Supreme Court of the United States
American Telephone & Telegraph Co. v. Central Office Telephone, Inc.
June 15, 1998524 U.S. 214
Summary
The Court, in an opinion by Justice Scalia, held that the Communications Act's filed rate doctrine bars COT's state-law claims seeking services and privileges inconsistent with AT&T's filed tariff. The doctrine covers nonprice terms, including provisioning and billing, and bars the wholly derivative tortious-interference claim as well as the contract claim. Neither the Act's saving clause nor the tariff's exception for willful misconduct permits enforcement of unlawful preferences. Chief Justice Rehnquist concurred separately, without any justice joining his writing, emphasizing that the doctrine does not bar independent state-law claims unrelated to tariffed terms. Justice Stevens dissented alone, arguing that evidence of unauthorized customer transfers and billing disclosures supported an independent tort claim and that the case should be remanded for a new trial. Justice O'Connor did not participate.
Holding
- Application of the filed rate doctrine to nonprice service terms.. The filed rate doctrine bars COT's state-law claims seeking additional or better services inconsistent with AT&T's filed tariff, including guaranteed provisioning and allocation of billing charges.
- Application of the doctrine to the tortious-interference claim.. COT's tortious-interference claim is barred because it is wholly derivative of its contract claim for additional and better services.
- Effect of the Communications Act's saving clause.. Section 414 does not preserve claims for unlawful preferences or services directly conflicting with the filed tariff.
- Effect of the tariff's willful-misconduct provision.. The tariff's removal of limitations on liability for willful misconduct does not permit recovery for willful breach of an unlawful promise of preferential service.
Docket 97-679
Cited authorities
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