu munity residents’ to meet their alternative This, needs. it failed to do. principle also the “fair shаre” under ment applies principle “fair share” The fails. V. only partially excludes an ordinance when exclusionary An is use. ordinance original complaint, a land In its Omni- provide for its municipality fails point alleged when that ZHB’s denial of Omni- land use such legitimate of a point’s “fair share” constituted a violation of application 332(c)(7)(B)(i)(I) v. multi-family dwellings. See Surrick as ZHB 47 because U.S.C. Township Hearing Bd. the “pro unreasonably against discriminated of Providence, 182, 476 Pa. 382 A.2d Upper functionally equivalent viders of services.” (1977). plan political units must Local Judge 105 Katz denied this claim on the regulations that provide land-use ground Omnipoint for and had not shown dis categories of all legitimate crimination, the needs meet reasonable or otherwise. See to live within its people may who desire at 515 n. 3. In its cross- 72 decision, See id. at 108.15 Judge Omnipoint boundaries. Katz’s appeal of finding on the did not include the court’s contends that East- Omnipoint I, discrimination issue. provide a “fair Township fails to town at 103. The MJ ruled that this dis F.3d allowance for telecommunications share” properly crimination issue was not before comprises The B-Business District uses. presented him it had not been of Easttown only of the total area 1.1% panel appeal. the on the first See 189 inquiry is Township.16 The relevant F.Supp.2d at 270. “heavy Omnipoint has carried its
whether Omnipoint argues cross-ap that a that the needs of the showing burden” appellee peal only required is when being ade community’s residents are not aspires to appeal an issue on advances Crossing Montgomery See quately served. New the trial court’s decision. alter Cf. Gwyn Lower soc. v. As County Accident & In Castle Hartford (2000); edd, 285, Schubach v. 758 A.2d (3d Co., 1162, 933 F.2d Cir. dem. Silver, Pa. 336 A.2d 1991). any to assert alter Appellee is free (1975). provid Other telecommunications of the District theory support native the needs of have been able to serve ers decision, a formal even without Court’s towers within placing their customers id.; see also Scott v. cross-appeal. See To overcome the business district. (3d Delaware, F.2d 91-92 Univ. of that the ordinance is constitu presumption Cir.1979) (Adams, J., concurring). tional, Omnipoint have had to show would prop is The discrimination issue link area of a causal between the small reject Omni- us and we now erly the com- before for business use and land zoned data; (4) (3) density percent- population de that the ordinance is facto land; (5) age undeveloped necessarily of total exclusionary focuses on the ordi- Thus, undeveloped percentage land available height the MJ restrictions. nance’s Surrick, at 110. development. 382 A.2d argument. properly rejeсted this finding Surrick, contests this Pennsylvania Supreme 16. 15. In larger than argues district is consid- business several factors to be Court articulated However, at trial. principle Omnipoint asserted was applying “fair ered in share” fact, (1) figure see adopted the as area the MJ 1.1% housing whether the context: finding is not population F.Supp.2d at and this logical development and area for (2) clearly erroneous. present development; growth; level of *11 638
point’s
providers
grant-
on the merits. The TCA communications
that were
prohibits
unreasonable
discrimination
in
Township.
ed variances
against “providers
functionally equiva-
of
Omnipoint’s discrimination claim
lent
sеrvices.”
U.S.C.
part
fails under the second
of the test.
332(c)(7)(B)(i)(I).
§
The TCA does not
Permitting the erection of a communica
prohibit
provid-
against
all discrimination
tower in a
tions
business district does not
ers, only unreasonable discrimination. See
compel
permit
the ZHB to
a similar tower
Beach,
Virginia
AT
T
& Wireless PCS
at a later date in a residential district. See
(4th Cir.1998).
155 F.3d
Willoth,
Sprint Spectrum L.P. v.
176 F.3d
Nextel,
explained
we
that the
(2d
Cir.1999);
see also H.R. Conf.
purpose of the “unreasonable discrimina
104-458,
Rep.
in
reprinted
at
332(7)(B)(i)(I)
language
tion”
of
is to en
(“the
at 222
U.S.C.C.A.N.
conferees do not
municipality
sure
once
allows the
intend that if a
or local government
State
enter,
provider
first
wireless
the munici
district,
grants
permit
a
in a
commercial
pality may
unreasonably
exclude sub
grant permit
must also
competitor’s
for a
sequent providers
similarly
who
wish to
district”).
50-foot
in a
tower
residential
competitive
enter and
create
market
The two communications towers that exist
Nextel,
telecommunications services. See
ed in Easttown at
the time of
Id. at 266. VI. equivalency Omnipoint function re significant por- dedicates a
lates to the telecommunications services
tion of its
brief to direct attack on Penn
entity provides
TCA,
than to
Township.
points
rather
the tech
It
to the
which
nical particularities
operations.
“pro-competitive,
seeks to create a
de-reg-
id. at
n.
Omnipoint
hold that
ulatory
policy
is
national
framework de-
functionally equivalent
signed
to the other tele-
rapidly
private
accelerate
sector
Omnipoint's argument
contrary
to the
fo-
rather "to determine whether there is sub-
ugliness
monopole previ-
cuses on the
of the
stantial evidence in the record as a whole to
ously
approved
placement
the ZHB for
at
support
challenged
decision.” Cellular
Berwyn
Company
Fire
and the relative
Adjustment
Tel. Co. v.
Bd.
granted
ease with which a variance was
Ho-Ho-Kus,
(3d
Borough
197 F.3d
Berwyn
that case. Even
Company
if the
Fire
I,
Cir.1999); Omnipoint
available VII. servicе will particular provider’s in a gap in the service available to involve or- Accordingly, Magistrate Judge’s the provider’s showing remote users. for the summary judgment granting der to include on issue will thus have this holding except as to its ZHB is affirmed facility new that the area the evidence significant gap in that there is no telecom- already by served an- serve is not will Township. in Easttown munications service provider. other Mag- to we remand the holding, As to this Second, applicant must also provider con- proceedings Judge for further istrate pro- which it show the manner in that opinion. Two-thirds sistent with this in service significant gap fill poses to appellant. against the the costs are taxed that on the values is the least intrusive This will sought to serve. the denial SLOVITER, Concurring. Judge, Circuit good faith ef- showing that a require a majority’s that the I have reservations identify and eval- made to fort has been remanding so evidence decision alternatives, e.g., intrusive uate less may Omnipoint users faced problems less sensi- provider has considered in the determination whether be included al- sites, system designs, alternative tive may not con- gap be significant there is a designs, placement tower ternative Pittsburgh holding in APT with our sistent structures, etc. existing on antennae (3d F.3d Township, 196 Ltd. v. Penn (footnote added) omit- (emphasis Id. at 480 Cir.1999). to who seeks every If licensee ted). were tower construct a communications precisely present to Omnipoint appears of the evi- compel recalculation to able by the above encompassed availability of situation wireless dence as Moreover, Township. in Penn language users services remote communications failed to raise spot in the fact have a dead its users principal in its gap calculation communications, Zoning issue of reply it for its brief and reserved brief Township Zoning Board did not
when opportunity suggests to answer
have the afterthought. It
that it was an is not clear gap as to the
whether this calcu- Magistrate
lation raised before the was *13 It
Judge at some time. was not raised at hearing and is considered his
comprehensive opinion.
Nonetheless, I concur because it is clear majority’s opinion
from the that on re- Township Zoning
mand the Board will opportunity challenge
have the Omni-
point’s calculations. the circum- Under
stances, urge Magistrate Judge I
give Township ample leeway to do so.
UNITED of America STATES THOMAS, Appellant
Luther
No. 02-2288. of Appeals,
United States Court
Third Circuit.
Argued Nov.
Filed Feb.
