**DA 01-1344**

> **June 4, 2001**

SUMMARY OF ENFORCEMENT BUREAU'S MULTI-PARTY INITIAL MEETING REGARDING
PROCEDURES FOR RESOLVING END USER COMMON LINE INFORMAL COMPLAINTS

This Public Notice summarizes the key points raised by Enforcement
Bureau ("Bureau") staff at the multi-party May 23, 2001 Initial Meeting
regarding informal complaints filed by independent payphone providers
("IPPs") alleging improper assessment of end user common line ("EUCL")
charges by certain local exchange carriers ("LECs"). At that meeting,
the Bureau initiated preliminary procedures to resolve these numerous
disputes. In addition, this Notice memorializes and modifies the
Bureau's schedule for information exchanges between the parties and
participation in settlement discussions facilitated by the Bureau.

At the outset of the Initial Meeting, the Bureau noted that the fair and
efficient resolution, whether through adjudication or settlement, of
these cases is a high priority. The Bureau, therefore, is evaluating the
proposals submitted by parties, in response to the Bureau's May 2, 2001
Public Notice (DA 01-1127), to facilitate an effective and efficient
process to resolve the EUCL informal complaints in the public interest.
The Bureau further emphasized that, while it moves forward with
establishing procedures for efficient processing of the formal
complaints that will be filed, parties should continue to explore
settlement of their disputes.

Concurrent with its development of a framework for formal adjudication
of the disputes at issue, the Bureau will also facilitate their informal
resolution by assisting in settlement discussions. Because the exchange
of information is central to resolving the complaints at issue, the
Bureau encouraged parties to exchange full information regarding damages
as part of the settlement process. In that regard, the Bureau noted
that, if damages claims are adjudicated, it is likely that the provision
of such information would be required pursuant to requests for
discovery.

**Settlement Efforts**

To initiate Bureau-facilitated settlement discussions, the Bureau has
divided parties who wish to settle into two groups.

**[Group 1:]{.underline}**

Group 1 is comprised of Complainants who currently possess documentation
sufficient on its face to show the EUCL charges they paid
[and]{.underline} the number of their public payphones during the time
period at issue.

We encourage Group 1 Complainants to pursue settlement discussions as
soon as possible.

Given the date of issuance of this Public Notice, we modify the initial
deadlines for Group 1 Complainants.

By **Wednesday, June 6, 2001** (rather than Friday, June 1, 2001 as
noted at the Initial Meeting), Complainants who identify themselves to
be in Group 1 and who wish to engage in Bureau-facilitated settlement
discussions, should contact their respective Defendants and inform them
that they seek to explore settlement of their dispute.

Also, by **Wednesday, June 6, 2001** (rather than Friday, June 1, 2001
as noted at the Initial Meeting), Group 1 Complainants should inform the
Bureau regarding their desire to pursue facilitated settlement
discussions via electronic mail, [with "Group 1" noted in the subject
line]{.underline} at: EUCLMTG@fcc.gov. They should also provide the
following information: (1) the names of the informal Complainants, (2)
the names of the Defendants, (3) type of information in their possession
that is relevant to settlement discussions, and (4) the date the
Complainants contacted the Defendants.

On **Wednesday, July 11, 2001**, Commission staff will host an omnibus
meeting for Group 1 Complainants and their respective Defendants to
discuss how the Commission may assist in facilitating settlement. More
information about the location and time for this meeting will be
provided subsequently.

By **Tuesday, July 3**, **2001**, those parties wishing to participate
in the July 11 settlement meeting should contact the Bureau via email at
<EUCLMTG@fcc.gov>. They should [note "Group 1" in the subject
line]{.underline} of the email and state the names of the parties and
associated case number. To assist the Bureau in preparing for this Group
1 meeting, parties are also asked to provide in this email to the
Bureau: (1) a summary of the nature of the discussions they have had,
without including any confidential details; (2) a summary of the type of
information exchanged; (3) the issues that are outstanding between the
parties and any strategies the parties are considering to resolve them.

**[Group 2]{.underline}:**

Group 2 is comprised of Complainants who do not currently possess
documentation sufficient on its face to show the amount of the EUCL
charges they paid and/or the number of their public payphones during the
time period at issue.

Bureau staff also encourages those parties whose cases fall within
"Group 2" to pursue settlement discussions promptly. To the extent
document retention is perceived as a "stumbling block" to individual
settlement of these cases, Bureau staff has encouraged the parties to
consider some form of omnibus settlement.

By **Wednesday, July 25, 2001**, the Bureau asks that Complainants who
identify themselves to be in Group 2, and who wish to engage in
settlement discussions, should contact their respective Defendants and
inform them that they seek to explore settlement of their dispute.

Also by **Wednesday, July 25, 2001**, Group 2 Complainants should notify
the Bureau regarding their desire to pursue Bureau-facilitated
settlement discussions via electronic mail, [with "Group 2" noted in the
subject line]{.underline} at: EUCLMTG@fcc.gov. They should also provide
the following information: (1) the names of the informal Complainants,
(2) the names of the Defendants, (3) information in their possession
that is relevant to settlement discussions, and (4) the date
Complainants contacted the Defendants.

On **Wednesday, August 8, 2001**, Commission staff will host an omnibus
meeting among Group 2 Complainants and their respective Defendants to
facilitate possible settlements.

By **Wednesday, August 1, 2001**, those parties wishing to participate
in the August 8 omnibus meeting for Group 2 Complainants should contact
the Bureau via email at EUCLMTG@fcc.gov. They should note "Group 2" in
the subject line of the email and state the names of the parties and
associated case number. Parties are also asked to provide in that email:
(1) a summary of the nature of the discussions they have had, without
including any confidential details; (2) a summary of the type of
information exchanged, (3) the issues that are outstanding between the
parties and any strategies the parties are considering to resolve them.

**Formal Adjudication**

As an initial matter, consistent with its determinations in the *C.F.
Communications Corp. et al. v. Century Telephone of Wisconsin, Inc. et
al.* proceeding,[^1] the Bureau intends to limit its adjudication to
issues of liability and refer damages claims to an administrative law
judge. Because it is unlikely that any discovery is needed for the
liability determinations, the Bureau anticipates that the liability
phase of this proceeding will move quickly.

At the Initial Meeting, the Bureau presented several proposals to
process the formal complaints in an expedited manner. Currently, the
Bureau is focusing on the following measures to create an efficient
process:

[Consolidation]{.underline}: The Bureau stated that it was considering
some form of consolidation, either by complainant, defendant, or
complainant's counsel.

[Speedy Adjudication of Liability]{.underline}: Prior to the filing of
formal complaints, the Bureau proposes to issue a Public Notice
soliciting comment on the issues that should be briefed. The Bureau
would then issue an order initiating a rapid briefing cycle, in which
Complainants would file an initial brief along with their Complaints.
Defendants would then file a responsive brief with their Answers.
Complainants would file a closing brief with their Replies.

[Waiver of Filing Fees]{.underline}: The Bureau is considering whether
the filing fees should be reduced in some manner, given the
consolidation that is likely to occur.

The Bureau has not made any determinations as yet, and, thus, strongly
encourages all parties to present their thoughts on these proposals, as
well as other proposals previously submitted by parties to these
proceedings. As the Bureau seeks to expeditiously establish adjudication
procedures for these complaints, the Bureau encourages all parties to
present their views on procedural issues at this juncture. Previous
proposals from the parties were distributed via email on May 15, 2001.
Parties who have not seen these proposals should contact the Bureau at
EUCLQUIK@fcc.gov. We also encourage all parties to consider and present
additional proposals for efficient resolution of these cases. Proposals
and feedback should be submitted to EUCLLIST@FCC.gov by **Friday,**
**June 15, 2001**.

At the Initial Meeting, the Bureau provided all attendees with copies
of: (1) the Common Carrier Bureau's *Waiver Order,*[^2] (2) the *C.F
Communications* *Hearing Designation Order,* (3) the Commission's
current list of "Open and Pending" informal EUCL complaints,[^3] and,
(4) lists of informal Complainants and Defendants that were created by
and submitted by the parties prior to the Initial Meeting. Please notify
the Bureau with corrections or additions to these lists via electronic
mail at: EUCLQUIK@fcc.gov.

On May 29, 2001, the Bureau distributed a service list of all the
parties of whom it is currently aware. The Bureau requests that any
corrections or additions to this service list be submitted via email to:
EUCLMTG@fcc.gov. Those who are not currently on the service list, but
believe they should be, should also contact us at the above email
address.

Please direct all questions to Bureau staff at: EUCLQUIK@fcc.gov.

By the Deputy Chief, MDRD, Enforcement Bureau.

**- FCC -**

[^1]: The Bureau recently consolidated all outstanding
    [formal]{.underline} complaints for a hearing on monetary damages
    before an administrative law judge. *See C.F.Communications Corp. et
    al. v. Century Telephone of Wisconsin, Inc., et al*., Hearing
    Designation Order, DA 01-1044, (E.B. released April 24, 2001); *see
    also* *C.F.Communications Corp. et al. v. Century Telephone of
    Wisconsin, Inc., et al*., Memorandum Opinion and Order on Remand, 15
    FCC Rcd 8759 (2000) ("*Liability Order*") (discussing the improper
    assessment of EUCL charges on independent payphone providers); *C.F.
    Communications Corp., et al. v. Century Telephone of Wisconsin,
    Inc., et. al.*, Order on Reconsideration, 15 FCC Rcd 22906 (2000)
    ("*Reconsideration Order*"). The *Liability Order* is currently on
    appeal. *See Bell Atlantic Telephone Companies, et al*. *v. FCC*,
    No. 00-1207 (D.C. Cir. filed May 15, 2000).

[^2]: *Informal Complaints Filed By Independent Payphone Service
    Providers Against Various Local Exchange Carriers Seeking Refunds on
    End User Common Line Charges*, File No. 89-170, DA 99-1854, Order,
    Common Carrier Bureau (C.C.B. rel. Sept. 10, 1999) (*"Waiver
    Order"*).

[^3]: The Bureau's current records show that approximately 2,300 parties
    filed informal complaints in this matter. The Bureau is continuing
    to check Commission databases for the existence of additional
    parties.