Schools and Libraries Universal Service Support Program-Telecommunications Act 110 Stat. 56

Listen to this article

7^th Circuit Court of Appeals

Case Name: Todd Heath v. Wisconsin Bell, Inc.

Case No.: 22-1515

Officials: Easterbrook, Hamilton, and Lee, Circuit Judges

Focus: Schools and Libraries Universal Service Support Program-Telecommunications Act 110 Stat. 56

The 1996 E-Rate program, also known as the Schools and Libraries Universal Service Support program under the Telecommunications Act 110 Stat. 56, aims to make telecommunication services affordable for schools and libraries in rural and economically disadvantaged regions. To achieve this, the program subsidizes services and mandates that providers offer rates to these customers that are either equal to or lower than the rates charged to similarly situated customers. In this context, Heath filed a qui tam action under the False Claims Act (31 U.S.C. 3729), alleging that Wisconsin Bell overcharged schools and libraries in violation of the program’s guidelines, resulting in the federal government paying more than it should have. Initially, the district court ruled in favor of Wisconsin Bell by granting them summary judgment.

The Seventh Circuit reverses. Despite Heath’s primary focus in his arguments and evidence being on the burden of proving violations rather than on pinpointing specific violations among his extensive exhibits and expert report, he was still able to present sufficient evidence of discriminatory pricing. This evidence suggested that Wisconsin Bell knowingly charged certain schools and libraries more than their similarly situated customers, which, if proven true, would be a violation of the E-Rate program. The court found it reasonable to infer that government funds were involved in these transactions and that the government, had it known about these overcharges, would not have approved the claims.

Remanded and Reversed

Decided 08/02/23

Full Text