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Remedies Keyed to Kovacic-Fleischer, 8th
Sprint Communications Co. v. CAT Communications International, Inc.
Citation:
335 F.3d 235 (2003)Facts
Sprint Communications, a long distance telephone carrier, filed suit against CAT Communications after receiving unauthorized and unpaid long distance calls totaling $178,000 from CAT Communications’ local service customers. In May 2000, the District Court granted Sprint’s request for a preliminary injunction ordering CAT Communications to block its customers’ access to Sprint’s network and required Sprint to post a $250,000 bond. CAT Communications complied by ordering blocks through Local Exchange Carriers, particularly Verizon in New Jersey, which charged significant fees including a $10.55 non-recurring fee per customer and $12.41 monthly maintenance charge per line. CAT Communications took no action regarding these mounting costs until November 2001, when it sought to terminate the preliminary injunction and increase the bond amount. By that time, blocking charges exceeded $2.7 million and continued to rise. In April 2002, a new District Judge dissolved the preliminary injunction and simultaneously increased the bond to $4.95 million based on accrued blocking fees.
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