City of Dearborn v. Comcast of Michigan

558 F. Supp. 2d 750, 2008 U.S. Dist. LEXIS 2455, 2008 WL 126605
CourtDistrict Court, E.D. Michigan
DecidedJanuary 14, 2008
DocketNo. 08-10156
StatusPublished
Cited by1 cases

This text of 558 F. Supp. 2d 750 (City of Dearborn v. Comcast of Michigan) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Dearborn v. Comcast of Michigan, 558 F. Supp. 2d 750, 2008 U.S. Dist. LEXIS 2455, 2008 WL 126605 (E.D. Mich. 2008).

Opinion

OPINION AND ORDER

VICTORIA A. ROBERTS, District Judge.

I. INTRODUCTION

Before the Court is Plaintiffs’ Motion for a Temporary Restraining Order and Motion for Preliminary Injunction (Doc. # 2).

II. BACKGROUND

This matter involves a dispute over channels for public, educational and governmental use (“PEG channels”). Under the Cable Television Consumer Protection and Competition Act of 1992 (“Cable Act”), 47 U.S.C. § 521 et seq., local government franchising authorities may require cable operators to designate channel capacity for PEG channels.

Defendants Comcast of Michigan III, Inc., and Comcast of the South, Inc. (“Defendants”) entered into cable franchise agreements (“Agreements”) with the Charter Township of Meridian and the City of Dearborn (“Municipal Plaintiffs”). These Agreements require Defendants to provide PEG channels to customers in Meridian and Dearborn. The Municipal Plaintiffs have two distinct sets of PEG channels. Dearborn’s franchise agreement requires that Defendants provide six PEG channels, while Meridian’s franchise agreement requires eight. These channels are for public governmental use, for use by the public school districts and community colleges, and for the state university system.

Plaintiff Sharon Gillette (“Gillette”), a resident of Meridian, subscribes to limited basic cable service from Defendants. Her package currently provides access to PEG channels, in analog format, and does not require the use of a digital converter box.

But, on January 15, 2008, Defendants plan to convert the analog PEG channels into digital format. With this change, PEGs will no longer be accessible through Defendants’ limited basic service package without a converter box. Current limited basic service tier subscribers, including Gillette, will only be able to view PEG channels if they lease or purchase a converter box, own a more advanced television that is equipped with a QAM tuner (a device that Defendants maintain allows viewing of the PEGs without a converter), or purchase a digital television. Limited basic service subscribers will no longer be able to see PEG channels on a common, cable-ready, analog television without a converter box.

[754]*754There is no disagreement that digital delivery enhances the signal quality, reliability for programmers, and will make Defendants more competitive. There is also no disagreement that digitizing channels frees up broadband width on the cable system, which can be used to provide additional high-definition digital channels.

Importantly, converter boxes will not be necessary after January 15, 2008 for customers to continue viewing broadcast channels on the current limited basic service tier; they will remain analog. Defendants say they may create a basic service tier in which some channels are provided in digital and others in analog format. Plaintiffs don’t disagree, but say the law requires that Defendants provide PEG channels on the same basis as broadcast channels.

To ease the pending transition, Defendants offer to provide one free digital converter box per household for a year. But, Defendants acknowledge a converter box is needed for every television on which a customer wishes to view PEG channels.

Customers living in Meridian and Dear-born will be affected by this change. Municipal Plaintiffs say the change will affect more than 50,000 households within their territory. Defendants say only 50% of its statewide customers subscribe to the limited basic tier of service, and estimate that the change will only affect 15,000 households.

Plaintiffs filed their motions on January 11, 2008, and claim Defendants’ scheduled January 15, 2008 transition violates federal law and their Agreements for the following reasons:

1.Defendants’ actions will no longer keep PEGs on par with the lowest commercial service (i.e., broadcast channels) available, because people who want to use PEGs must invest in additional equipment.
2. Low income and senior citizens— those who can least afford it — will not have the same access to PEG channels as Defendants’ “high-end” customers.
3. Legislative history indicates a strong congressional intent that PEG channels be provided on a nondiscriminatory basis.
4. Defendants failed to give proper notice under the Agreements of these changes.
5. The easement granted to Defendants does not give them control over PEG channels that they don’t otherwise possess.

Defendants responded by arguing state law preempts any federal law Plaintiffs rely upon. Defendants also contend that local governments have no authority to dictate cable technology and channel placement, and that Plaintiffs interfere with their ability to be competitive.

A hearing was held on January 14, 2008.

III. STANDARD OF REVIEW

This Court must determine whether Plaintiffs meet their burden for entitlement to equitable relief. When deciding motions for temporary restraining orders or for preliminary injunctions, a district court must consider: (1) the plaintiffs’ likelihood of success on the merits; (2) whether the plaintiffs could suffer irreparable harm without the injunction; (3) whether granting the injunction will cause substantial harm to others; and (4) the impact of the injunction on the public interest. Summit County Democratic Cent. & Executive Co. v. Blackwell, 388 F.3d 547, 550-51 (6th Cir.2004); see also Connection Distributing Co. v. Reno, 154 F.3d 281, 288 (6th Cir.1998), cert den., 526 U.S. 1087, 119 S.Ct. 1496, 143 L.Ed.2d 650 (1999). No single factor is dispositive. [755]*755The court must balance each factor to determine whether they weigh in favor of an injunction. Blackwell, 388 F.3d at 550-51.

For the following reasons, the Court finds that the majority of the factors weigh in favor of Plaintiffs. The Court GRANTS Plaintiffs’ Motion for a Temporary Restraining Order and Preliminary Injunction.

IV. ANALYSIS

A. Plaintiffs’ Likelihood of Success on the Merits

1. Defendants Are Obligated to Carry PEG Signals In Compliance With Federal Law, And That Law Is Not Preempted By State Law

The Cable Act permits local governments to impose “designation” or “use” requirements on cable operators, with respect to channel capacity for PEGs. Section 531 states:

(a) Authority to establish requirements with respect to designation or use of channel capacity
A franchising authority may establish requirements in a franchise with respect to the designation or use of channel capacity for public, educational, or governmental use only to the extent provided in this section.
(b) Authority to require designation for public, educational, or governmental use
A franchising authority may

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Cite This Page — Counsel Stack

Bluebook (online)
558 F. Supp. 2d 750, 2008 U.S. Dist. LEXIS 2455, 2008 WL 126605, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-dearborn-v-comcast-of-michigan-mied-2008.