Posted: Jun 15, 2011 8:42 AM by Lauren Wilson & AP
NEW ORLEANS (AP) - A judge says BellSouth owes the city of New Orleans millions of dollars for rights-of-way granted by the city for telephone service.
What the final payment will be wasn't entirely clear in U.S. District Judge Eldon Fallon's order. Fallon said BellSouth, now part of AT&T, owes the city more than $5.1 million for rights of way granted since 2007. However, he also said the utility is entitled to a credit against that amount for discounted phone service it has provided the city.
Fallon's June 6 order was the latest development in a lawsuit that was filed by the city in 2009. The complex case involves various agreements, disputes, settlements and ordinances dating back to the late 19th century.
AT&T spokeswoman Kim Allen said the company is studying its legal options.