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FEDERAL COMMUNICATIONS COMMISSION
Enforcement Bureau
Market Disputes Resolution Division
445 12th St., S.W.
Washington, D.C. 20554
APCC Services, Inc.; Data Net Systems, )
LLC, Davel Communications, Inc.; )
Jaroth, Inc. d/b/a Pacific )
Telemanagement Services; and Intera )
Communications Corp., )
)
Complainants, )
)
v. ) File No. EB-03-MD-
018
)
ATX Telecommunications Services; )
Michael Karp d/b/a/ ATX )
Telecommunications Services; University )
City Housing Company; ATX )
Telecommunications Services, Ltd.; CCL )
Historical, Inc.; ATX Licensing, Inc.; )
And ATX Communications, Inc. )
)
Defendants. )
ORDER
Adopted: March 19, 2004 Released: March 22,
2004
By the Deputy Chief, Market Disputes Resolution Division,
Enforcement Bureau:
1. On October 10, 2003, APCC Services, Inc.,
Data Net Systems, LLC, Davel Communications, Inc. Jaroth,
Inc. d/b/a Pacific Telemanagement Services, and Intera
Communications Corp. (``Complainants) filed with this
Commission a formal complaint (``Complaint'') against ATX
Telecommunications Services; Michael Karp d/b/a/ ATX
Telecommunications Services; University City Housing
Company; ATX Telecommunications Services, Ltd.; CCL
Historical, Inc.; ATX Licensing, Inc. and ATX
Communications, Inc. (''Defendants'') pursuant to section
208 of the Communications Act of 1934, as amended (the
``Act''), 47 U.S.C. § 208. On January 15, 2004, counsel for
the Defendants notified the Commission that ATX
Communications, Inc. and certain associated entities filed
petitions in the United States District Court for the
Southern District of New York for protection under Chapter
11 of the United States Bankruptcy Code.1 The Notification
further stated that, pursuant to Section 362 of the
Bankruptcy Act, such filing results in the automatic stay of
the above-captioned matter.2
2. On March 5, 2004, the Complainants and
certain Defendants filed a joint motion.3 The Joint Motion
explains that, of the Defendants, only the following are
subject to the automatic stay: CCL Historical, Inc., ATX
Licensing, Inc., and ATX Communications, Inc. (``Defendants
in Bankruptcy'').4 The Joint Motion further explains that,
to save both the Complainants and the Movant Defendants the
substantial legal expense of continuing the proceeding, the
``Complainants and Movant Defendants request that the
Commission dismiss the complaint with respect to the Movant
Defendants without prejudice to the Complainants re-filing a
complaint at some future date.''5 We are satisfied that
granting the parties' Joint Motion will serve the public
interest by postponing the need for further litigation and
expenditure of further time and resources of the parties and
of this Commission until such time as may actually be
necessary.
3. Regarding the Defendants in Bankruptcy, for
administrative purposes only, we revise the status of the
formal complaint to an informal complaint.6 As we have
informed the parties, we do this for purposes of internal
docket organization only, and we do not intend this action
to affect the rights and obligations of any party.7 When
the proceeding resumes, it will do so under its current
designation, File No. EB-03-MD-018. The relation of this
formal complaint to prior informal complaints, including the
relation-back provision of section 1.718 of the Commission's
rules, will be unaffected by this purely organizational
action. While the Defendants in Bankruptcy remain in
bankruptcy the Complainants must file a report on the status
of the bankruptcy proceedings every four months. Failure to
file such a status report will result in dismissal of the
complaint for failure to prosecute.8
4. Accordingly, IT IS ORDERED, pursuant to
sections 4(i), 4(j), and 208 of the Communications Act of
1934, as amended, 47 U.S.C. §§ 154(i), 154(j), and 208, and
sections 1.720-1.736 of the Commission's rules, 47 C.F.R. §§
1.720-36, and the authority delegated in sections 0.111 and
0.311 of the Commission's rules, 47 C.F.R. §§ 0.111, 0.311,
that the Joint Motion to Dismiss Without Prejudice the
Complaint against the Remaining Defendants IS GRANTED.
5. IT IS FURTHER ORDERED, pursuant to sections
4(i), 4(j), and 208 of the Communications Act of 1934, as
amended, 47 U.S.C. §§ 154(i), 154(j), and 208, and sections
1.3, 1.716-18, and 1.720-1.736 of the Commission's rules, 47
C.F.R. §§ 1.3, 1.716-18, 1.720-36, and the authority
delegated in sections 0.111 and 0.311 of the Commission's
rules, 47 C.F.R. §§ 0.111, 0.311, that the Complainants'
formal complaint is converted to an informal complaint, and
that the formal complaint and answer filed in the above-
captioned proceeding satisfy sections 1.716-17 of the
Commission's rules, 47 C.F.R. §§ 1.716-17.
6. IT IS FURTHER ORDERED, pursuant to sections
4(i), 4(j), and 208 of the Communications Act of 1934, as
amended, 47 U.S.C. §§ 154(i), 154(j), and 208, and sections
1.3, 1.716-18, and 1.720-1.736 of the Commission's rules, 47
C.F.R. §§ 1.3, 1.716-18, 1.720-36, and the authority
delegated in sections 0.111 and 0.311 of the Commission's
rules, 47 C.F.R. §§ 0.111, 0.311, that the file number for
the informal complaint is EB-04-MDIC-0001.
FEDERAL COMMUNICATIONS COMMISSION
Radhika
V. Karmarkar
Deputy Chief
Market Disputes Resolution Division
Enforcement Bureau
_________________________
1 Letter from Eric J. Branfman and Kathleen Greenan
Ramsey, attorneys for Defendants, to Marlene H. Dortch,
Secretary, Federal Communications Commission (Jan. 15, 2004)
(``Notification'').
2 Notification at 1.
3 Letter from Kathy L. Cooper, attorney for Movant
Defendants, to Marlene H. Dortch, Secretary, Federal
Communications Commission (Mar. 5, 2004) (``Joint Motion'').
All of the Defendants except those in bankruptcy
participated in the Joint Motion. They are: ATX
Telecommunications Services; Michael Karp d/b/a/ ATX
Telecommunications Services; University City Housing
Company; and ATX Telecommunications Services, Ltd. (``Movant
Defendants''); see Joint Motion at 1-2.
4 Joint Motion at 2.
5 Joint Motion at 3-4.
6 47 U.S.C. §§ 4(i) and (j). The temporary informal
complaint that will substitute for File. No. EB-03-MD-018 is
File No. EB-04-MDIC-0001.
7 Conference call between Radhika V. Karmarkar, Deputy
Chief Market Disputes Resolution Division, Enforcement
Bureau, Federal Communications Commission, Allan C. Hubbard,
Attorney for Complainants, and Eric J. Branfman, attorney
for Defendants (Mar. 12, 2004).
8 47 C.F.R. § 1.720(g). During the bankruptcy, the
Complainants should file the required 4-monthly status
report in informal complaint File. No. EB-04-MDIC-0001.