Legal Document

512 U.S. 218114 S.Ct. 2223129 L.Ed.2d 182 MCI TELECOMMUNICATIONS CORPORATION, Petitioner,v.AMERICAN TELEPHONE AND TELEGRAPH COMPANY. UNITED STATES, et al., Petitioners v. AMERICAN COMPANY al. Nos. 93-356, 93-521. Supreme Court of the United States Argued March 21, 1994. Decided June 17, Syllabus * Title 47 U.S.C. § 203(a) requires communications common carriers to file tariffs with Federal Communications Commission, and 203(b)(2) authorizes Commission "modify any requirement made by or under . this section. ." Relying on latter provision, issued an order determining that its earlier decision make tariff filing optional for all nondominant long distance was within authority "modify." American Telephone Telegraph Co., only dominant carrier, filed a motion Appeals seeking summary reversal Commission's order. The granted basis court's prior authorization permissive detariffing violated 203(a). Held: policy is not valid exercise requirement." Because virtually every dictionary in use now at time statute enacted defines "to modify" as meaning change moderately minor fashion, word "modify" must be seen have connotation increment limitation. That does contemplate basic fundamental changes also demonstrated fact exception it deals very matter: may require period giving notice exceed 120 days. cannot justified nonfundamental "modification." tariff-filing heart carrier subchapter Act 1934, eliminates entirely except one firm long-distance sector, 40% consumers sector. Moreover, hard imagine condition shared so many affected parties qualifies "special" 203(b)(2)'s when proceeds "by general order" modification, can apply special circumstances conditions." interpretation therefore entitled deference, since goes beyond bear. Congress seemed manifest agreement parties' respective interpretations later legislation irrelevant; there has been no consistent history which other essential. Finally, petitioners' argument their better serves Act's broad purpose promoting efficient telephone service should addressed Congress. Pp. ____. Affirmed. SCALIA, J., delivered opinion Court, REHNQUIST, C.J., KENNEDY, THOMAS, GINSBURG, JJ., joined. STEVENS, dissenting opinion, BLACKMUN SOUTER, O'CONNOR, took part consideration cases. Christopher J. Wright, petitioners Donald B. Verrilli, Jr., petitioner Telecommunications Corp. David W. Carpenter, respondents. Justice SCALIA Court. 1 Section Code 203(b) 203. These cases present question whether modification authority. 2 Like most involving role Company (AT & T) our national telecommunication system, these history. An understanding brief review efforts regulate then deregulate telecommunications industry. When created AT T, through vertically integrated Bell held virtual monopoly over Nation's service. 48 Stat. 1064, amended, authorized rates charged communication services ensure they were reasonable non-discriminatory. requirements 203 charge rate centerpiece regulatory scheme. 3 In 1970's, technological advances reduced entry costs competitors T market recognizing feasibility greater competition, passed regulations facilitate competitive entry. By 1979, competition provision well established, some urged continuation extensive served impose unnecessary new entrants collusive pricing. hearings matter, see Competitive Carrier Notice Inquiry Proposed Rulemaking, 77 F.C.C.2d 308 (1979), following series rules produced litigation. 4 First Report Order, 85 1, 20-24 (1980), distinguished between (those power) carriers—in market, amounted distinction everyone else—and relaxed procedures carriers, id., 30-49. Second 91 59 (1982), eliminated resellers terrestrial services. This filing, detariffing, extended resellers, specialized including Corp., Fourth 95 554 (1983),1 remaining categories Fifth 98 1191 (1984). Then, 1985, shifted mandatory policy, prohibited from tariffs. See Sixth 99 1020 (1985). District Columbia Circuit, however, struck down Report's challenge brought somewhat ironically appears—by MCI. FCC, 765 F.2d 1186 (1985) (Ginsburg, J.). reasoned 203(a)'s command "[e]very shall file" mandatory. And although requirement" section, concluded phrase "suggest[ed] circumscribed alterations not, FCC would it, wholesale abandonment elimination Id., 1192. 5 wake invalidation Appeals, continued practice certain services, pursuant Order. On August 7, 1989, complaint, third party complaint Act, 208(a), alleged MCI's collection unfiled (c). responded substantive rule, had legal obligation rates. rejoined Order simply statement non-enforcement did immunize private enforcement actions; if established excess statutory take final action T's until almost two-and-one-half years after filing. 7 Rcd. 807 (1992). It characterized rule dismissed ground compliance rule. refused address, contention ultra vires, announcing instead proposed rulemaking consider question. Tariff Filing Requirements Interstate Common Carriers, 804 6 petitioned review, arguing, inter alia, lacked defer issue dispositive adjudicatory complaint. Circuit petition review. 978 727 (1992) (Silberman, failure address promulgate "a sort administrative law shell game," 731-732. Addressing itself, rendered indefensible 1985 decision: "Whether mandatory, Report, permissive, are, either event, relieved section 203(b). step exceeds limited 'modify' Act." 736. remanded case could award appropriate relief. 736-737. We denied certiorari. 509 ----, 113 3020, 125 709 (1993). Moving admirable dispatch, less than two weeks concerning proceeding, released proceeding commenced response 8072 (1992), stayed pending further notice, 7989 case. relying upon twice rejected D.C. determined Act. unpublished per curiam stating that: "The court [AT ] conclusively FCC's violates App. Pet. Cert. 2a. Both (together Commission) petitions consolidated them. 510 114 543, 126 446 II 8 contains both provisions disputed provides relevant part: 9 "(a) Filing; public display. 10 "Every connecting shall, such designate, print keep open inspection schedules showing charges ., are joint separate, classifications, practices, affecting charges. 11 "(b) Changes schedule; discretion modify requirements. 12 "(1) No charges, regulations, practices published hundred twenty days public, form contain information prescribe. 13 "(2) may, good cause shown, particular instances applicable conditions specified paragraph (1) more 14 "(c) Overcharges rebates. 15 "No unless otherwise provided chapter, engage participate accordance chapter thereunder; charge, demand, collect, receive different compensation schedule effect, (2) refund remit means device portion specified, (3) extend person privileges facilities communication, employ enforce schedule." (1988 ed. Supp. IV). 16 dispute turns 203(b)(2). argue gives even scheme disagree. "modify"—like number English words employing root "mod-" (deriving Latin "measure"), "moderate," "modulate," "modest," "modicum,"—has Virtually we aware says fashion. See, e.g., Random House Dictionary Language 1236 (2d 1987) ("to qualities of; alter partially; amend"); Webster's Third New International 1452 (1976) structure of: without transforming"); Oxford 952 1989) ("[t]o partial in; (an object) respect qualities; vary radical transformation"); Black's Law 1004 (6th 1990) alter; incidental subordinate features; enlarge; extend; amend; limit; reduce"). 17 support position, cite definitions contained derived single source, ("Webster's Third"), includes among meanings "modify," important in."2 contend establishes sufficient ambiguity entitle deference acceptance broader meaning, turn approval policy. Chevron U.S.A. Inc. Natural Resources Defense Council, Inc., 467 837, 843, 104 2778, 2781-2782, 81 694 short, courts agency's choice available definitions, citing National Railroad Passenger Boston Maine 503 112 1394, 118 52 18 But stand proposition. involved term "required" mean "demanded essential" appropriate." holding permissible interpretation, owed, rely exclusively but contextual indications, ibid.—which case, see, contradict position. spoke "alternative definitions," ibid., refer what here: whose suggested contradicts others. referred alternative cited (Webster's Third, happens), represented those alternatives. To contrary, said "these old jurisprudence Court," McCulloch Maryland, Wheat. 316, L.Ed. 579 (1819). 2117 1934); Shorter 2557 (1993) (giving alternatives). 19 Most verbal statutes involve, did, selection accepted shown dictionaries. One envision (though immediately come mind) having choose meanings, newly recorded lexicographer. (Some first record widespread "projection," example, "forecast.") demand accept creating here rarity rarer set forth (and, say, progeny) supplements dictionaries, Indeed, out-of-step itself—for observed, itself connote (specifically) major change. how be. respects" fundamentally" will neither things. change," adverb called into indicate great small degree 20 If peculiar definition suggest happened—and appealing Third—we "Modify," view, connotes moderate might say French Revolution "modified" status nobility because figure speech understatement literary known sarcasm. unsurprising discover 1972 White press release saying "the Administration modifying position regard prosecution war Vietnam"—but agents tend impart nowadays "spin." Such intentional distortions, careless ignorant misuse, formed usage alone, reported.3 perhaps gilding lily add this: became law—the term's Perrin States, 444 37, 42-45, 100 311, 314-315, 62 199 (1979)—Webster's yet contemplated. knowledge dictionaries narrow G. C. Merriam Company. 1577 Collegiate 628 (4th 1934). slightest doubt intended. 21 Beyond indication sole provides. days' public. 203(b)(1). follows: "except days." Is conceivable indifferent power eliminate strains out gnat extending waiting revision days? think not. ridiculous Lilliputian London found Lilliput: small-scale world "modifications," big deal. 22 Since bear, Pittston Coal Group Sebben, 488 105, 113, 109 414, 419-420, 102 408 (1988); Chevron, U.S., 842-843, S.Ct., makes requirement. attempt establish greatly understates extent deviates requirement, undervalues importance itself. 23 point first: For body law, person, depends item changed whole. Loss entire toenail insignificant; loss arm tragic. is, pursue analogy, common-carrier context Commerce model, 917 30, 38 (CADC 1990), repeatedly stressed Congress's chosen preventing unreasonableness discrimination charges: "[T]here relation, indissoluble unity establishment maintenance corrected prohibitions against preferences discrimination." Texas Pacific R. Co. Abilene Cotton Oil 204 426, 440, 27 350, 355, 51 553 (1907); Robinson Baltimore Ohio 222 506, 508-509, 32 114, 115, 56 288 (1912). duty [the analog ], rates, 203(c) always considered essential price stabilizing rates." Maislin Industries, Primary Steel, 497 116, 126, 110 2759, 2766, 111 94 (1990); Arizona Grocery Atchison, T. S. F. 284 370, 384, 183, 184, 76 348 (1932) (filing "render definite certain, prevent abuses"); Armour Packing 209 56, 81, 28 428, 435, 681 (1908) (elimination "opens door possibility abuses unequal design prohibit punish"). As concluded, "is 'utterly central' administration 132, 2769, quoting Regular Conference 793 376, 379 1986). 24 Much rest §§ 201-228, Procedural Administrative Provisions, 401-416, premised 415 "overcharges" (which customers recover) reference rate. 415(g). allowing unreasonable discriminatory, 204, 206-208, 406, susceptible effective publicly filed.4 Maislin, 2769. Rate filings fact, characteristic rate-regulated highly unlikely leave determination industry entirely, substantially, agency discretion—and achieve subtle permission rate-filing 25 Bearing mind, then, enormous occurred mere stresses applies half Commission. clear us proportion affected, rather proper measure exemption (of course exempted, T). assuming crucial sector much too What here, reality, statute, changing regulation where exist. idea, idea 1934. 26 Apart qualify "modification," independent reason why modify. (as opposed acts "in instances") Although elastic phrase, infinitely so. customers, one, intent limitation.5 sides manifested 1990 amendment operator providers (OSPs) informational tariffs, phased four years, Operator Consumer Services Improvement (TOCSIA), 990, 226(h) ed., background permitted phase-out phase-in rigorous hand, claims recent U.S.C.A. 332(c)(1)(A) (Supp.1994) limit commercial mobile carriers—authority view correct. At most, conflicting arguments decade-long tug relax requirements, times proceeded assumptions who win. essential; pieces congenial. enough anything. earnestly urge furthers They claim prevented unfair while maintained service, frustrates same goals market. Specifically, raise artificial barriers publication facilitates parallel pricing stifles competition. considerable sympathy sense, concerned about communicate information, likely leader). policed trade associations bureaus antitrust laws precisely sharing fixing, Sugar Institute, 297 553, 629, 80 859 (1936); Column Lumber 257 377, 42 66 (1921), protected regulated firms types suits Square D Niagara Frontier Bureau, 476 409, 106 1922, 90 413 (1986). noted Term, "debate forums wisdom doctrine," Securities Services, Kmart 511 1702, 1708, --- ---- (1994) and, broadly, value estimations, desirable worse, rate-regulation, filed-tariff system communications, desire 'increase competition' provide [it] well-established requirements," 135, 2770. observed filed-rate doctrine ago, "such considerations themselves Congress, courts," Packing, 82, 435. 29 do inviolate existing reach all. Certainly form, contents, location required filings, waive altogether circumstances. that. effectively introduction whole regime (or free-market competition), established. judgment 30 31 O'CONNOR whom SOUTER join, dissenting. 33 unusually dynamic character. (FCC) field enterprise rapid pace unfolding." Broadcasting 319 190, 219, 63 997, 1011, 87 1344 (1943). (the Act) meet unanticipated problems fulfill sweeping mandate available, far possible, people rapid, efficient, Nationwide world-wide wire radio adequate charges." 151. Court's afforded ample leeway interpret powers responsibilities. Southwestern Cable 392 157, 172-173, 88 1994, 2002-2003, 1001 (1968); Pottsville 309 134, 138, 60 437, 439, 84 656 (1940). today abandons approach favor rigid literalism deprives flexibility meant implement core policies rapidly conditions. 34 passed, dominated affiliates. framework wire, clearly dominance. Senate explained, "[u]nder practically nil. vast needs daily social life regulated." S.Rep. No. 781, 73d Cong., 2d Sess., (1934).1 35 distinctly associated monopoly. 201 "furnish request therefor," mandates "charges, regulations" "just reasonable." 201. 202 forbids "make unjust facilities, give undue preference advantage class persons, locality." 202(a). own motion, hold declare lawfulness increases, prescribe just finding carrier's actual illegal, 205. Persons damaged violation right damages, 206-207, 208. 36 203, modeled 49 10761-10762; supra, 4, "file carriers." A allow 120-day lead before "unless Act," according schedule, 203(c), (d). states: 37 39 40 doubtless viewed mechanism guard abusive monopolies. quite wrong process schedules—rather reasonably priced nondiscriminatory service—is federal Ante, 2231. 41 industry, stirrings 1979 began reexamining tentatively costly actually counterproductive applied i.e., lack leaves them unable extract supra-competitive discriminatory customers. (1979). Relaxing burdens foster markets; time, forces comply "unreasonable rates" discrimination. 334-338. explained 1981, obligations simultaneously "superfluous consumer protection device, circumscribes prices companies" inimical "price marketing innovation." Deregulation 445, 478-479 (1981). Accordingly, rulings early 1980s, orders progressively exempting classes schedules. (1982); Fed.Reg. 46791 (1983). (1983), reaffirmed "permissive detariffing" whereas subject discrimination, need instant November F.C.C.Rcd adhered excusing codified longstanding forbearance commitment "adapt develop purposes fostering innovation development industry," 8079, once again why, furthered goals, 8079-8080. initial stages F.C.C.2d, 479-480, principal language F.C.C.Rcd, 8074-8075. "[A]ctual experience detariffing," increase 1982 482 decade later, "further confirm[ed] success FCC's] furthering III 43 majority observes relaxation enhance ante, 2232, conclusions useful power. orders, sought inflated "customers move 8079. absence ordinarily preclude kind engaging L. Sullivan, Antitrust 89 (1977) ("A discriminate power"); P. Areeda, ¶ 1711a, pp. 119-120 (1991). plausibly slight benefits offer outweighed put consumers. Thus, however sensible, nonetheless inconsistent 44 my each squarely Subsection plainly confers least speaks "any requirement."2 ignored supports position; prohibits providing "otherwise provides" thereby schedule. 203's "particular instances" "general conditions" emphasizes expansive character authority: modifications broad, depending appraisal current From vantage completely monopolized advent surely "special circumstance condition" legitimately call treatment. 45 thus imposes specific stiffen imposition confine it. stretch draw single, unidirectional limitation inference unlimited. 8075. 46 According explicated unreliable 2230, n. 3, claimed relieve Dictionaries aids substitute close analysis used context. Cf. Cabell Markham, 148 737, 739 (CA2 1945) (Hand, Even possible "minor" changes, 2229,3 elaboration needed show fail. came gradually carriers. Whether count cataclysmic merely incremental departure baseline focuses carriers' (in arguably works shift)4 behind remain satisfied constraints obviate rate-filing). aim constrain power, exempt rational "measured" adjustment novel circumstances—one remains faithful 1198 (3d 1933) (defining "modification" "A change; alteration introduces elements details, cancels them, effect subject-matter intact"). seizes sense expense another, long-established fully defined 1934) reduce degree."5 fits comfortably term. adopted "if you file, not." policy—which excuses nondominant—is developments pointless 203(b)(1), like statute. point, asserts prohibition "would filed." determination, course, instance. (i) lacks (ii) bans full force regardless (iii) suspected violations damages 206,6 (iv) reimpose occur. 8078-8079. adequately respond explanations, whatsoever 8073, 8079; majority's ineffective evidentiary historical support. demonstrably incorrect. contemporary cousin 1934—the Robinson-Patman Price Discrimination 13(a), 13a, 13b, 1936—contains performed mission counterpart doctrine. "connecting carriers" though exempts provisions. 152(b); Assn. Regulatory Utility Comm'rs F.C.C., 737 1095, 1115, 1984), cert. denied, 469 1227, 105 1224, 364 fraction existed represents market; growth Extolling "enormous importance" ____, resorting colorful metaphors unsatisfactory substitutes explanation harms 50 ends themselves, several procedural 483. enforcing statute's prove 1934 define scope perfect scholarly precision, paradigm judicial particularly obviously maximize flexibility.7 Whatever best reading 203(b)(2), termed unreasonable. informed ours not) practical thereof) play modern climate adapt measures originally designed control carefully consistently frustrate interest reasonableness. "discretion" expressly conferred reflects accommodation manifestly competing interests deference: technical complex, matter detailed involves reconciling policies." 865, 2792-2793, (1984) (footnotes omitted). permissibly interpreted sustain eminently sound, experience-tested, uncommonly judgment. I respectfully dissent. syllabus constitutes prepared Reporter Decisions convenience reader. Detroit 200 321, 337, 282, 287, 499. Rulemakings domestic points outside continental Hawaii, Puerto Rico, Virgin Islands. Ninth 763 (1991), often orientation serve end." Eighth (1973), definition; Seventh 544 (1963), quoted text. Dictionaries, Springfield, Massachusetts, essentially abridgments company's recite based lengthier works. last International, include "basic change" 541 1949). hypothesis. Upon long-awaited appearance 1961, widely criticized portrayal error usage. Follett, Sabotage Atlantic 73 (Jan. 1962); Barzun, Dictionary? Scholar 176, 181 (Spring 1963); Dwight Macdonald, String Unwound, Yorker 130, 156-157 (Mar. 1962). example (without qualification) "infer" "imply": "infer 5: concerning: HINT <did debate ask inferring constitution changed—Manchester Guardian Weekly >." 1158 (1961). dissent misrepresents sentence, post, addresses paragraphs made, eliminating proceedings; indeed proceedings, ultimate Perhaps, asserts, not; (and FCC) bound, selected, deemed appropriate, prescribed, pursuit purposes. suggests ignore subsection chapter." Perhaps so—though acknowledged, infra, permit more) easily read referring express 201(b) 211's contractual 332(c)(1)(A)'s exemptions Investigation Industry H.R.Doc. 340, 76th 1st Sess. 145-146 (1939) (chronicling System's "Nation-wide, unified monopolize field" "prevention competition"). H.R.Rep. 1273, XXXI (1934) ("Telephone business monopoly—it supposed regulated"). dictate contents 203(b)(1) separately grants out, revolutionary consent decree breakup System was, proposal, "Modification Final Judgment." Tel. 552 F.Supp. 131 (D.C.1982), aff'd, 460 1001, 103 1240, 75 472 shorten interval bringing sign anyone pays attention additional appears recognize sometimes excuse ("2. direction moderation lenity; severe, rigorous, decided; qualify, tone down. 1610 Donne Pseudomartyr 184 'For Mariana modefies his Doctrine, Prince execute Clergy man, hee deser[v]e it.' "); ("5. lessen extent; moderate; soften; one's demands"); (1981) ("1: temperate extreme: severity 'traffic modified let him pass' (1973) ("1. extreme; MODERATE"); (1963) (same); degree; qualify; lower; as, heat, pain, punishment"); N. Webster, (1828) ("To degree. Of grace. He modifies severe decree. Dryden"). disrupts 415(g) recoverable Overcharge suits, definition, depend presence aggrieved recover. 206 allows recover existence tariff. 208, 415(b). considers supposedly pivotal obligation. delegation place empowers decide "public convenience, interest, necessity" requires, 303, "prescribe necessary interest," 201(b); 154(i). recognition "supple instrument expert carry legislative policy."

Classification Label: 7