Guglielmo v. Worldcom, Inc., 2001-718.

• Citation: 808 A.2d 65
• Decision Date: 16 September 2002
• Docket Number: No. 2001-718.,2001-718.
• Parties: Michael GUGLIELMO, Sr. and another. v. WORLDCOM, INC. and another.
• Court: Supreme Court of New Hampshire

808 A.2d 65 Michael GUGLIELMO, Sr. and another.
v.
WORLDCOM, INC. and another. No. 2001-718. Supreme Court of New Hampshire. Argued May 16, 2002. Opinion Issued September 16, 2002.

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Bouchard & Kleinman, P.A., of Manchester (Kenneth G. Bouchard and Nicholas D. Wright on the brief, and Mr. Wright orally) and Mittelholzer, Ferrini & Dibble, P.L.L.C., of Hampton (Thomas Ferrini on the brief), for the plaintiffs.

Orr & Reno, P.A., of Concord (James P. Basset and Phillip S. Bixby on the brief) and Adam H. Charnes, of Washington, D.C., by brief and orally for defendant WorldCom, Inc.

Ransmeier & Spellman, Professional Corporation, of Concord (Garry R. Lane and Tina L. Annis on the brief) and Burr & Forman LLP of Atlanta, Georgia (Gregory F. Harley on the brief), for defendants ILD Telecommunications, Inc. and ILD Teleservices, Inc.

DALIANIS, J.

This is an interlocutory appeal from the order of the Superior Court (McHugh, J.) denying the motion by the defendants, WorldCom, Inc., ILD Teleservices, Inc. and ILD Telecommunications, Inc., to dismiss the plaintiffs' claims for violations of the anti-monopoly statute, see RSA 356:2,:3 (1995), and the Consumer Protection Act (CPA), see RSA 358-A:2 (1995). See Sup. Ct. R. 8. The parties have transferred, and we have accepted, the following question of law: Does the federal filed rate doctrine bar the plaintiffs' anti-monopoly statute and CPA claims? We answer the transferred question in the affirmative and reverse the denial of the motion to dismiss. We do not address issues briefed by the parties concerning questions we specifically declined.

Upon review of the ruling on this motion to dismiss, we assume the following facts to be true for purposes of this appeal. See Hobin v. Coldwell Banker Residential Affiliates, 144 N.H. 626, 627, 744 A.2d 1134 (2000). We also accept the statement of the case presented in the interlocutory transfer. See Trovato v. Deveau, 143 N.H. 523, 524, 736 A.2d 1212 (1999).

The plaintiffs are friends and family of New Hampshire State Prison (NHSP) inmates who receive and pay for interstate collect calls from inmates. The defendants provide interstate payphone services to NHSP inmates, pursuant to exclusive contracts with the State. These contracts require inmates to make only collect calls. To place collect calls, the inmates must use the defendants' services, and may not use any other collect-call service, such as "1-800-Collect" or calling cards. Regardless of whether they have their own contracts with telephone service providers, the plaintiffs must accept collect calls from inmates, at the defendants' rates, or forego telephone contact with NHSP inmates.

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The original agreements between the State and the defendants provided for a "commission" to be paid the State in return for the exclusive rights to telephone service at NHSP. The contracts also stated that the rates charged would not exceed those charged the inmates under the previous or current agreements and would conform to those set by the New Hampshire Public Utilities Commission.

In December 1997, the warden of the NHSP issued a prison memo regarding telephone charges, setting forth the rates that would be charged for interstate collect calls. The rates subsequently charged the plaintiffs, however, were higher than those set forth in the December 1997 memo.

In July 1999, the contracts between the State and the defendants were modified. According to newspaper articles, the amended contracts reduced the per-minute rate and also the initial fee for inmate-initiated interstate collect calls. Despite the "general understanding that the rates had been reduced," the defendants raised both the per-minute charge and initial access fee in July and August 1999.

In February 2000, the plaintiffs brought a four-count class action against the defendants in superior court, alleging that the defendants: (1) negligently failed to conform to the price structure in a 1997 contract with the State and, as a result, overcharged the plaintiffs; (2) were liable, under the doctrine of respondeat superior, for their employees' failure to inform the inmates and the plaintiffs of the correct rates; (3) violated New Hampshire's anti-monopoly statute by unreasonably restraining trade and establishing a monopoly over inmate-initiated collect calls; and (4) violated the CPA by engaging in unfair competition and trade practices. In their writ, the plaintiffs sought monetary...