VERIZON MARYLAND INC. v. PUBLIC SERVICE COMMISSION OF MARYLAND ET AL.
No. 00-1531
Supreme Court of the United States
Argued December 5, 2001—Decided May 20, 2002
535 U.S. 635
*Together with No. 00-1711, United States v. Public Service Commission of Maryland et al., also on certiorari to the same court.
Susan Stevens Miller argued the cause and filed a brief for respondent Public Service Commission of Maryland. Paul M. Smith, William M. Hohengarten, Michael B. DeSanctis, Darryl M. Bradford, John J. Hamill, Thomas F. O‘Neil III, William Single IV, and Brian J. Leske filed briefs for respondent MCI WorldCom, Inc., et al.†
†Lesley Szanto Friedman, Aidan Synnott, Martha F. Davis, Isabelle Katz Pinzler, Steven R. Shapiro, Karen K. Narasaki, Vincent A. Eng, Herbert Semmel, Marcia D. Greenberger, Dina R. Lassow, and Elliot M. Mincberg filed a brief for the NOW Legal Defense and Education Fund et al. as amici curiae urging reversal.
Briefs of amici curiae urging affirmance were filed for the State of Illinois by James E. Ryan, Attorney General, Joel D. Bertocchi, Solicitor General, A. Benjamin Goldgar and Michael P. Doyle, Assistant Attorneys General, Myra L. Karegianes, John P. Kelliher, and Thomas R. Stan-
JUSTICE SCALIA delivered the opinion of the Court.
These cases present the question whether federal district courts have jurisdiction over a telecommunication carrier‘s claim that the order of a state utility commission requiring reciprocal compensation for telephone calls to Internet Service Providers violates federal law.
I
The Telecommunications Act of 1996 (1996 Act or Act),
As required by the Act, the incumbent LEC in Maryland, petitioner Verizon Maryland Inc., formerly known as Bell Atlantic Maryland, Inc., negotiated an interconnection agreement with competitors, including MFS Intelenet of Maryland, later acquired by respondent MCI WorldCom, Inc. The Maryland Public Service Commission (Commission) approved the agreement. Six months later, Verizon informed WorldCom that it would no longer pay reciprocal compensation for telephone calls made by Verizon‘s customers to the local access numbers of Internet Service Providers (ISPs), claiming that ISP traffic was not “local traffic”1 subject to the reciprocal compensation agreement because ISPs connect customers to distant Web sites. WorldCom disputed Verizon‘s claim and filed a complaint with the Commission. The Commission found in favor of WorldCom, ordering Verizon “to timely forward all future interconnection payments owed [WorldCom] for telephone calls placed to an ISP” and to pay WorldCom any reciprocal compensation that it had withheld pending resolution of the dispute. Verizon appealed to a Maryland state court, which affirmed the order.
Verizon filed an action in the United States District Court for the District of Maryland, citing
The District Court dismissed the action, and a divided panel of the Court of Appeals for the Fourth Circuit affirmed. 240 F. 3d 279 (2001). The Fourth Circuit held that the Commission had not waived its immunity from suit by voluntarily participating in the regulatory scheme set up under the 1996 Act, and that the doctrine of Ex parte Young, 209 U. S. 123 (1908), does not permit suit against the individual commissioners in their official capacities. It then held that neither
II
WorldCom, Verizon, and the United States contend that
Verizon alleged in its complaint that the Commission violated the Act and the FCC ruling when it ordered payment of reciprocal compensation for ISP-bound calls. Verizon sought a declaratory judgment that the Commission‘s order was unlawful, and an injunction prohibiting its enforcement. We have no doubt that federal courts have jurisdiction under
The Commission contends that since the Act does not create a private cause of action to challenge the Commission‘s order, there is no jurisdiction to entertain such a suit. We need express no opinion on the premise of this argument. “It is firmly established in our cases that the absence of a
Verizon‘s claim thus falls within
And finally, none of the other provisions of the Act evince any intent to preclude federal review of a commission determination. If anything, they reinforce the conclusion that
III
The Commission nonetheless contends that the Eleventh Amendment bars Verizon‘s claim against it and its individual commissioners. WorldCom, Verizon, and the United States counter that the Commission is subject to suit because it voluntarily participated in the regulatory regime established by the Act. Whether the Commission waived its immunity is another question we need not decide, because—as the same parties also argue—even absent waiver, Verizon may proceed against the individual commissioners in their official capacities, pursuant to the doctrine of Ex parte Young, 209 U. S. 123 (1908).
In determining whether the doctrine of Ex parte Young avoids an Eleventh Amendment bar to suit, a court need only conduct a “straightforward inquiry into whether [the] complaint alleges an ongoing violation of federal law and seeks relief properly characterized as prospective.” Idaho v. Coeur d‘Alene Tribe of Idaho, 521 U. S. 261, 296 (1997) (O‘CONNOR, J., joined by SCALIA and THOMAS, JJ., concurring in part and concurring in judgment); see also id., at 298-299 (SOUTER, J., joined by STEVENS, GINSBURG, and BREYER, JJ., dissenting). Here Verizon sought injunctive and declaratory relief, alleging that the Commission‘s order requiring payment of reciprocal compensation was pre-empted by the 1996 Act and an FCC ruling. The prayer for injunctive relief—that state officials be restrained from enforcing an order in contravention of controlling federal law—clearly satisfies our “straightforward inquiry.” We have approved injunction suits against state regulatory commissioners in like contexts. See, e. g., Prentis v. Atlantic Coast Line Co., 211 U. S. 210, 230 (1908) (“[W]hen the rate is fixed a bill against the commission to restrain the members from enforcing it will not be bad... as a suit against a State, and will be the proper form of remedy“); Alabama Pub. Serv. Comm‘n v. Southern R. Co., 341 U. S. 341, 344, n. 4
The Fourth Circuit suggested that Verizon‘s claim could not be brought under Ex parte Young, because the Commission‘s order was probably not inconsistent with federal law after all. 240 F. 3d, at 295-297. The court noted that the FCC ruling relied upon by Verizon does not seem to require compensation for ISP traffic; that the Court of Appeals for the District of Columbia Circuit has vacated the ruling; and that the Commission interpreted the interconnection agreement under state contract-law principles. It may (or may not) be true that the FCC‘s since-vacated ruling does not support Verizon‘s claim; it may (or may not) also be true that state contract law, and not federal law as Verizon contends, applies to disputes regarding the interpretation of Verizon‘s agreement. But the inquiry into whether suit lies under Ex parte Young does not include an analysis of the merits of the claim. See Coeur d‘Alene, supra, at 281 (“An allegation of an ongoing violation of federal law... is ordinarily sufficient” (emphasis added)).
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We conclude that
It is so ordered.
JUSTICE O‘CONNOR took no part in the consideration or decision of these cases.
JUSTICE KENNEDY, concurring.
For the reasons well stated by the Court, I agree Verizon Maryland Inc. may proceed against the state commissioners in their official capacity under the doctrine of Ex parte Young, 209 U. S. 123 (1908). When the plaintiff seeks to enjoin a state utility commissioner from enforcing an order alleged to violate federal law, the Eleventh Amendment poses no bar. See Idaho v. Coeur d‘Alene Tribe of Idaho, 521 U. S. 261, 271 (1997) (principal opinion of KENNEDY, J., joined by REHNQUIST, C. J.).
This is unlike the case in Idaho v. Coeur d‘Alene Tribe of Idaho, supra, where the plaintiffs tried to use Ex parte Young to divest a State of sovereignty over territory within its boundaries. In such a case, a “straightforward inquiry,” which the Court endorses here, ante, at 645, proves more complex. In Coeur d‘Alene seven Members of this Court described Ex parte Young as requiring nothing more than an allegation of an ongoing violation of federal law and a
In my view, our Ex parte Young jurisprudence requires careful consideration of the sovereign interests of the State as well as the obligations of state officials to respect the supremacy of federal law. See Coeur d‘Alene, supra, at 267-280 (principal opinion of KENNEDY, J., joined by REHNQUIST, C. J.). I believe this approach, whether stated in express terms or not, is the path followed in Coeur d‘Alene as well as in the many cases preceding it. I also believe it necessary. Were it otherwise, the Eleventh Amendment, and not Ex parte Young, would become the legal fiction.
The complaint in this litigation, however, parallels the very suit permitted by Ex parte Young itself. With this brief explanation, I join the opinion of the Court.
JUSTICE SOUTER, with whom JUSTICE GINSBURG and JUSTICE BREYER join, concurring.
I join the Court‘s opinion, Part III of which rests on a ground all of us can agree upon:1 on the assumption of an Eleventh Amendment2 bar, relief is available under the doctrine of Ex parte Young, 209 U. S. 123 (1908). Although that assumption apparently has been made from the start of the litigation, I think it is open to some doubt and so write separately to question whether these cases even implicate the Eleventh Amendment.
One answer might be that even naming the state commission as a defendant in a suit for declaratory and injunctive relief in federal court is an unconstitutional indignity. But I do not see how this could be right. At least where the suit does not seek to bar a state authority from applying and enforcing state law, a request for declaratory or injunctive relief is simply a formality for obtaining a process of review. Cf. 4 K. Davis, Administrative Law Treatise 206 (2d ed. 1983) (“[T]he suit for injunction and declaratory judgment in a district court under
The only credible response, which Maryland to its credit advances, is that the State has a strong interest in any case where its adjudication of a federal question is challenged.8 See Supplemental Brief for Respondents MCI WorldCom, Inc., et al. 21-24. An adverse ruling in one appeal can no doubt affect the state commission‘s ruling in future cases. But this is true any time a state court decides a federal question and a successful appeal is made to this Court, and no one thinks that the Eleventh Amendment applies in that instance. See Cohens v. Virginia, 6 Wheat. 264, 412 (1821) (a writ of error from a state-court decision is not a “suit” under
