Global Crossing Telecommunications, Inc. v. Metrophones Telecommunications, Inc.
Metrophones Telecommunications sued Global Crossing Telecommunications for violating 47 U.S.C. § 201(b) of the Communications Act, which declares that all unjust or unreasonable practices in furnishing communication services are unlawful. Metrophones claimed that Global Crossing had failed to pay Metrophones for the use of its payphones, and that this was an unjust and unreasonable practice. Global Crossing is a long-distance telephone service provider; its customers dial a toll-free number to obtain long-distance service, and this allows them to pay Global Crossing instead of the payphone service provider for long-distrance phone calls. In 2003, the Federal Communications Commission (FCC) issued a payphone order that declared the failure to pay for the use of payphones is an unjust and unreasonable practice in violation of § 201(b).
In district court, Global Crossing argued that Metrophones was not entitled to sue under § 201(b). The judge disagreed, and the United States Court of Appeals for the Ninth Circuit upheld the lower court’s ruling. That court held that 47 U.S.C. § 210(b) did create a private cause of action under which Metrophones could seek damages, deferring to the FCC’s interpretation of § 201(b).
Question Presented:
Whether 47 U.S.C. § 201(b) of the Communications Act of 1934 creates a private right of action for a provider of payphone services to sue a long distance carrier for alleged violations of the FCC's regulations concerning compensation for coinless payphone calls.
