Procedural Background

On March 10, 2006, Pacific Bell Telephone Company d/b/a/ AT&T California (AT&T) filed this complaint against Fones4All Corporation (Fones4All) to recover alleged overcharges AT&T paid to Fones4All. Following an evidentiary hearing, the Commission issued Decision (D.) 07-07-013, granting the relief AT&T requested. The decision awarded remuneration of approximately $2.6 million, plus interest.

In March 2008, AT&T filed a motion stating that Fones4All had failed to pay the awarded amount. AT&T alleged that it had evidence that at least one Fones4All officer had been "siphoning off" Fones4All's assets. AT&T proposed an expedited discovery schedule in an effort to gather evidence to pierce the corporate veil and collect the debt owed by Fones4All. Fones4All opposed the motion. On April 15, 2008, the Commission granted the motion, and set an evidentiary hearing to address the corporate veil piercing issue.

On July 11, 2008, Fones4All filed a motion to dismiss the April 15, 2008 ruling. In August 2008, Fones4All's motion was denied. Evidentiary hearings were set to start on August 5, 2008, but Fones4All declared bankruptcy the same month. The proceeding was stayed and evidentiary hearings on the corporate veil piercing issue were never held. The bankruptcy proceeding is still pending.

AT&T has asserted the same veil piercing claim in the bankruptcy proceeding. (AT&T's motion at 1.) AT&T asserts that as complainant it has a unilateral right to dismissal prior to evidentiary hearings and that administrative efficiency would be better served by dismissing the veil piercing claims in this proceeding, without prejudice, and allowing the claims to be adjudicated in the bankruptcy proceeding.

AT&T's motion is unopposed.