CenturyTel of Chatham, LLC v. Sprint Communications Co., No. 16-30634 (5th Cir. 2017)Annotate this Case
CenturyLink filed suit against Sprint for damages resulting from Sprint's refusal to pay $8.7 million in access charges. Sprint counterclaimed, seeking a declaration that it was not required to pay CenturyLink the higher statutory "tariff" rates under federal and state laws. The Fifth Circuit affirmed the district court's conclusion that Sprint was required to pay CenturyLink the challenged tariff-rate access charges. In this case, the district court did not clearly err in finding Sprint was operating as an interexchange carrier in providing its VoIP-to-traditional-format transfer service, rather than as an information-service provider. Therefore, Sprint was obligated to pay for the federal tariff rates billed by CenturyLink. The court noted that, because Sprint failed to raise preemption on appeal, the state law tariffs could not be challenged here. The court also affirmed the district court's conclusion that Sprint engaged in unjust and unreasonable practices when it retroactively clawed-back funds by not paying charges it undisputedly owed.