American Telephone and Telegraph Company v. Central Office Telephone, Inc. (524 U.S. 214)

U.S. Supreme Court · decided June 15, 1998 · Supreme Court Database (Spaeth)

Citation
524 U.S. 214 · 118 S. Ct. 1956
Decided
June 15, 1998
Term
October Term 1997
Vote
7–1
Majority author
Justice Scalia
Issue area
Federalism
Disposition
Reversed
Outcome
Petitioning party won
Ideological direction
Liberal

Opinion excerpt

Justice Scalia delivered the opinion of the Court. Respondent Central Office Telephone, Inc. (COT), a reseller of long-distance communications services, sued petitioner AT&T, a provider of long-distance communications services, under state law for breach of contract and tortious interference with contract. Petitioner is regulated as a common carrier under the Communications Act of 1984, 48 Stat. 1064, as amended, 47 U. S. C. § 151 et seq. The issue before us is whether the federal filed-tariff requirements of the Communications Act pre-empt respondent's state-law claims. I Respondent purchases “bulk” long-distance services— volume-discounted services designed for large customers— from long-distance providers, and resells them to smaller customers. Like many other resellers in the telecommunications industry, respondent does not own or operate facilities of its own; it is known as a “switehless reseller,” which is the industry nomenclature for arbitrageur. Of course respondent passes along only a portion of the bulk-purchase discount to its aggregated customers, and retains the remaining discount as profit. Petitioner provides long-distance services and, as a common carrier under the Communications Act, § 153(h), must observe certain substantive requirements imposed by that law. Section 203 of the Act requires that common carriers file “schedules” (also known as “tariffs”)…

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