Virgin Mobile U.S.A., L.P. v. Commonwealth

Virgin Mobile USA (Virgin) began doing business in Kentucky as a commercial mobile radio service (CMRS) provider in 2002. In 2006, Virgin asked the Commercial Mobile Radio Emergency Service Telecommunications Board (the Board) to refund $286,807 it claimed it had overpaid before the CMRS service charge statutes were amended in July 2006. The Board did not promptly respond and so Virgin made no CMRS payment to the Board until it had recaptured from post-July 2006 collections the $286,807 it claimed it had erroneously overpaid. In 2008, the Board filed suit to recover the disputed amount. The circuit court entered summary judgment against Virgin for $547,945. The Court of Appeals affirmed the trial court’s conclusion that as a “CMRS provider,” Virgin had a statutory duty to collect the CMRS service charge from its customers during the pre-July 2006 time frame and remit them to the Board. The Supreme Court affirmed in part and reversed in part, holding (1) Virgin was indebted to the Board in the sum of $286,807, not $547,945; and (2) the Board was entitled to attorneys fees. View "Virgin Mobile U.S.A., L.P. v. Commonwealth" on Justia Law