Federal Circuits, D.C. Cir. (February 08, 1960)
Docket number: 15313,15314
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U.S. Court of Appeals for the D.C. Cir. - the Radio Station Kfh Company, Appellant, v. Federal Communications Commission, Appellee, Wichita Television Corporation, Inc., Intervenor. the Radio Station Kfh Company, Petitioner, v. United States of America and Federal Communications Commission, Respondents, Wichita Television Corporation, Inc., Intervenor., 247 F.2d 570 (D.C. Cir. 1957) Appellant, v. Federal Communications Commission, Appellee, Wichita Television Corporation, Inc., Intervenor. the Radio Station Kfh Company, Petitioner, v. United States of America and Federal Communications Commission, Respondents, Wichita Television Corporation, Inc., Intervenor.
U.S. Court of Appeals for the D.C. Cir. - Owensboro on the Air, Inc., and Owensboro Publishing Company, Petitioners, v. United States of America and Federal Communications Commission, Respondents, American Broadcasting-Paramount Theatres, Inc., Intervenor, Mid-America Broadcasting Corporation, Intervenor, Weht, Inc., Intervenor. Owensboro on the Air, Inc., and Owensboro Publishing Company, Appellants, v. Federal Communications Commission, Appellee, American Broadcasting-Paramount Theatres, Inc., Intervenor, Mid-America Broadcasting Corporation, Intervenor. Owensboro on the Air, Inc., and Owensboro Publishing Company, Appellants, v. Federal Communications Commission, Appellee, American Broadcasting-Paramount Theatres, Inc., Intervenor, Mid-America Broadcasting Corporation, Intervenor, Weht, Inc., Intervenor. Evansville Television, Inc., Appellant, v. Federal Communications Commission, Appellee, Weht, Inc., Intervenor. Evansville Television, Inc., Petitioner, v. United States of America and Federal Communications Commission, Respondents, Weht, Inc...., 262 F.2d 702 (D.C. Cir. 1959) Inc., and Owensboro Publishing Company, Petitioners, v. United States of America and Federal Communications Commission, Respondents, American Broadcasting-Paramount Theatres, Inc., Intervenor, Mid-America Broadcasting Corporation, Intervenor, Weht, Inc., Intervenor. Owensboro on the Air, Inc., and Owensboro Publishing Company, Appellants, v. Federal Communications Commission, Appellee, American Broadcasting-Paramount Theatres, Inc., Intervenor, Mid-America Broadcasting Corporation, Intervenor. Owensboro on the Air, Inc., and Owensboro Publishing Company, Appellants, v. Federal Communications Commission, Appellee, American Broadcasting-Paramount Theatres, Inc., Intervenor, Mid-America Broadcasting Corporation, Intervenor, Weht, Inc., Intervenor. Evansville Television, Inc., Appellant, v. Federal Communications Commission, Appellee, Weht, Inc., Intervenor. Evansville Television, Inc., Petitioner, v. United States of America and Federal Communications Commission, Respondents, Weht, Inc....
U.S. Supreme Court - Red Lion Broadcasting Co. v. FCC, 395 U.S. 367 (1969)
U.S. Court of Appeals for the D.C. Cir. - Harvey Radio Laboratories, Inc., Petitioner, v. United States of America and Federal Communications Commission, Respondents, Wgn, Inc., Clear Channel Broadcasting Services, Intervenors., 289 F.2d 458 (D.C. Cir. 1961) Inc., Petitioner, v. United States of America and Federal Communications Commission, Respondents, Wgn, Inc., Clear Channel Broadcasting Services, Intervenors.
U.S. Court of Appeals for the D.C. Cir. - Beloit Broadcasters, Inc., Appellant, v. Federal Communications Commission, Appellee Radio Thirteen-Eighty, Inc., Intervenor. Thirteen-Eighty Radio Corporation and Kwk Broadcasting Corporation, Appellants, v. Federal Communications Commission, Appellee Radio Thirteen-Eighty, Inc., Intervenor., 365 F.2d 962 (D.C. Cir. 1966) Inc., Appellant, v. Federal Communications Commission, Appellee Radio Thirteen-Eighty, Inc., Intervenor. Thirteen-Eighty Radio Corporation and Kwk Broadcasting Corporation, Appellants, v. Federal Communications Commission, Appellee Radio Thirteen-Eighty, Inc., Intervenor.
U.S. Court of Appeals for the D.C. Cir. - Pikes Peak Broadcasting Company, Petitioner, v. Federal Communications Commission and United States of America, Respondents, City of Colorado Springs, Colorado, Vumore Video Corp. of Colorado, Inc., Garvey Communications Systems, Inc., National Association of Broadcasters, National Tv Translator Association, Colorado Translator Association, All-Channel Television Society, Intervenors. Sangre de Cristo Broadcasting Corporation, Petitioner, v. Federal Communications Commission and United States of America, Respondents, Garvey Communications Systems, Inc., National Association of Broadcasters, Vumore Video Corp. of Colorado, Inc., City of Colorado Springs, Colorado, National Tv Translator Association, Colorado Translator Association, All-Channel Television Society, Pueblo Tv Power, Intervenors., 422 F.2d 671 (D.C. Cir. 1969) Petitioner, v. Federal Communications Commission and United States of America, Respondents, City of Colorado Springs, Colorado, Vumore Video Corp. of Colorado, Inc., Garvey Communications Systems, Inc., National Association of Broadcasters, National Tv Translator Association, Colorado Translator Association, All-Channel Television Society, Intervenors. Sangre de Cristo Broadcasting Corporation, Petitioner, v. Federal Communications Commission and United States of America, Respondents, Garvey Communications Systems, Inc., National Association of Broadcasters, Vumore Video Corp. of Colorado, Inc., City of Colorado Springs, Colorado, National Tv Translator Association, Colorado Translator Association, All-Channel Television Society, Pueblo Tv Power, Intervenors.
U.S. Court of Appeals for the D.C. Cir. - Mci Cellular Telephone Company, Appellant, v. Federal Communications Commission, Appellee, Bell Atlantic Mobile Systems of Pittsburgh, Inc., Gencom, Inc., Arts/Post D.C. Cellular Systems & Arts/Post Maryland Cellular Systems, Gte Mobilnet, Inc., Intervenors. Gencom, Inc., Appellant, v. Federal Communications Commission, Appellee, New Vector Communications, Inc., Get Mobilnet, Inc., Intervenors., 738 F.2d 1322 (D.C. Cir. 1984) Appellant, v. Federal Communications Commission, Appellee, Bell Atlantic Mobile Systems of Pittsburgh, Inc., Gencom, Inc., Arts/Post D.C. Cellular Systems & Arts/Post Maryland Cellular Systems, Gte Mobilnet, Inc., Intervenors. Gencom, Inc., Appellant, v. Federal Communications Commission, Appellee, New Vector Communications, Inc., Get Mobilnet, Inc., Intervenors.
Mr. Frank U. Fletcher, Washington, D.C., with whom Messrs. Robert L. Heald and Russell Rowell, Washington, D.C., were on the brief, for appellant in No. 15313 and petitioner in No. 15314.
Mr. Max D. Paglin, Asst. Gen. Counsel, Federal Communications Commission, with whom Messrs. John L. Fitz-Gerald, Gen. Counsel, and John H. Conlin, Counsel, Federal Communications Commission, were on the brief, for appellee in No. 15313 and respondent, Federal Communications Commission in No. 15314.Mr. Richard A. Solomon, Atty., Department of Justice, was on the brief for respondent United States of America in No. 15314.Mr. Richard M. Zwolinski, Counsel, Federal Communications Commission, also entered an appearance for appellee in No. 15313 and respondent Federal Communications Commission in No. 15314.Mr. Harold D. Cohen, Washington, D.C., with whom Messrs. Vernon C. Kohlhass and William S. Green, Washington, D.C., were on the brief, for intervenor. Mr. Thomas N. Dowd, Washington, D.C., also entered an appearance for intervenor.Messrs. James A. McKenna, Jr., and Vernon L. Wilkinson, Washington, D.C., filed a brief on behalf of American Broadcasting-Paramount Theatres, Inc., as amicus curiae, in both cases urging dismissal.Before WILBUR K. MILLER, DANAHER and BURGER, Circuit Judges.BURGER, Circuit Judge.Appellant challenges the action of the Federal Communications Commission which granted to Modern Broadcasting Company (intervenor) a Special Temporary Authority (hereafter S.T.A.) to construct and operate a TV station on Channel 9, V.H.F., at Baton Rouge, Louisiana. Modern has been operating station WAFB-TV in Baton Rouge, Louisiana, on U.H.F., Channel 28, since 1953, and has been sustaining operating losses since 1956. Channel 9, V.H.F., had been shifted, on June 3, 1959, by a rule making proceeding not challenged here, from Hattiesburg, Mississippi, to Baton Rouge.1On June 15, 1959, Modern applied for a construction permit for Channel 9 at Baton Rouge and, on June 18, filed a request for Special Temporary Authorization to permit immediate use of the channel without awaiting a comparative hearing. Modern asserted that it could not in any event continue its operations on the U.H.F. Channel 28 beyond 1959 in view of the financial losses being sustained. Modern's application asserted also that it would be 'willing to conduct such temporary operation under the express condition that it will expire automatically upon the commencement of any regular operation on Channel 9' resulting from the Commission's final action on the grant. Modern also agreed that 'no effect whatsoever shall be given to any expenditure of funds * * * and that no preference shall be accorded to (Modern) by virtue of the (temporary) grant * * *.'Community Broadcasting Co., Inc., petitioner here, filed objection to the request for temporary authority, saying it would file its application for Channel 9 along with a request for a S.T.A. pending final action on the application. On July 21, 1959, Community filed an application for a construction permit but filed no request for temporary authority to operate pending final action.The two applications being mutually exclusive, a comparative hearing for a license for regular operations became imperative. Modern renewed its request for temporary authority and Community again objected repeating its assertion that it would file a request for the S.T.A. and that any action by the Commission at that time on the question of interim operating authority would be premature because it could not be known how many applicants might ultimately seek comparative consideration for the channel.On July 22, 1959, one day after Community's construction permit application was filed, the Commission granted Modern's application for the S.T.A. pending the conclusion of a comparative hearing on the competing applications for permanent operations,2 theirs being the only request for temporary authority then before the Commission. It predicated its action on the fact that the Baton Rouge reallocation problem had been under formal consideration since October 1957; that due to the probability of a long comparative hearing regular authorization could not be issued with respect to Channel 9 for several years; and that the public need for an additional V.H.F. channel at Baton Rouge, which need had led to the reassignment of chnnels, could be met promptly only by the grant of special temporary authorization.Community filed a petition for reconsideration and a motion for a stay of the S.T.A. grant to Modern; the Commission denied Community's stay request on July 29, 1959.3 Community then withdrew its petition for reconsideration and sought review here of the Commission's action granting the S.T.A. to Modern.Appellant urges numerous grounds for reversal. The Commission urges, among other things, that many of these points were never raised to the Commission below, and hence may not be raised now. N.L.R.B. v. Cheney California Lumber Co., 1946, 327 U.S. 385, 66 S.Ct. 553, 90 L.Ed. 739. The Commission nevertheless seems to suggest that this court has before it a 'public notice' granting Modern its temporary authority, and its explanatory letter to appellant concerning the grant. We therefore limit our review to the original Modern application, and appellant's objection.4Modern's application rests on the fact that if a comparative hearing be necessary, V.H.F. service on Channel 9 for Baton Rouge would be delayed for several years; that its U.H.F. station was sustaining losses and would be forced to cease operations if the grant were not forthcoming at once; that in this event there would be no competitive television service in Baton Rouge; that the public interest would be better served by beginning V.H.F. competitive service in accord with the basic purpose of the Commission's order re-allocating the channel; and that certain possible overlap problems were not sufficiently grave as to preclude the temporary grant.Appellant, in its opposition, contended that it intended to request the S.T.A. for the channel; that it was as qualified as Modern to receive such authority; that the reasons advanced by Modern were insufficient to sustain the grant; and that the overlap problem was significant. The Commission nevertheless granted Modern's request.We think that the issues raised in the Commission, together with its action in granting the S.T.A. for an indeterminate period while multiple applications for construction permits for regular operations are pending gives each applicant standing in this court and affords a basis for review as to whether the Commission's action has a sufficient basis to support it.The problem of temporary authorizations gained significance after the ruling in Ashbacker Radio Corp. v. Federal Communications Comm'n, 1945, 326 U.S. 327, 66 S.Ct. 148, 90 L.Ed. 108. The Supreme Court there held that where two mutually exclusive applications are made for the same frequency, the Commission cannot grant one application for regular operations pending the holding of a comparative hearing since the subsequent hearing would then be 'an empty thing.' Id., 326 U.S. at page 330, 66 S.Ct. at page 150.A practical problem immediately presented itself. Comparative hearings are lengthy and detailed affairs, frequently taking years before final conclusion. Occasionally the need for continuing already operating services, or establishing new ones, was so great as to render it against the public interest to withhold authorization pending final outcome of the necessary hearings. See American Broadcasting Co. v. Federal Communications Comm'n, 1951, 89 U.S.App.D.C. 298, 191 F.2d 492; Peoples Broadcasting Co. v. United States, 1953, 93 U.S.App.D.C. 78, 209 F.2d 286. The Supreme Court implicitly recognized the dilemma for it carefully pointed out in Ashbacker that the Commission there did not conditionally grant the application, an inference at least that such a conditional grant pending hearing was proper in some circumstances. 326 U.S. at page 331, 66 S.Ct. at page 150.Thereafter, the Commission evolved a policy of granting such temporary authority in certain circumstances. We have upheld such temporary grants, given without a comparative hearing, against contentions that such procedure violates the Ashbacker rule. Peoples Broadcasting Co. v. United States, supra. Such grants are a 'practical solution of a problem which involved the public interest in the continuity and quality of television service.' Id., 93 U.S.App.D.C. at page 80, 209 F.2d at page 288.Nevertheless, the existence of a power to grant temporary operating authority does not necessarily mean that it is to be granted in all circumstances simply because there is to be a long delay in completing the comparative hearings. The grant of temporary authority to one of several competing applicants before there has been any hearing is pregnant with danger to truly comparative consideration. The temporary grantee must take all the steps and make substantially all of the investment he would make if granted a construction permit for regular operations. Intervenor here estimates its probable investment under the temporary authority as in excess of one quarter million dollars. Appellant and the Commission suggest the investment may be larger. In the 2 1/2 years, or more, before the comparative hearing can be completed, intervenor will accumulate the great advantage of demonstrated past performance as against the promised future performance of the competing applicant.Undoubtedly, the public interest may in some circumstances overbalance the possible disadvantages which flow from temporary operations, as for example, where a community has no existing service, or stands to lose its only service. See Peoples Broadcasting Co. v. United States, supra. Yet the Commission has itself described the temporary authorization procedure 'extraordinary' and one to be employed 'solely in light of the particular problems involved in providing a continuing television service to the people * * *.' Matter of Springfield, Illinois-St. Louis, Mo. Tel. Broadcast Stations, 15 Pike & Fischer RR. 1525, 1537 (1957). See also Matter of Albany-Schenectady-Troy & Vail Television Broadcast Stations, 15 Pike & Fischer RR. 1514(a) (1957) and Matter of Carbondable-Harrisburg, Illinois Tel. Br. Stations, 16 Pike & Fischer RR. 1617 (1958). These considerations necessarily mean that the Commission must set forth with some particularity the reasons for its issuance of such a grant, in such form that a reviewing court can ascertain that all essential factors have received adequate consideration.The intervenor agreed and the Commission asserts that no weight is to be given to the investment involved in the temporary operation or the advantages which inhere in satisfactory interim operation for 2 to 3 years and that this adequately safeguards appellant's rights. It is suggested that to question this involves a challenge to the good faith of the Commission. But this is not a matter only of good faith. Ordinary human experience tells us that these factors have a force which cannot always be set aside by the triers no matter how sincere their effort or intent. The Commission realistically concedes that if the grant is ultimately made to appellant rather than to intervenor, 2 1/2 or 3 years hence, the latter's market to dispose of its large 'temporary' investment in a going television station is 'one man,' i.e., the successful applicant. In that eventuality the losing party faces the problem of salvaging whatever he can on a distress market. To argue, as appellant does, that this may weigh in the balance of an otherwise close question is not a challenge to the good faith or integrity of the triers; it is a recognition that they are mortal men.5Where a substantial number of people would be deprived of all service for a long period there could well be an overriding public interest which could be served only by the 'extraordinary procedure' of a temporary grant pending a comparative hearing. But the spirit of the Ashbacker doctrine requires that to justify the granting of 'temporary' authority for so long as 2 1/2 to 3 years, the public interest must be clear and it must be made the subject of explicit findings in the particular case in unmistakable terms; and such deterrent factors as concentration of media and overlap must be explicitly dealt with in findings which afford an adequate basis for appellate review. The theoretical injury to the public which may in some circumstances flow from deferral of the added service is more than offset by a process which makes certain that all essential facors have been fully considered before this important power is exercised.The basic teaching of the Ashbacker case is that comparative consideration by the Commission and competition between the applicants is the process most likely to serve the public. While the Ashbacker case dealt with grants for regular operations, rather than temporary, the reasoning of the Court has much force as applied to 'temporary' authorizations which last for 2 1/2 to 3 years. A 'temporary' grant for such a period so closely approximates a statutory three year license, in which renewal is subject to the same considerations which affect the original grant, that the device of a temporary authority was rightly characterized by the Commission as an 'extraordinary procedure.' That the grant of temporary authorization to one applicant has an inevitable tendency to discourage competitors for construction permits is added reason for us to emphasize that it is a process calling for close scrutiny.We now turn to consideration of the source of the Commission's power to issue temporary authorizations 'pending final action on any applications for regular operations on that channel; * * *' which is the only limit on the authority granted to intervenor. The Commission urges that power to issue this temporary authorization is found in Sec. 1.331 of its Rules and Regulations which provides in part:'(b) Temporary authority may be granted to a licensee or permittee of a broadcast station to operate such station for a period not to exceed 90 days upon request therefor. Any such request should be filed with the Commission at least 10 days prior to the date of the proposed operation, and should be accompanied by a statement giving full particulars as to the purpose for which the request is made. Any temporary authority issued under this section may be cancelled by the Commission without further notice or hearing.'Try vLex for FREE for 3 days
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