assignment

Issues

The Telecommunications Act of 1996 requires long-distance telephone companies, such as Sprint and AT&T, to fairly compensate payphone service providers (PSPs) when consumers use the companies' access codes to complete long-distance calls on payphones. About 1,400 PSPs assigned their rights "of collection" to a third-party aggregator, American Public Communications Council Services (APCC), in order for APCC to sue Sprint and AT&T for inadequate compensation on the PSPs' behalf. While the District Court for the District of Columbia initially dismissed APCC's suit for lack of standing under Article III, Section 2 of the Constitution, it later vacated its ruling and denied the motion to dismiss. The Court of Appeals for the District of Columbia Circuit ultimately found that APCC had standing to sue as well as the private right to sue in federal court.

On appeal, the Supreme Court will determine whether an assignment of claims "for purposes of collection" establishes standing for a third-party assignee.  The Court will examine whether APCC meets the standing requirements of injury-in-fact and redressability.  A decision for APCC could allow future parties to bring collective suits while bypassing legislative safeguards, such as those established for class actions. On the other hand, a decision for Sprint and AT&T may frustrate enforcement of the Telecommunications Act by preventing efficient collection efforts.

Questions as Framed for the Court by the Parties

Additional Resources