Simmons, Jannace & Stagg
Global Crossing Telecommunications, Inc. v. Metrophones Telecommunications, Inc.
In the case, Global Crossing Telecommunications, Inc. v. Metrophones Telecommunications, Inc., The respondent was Metrophones Telecommunications. Metrophones took legal action against Global Crossing, alleging that the company had violated the Telecommunications Act of 1934 by partaking in activity that falls under the definition of "unreasonable practices." According to Metrophones filed a lawsuit based on the argument that Global Crossing Telecommunications did not pay for the utilization of Metrophone's payphones. Metrophone's primary assertion was that Global Crossing was giving out toll free telephone access for long distance so that whatever individuals utilized the toll free number paid for long distance charges to Global Crossing and not to Metrophones Telecommunications.
According to FCC regulations, Metrophones was within its rights to sue for damages. While it is lawful for Global Crossing to offer consumers a toll free number for long distance, the company is still expected to pay reasonable payphone usage fees to the owners of the payphone in use at the time such toll free calls are made. Global Crossing refused to pay Metrophones, hence the commencement of the lawsuit. During the case, Global Crossing's asserted that Metrophone's had no legal grounds for a lawsuit.
The case was brought before the District Court and it was argued that Metrophones was relying on a lawful regulation set forth by the FCC in order to bring a suit; the district court concurred. The Ninth Circuit Court addressed the appeal of the case and confirmed the ruling of the District Court. The Supreme Court ruled in favor of Metrophone's by a majority ruling.
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