CONTACTS 
0201 - Pac Bell IS, Custmr Srvcs          415 955 9175
020101 - Ms. June Heinze; Manager of Customer Services =510 275 1683, fax
020102 - Customer Service  800 675 9005  or outside CA 800 989 9005

SUBJECTS
Business Systems, Pac Bell
Message Service, Problems
Dispute Resolution

0505 -    ..
0506 - Summary/Objective
0507 -
050701 - Followed up work at ref SDS 11 line 43, and ref SDS 10 line 40, and
050702 - our letter ref DIP 1 line 30 confirming understandings, and making
050703 - claim to compensate for the impact of this problem.
050704 -
050705 - Received Pac Bell's letter, ref DRT 1 line 18 which shows concurrance
050706 - with the important points of our claim.  Pac Bell offers additional
050707 - credits for failure to provide service.  We find this unnecessary. Pac
050708 - Bell does not contest our $200 claim for failure to give notice of
050709 - service impact.  Pac Bell does not indicate how it will compensate for
050710 - diminished service.
050711 -
0508 -
0509 -
0510 - Analysis
0511 -
051101 - Pac Bell agrees Welch was damaged, ref DRT 1 line 24, and that Pac
051102 - Bell caused this beginning on 950222, ref DRT 1 line 57.
051103 -
051104 - Pac Bell agrees Welch should have been notified of its loss of
051105 - service, per ref DRT 1 line 49.  This implicitly agrees that failure
051106 - to give notice would cause damage, otherwise there would be no reason
051107 - to give notice.  Additionally, Pac Bell states it has begun to give
051108 - its customers notice which was denied to Welch, ref DRT 1 line 50.
051109 - This effort to mitigate does not remedy the harm done to Welch.
051110 -
051111 - Pac Bell says at ref DRT 1 line 52:
051112 -
051113 -      Since The Message Center should only be answering one line, the
051114 -      switch upgrade should not be an issue and that is why verbiage
051115 -      was not originally included."
051116 -
051117 - This position conflicts with para 3 which recognizes Pac Bell designed
051118 - a service at ref SDS 2 line 256, to meet Welch's objectives in 1990,
051119 - ref DRT 1 line 35.  Pac Bell offers no evidence or grounds that Welch
051120 - should not have relied on Pac Bell's 1990 design.  Affirmative
051121 - representations by appropriate Pac Bell staff, plus the record of
051122 - performance providing service in compliance with Pac Bell's
051123 - representations beginning in 1990, provide reasonable grounds for Pac
051124 - Bell to have issued notice of an impending change in its level of
051125 - service, so the customer could have made arrangements to avoid damage,
051126 - including assisting Pac Bell in accomp- lishing the original design
051127 - under the recent changes by Pac Bell in its switching equipment.
051128 -
051129 - Pac Bell offers no proof of the date service was actually interrupted.
051130 - June recounts a statement by Jane (see ref SDS 10 line 101) that it
051131 - occurred on 950222, ref DRT 1 line 56.
051132 -
051133 -
051134 - Direct Damages
051135 -
051136 - Pac Bell offers to remedy the alleged 6 weeks loss of service by
051137 - issuing a credit for the cost of 3 months Message Service, ref DRT 1
051138 - line 58.  This is acceptable to Welch, but not necessary.  Welch is
051139 - agreeable to receiving credit for the service that was charged and
051140 - paid, but not provided.
051141 -
051142 - Pac Bell need merely submit proof of the date service was interrupted
051143 - and Welch is agreeable to credit of such overcharge.
051144 -
051145 -
051146 - Consequential Damages
051147 -
051148 - Pac Bell offers no additional information or analysis on the Welch
051149 - claim of $200 to compensate for the failure to give notice of
051150 - terminated service, as presented previously at ref SDS 10 line 259,
051151 - and in the Welch letter dated 950331, ref DIP 1 line 37.
051152 -
051153 - Since there is no disagreement on this point, we will take this credit
051154 - on the Pac Bell portion of the pending billings unless notified
051155 - differently by Pac Bell.
051156 -
051157 -
051158 - Scope of Service/Billing Adjustment
051159 -
051160 - Pac Bell's letter does not indicate what level of effort is needed to
051161 - restore our prior service, nor the reduction in monthly billing rate
051162 - that should be made to reflect a reduction in service.  As well, how
051163 - much of an increase does Pac Bell seek to provide our prior service,
051164 - and how does this compare with other providers?
051165 -
051166 - What effort has been made to contact Joe Olpin, his boss or successor.
051167 - Why was Joe able to accomplish what others said could not be done, and
051168 - why, if Joe could satisfy the customer, cannot Pac Bell which now has
051169 - 5 years more experience, better equipment, and better management, do
051170 - as good a job as Joe did?
051171 -