Case: State of Oklahoma v. FCC

16-01057 | U. S. Court of Appeals for the District of Columbia Circuit

Filed Date: Feb. 12, 2016

Closed Date: 2017

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Case Summary

This suit, brought by the State of Oklahoma on January 25, 2016, challenged a Federal Communications Commission (FCC) order that set new rate caps for local (intrastate) and long-distance (interstate) inmate calling. More information on the prior administrative proceedings can be found here. The State brought this suit in the U.S. Court of Appeals for the Tenth Circuit pursuant to the Administrative Procedure Act (APA), alleging the FCC violated the APA's prohibition on regulations that are arb…

This suit, brought by the State of Oklahoma on January 25, 2016, challenged a Federal Communications Commission (FCC) order that set new rate caps for local (intrastate) and long-distance (interstate) inmate calling. More information on the prior administrative proceedings can be found here. The State brought this suit in the U.S. Court of Appeals for the Tenth Circuit pursuant to the Administrative Procedure Act (APA), alleging the FCC violated the APA's prohibition on regulations that are arbitrary and capricious or exceed statutory authority. The State sought to enjoin the FCC's Second Order issued in October 2015.

The State argued that the order exceeded the FCC's authority by doing more than just "level[ing] the playing field between payphone providers." The state contended that the Federal Communications Act ("the Act") granted the FCC authority to create "regulations that protect payphone service providers from state or local laws and unfair practices by infrastructure providers that render payphones not financially viable." The Act, however, did not authorize the FCC to promulgate regulations that "benefit prison inmates at the expense of taxpayers and phone service providers." Moreover, the State argued that, in most circumstances, the FCC was precluded from preempting state policy, and so it generally did not have authority over intrastate communications unless expressly provided in the Act. The State further argued that in setting the new rate caps, the FCC ignored recorded evidence of the cost of providing calling services to incarcerated people.

On February 10, 2016, the FCC moved to transfer the case to the U.S. Court of Appeals for the D.C. Circuit. The State did not oppose the motion to transfer, and the Tenth Circuit granted the motion the same day. In early 2016, this case was consolidated with a number of cases also pending in the D.C. Circuit: 15-1461, 15-1498, 16-1012, 16-1029, 16-1038, and 16-1046. Network Communications International Corp. intervened in the case on behalf of the FCC (date unknown based on docket).

On March 23, 2016, the court stayed the FCC's order with respect to its imposition of interim calling rate caps to intrastate calling services, but not interstate calling services. The parties then proceeded to brief the issues, and oral arguments were held on Feb. 6, 2017.

On June 13, 2017, the court ruled in favor of the State, invalidating the FCC order's proposed caps on intrastate rates on the basis that that provision exceeded the agency's statutory authority under the Act. The court further concluded that the FCC's cost calculations did not reflect reasoned decision-making, and so violated the APA's provision against arbitrary and capricious regulations. Finally, the court remanded to the FCC consideration of whether it can separate out permissible interstate call caps from the now-impermissible intrastate call caps. 866 F.3d 397.

The FCC had asserted that it issued the intrastate caps under the authority of an Act provision requiring the FCC to create a "per call compensation plan to ensure that all payphone service providers are fairly compensated for each and every completed intrastate and interstate call using their payphone." The State argued that that provision did not preclude another Act provision prohibiting the FCC from exercising jurisdiction over "charges, classifications, practices, services, facilities, or regulations for or in connection with intrastate communication service." The court agreed with the State, finding there was a presumption against the FCC's authority over specifically intrastate rates. The court drew a distinction in what the Act allowed the FCC to do: it was expressly permitted to exercise its authority to ensure interstate rates were just and reasonable, and it was to separately ensure that phone service providers were fairly compensated. But, the court held, the latter provision did not mandate that the FCC also had authority to ensure intrastate rates were just and reasonable. The court further held that, in ensuring providers were fairly compensated, the FCC was not required to consider consumers (i.e. incarcerated people) in its fairness assessment.

The case was closed.

Six years after the closing of the case, President Joe Biden signed the Martha Wright-Reed Just and Reasonable Communications Act of 2022 on January 5, 2023. The Act clarified the FCC’s authority to regulate intrastate phone calls and video calls placed from correctional facilities. The Act would allow the FCC to cap the amount telecommunications companies may charge for intrastate phone calls and video calls. The Act was predicted to be implemented sometime in the latter half of 2024.

Summary Authors

Virginia Weeks (12/3/2017)

Related Cases

Wright v. Corrections Corporation of America, District of Columbia (2000)

Judd v. AT&T, Washington state trial court (2000)

In re Rates for Interstate Inmate Calling Services / Wright Petition II, U. S. Court of Appeals for the District of Columbia Circuit (2012)

Securus Technologies v. FCC, U. S. Court of Appeals for the District of Columbia Circuit (2016)

In the Matter of Rates for Interstate Inmate Calling Services / Wright Petition I, No Court (2003)

People

For PACER's information on parties and their attorneys, see: https://www.courtlistener.com/docket/67214407/parties/state-of-oklahoma-ex-rel-joe-v-fcc/


Attorney for Plaintiff

Collins, Christopher  James (Oklahoma)

Attorney for Defendant
Expert/Monitor/Master/Other

Bond, Tonya J. (Indiana)

Chanay, Jeffrey Allyn (Kansas)

Draye, Dominic Emil (Arizona)

Fisher, Thomas M. (Indiana)

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Documents in the Clearinghouse

Document

16-01057

Docket [PACER]

State of Oklahoma v. FCC

Dec. 21, 2017

Dec. 21, 2017

Docket
1598874

16-01057

Petition for Review

State of Oklahoma v. Federal Communications Commission (FCC)

Feb. 12, 2016

Feb. 12, 2016

Pleading / Motion / Brief
1687467

16-01057

On Petitions for Review of an Order of the Federal Communications Commission

Global Tel Link v. Federal Communications Commission (FCC)

Aug. 4, 2017

Aug. 4, 2017

Order/Opinion

Resources

Docket

See docket on RECAP: https://www.courtlistener.com/docket/67214407/state-of-oklahoma-ex-rel-joe-v-fcc/

Last updated Feb. 21, 2024, 3:01 a.m.

ECF Number Description Date Link Date / Link
1207787749

Order Filed (CLERK)

Feb. 16, 2016

Feb. 16, 2016

PACER
1207787749

Order Filed (CLERK)

Feb. 16, 2016

Feb. 16, 2016

PACER
1207790303

Per Curiam Order Filed (Special Panel)

Feb. 23, 2016

Feb. 23, 2016

PACER
1207790303

Per Curiam Order Filed (Special Panel)

Feb. 23, 2016

Feb. 23, 2016

PACER
1207794449

Per Curiam Order Filed (Special Panel)

March 7, 2016

March 7, 2016

PACER
1207794449

Per Curiam Order Filed (Special Panel)

March 7, 2016

March 7, 2016

PACER
1207794463

Order Filed (CLERK)

March 7, 2016

March 7, 2016

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1207794463

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March 7, 2016

March 7, 2016

PACER
1207798179

Per Curiam Order Filed (Special Panel)

March 17, 2016

March 17, 2016

PACER
1207798179

Per Curiam Order Filed (Special Panel)

March 17, 2016

March 17, 2016

PACER
1207798418

Per Curiam Order Filed (Special Panel)

March 18, 2016

March 18, 2016

PACER
1207798418

Per Curiam Order Filed (Special Panel)

March 18, 2016

March 18, 2016

PACER
1207799717

Per Curiam Order Filed (Special Panel)

March 23, 2016

March 23, 2016

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1207799717

Per Curiam Order Filed (Special Panel)

March 23, 2016

March 23, 2016

PACER
1207801239

Order Filed (CLERK)

March 30, 2016

March 30, 2016

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1207801239

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March 30, 2016

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March 30, 2016

March 30, 2016

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1207801250

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March 30, 2016

March 30, 2016

PACER
1207806428

Per Curiam Order Filed (Special Panel)

April 18, 2016

April 18, 2016

PACER
1207806428

Per Curiam Order Filed (Special Panel)

April 18, 2016

April 18, 2016

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1207821352

Order Filed (CLERK)

June 6, 2016

June 6, 2016

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June 6, 2016

June 6, 2016

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1207840825

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Aug. 1, 2016

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Aug. 3, 2016

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1207841875

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Aug. 3, 2016

Aug. 3, 2016

PACER
1207846756

Per Curiam Order Filed (Special Panel)

Aug. 19, 2016

Aug. 19, 2016

PACER
1207846756

Per Curiam Order Filed (Special Panel)

Aug. 19, 2016

Aug. 19, 2016

PACER
1207847631

Order Filed (CLERK)

Aug. 23, 2016

Aug. 23, 2016

PACER
1207847631

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Aug. 23, 2016

Aug. 23, 2016

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1207883369

Order Filed (CLERK)

Dec. 13, 2016

Dec. 13, 2016

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1207883369

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1207883527

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Dec. 13, 2016

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1207883527

Order Filed (CLERK)

Dec. 13, 2016

Dec. 13, 2016

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1207891671

Per Curiam Order Filed (Merits Panel)

Jan. 11, 2017

Jan. 11, 2017

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1207891671

Per Curiam Order Filed (Merits Panel)

Jan. 11, 2017

Jan. 11, 2017

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1207893739

Per Curiam Order Filed (Merits Panel)

Jan. 18, 2017

Jan. 18, 2017

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1207893739

Per Curiam Order Filed (Merits Panel)

Jan. 18, 2017

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1207894906

Per Curiam Order Filed (Merits Panel)

Jan. 24, 2017

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1207894906

Per Curiam Order Filed (Merits Panel)

Jan. 24, 2017

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1207895395

Per Curiam Order Filed (Merits Panel)

Jan. 25, 2017

Jan. 25, 2017

PACER
1207895395

Per Curiam Order Filed (Merits Panel)

Jan. 25, 2017

Jan. 25, 2017

PACER
1207935929

Opinion Filed (Merits Panel)

June 13, 2017

June 13, 2017

PACER
1207935929

Opinion Filed (Merits Panel)

June 13, 2017

June 13, 2017

PACER
1207935932

Order Filed (CLERK)

June 13, 2017

June 13, 2017

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1207935932

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June 13, 2017

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1207950505

Per Curiam Order Filed (Merits Panel)

Aug. 4, 2017

Aug. 4, 2017

PACER
1207950505

Per Curiam Order Filed (Merits Panel)

Aug. 4, 2017

Aug. 4, 2017

PACER
1207950508

Opinion Filed (Merits Panel)

Aug. 4, 2017

Aug. 4, 2017

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1207950508

Opinion Filed (Merits Panel)

Aug. 4, 2017

Aug. 4, 2017

PACER
1207950517

Order Filed (CLERK)

Aug. 4, 2017

Aug. 4, 2017

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1207950517

Order Filed (CLERK)

Aug. 4, 2017

Aug. 4, 2017

PACER
1207951594

Order Filed (CLERK)

Aug. 10, 2017

Aug. 10, 2017

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1207951594

Order Filed (CLERK)

Aug. 10, 2017

Aug. 10, 2017

PACER
1207963383

Per Curiam Order Filed (EnBanc Panel)

Sept. 26, 2017

Sept. 26, 2017

PACER
1207963383

Per Curiam Order Filed (EnBanc Panel)

Sept. 26, 2017

Sept. 26, 2017

PACER

Case Details

State / Territory: District of Columbia

Case Type(s):

Prison Conditions

Key Dates

Filing Date: Feb. 12, 2016

Closing Date: 2017

Case Ongoing: No

Plaintiffs

Plaintiff Description:

State of Oklahoma (petitioner)

Plaintiff Type(s):

State Plaintiff

Public Interest Lawyer: Yes

Filed Pro Se: No

Class Action Sought: No

Class Action Outcome: Not sought

Defendants

Federal Communications Commission, Federal

Case Details

Causes of Action:

Administrative Procedure Act, 5 U.S.C. §§ 551 et seq.

Special Case Type(s):

Appellate Court is initial court

Available Documents:

Complaint (any)

Injunctive (or Injunctive-like) Relief

Non-settlement Outcome

Any published opinion

Outcome

Prevailing Party: Plaintiff

Nature of Relief:

Injunction / Injunctive-like Settlement

Source of Relief:

Litigation

Issues

General:

Phone

Type of Facility:

Government-run