Opinion ID: 158201
Heading Depth: 2
Heading Rank: 2

Heading: Four Johnson Act Conditions

Text: 33 U S West does not contest that jurisdiction is based solely on repugnance of the order to the United States Constitution, the order was made after reasonable notice and hearing, or a plain, speedy, and efficient remedy may be had in the state courts. See 28 U.S.C. 1342(1), (3), and (4). U S West contends that the interstate commerce exception applies because Yellow Pages revenue imputation interferes with interstate commerce, inasmuch as Yellow Pages advertising and publishing take place in interstate commerce. 34 In order for U S West's challenge to be exempt from the Johnson Act, the order must interfere with interstate commerce. See 28 U.S.C. 1342(2) (emphasis added). Interference requires more than an incidental effect on interstate commerce. See Nelson, 146 F.3d at 724 ('Certainly all state rate-making action does have some influence upon or effect upon interstate commerce but these actions do not necessarily interfere with interstate commerce . . ..') (quoting Louisiana Power & Light Co. v. Ackel, 616 F.Supp. 445, 448 (M.D. La. 1985)). Thus, the fact that Yellow Pages publishing and advertising takes place in interstate commerce does not itself lead to the conclusion that the rate order interferes with interstate commerce. 35 In calculating the rate order the Commissioners imputed revenue from U S West Dex to U S West Communications. However, the Commissioners did not actually transfer any funds. See Appellants' App. at 355 16. Thus, U S West's argument that U S West Dex faces a highly discriminatory special penalty from which its competitors are exempt is disingenuous. (Appellants' Reply Brief at 10.) The burden, if any, is on U S West, Inc., the parent corporation, as a result of the lowered revenue of U S West Communications, its wholly owned subsidiary. Furthermore, the rate order does not affect the rates chargeable by U S West Dex for its advertising services. Any indirect or incidental effect that exists does not amount to interference with interstate commerce. Imputation is simply an accounting method used to assist the Commissioners in setting the intrastate rates of U S West Communications. (Appellants' App. at 355 15-16.) Cf. Tri-State Generation & Transmission Ass'n v. Public Serv. Comm'n of Wyo., 412 F.2d 115, 118 (10th Cir. 1969) (unregulated multi-state provider of electrical energy engaged in interstate commerce and order of Wyoming Commission potentially interfered by preventing Wyoming utilities from paying their contract obligations), cert. denied, 397 U.S. 1043 (1970). The fact that imputation adversely affects, burdens, or even interferes with U S West Communication's revenue requirements and intrastate rates is purely an intrastate issue not cognizable under the Johnson Act's interstate exception. Nelson, 146 F.3d at 724.