I parsed it correctly because I'm used to reading about appeals courts ruling on things, but one could take "rules" as a noun and "phone" as a verb (the court's rules telephoned a search to let the search know that it was illegal?).

"Search" could also be a verb, but that makes it more of a stretch (even if we envision a kind of phone called a "rules phone", there would be a singular/plural agreement problem in taking it as the subject of "search").