Oct 2009 Petition to FCC for Declaratory Rulings Re Section 47 USC 332 Preemption (licensee...
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Transcript of Oct 2009 Petition to FCC for Declaratory Rulings Re Section 47 USC 332 Preemption (licensee...
Before theFEDERAL COMMUNICATIONS COMMISSION
Washington, D.C.20554
In the Matter of
Skybridge Spectrum Foundation, a nonprofitcorporation, and supporting companies:Intelligent Transportation & MonitoringWireless LLC, Environmentel LLC, VerdeSystems LLC, and Telesaurus Holdings LLC(each FCC licensees):
Petition for a declaratory ruling whether theCommunications Act including $332, or thejurisdiction of the Federal CommunicationsCommission, preempts State or Federal courtjurisdiction and awarding of monetary damagesand other action sought by one CMRS or PMRSservice provider against another, for violationof State or Federal antitrust law, tort law, andcertain other law.
(The first of two independent but related,concurrently-submitted petitions under 47 CFR$1.2. )
To the Commission
Public Notice
PETITION FOR DECLARATORY RULINGS
ocT r{N$r€dsndffi&olffiWffiff**
For Petitioners:Wanen C. Havens2649 Benvenue AvenueBerkeley C494704Phone: 510.841.2220. Fax: 510 7 40 3412
Nossaman LLPPatrick J. RichardSophie N. Froelich50 California Street. 34th FloorSan Francisco, CA 94lllPhone: 415.438.7278. Fax: 415.398.2438
October 14,2009
Before the
FEDERAL COMMUNICATIONS COMMISSION
Washington, D.C. 20554
In the Matter of
Skybridge Spectrum Foundation, a nonprofit
corporation, and supporting companies:
Intelligent Transportation & Monitoring
Wireless LLC, Environmentel LLC, Verde
Systems LLC, and Telesaurus Holdings LLC
(each FCC licensees):
Petition for a declaratory ruling whether the
Communications Act including §332, or the
jurisdiction of the Federal Communications
Commission, preempts State or Federal court
jurisdiction and awarding of monetary damages
and other action sought by one CMRS or PMRS
service provider against another, for violation
of State or Federal antitrust law, tort law, and
certain other law.
(The first of two independent but related,
concurrently-submitted petitions under 47 CFR
§1.2.)
Docket ___________________
Public Notice ______________
To the Commission
PETITION FOR DECLARATORY RULINGS
For Petitioners:
Warren C. Havens
2649 Benvenue Avenue
Berkeley CA 94704
Phone: 510.841.2220. Fax: 510 740 3412
Nossaman LLP
Patrick J. Richard
Sophie N. Froelich
50 California Street, 34th Floor
San Francisco, CA 94111
Phone: 415.438.7278. Fax: 415.398.2438
October 14, 2009
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TABLE OF CONTENTS
THE TWO PETITIONS
1.1
1.2
1.3
1.4
Introduction and Summary ..........................................................................
Request to Place on Public Notice with Pleading Cycle and with
Statement of Intent to Issue a Decision .......................................................
Petition 1: Parties, Questions Posed (Matters in Controversy in Pending
Court Cases, and Similar Conflicts in Other Case Law), and Rulings
Requested.....................................................................................................
Petition 2: Parties, Questions Posed (Matters in Controversy in Pending
Court Cases, and Similar Conflicts in Other Case Law), and Rulings
Requested.....................................................................................................
4
7
8
12
PETITION 1
BACKGROUND and NEED
2.2
2.2
2.3
2.4
Immediate and Nationwide Importance:
Need to Extend the Commission’s Declaratory Ruling
Wireless Consumers Alliance (2000) 15 FCC RCD 17021 to Its Basis:
Fair Competition Among Competitors Providing Consumer Wireless
Services........................................................................................................
The FCC Can Issue the Requested Ruling Without Delving Into Facts of
Petitioners’ Pending State and Federal Court Litigation .............................
The Requested Ruling Will Provide Needed Guidance Including Under
“Chevron Deference” to Allow Proper Actions in and Limit Misguided
Decisions by State and Federal Trial and Appellate Courts, and Reduce
Competitor Proceedings and Hearings Before the FCC..............................
To Sharpen the Needed Guidance, the Requested Ruling Order Should
Find that the FCC Should State, in Opinions and Orders on Challenges
by an FCC Licensee against Another (including a Petition to Deny, or a
Petition to Revoke), What (if Any) FCC Rules, Communication Act
Sections, and/or FCC Orders Were Violated, Especially for the Private-
Rights-of-Action Purposes of §§ 206, 206, and 401(b) of the Act., but
also for the Antitrust-Law Purposes of §§ 152 Note, 313 and 314, and the
General, State-Law-Action Savings Purpose of § 414 ................................
12
13
13
14
- 3 -
ARGUMENT
3.1
3.2
3.3
3.4
Summary Argument ....................................................................................
The FCC Findings of Lack of Preemption in Wireless-Consumer Actions
in In Re Wireless Consumers Alliance (“WCA”). Said Findings Remain
Valid, Are Required Under Recent US Supreme Court Authority, and
Are the Basis of this Petition.......................................................................
Substantially Deregulated Competitive Consumer Wireless, a Goal of the
Telecom Reform Act and the Commission, Can Result Only from Fair
Competition Among Competitors ...............................................................
Building Upon WCA, Findings Here of Non Preemption Are Required to
Allow State and Federal Court Actions to Police Unfair Competition, as
Congress Intended and as Supreme Court Rulings Mandate ......................
15
17
19
19
EXHIBITS - From and describing court cases giving rise to the Questions posed .........
- 4 -
THE TWO PETITIONS
1.1
Introduction and Summary
This Petition filed October 14, 2009 is the same as the Petition Petitioners filed on
October 13, 2009 except for erratum changes and several additions that Petitioners determined
were appropriate to make. This October 14th
filed Petition is being served, not the October 13th
version, to the parties on the Certificate of Service.
A summary is provided by the descriptive section headings in the table of contents.
To make the Petition more readable, only the Argument section below is double
spaced.
Petitioners
Skybridge Spectrum Foundation (“SSF”) is a Delaware nonprofit corporation
organized and operated exclusively to support the wireless operations and public-benefit
objectives of US federal, state and local government with regard to Intelligent Transportation
Systems (“ITS”), environmental monitoring and protection (“Environment”), and other high
public interest wireless, in accord with § 501 (c) (3) of the Interval Revenue Code.
SSF hold FCC geographic licensees in most of the nation in the AMTS (217-220
MHz), 220 MHz, and M-LMS 900 MHz radio services. SSF obtained its FCC licenses by
outright charitable donations assignments, by disaggregation and partitioning, from
Environmentel LLC, Intelligent Transportation & Monitoring Wireless LLC, and Verde Systems
LLC (each of which assigned AMTS spectrum), and Telesaurus Holdings GB LLC (which
assigned M-LMS spectrum) (the “Four LLCs,” each majority owned and managed by Warren
Havens), and by Warren Havens individually (“Havens”) (who assigned 220 MHz spectrum)
(the Four LLCs and Havens together, the “SSF Supporters”) (SSF and the SSF Supporters also
called “Petitioners”).1
SSF and the SSF Supporters together hold from 6 to 9 MHz of geographic exclusive
sub-GHz licensed spectrum in most all of the nation. They are planning and developing
nationwide wireless for ITS and Environment, based on this spectrum, where the most essential
services for public safety and infrastructure efficiency will be provided at no charge to the
government and private sector end users. They have presented these matters to the FCC, NTIA,
1 Verde Systems LLC, Telesaurus Holdings GB LLC, and Havens also each hold certain VPC
licenses that are dedicated to use in the plan described herein, and until that time, are made
available, with the associated radio equipment, for use on a nonprofit basis to public safety
responders in the subject license areas in and near major Western US forests (in the States of
Arizona, New Mexico, Texas, Nevada, California - Sierra Mountains, Nebraska and North
Dakota). These VPC licenses are also noted here as some of them involve the Radiolink court
case, now before the US Ninth Circuit, described in Exhibits 3 and in the text below.
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US DOT and other Federal agencies, many State agencies, and wireless trade associations since
the year 1999.2
In pursuit of this plan, SSF and SSF Supporters filed three court cases against FCC
licensees (and their controlled and controller entities) listed and shown (by some pleadings and
court decisions) in Exhibits 1-3 hereto (the “Three Court Cases”). The named Defendants are all
FCC licensees and alleged licensed operators, and certain affiliates: Paging Systems Inc., and its
affiliate Touchtel, Inc. (together, “PSI”), Maritime Communications / Land Mobile LLC and its
(or one of its) predecessor(s) in interest, Mobex (together, “MCLM”); and Radiolink and Randy
Powers (together, “Radiolink”).
Each Petitioner is a FCC licensee, and PSI, MCLM and Radiolink are also each FCC
licensees.
The Three Court Cases
Each of the Three Court Cases is pending and not final, but in two courts reached
decisions dismissing Petitioners claims, and those decisions are now on appeal.
See Exhibits 1-3 below, and the Exhibits cover pages: these list and attach copies of
the Complaints, the court decisions dismissing the two of the cases’ Complaints, and pleadings
of Petitioners before the appeals courts.
Each of the Three Court Cases involve, in sum: Complaints filed in State or US
District Court, by all or some of Petitioners, against one or more of PSI, MCLM, and Radiolink
asserting some of the following (all of the following in the Three Court Cases together):
(a) as bases for some of the damage claims, and injuctive relief sought: (i)
violation of certain State laws, (ii) violation of FCC rules shown in FCC decisions that are final
(including no longer subject to any timely appeal), (iii) violation of FCC orders, including rules
that are “orders” under 47 USC §401(b), (iv) (in the two US District Court cases:) violation of
sections of the Communications Act (47 USC) as described in §§ 206 and 207 of the Act.
(b) damage claims regarding: (i) violation of Federal or State (California)
antitrust law, (ii) intentional interference with contracts, (iii) conversion, (vi) interference with
prospective economic advantage, (v) unjust enrichment, (vi) fraud, (vii) negligent
representation), and other torts.
(c) (in the US District Court case in New Jersey:) injunctive relief under 47 USC
§401(b) for violation of FCC orders.
2 In addition, SSF with assistance of the SSF Supporters are active in the development and
introduction of advanced wireless technology and equipment for the US private or professional
radio markets. See, for example, their website: www.tetra-us.us. This work is pursued on a
nonprofit public interest basis by SSF for reasons reflected in the just-cited website.
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Decisions by Trial Courts, Now on Appeal
These are provided in the Exhibits.
In sum, the California trial court and Court of Appeal found and upheld dismissal, and
the US District Court in Arizona (in the Radiolink case) dismissed the Complaint, since the
Complaint dealt with FCC licensees and FCC license matters, taking extremely broad view of
FCC and federal preemption, that appears to be forms of implied conflict or field preemption.
When even the fundamental elements of the Complaints, pleadings, and law on FCC
preemption are considered, the preceding is a fair summary of these decisions, despite the
decisions attempts to cast the findings and conclusions as good law, including consistent with the
Communications Act.
These decisions, made on motions to dismiss or demurrer (not summary judgment) (i)
broke with the FCC decision in Wireless Consumers Alliance (WCA), (ii) are at odds with US
Supreme Court authority on federal agency preemption (including Altria Group Inc. v. Good,
129 U.S. 538, 543 (2008), (iii) misinterpreted and misapplied other applicable authority on FCC
and federal preemption, (iv) misconstrued, by Defendant assertions, basic FCC rules and
decisions (on the basis of “judicial notice”). The decisions also badly misconstrued essential
facts asserted in the Complaints, creating straw-man arguments and defenses of the decisions,
and had other defects for decisions on motions to dismiss or demurrer.
These decisions and the direction of FCC preemption case law that these California
and Federal courts appears to seek, and in any case establish, with regard to excessively broad
FCC preemption, pose serious danger to the proper limits of FCC preemption, and thus to fair
competition among FCC licensees and thus to robust and fair wireless services to the public and
private markets.
The Two Petitions to the FCC
As further explained below, these Three Court Cases have created important cases in
controversy with regard to Sections of the Communications Act and FCC Rules based on which
this Petition for Declaratory Ruling (“Petition 1”), and Petitioners’ concurrently (in the same
week) filed independent but related other petition for declaratory ruling (“Petition 2”), are
presented and should be addressed.
Other, broader, similar controversy in case law across the nation, reflected in
Petitioners’ pleadings and court decisions in Exhibits 1-3, pertaining to the same Sections further
justify Commission decision on this Petition are also discussed below.
This filing is Petition 1.
Petition 2 is a Petition for declaratory ruling whether a FCC declaratory ruling
(“Ruling”) on preemption under § 332 of the Communications Act or otherwise under FCC
jurisdiction (including any Ruling under the this Petition 1) and other declaratory Rulings, that
apply to one or more FCC licensees subject of the Ruling is an “order” under §401(a) and (b) of
the Act and thus subject to US District Court injunctions to comply with the Ruling.
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1.2
Request to Place on Public Notice with Pleading Cycle
and with Statement of Intent to Issue a Decision
Due to the importance of the matters presented, Petitioners request that the FCC place
this Petition 1, and Petition 2, on Public Notice for comments and reply comments by interested
parties including PSI, MCLM, and Radiolink, various other licensees that may be affected by
Commission rulings on the Petitions, as well as organizations that may be interested such as
those who commented on the WCA petition. See attached Certificate of Service.
Placing the Petition on Public Notice with a pleading cycle will also establish a more firm
basis for the rulings on the Petition to receive “Chevron deference.” Chevron U.S.A., Inc. v.
Natural Resources Defense Council, Inc., 467 U.S. 837 (1984) (“Chevron”). See Cass R.
Sunstein, "Chevron Step Zero," 92 Va. L. Rev. 187 (2006).
In addition, Petitioners will be submitting filings in the near future in the Three Court
Cases (again, see Exhibits 1-3)-- in the US Ninth Circuit Court (in the case of Petitioners verses
Radiolink) and in the California Court of Appeals (in the case of Petitioners verses PSI and
MCLM)3 (and likely later in the case of Petitioners vs. PSI and MCLM in the US District Court
in New Jersey)—requesting that those courts take certain actions and adopt scheduling so that
they may have the opportunity to consider the guidance from the Commission provided in
rulings on the Two Petitions, as well as for potential injunctions under Section 401(b) of the
Communications Act that may arise based upon said rulings.
For the purpose of these submittals to the Ninth Circuit and the California Court of
Appeals, and generally due to the importance of the Questions presented for Commission
rulings, Petitioners request that in placing the Two Petitions on Public Notice, the FCC indicate
that it plans to rule on the Two Petitions reasonably soon after the pleading cycle has ended.
3 And probably later in the case of Petitioners verses PSI and Mobex in the US District Court in
New Jersey.
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1.3
This Petition 1:
Parties,
Questions Posed
(Matters in Controversy in Pending Court Cases, and Similar Conflicts in Other Case Law),
And Rulings Requested
The Parties directly subject of Petition 1 are Petitioners on one side, and PSI, MCLM,
and Radiolink on the other side.
The matters in controversy involve the following questions for which Petitioners seek
declaratory rulings by the Commission (the “Questions”).4
Questions involving State court actions:
1. Can any litigation in or decision of a State Court, simply by being litigation
(not considering the claims presented and relief sought), constitute “State or
local government…authority to regulate the entry of or the rates charged” as
meant in the Communications Act § 332(c)(3)(A), or otherwise be preempted
by FCC jurisdiction?
Requested ruling in summary:
(i) No.
(ii) Remedy for a FCC licensee who believes any State court
litigation or decision does or may create such §332-prempted regulation:
Petition the FCC for a preemption order (and enforce said order if needed,
as to the other party in the litigation, by an injunction under
Communications Act §401(b): see Petition 2).
If the answer to question 1 is Yes, then:
2. (a) Can any litigation in a State Court claims of violation of State antitrust
law (including California’s Cartwright Act) be preempted under the
Communications Act § 332(c)(3)(A), or otherwise be preempted by FCC
jurisdiction?
(b) If so, which classes of said claims are preempted and which are not?
Requested ruling in summary:
(a) No.
(b) (Answer not relevant if answer to ‘(a)’ is “No.”)
4 In the Questions, unless otherwise provided in the context, the singular and plural forms of
words such as “claim” and “claims” and associated verbs are meant to covey the same meaning
for purposes of the Questions.
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If the answer to question 1 is Yes, then:
3. (a) Can any litigation in a State Court on claims of violation of State law
other than State antitrust law, including tort and contact law, that do not
challenge or tread upon any FCC decision or decision making authority
under the Communications Act and FCC rules, be preempted under the
Communications Act § 332(c)(3)(A), or otherwise be preempted by FCC
jurisdiction?
(b) If so, which classes of said claims are preempted and which are not?
Requested ruling in summary:
(a) No.
(b) (Answer not relevant if answer to ‘(a)’ is “No.”)
If the answer to question 3(a) is Yes, then:
4. (a) Can any litigation in a State Court on claims of violation of State law
other than State antitrust law, including tort and contact law, that do not
challenge or tread upon but are based on orders or decisions of the FCC that
are final (including no longer subject to any timely appeal thereof)—
including license revocation, termination,5 or cancellation, and license-
application decisions-- be preempted under the Communications Act §
332(c)(3)(A) (including by being construed as a form of regulation of market
“entry”), or otherwise be preempted by FCC jurisdiction?
(b) If so, which classes of said claims are preempted and which are not?
Requested ruling in summary:
(a) No.
(b) (Answer not relevant if answer to ‘(a)’ is “No.”)
Questions involving US District Court actions:
5. (a) Can any litigation in a US District Court on claims of violation of federal
antitrust law be preempted by any form of FCC preemption (including any
implied conflict or field preemption)?
(b) If so, which classes of said claims are preempted and which are not?
Requested ruling in summary:
(a) No.
(b) (Answer not relevant if answer to ‘(a)’ is “No.”)
5 Including automatic license terminations without specific Commission actions as provided for
in FCC rules §§ 1.955(a)(1)-(3), and § 1.946(c), and related radio-service specific rules regarding
required coverage and service by license construction deadlines.
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6. (a) Can any litigation in a US District Court on a claim under the
Communications Act §§ 206 and 207, or injunctive relief sought under
§401(b), that does not challenge or tread upon but is based on orders or
decisions of the FCC that are final (including no longer subject to any timely
appeal thereof)—including license revocation, termination,6 or cancellation,
and license-application decisions-- be preempted by any form of FCC
preemption (including any implied conflict or field preemption)?
(b) If so, which classes of said claims are preempted and which are not?
Requested ruling in summary:
(a) No.
(b) (Answer not relevant if answer to ‘(a)’ is “No.”)
7. (a) Can any claims in a US District Court of violation by a FCC licensee of
an FCC “order,” as that term is used in the Communications Act § 401(b),
for the purpose of an injunction from the court under that Section, be
preempted by any form of FCC preemption (including any implied conflict
or field preemption)?
(b) If so, which classes of said claims are preempted and which are not?
Requested ruling in summary:
(a) No.
(b) (Answer not relevant if answer to ‘(a)’ is “No.”)
8. (a) Is an entity a “common carrier” as that term is used in the
Communications Act §§ 206 and 206, where (i) said entity obtains and
maintains a FCC license for radio spectrum by error --(by any means, and
with or without fraud or gross negligence), such as spectrum already lawfully
and exclusively licensed to another entity, and (ii) said spectrum is
specifically classed as common carrier CMRS in § 20.9(a) of the FCC rules
and is also described in §20.9(b) (i.e., VPC, AMTS, and PCS) and the entity
did not obtain FCC approval of an application and certification under said §
20.9(b) for PMRS-only regulatory classification?
(b) Similarly, is an entity holding radio spectrum listed in §20.9(a) as CMRS
under a FCC license that lists said spectrum as PMRS only (with or without
also listing as PMRS, spectrum that is classed as PMRS in FCC rules or by
6 Including automatic license terminations without specific Commission actions as provided for
in FCC rules §§ 1.955(a)(1)-(3), and § 1.946(c), and related radio-service specific rules regarding
required coverage and service by license construction deadlines.
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FCC waiver or other FCC decision) presumptively a “common carrier” as
that term is used in the Communications Act §§ 206 and 207, where said
presumption prevails unless the entity successfully rebuts it in any legal
action taken against the entity under said §§ 206 and/ or 207?
Requested ruling in summary (see relevant Argument section below):
(a) Yes.
(b) Yes.
Questions involving State or US District Court actions:
9. For an entity to pursue—
(a) claims that are not preempted by the Communications Act §
332(c)(3)(A) or otherwise preempted by FCC jurisdiction, of violation of
State law in a State court or US District Court that are based on violation by
the defendant of a section of the Communications Act, a FCC rule, or a FCC
order, or
(b) claims in a US District Court under the Communications Act §§
206, 207, or 401(b) that are based on violation by the defendant of a section
of the Communications Act, a FCC rule, or a FCC order (where said section,
rule, or order are among those based on which private rights of action are
permitted by §§ 206, 207, or 401(b))—
does the FCC first have make a decision (final or not) (i) that the defendant
violated the subject section, rule, or order and (ii) that such violation was
“wrongful” (“wrongful” here meaning a material violation that was
deliberate, by gross negligence, repetitive, or otherwise of a nature that may
subject the violator to sanctions by the FCC)?
Requested ruling in summary:
(a)+(i), and (a)+(ii): No, and No.
(b)+(i), and (b)+(ii): No, and No.
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1.4
Petition 2:
Parties,
Questions Posed
(Matters in Controversy in Pending Court Cases (and Similar Conflicts in Other Case Law),
and Rulings Requested
The Parties directly subject of Petition 2 are Petitioners on one side, and PSI and
MCLM on the other side. Radiolink may be an interested party also.
In Petition 2: the Questions posed, similar conflicts in other cases, requested rulings
requested are described and the exhibits provided in Petition 2. The essential question is stated
at the end of Section ‘(i)’ above.
BACKGROUND and NEED
2.1
Immediate and Nationwide Importance:
Need to Extend the Commission’s Declaratory Ruling
Wireless Consumers Alliance (2000) 15 FCC RCD 17021
to Its Basis: Fair Competition Among Competitors Providing
Consumer Wireless Services
The need for the Declaratory Rulings requested herein is indicated in the preceding
sections, and a review of the court documents and decisions in the Exhibits. In addition:
The Commission’s decision in Wireless Consumers Alliance (2000) 15 FCC RCD 17021)
(“WCA”) arose out of and dealt principally with consumer tort claims against FCC licensed
operators in State courts and is generally cited for that purpose in court litigation and decisions.
However, claims by a FCC licensees against another FCC licensee for violation of State
tort law such as involved in each of the Petitioners’ Three Court Cases (see Exhibits 1-3),
including but not limited to fraud, interference with prospective economic advantage,
interference with contracts, and conversion, should be similarly addressed by the Commission.
In this regard, in addition to the unsettled issues in Petitioner’s Three Court Cases which
give rise to the questions set forth above, there are many other similar conflicts and unsettled
issues created in court cases and decisions across the nation. See cases cited in the court
pleadings and decisions in Exhibits 1-3.
As argued below, without FCC licensee competitors having clear rights to police each
other by State court actions of the nature of these Three Court Cases, competition to serve
consumers of wireless services (CMRS and PRMS) will suffer even if they have access to courts
as decided in WCA.
- 13 -
Congress’s and the FCC’s substantial deregulation of commercial wireless in the 1990s
increased the need for this policing: the “flip side” of federal deregulation of a market is robust
access to courts for action under State laws protecting fair competition and contracts.
2.2
The FCC Can Issue the Requested Ruling Without Delving Into
Facts of Petitioners’ Pending State and Federal Court Litigation
While the Questions presented are each based on matters in controversy in Petitioners’
Three Court Cases (see Exhibits 1-3), responding to the Questions does not require delving into
or verifying facts in any of the Three Court Cases.
Rulings on the Questions presented will satisfy the purposes of the Petition including to
give needed guidance to the courts, the parties currently involved in the Three Court Cases, and
FCC licensees and other entities that may in the future bring State or Federal court actions on
matters addressed by the rulings.
2.3
The Requested Ruling Will Provide Needed Guidance
Including Under “Chevron Deference” to
to Allow Proper Actions in and Limit Misguided Decisions
by State and Federal Trial and Appellate Courts,
and Reduce Competitor Proceedings and Hearings Before the FCC
First, see Section “(ii)” above with regard to placing this Petition on Public Notice
including so that FCC rulings on the Questions presented will be clearly accorded “Chevron
deference” by courts.
The decisions in Petitioners Three Court Cases to date (see Exhibits 1-3), and cases cited
and misconstrued therein, demonstrate the need for the FCC to provide rulings on the Questions
presented herein.
The need is further made clear by the current status of two of the Three Court Cases
which require in the near future guidance from the requested rulings is to provide guidance to the
California appeals court and possibly soon the California Supreme Court, and to the Ninth
Circuit: see third paragraph and three subjections of Section 2.1.1 below.
In addition, the Questions posed in Petition 2 (filed and served the same week as this
Petition 1), summarized at the end of Section “(i)” above, involve one practical means—US
District Court injunctions under the Communications Act §401(b) enforcing FCC orders-- of
providing force of law to the Declaratory Rulings order on the Questions posed in this Petition 1.
Without providing this guidance, FCC licensees (including Petitioners and the defendants
in Petitioners’ Three Court Cases) and others will pursue far more issues before the FCC than
they would if this guidance is provided, and especially if the guidance is in accord with WCA and
other authority that properly interprets and applies FCC preemption and jurisdiction.
- 14 -
2.4
To Sharpen the Needed Guidance, the Requested Declaratory Ruling Order Should Find
that the FCC Should State, in Opinions and Orders on Challenges by an FCC Licensee
against Another (including a Petition to Deny, or Petition to Revoke),
What (if Any) FCC Rules, Communication Act Sections, and/or FCC Orders Were Violated,
Especially for the Private-Action-Rights Purposes of §§ 206, 206, and 401(b) of the Act,
but also for the Antitrust-Law Purposes of §§ 152 Note, 313 and 314,
and the General, State-Law Action Savings Purpose of § 414
One of the Questions posed above, Question 9, seeks a ruling related to the above
captioned topic, which Petitions believe should be answered, that a preliminary decision by the
FCC determining liability or wrongfulness is not a prerequisite for the described court actions to
proceed.
However, defendants in Petitioners’ Three Court Cases (see Exhibits 1-3) make
assertions, and several of the judges involved in those cases give indications, that unless the FCC
has previously identified violations as described in the caption above, the court action lacks
foundation. Also, it is likely that in other cases, past and future, similar defensive assertions and
judicial indications and doubts will arise.
Thus, Petitioners ask that in response to this Petition, the FCC make the finding requested
in the caption above.
In sum, without that finding and FCC practice under that finding, the above-cited
Communication Act sections will have considerably less practical utility, and court litigation
pursuant to those sections will be less efficient, leading ultimately to less robust, timely, and
competitive communications services to the public and private markets.
- 15 -
ARGUMENT
More detailed and additional arguments and authority than provided in this Argument
section below are provided in Petitioners pleadings included in Exhibits 1-3 hereto. In addition,
the pleadings filed in the in support of the petition by WCA in the WCA docket, WT Docket No.
99-263, found on the FCC ECFS website provide additional relevant materials.
3.1
Summary Argument
3.1.1. Argument building upon essential conclusions in WCA.
As this Commission has previously held: “Section 332 does not generally preempt the
award of monetary damages by state courts” based on state tort or contract claims. In re Wireless
Consumers Alliance Inc. 15 FCCR 17021 (2000).
Mobile service providers who have harmed consumers or competitors, however,
increasingly argue that the Federal Communications Act was intended to severely limit -- or all
together preclude!-- judicial relief in the form of compensatory damages.
See Exhibits 1-3 hereto: Based on assumed broad FCC preemption:
(i) In the recent unpublished decision in Havens, et al. v. Mobex
(September 25, 2009) (see Exhibit 1 hereto),7 the California appellate court affirmed dismissal of
all plaintiff’s claims for damages, even those claims based on the FCC’s revocation and
cancellation (by final action) of licenses that defendants maintained after their automatic
termination, and even claims unrelated to the issuance or revocation of any license.8
7 See also Exhibit 4 for a discussion of other court decisions that call for Commission response
to the questions raised in this Petition 1 and the concurrently filed Petition 2.
8 Appellants have submitted, o the same day as this Petition is filed with the FCC, a petition for
rehearing of this decision, and if that is not granted and the decision reversed, they intend to file
an appeal to the California Supreme Court. (This footnote continues on the next page.)
One of the grounds asserted for rehearing is so that the court may consider the FCC’s ruling
on this Petition, if that is timely rendered. Similarly, if an appeal is submitted to the California
Supreme Court, the FCC’s ruling will be of importance.
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(ii) In its decision in Telesaurus VPC v. Randy Power et al, the Arizona US
District Court dismissed all claims for damages, even those based on federal law under sections
206 and 207 of the Federal Communications Act (“FCA”).
(iii) In defendants motion to dismiss in Skybridge Spectrum Foundation et.
al. v. PSI and MCLM in the NJ US District Court, PSI and MCLM argue (relying in part on the
three decisions noted in this paragraph above and provided in Exhibits 1-3) that all of Petitioners’
state law claims, of a similar nature as those in Havens, et. al. v. Mobex, are preempted, and also
that their claims under FCA §§ 206, 207, and 401(b) are also fully preempted (other grounds for
dismissal are also asserted not relevant to this FCC Petition).
A declaratory ruling is therefore urgently needed to reaffirm and extend the
Commission’s declaratory ruling in In re Wireless Consumers Alliance Inc. to hold that the
principles set forth in that declaratory ruling, which are entirely consistent with and indeed
required by recent U.S. Supreme Court authority as to preemption of state law claims, apply with
equal force to state law claims related to “market entry” as well as “rate setting.”
3.1.2. Argument for new premise for non-preemption than assumed in WCA.
However, for reasons given in the remainder of this Section 1.1 below, and as
reflected in Question 1 posed above, while Petitioners believe the Commission reached
essentially correct conclusions in WCA, they believe the Commission erred in not commencing
by finding that no State court action or action under State law claims in a State or Federal court,
As reflected in part in the certificate of service, Petitioners also are seeking comment by the
office of the California Attorney General on this FCC Petition, for reasons similar to why this
Attorney General office commented in support of the petition in WCA.
California is the State with the most commercial and private wireless in the nation, and
resolving the issues of this Petition for Declaratory Ruling in the California courts, and also in
the Ninth Circuit, will set important precedents for the nation.
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can constitute regulation by State or local government as meant in the Communication Act
§332(c)(3)(A).
For purposes of this Section 2.1.1, Petitioners refer to and incorporate Section II of
the Comments Of Public Citizen, Inc. On The Petition Of The Wireless Consumers Alliance,
Inc., in WT 99-263, dated September 10, 1999 (available on the FCC ECFS, thus not attached
here).
In this regard, Petitioners have asserted in their pleadings in the Three Court Cases
(see Exhibits 1-3 hereto) similar arguments in shorter form, the decisions in these cases to date
have not addressed or accepted these threshold arguments.
While these and other court decisions have found otherwise, the FCC should, as the
expert in this matter, address that threshold question and by such provide expert agency guidance
to court under “Chevron deference.” Chevron U.S.A., Inc. v. Natural Resources Defense
Council, Inc., 467 U.S. 837 (1984) (“Chevron”). In this regard, see section “(ii)” above
regarding the importance of placing this Petition on Public Notice with regard to Chevron
deference.
3.2
The FCC Findings Of Lack Of Pre-Emption In Wireless Consumer Actions In
In Re Wireless Consumer’s Alliance.
Said Findings Remain Valid, Are Required Under Recent
US Supreme Court Authority, and Are the Basis of This Petition
Section 332(c)(3)(A) provides an express preemption clause that provides that states
may “regulate the market entry of or the rates charged by any commercial or private mobile
service provider.”
The Wireless Consumer’s Alliance declaratory ruling arose out of a state court
decision in California to dismiss plaintiff’s claims for damages on the basis that those claims
related to rate-setting and were therefore preempted.
- 18 -
The Commission, however, appropriately reviewed the precise language of section
332, which only prevents a state from “regulating” rate setting or market entry, not all claims for
that might related to rates or market entry.
Unless a claim for damages under state law “directly” challenges an FCC
determination as to rates or market entry, the claims based on state tort or contract law are simply
not “regulation.” Only claims that “directly” tread upon a specific area reserved to the FCC,
therefore, fall within the statute and will be preempted.
Armed with the Commission’s guidance in Wireless Consumer’s Alliance, the state
appellate court, in the dispute giving rise to that petition for a declaratory ruling, reversed the
trial court’s dismissal. The Court relied on the declaratory ruling to hold that claims alleging
false advertising with respect to rates charged by an FCC licensed service provider were not
preempted and could therefore proceed. (Spielholz v. Superior Court (2001) 86 Cal.App.4th
1366)
That court properly recognized a “presumption against preemption.” (Id. at 1072)
The United States Supreme Court, recognizing the constitutional basis of state law
claims for damages under the traditional police powers, recently held that courts interpreting a
pre-emption clause susceptible of more than one plausible reading should accept the reading that
“this disfavors preemption.” (Altria Group Inc. v. Good, 129 U.S. 538, 543 (2008). In addition,
see Section 1.5 above.
Under the language of Section 332, there is no basis to provide a different standard for
claims relating to “market entry” as distinguished from claims relating to “rate setting.” In both
cases there should be a “presumption against preemption.” In neither case should a state law
claim for damages be deemed to be tantamount to state “regulation” unless the state court claim
- 19 -
directly challenges or seeks to “second guess” an FCC decision regarding regulation of rates or
market entry in telecommunications.
More detailed and additional arguments and authority are provided in Petitioners
pleadings included in Exhibits 1-3 hereto.
3.3
Substantially De-Regulated Competitive Consumer Wireless,
A Goal of the Telecom Reform Act, and the Commission,
Can Result Only drom Fair Competition Among Competitors
As one commentator has explained,
FCC preemption is not complete or total. … The deregulation laws that
eliminated specific federal acceptance of telecommunications company tarrifs has
created a much larger role for state law, and this fact is sufficient to preclude a
finding that Congress intended completely to occupy the field, following the 1996
Act. But the scope of post-deregulation preemption is fragmented with diverging
court opinions, and requires a particularized examination in each setting.
O’Reilly, J., Federal Preemption of State and Local Law: Legislation, Regulation and
Litigation, Ch. 11, p. 100 (ABA 2006) (citations omitted); see, also, Wireless Consumer’s
Alliance, 15 F.C.C. R.C.D. at 17022, ¶ 2.
Petitioners will submit additional arguments and authority on this section’s topic in a
pleading if this Petition is placed on Public Notice with a pleading cycle, or in a supplement to
this Petition.
3.4
Building upon WCA,
Findings Here of Non Pre-Emption Are Required
To Allow State and Federal Court Actions to Police Unfair Competition,
As Congress Intended and as Supreme Court Rulings Mandate
Because the defendants here and in other cases, who engage in (or are with good cause
accused of engaging in) unfair anti-competitive conduct, damaging to plaintiffs and the markets
involved, continue to argue that the Federal Communications Act provides broad preemption, a
declaratory ruling rejecting this erroneous position, now adopted by some courts, and on appeal
in both the California courts and the US Ninth Circuit court, is called for.
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Public policy is thwarted, not served, by the broad and erroneous application of pre-
emption adopted by some courts, including the Congressional policy mandate to the FCC of
licensing and regulating / deregulating wireless communications “in the pubic interest,
convenience, and necessity.”
[The rest of this page is intentionally left blank.]
- 21 -
Respectfully submitted, this 14th day of October, 2009
PETITIONERS, as defined above, by
Warren C. Havens
President of each Petitioner
/s/
Patrick J. Richard, Esq.
Nossaman LLP
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Exhibits
List of Exhibits
Note: Among the Petitioners, “AMTS Consortium LLC” listed in some documents below is now
called “Environmentel LLC,” and “Telesaurus VPC LLC” listed in some documents below is
now called “Verde Systems LLC.” These LLCs obtained and filed new names with the State of
Delaware in early 2009.
Exhibits 1 are regarding the case (of the “Three Court Cases”) now in the California Court of
Appeal on a petition for rehearing and stay, and that, if said petition is not granted and the
decision upholding dismissal is not reversed, will be appealed to the California Supreme Court.
This case involves:
(1) Havens et al., v. Mobex Network Services, et al., Case No. CIV-463985 in the Superior Court
of the State of California for the County of San Mateo and
(2) Appeal, Case No. A122489, In the Court of Appeal of the State of California First Appellate
District, Division One, regarding San Mateo County Super. Ct. No. CIV-463985.
Plaintiffs and Appellants are all but one of the Petitioners in this FCC Petition: Warren Havens,
AMTS Consortium LLC (now called Environmentel LLC), Telesaurus VPC LLC (now called
Verde Systems LLC), Intelligent Transportation & Monitoring Wireless LLC, and Telesaurus
Holdings GB LLC. All are FCC licensees.
Defendants are Paging Systems Inc., Maritime Communications/ Land Mobile LLC, and Mobex
Network Services (which MCLM alleges to have bought and subsumed) (and their controlled
and controlling entities). All named Defendants are FCC licensees.
Note: Several of the Exhibits 1 may be, in the hard-copy filed today, Oct 14, 2009, with
the FCC Secretary, out of order, and with several with labels switched. However, the PDF copy
served to parties on the Certificate of Service has these in the order and labeling given below.
Exhibit 1.1 Plaintiffs’ (most of the Petitioners in this FCC Petition) Second Amended
Complaint (the operative complaint, the “Complaint”)
Exhibit 1.2 Court decision granting demurrers and dismissing Complaint
Exhibit 1.3 Appellants’ opening appeal brief in the California Court of Appeal
Exhibit 1.4 Appellants’ appeal reply brief
Exhibit 1.3 Court of Appeal decision sustaining trial court dismissal
Exhibit 1.6 Appellants’ petition for rehearing and for stay before the Court of Appeal
- 23 -
Exhibits 2 are regarding the case (of the “Three Court Cases”) now on appeal before the US
Court of Appeals Ninth Circuit.
This case involves:
(1) Telesaurus VPC LLC v. Randy Power et al., Civil Case No. CV07-1311-PHX-NVW, In the
United States District Court, District of Arizona, Phoenix Division, and
(2) Appeal, Case No. 09-15446, In the United States Court of Appeals for the Ninth Circuit, on
appeal from the United States District Court, District of Arizona, Phoenix Division, Civil Case
No. CV07-1311-PHX-NVW.
Plaintiff and Appellant, an FCC licensee, is one of the Petitioners in this FCC Petition:
Telesaurus VPC LLC (now called Verde Systems LLC).
Defendants, each FCC licensees, are Randy Powers and Radiolink.
Exhibit 2.1 Plaintiff’s (one of the Petitioners in this FCC Petition) First Amended
Complaint (the operative complaint, the “Complaint”)
Exhibit 2.2 Court Order dismissing Complaint
Exhibit 2.3 Appellant’s opening appeal brief in the US Court of Appeals Ninth Circuit
Exhibit 2.4 Appellant’s appeal reply brief
Exhibits 3 are regarding the case (of the “Three Court Cases”) in the US District Court for the
District of New Jersey.
This case involves:
Skybridge Spectrum Foundation, et al., v. Mobex Network Services, LLC et al. (including Paging
Systems Inc.) Civil Action No. 08-CV-03094-KSH-PS, In the United States District Court for
the District of New Jersey.
Plaintiffs and Appellants are all of the Petitioners in this FCC Petition: Skybridge Spectrum
Foundation, Warren Havens, AMTS Consortium LLC (now called Environmentel LLC),
Telesaurus VPC LLC (now called Verde Systems LLC), Intelligent Transportation & Monitoring
Wireless LLC, and Telesaurus Holdings GB LLC. All are FCC licensees.
Defendants are Paging Systems Inc., Maritime Communications/ Land Mobile LLC, and Mobex
Network Services (which MCLM alleges to have bought and subsumed) (and their controlled
and controlling entities). All named defendants are FCC licensees.
Exhibit 3.1 Plaintiffs’ (all of the Petitioners in this FCC Petition) First Amended
Complaint (the operative complaint, the “Complaint”)
Exhibit 3.2 Plaintiffs’ brief in opposition to defendants PSI’s and MCLM’s Omnibus
Motion to Dismiss the First Amended Complaint
- 24 -
Exhibit 3.3 Court Order—Consent Order Dismissing Joint Omnibus Motion to
Dismiss without Prejudice & Stipulation to Stay Action
The Exhibits listed above follow.
There are in two PDF files, with page separators between individual Exhibits.
Certificate of Filing and Service
I, Warren C. Havens, certify that I have, on this 14th day of October, 2009, filed as described
below, and caused to be served, by placing into the United States Postal Service system with
first-class postage affixed, and/ or noted emailed as described below, a copy of the foregoing
Petition for Declaratory Ruling to the following. Copies served by email are sent the full
Petition including exhibits. Copies served only by mail are sent only the text.
:
1 – FCC
Filed in hard copy, via hand delivery, to:
Marlene H. Dortch, Secretary
Federal Communications Commission Office of the Secretary
c/o Natek, Inc.,
236 Massachusetts Avenue, N.E.
Suite 110
Washington, DC 20002
- - - - - - - - - -
Julius Genachowski
Chairman
Via email to: [email protected]
Michael J. Copps
Commissioner
Via email to [email protected]
Robert M. McDowell
Commissioner
Via email to [email protected]
Mignon Clyburn
Commissioner
Via email to: [email protected]
Meredith Attwell Baker
Commissioner
Via email to: [email protected]
- - - - - - - - - -
Colin Crowell, Senior Counselor to Chairman Genachowski
Via email to: [email protected]
Bruce Gottlieb,
Chief Legal Advisor to Chairman Genachowski
Via email to: [email protected]
Jennifer Schneider,
Legal Advisor to Commissioner Copps
Via email to: [email protected]
Angela Giancarlo,
Senior Legal Advisor to Commissioner McDowell
Via email to: [email protected]
Renee Crittendon, Senior Legal Advisor to Commissioner Clyburn
Via email to: [email protected]
William Freedman,
Acting Senior Legal Advisor to Commissioner Baker
Via email to: [email protected]
Erin McGrath,
Acting Legal Advisor for Commissioner Attwell
Baker
Via email to: [email protected]
- - - - - - - - - -
Ruth Milkman,
Chief, Wireless Telecommunications Bureau
Via email to: [email protected]
- - - - - - - - - -
James Arden Barnett, Jr.,
Chief, Public Safety & Homeland Security Bureau
Via email to: [email protected]
Scot Stone,
Deputy Chief, Mobility Division, PS&HSB
Via email to: [email protected]
Jeffrey Tobias
Mobility Division, PSHSB
Via email to: [email protected]
- - - - - - - - - -
The Intergovernmental Advisory Committee
Attention to:
Gregory Vadas Via email to: [email protected]
- 26 -
2 – Parties to the State and Federal court litigation described in Exhibit 1
-- Maritime Communications/ Land Mobile --
Dennis Brown
FCC Counsel for MCLM (including Mobex)
8124 Cooke Court, Suite 201
Manassas, VA 20109-7406
Via FedEx Overnight
and email to [email protected]
Newdorf Legal
Litigation Counsel for MCLM (including Mobex)
David B. Newdorf
220 Montgomery Street, Suite 1850
San Francisco, CA 94104
Graham Curtin, P.A.
Litigation Counsel for MCLM (including Mobex)
Robert W. Mauriello, Jr., Esq.
Gina M. Graham, Esq.
4 Headquarters Plaza
P.O. Box 1991
Morristown, NJ 07962-1991
Sandra DePriest
Donald DePriest Owners and Controlers of MCLM (including Mobex)
206 North 8th
Street
Columbus, MS 39701
- - - - - - - - - -
-- Paging System Inc.--
Audrey P. Rasmussen
FCC Counsel to Paging Systems, Inc. (“PSI”)
Hall, Estill, Hardwick, Gable,
Golden & Nelson, P.C
1120 20th
Street, N.W.
Suite 700, North Building
Washington, DC 20036-3406
Via FedEx Overnight
and email to: [email protected]
Manatt, Phelps & Phillips, LLP
Litigation counsel for PSI
Eugene L. Hahm, Esq.
Christopher D. LeGras, Esq.
1001 Page Mill Road, Building 2
Palo Alto, CA 94304
Manatt, Phelps & Phillips, LLP
Litigatin counsel for P:SI and Touch Tel Corp.
Kenneth D. Friedman, Esq.
7 Times Square
New York, New York 10036
Robert Cooper
President
Touch Tel Corp., Affiliate and Agent of PSI
805 Burlway Rd.
Burlingame, CA 94010
- - - - - - - - - -
-- Radiolink and Randy Powers --
Kathi Mann Sandweiss
Roger L. Cohen
Litigation Counsel to Radiolink and Randy Power
JABURG & WILK, P.C.
3200 North Central Avenue, Suite 2000
Phoenix, Arizona 85012
Via FedEx Overnight
and email to [email protected]
Randy Power
RadioLink Corporation
Randy L Power
2602 W LONE CACTUS DR. #A
Phoenix, AZ 85027
- 27 -
3 - Others With Expressed or Potential Interest
(Petitioners also intend to provide copy by email to persons serving the following organizations.)
Jerry Brown
Attorney General, State of California
Attorney General’s Office California Dept. of Justice
Attn: Public Inquiry Unit
P.O. Box 944255
Sacramento, CA 94244-2550
Richard Blumenthal
Attorney General, State of Connecticut
Office of the Attorney General
55 Elm Street
Hartford, Connecticut 06106
Also via email to: [email protected]
J.B. Van Hollen
Attorney General, State of Wisconsin
Wisconsin Department of Justice
P.O. Box 7857
Madison, WI 53707-7857
- - - - - - - - - -
The National Association of Regulatory Utility
Commissioners
James Bradford Ramsay, General Counsel
1101 Vermont Avenue, Suite 200
Washington, DC 20005
The National Association of Telecommunications
Officers and Advisors
Mary Beth Henry, President
Deputy Director, Mt. Hood Cable Regulatory
Commission/City of Portland
1120 SW 5th Avenue, #1305
Portland, OR 97204
The National Association of Telecommunications
Officers and Advisors
Ken Fellman, President-Elect
Kissinger & Fellman, P.C.
3773 Cherry Creek North Drive
Ptarmigan Place, Suite 900
Denver, CO 80209
SCAN-NATOA — States of California & Nevada
Jonathan Kramer
Kramer Telecom Law Firm, P.C.
2001 S. Barrington Ave., Suite 306
Los Angeles, CA 90025-5379 USA
U.S. PIRG: The Federation of State PIRGs
Amina Fazlullah, Counsel
Federal Advocacy Office
218 D Street SE
Washington, DC 20003
Public Citizen
1600 20th Street, NW
Washington, DC 20009
Filed Electronically. Signature on Filed ___________________________________
Warren Havens