NEWSReport No. DC 96-105    ACTION IN DOCKET CASE    November 26, 1996


         COMMISSION INITIATES REVIEW OF FORMAL COMPLAINT PROCESS 
                          (CC DOCKET NO. 96-238)

     The Commission today opened a proceeding to reform its formal complaint process to
implement the new timelines for dispute resolution contained in the Telecommunications Act
of 1996.  Recognizing the importance of swift and vigorous enforcement of the rules for
competition, the Commission today adopted a Notice of Proposed Rulemaking that proposes
to improve the speed, effectiveness, and efficiency of its enforcement procedures by
streamlining the formal complaint filing process, encouraging parties to narrow the issues in
dispute, and developing methods for improving the quality and content of parties' filings. 

     The 1996 Act prescribes deadlines ranging from 90 days to five months for resolution
by the Commission of certain types of complaints against the Bell Operating Companies and
other telecommunications carriers that are subject to the requirements of the Act.  The
Commission tentatively concluded that the pro-competitive goals and policies of the 1996 Act
would be enhanced by applying the proposals in this Notice to all formal complaints filed
with the Commission, not just those enumerated in the 1996 Act.  Consequently, the
Commission's proposals focus on ways to expedite generally the resolution of all formal
complaints against telecommunications carriers.

     The proposals crafted by the Commission were formulated from many different
sources over the last nine months.  The proposals adopted today reflect a series of extensive
meetings between Commission staff and members of the telecommunications industry.  In
addition, recognizing the difficulty in crafting procedures that permit full resolution of what
are likely to be complex legal and factual issues within 5 months, or in some cases, 90 days,
the Commission's proposals also reflect examination of several models of litigation efficiency,
including the Federal Rules of Civil Procedure and the "rocket docket" procedures utilized in
the U.S. District court for the Eastern District of Virginia.

The following summarizes the key proposals in the Notice:

     1) require complainants and defendants to engage in pre-filing activities designed to
resolve or narrow issues and compile and exchange relevant information before filing formal
complaints with the Commission;

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     2) eliminate delays in serving complaints on defendant carriers and accelerate service
of all subsequent pleadings;

     3) improve the utility, quality, and content of the complaint, answer and other filings
submitted by parties; 

     4) eliminate and modify those pleading opportunities that appear not to be useful or
necessary;

     5) delineate the legal and evidentiary standards necessary for obtaining "cease" or
"cease-and-desist" orders and other forms of interim relief under the Act;

     6)  encourage complainants to bifurcate liability and damages issues through the
voluntary supplemental complaint process under Section 1.722 of the Commission's rules; and

     7)  require complainants requesting an award of damages to include in their complaints
a detailed computation for any category of damages claimed, along with identification of all
documents or materials (not privileged or protected from disclosure) on which any such
computation is based.
     
     The Commission stated that the proposed modifications are designed to help create
complete records for the expedited handling and disposition of formal complaints while
preserving the due process rights of all parties.

     Action by the Commission November 26, 1996, by Notice of Proposed Rulemaking
(FCC 96-460).  Chairman Hundt, Commissioners Quello, Ness, and Chong. 

  -FCC-

     News Media contact: Mindy J. Ginsburg at (202) 418-1500.
     Common Carrier Bureau contact: Anita Cheng at (202) 418-0960.