Michael S. Hamden - Attorney, Counselor at Law & Corrections Consultant

Wright, et al. v. Corrections Corporation of America (CAA)

In Wright, et al. v. Corrections Corporation of America, et al., CA No. 00-293 (GK)(16 Feb. 2000, D.D.C.), a group of consumers challenged interstate long-distance rates at three privately operated prisons.  Among other contentions, Plaintiffs alleged that the prison telephone service providers were conducting anti-competitive businesses which prevented Plaintiffs from selecting among various calling options, to their financial detriment. 

 

The Federal District Court for the District of Columbia concluded that the Federal Communications Commission (FCC) had “primary jurisdiction” over the case, which essentially challenged excessive rates, although the challenge was framed in various constitutional and statutory arguments.  Wright, et al. v. Corrections Corporation of America, et al., CA No. 00-293 (GK) (16 Feb. 2000, D.D.C.), Memorandum & Order, 22 August 2001 (hereafter, Memorandum).  The court found that the FCC had a legislative mandate and the expertise necessary to decide the complex issues involved; that it also had the authority to exclude “commissions” from the cost calculation of the service providers; the agency already had before it proceedings that raised many of the same questions; and that several other courts had referred similar proceedings to the FCC under the “primary jurisdiction” doctrine.  Memorandum at pp. 4 – 15.  The court therefore dismissed the case, referred the parties to the FCC, and expressed its expectation that the agency would “move with dispatch” in resolving these issues.  Memorandum at p. 15 (22 August 2001).