II. FACTS/PROCEDURAL BACKGROUND
On January 12, 2007, in D.07-01-004 ("Decision"), the Commission granted a motion for summary judgment filed by Cox against GNAPs. GNAPs is certificated in California as a Competitive Local Exchange Carrier ("CLEC"), and as an Interexchange Carrier ("IXC"). Cox registered as a telephone utility with the Commission and is a licensed telecommunications carrier. GNAPs was ordered to pay Cox the sum of $985,439.38, plus interest on overdue amounts at the rate of one and one-half percent per month. The Decision took effect on the date issued.
On February 13, 2007, GNAPs timely filed an application for rehearing. It alleged that the Decision is unlawful for at least two reasons: 1) the Commission unlawfully failed to evaluate Cox's Motion for Summary Judgment and GNAPs' Opposition according to the parameters of the California Code of Civil Procedure ("CCP") Section 437(c); and 2) the Decision unlawfully denied GNAPs due process by depriving GNAPs of its opportunity to present oral argument.
Cox timely filed its response to GNAPs' rehearing application on February 27, 2007. Cox argues the following: 1) GNAPs' rehearing application is invalid because it merely reargues positions GNAPs has previously argued; 2) the Decision properly concludes that there are not triable issues of material fact and Cox is entitled to judgment as a matter of law; and 3) the Commission is not bound by the procedural requirements of CCP 437(c).
On March 2, 2007, GNAPs filed a "Request for Stay or Suspension of Decision 07-01-004 Pending Ruling on Application for Rehearing." GNAPs requested that the Commission stay the effective date of the Decision for 60 days, or until the Commission has ruled on the rehearing application.
Cox filed a Response to Request for Stay on March 8, 2007. It asserted that GNAPs' request for a stay is procedurally improper and substantively invalid. Cox stated that if a stay was granted, the stay should be conditioned on a stay bond in the full amount that GNAPs owes Cox under D.07-01-004. On April 16, 2007 in D.07-04-048, the Commission denied GNAPs' Motion for Stay.
In the interim, on February 15, 2007, Cox filed a motion requesting an order mandating that GNAPs pay the judgment rendered in the decision. On March 23, 2007, the assigned Commissioner and the assigned Administrative Law Judge ("ALJ") issued a joint ruling granting Cox's motion and setting a hearing ordering GNAPs to appear and demonstrate that it had paid Cox in compliance with the Decision, or show cause why it should not have its Certificate of Public Convenience and Necessity ("CPCN") suspended for failure to comply with the Decision.
At the hearing of April 9, 2007, GNAPs argued that the Commission lacked legal authority to sanction it for failing to pay Cox as the Decision ordered. Although the Commission never referred to the hearing as a contempt proceeding except to rebut GNAPs' mischaracterization of the proceeding, GNAPs asserted that it was an in-substance contempt proceeding. Therefore, GNAPs stated that it could not be found in contempt because it had no money with which to pay.
On April 12, 2007, a second joint ruling was issued, ordering GNAPs to supplement the record by identifying any source of funds that creditors could look to for satisfaction of their debts. GNAPs was also directed to explain how it would minimize the effect on its customers of a suspension or revocation of its CPCN. On April 19, 2007, GNAPs responded with a second declaration reiterating the company's lack of assets, and stating its position that the Commission lacks authority to suspend or revoke its CPCN for failure to comply with D.07-01-004's ordering paragraphs.
A proposed decision was issued on May 21, 2007, which proposed suspending Global NAPs' CPCN. Opening Comments were due no later than June 10, 2007, and reply comments were due five days after Opening Comments were filed. On June 22, 2007, the Commission issued D.07-06-044, suspending GNAPs' CPCN, effective 30 days after the issuance of the decision.1
1 Events subsequent to the issuance of D.07-06-044, which include the dismissal of state appellate court proceedings, will be taken up in the rehearing of D.07-06-044.
