Community TV Corp. v. Town of Belmont

674 A.2d 983, 140 N.H. 792, 3 Communications Reg. (P&F) 948, 1996 N.H. LEXIS 31
CourtSupreme Court of New Hampshire
DecidedApril 17, 1996
DocketNo. 94-863
StatusPublished

This text of 674 A.2d 983 (Community TV Corp. v. Town of Belmont) is published on Counsel Stack Legal Research, covering Supreme Court of New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Community TV Corp. v. Town of Belmont, 674 A.2d 983, 140 N.H. 792, 3 Communications Reg. (P&F) 948, 1996 N.H. LEXIS 31 (N.H. 1996).

Opinion

BRODERICK, J.

The defendants, the Towns of Belmont and Meredith (towns), appeal the Superior Court’s (Perkins, J.) determination that the Cable Communications Policy Act of 1984 and its amendments, 47 U.S.C. §§ 521 et seq. (1988 & Supp. 1993) (Cable Act), do not preempt the arbitration provisions in franchise agreements with the plaintiff, Community TV Corp. Alternatively, the towns contend that the trial court erred in identifying applicable criteria for franchise renewal determinations and in limiting appeal rights from arbitration decisions. We affirm.

In 1992, the fifteen-year franchise agreements between each town and the plaintiff expired. The towns extended the agreements until October 1,1994, while continuing renewal negotiations through and beyond the extension date. The towns made it clear, however, that absent agreement on all outstanding renewal-related issues, no additional extensions would be granted. Resolution was not achieved, and the plaintiff, pursuant to the express provisions of the franchise agreements, invoked the arbitration provisions, which state:

To ensure continuity of service by the expeditious resolution of any dispute or disagreement in any way arising out of or resulting from this franchise or any claimed breach or material violation of this franchise, or any dispute or disagreement in any way arising out of or resulting from any hearing held pursuant to the provisions of this franchise, such dispute or disagreement shall be submitted to arbitration by a Board of three Arbitrators .... All [794]*794matters shall be heard de novo by the Board of Arbitrators, and the Board shall have final and conclusive authority on all such matters, but it shall not be empowered to depart from or in any way alter the terms of this franchise. . . . This section shall be governed by and construed in accordance with the laws and statutes of the State of New Hampshire and particularly, but without limitation, Chapter 542 of the Revised Statutes Annotated, 1955, as amended, and if and to the extent that anything herein is inconsistent therewith or anything required thereby is omitted herefrom, the provisions of the applicable laws shall govern, and the omission shall be deemed supplied. Neither party shall have the right to bring any legal proceedings against the other, save only as expressly authorized in and for the purposes specifically set forth in the said Chapter 542 with respect to agreements to arbitrate, arbitration proceedings and arbitrators’ awards.

The towns refused to arbitrate on the basis that the arbitration requirement was not applicable to the ongoing renewal process. The plaintiff disagreed and filed suit to determine and enforce its rights under the franchise agreements.

Before the superior court, the towns argued that the arbitration provisions of the franchise agreements were preempted and superseded by the Cable Act. The court disagreed and ordered the towns to submit to arbitration. This appeal followed.

The towns primarily assert, as they did below, that the Cable Act preempts the use of arbitration to resolve disputes between cable operators and franchising authorities, including disputes concerning franchise renewal. The Cable Act provides that “any provision of any franchise granted by [a franchising] authority[] which is inconsistent with this chapter shall be deemed to be preempted and superseded.” 47 U.S.C. § 556(c) (1988). A provision will be deemed inconsistent if it “stands as an obstacle to the accomplishment and execution of the full purposes and objectives of Congress.” Town of Norwood v. Adams-Russell Co., 549 N.E.2d 1115, 1117 (Mass. 1990) (quotation omitted); see Wenners v. Great State Beverages, Inc., 140 N.H. 100, 104, 663 A.2d 623, 626 (1995), cert. denied, 116 S. Ct. 926 (1996).

One purpose of the Cable Act is to “establish an orderly process for franchise renewal which protects cable operators against unfair denials of renewal where the operator’s past performance and proposal for future performance meet the standards established by this subchapter.” 47 U.S.C. § 521(5) (1988). To this end, the statute [795]*795creates two avenues for franchise renewal: a formal renewal process, see 47 U.S.C. § 546(a)-(g) (1988 & Supp. 1993), and an informal process, see 47 U.S.C. § 546(h) (1988). The formal renewal process allows either a cable operator or a franchising authority to trigger prescribed procedures for franchise renewal during a six-month period beginning three years prior to the expiration date of a franchise agreement. See 47 U.S.C. § 546(a). In this case, the court below correctly found that the formal renewal process had not been invoked, and the towns do not challenge this finding; the requirements of the formal renewal process, therefore, are not at issue in this appeal.

In contrast, the informal renewal process allows cable operators to seek franchise renewal through “alternative renewal procedures”:

Notwithstanding the provisions of subsections (a) through (g) of this section, a cable operator may submit a proposal for the renewal of a franchise pursuant to this subsection at any time, and a franchising authority may, after affording the public adequate notice and opportunity for comment, grant or deny such proposal at any time .... The provisions of subsections (a) through (g) of this section shall not apply to a decision to grant or deny a proposal under this subsection.

47 U.S.C. § 546(h). This subsection imposes only two requirements on informal renewals: the cable operator must submit a proposal for renewal, and the franchising authority must afford the public adequate notice and an opportunity for comment before granting or denying the proposal.

In view of this informal renewal process, we are not persuaded that the franchise agreement’s arbitration provisions are inconsistent with the terms of the Cable Act. When Congress has expressed its will “in reasonably plain terms, that language must ordinarily be regarded as conclusive.” Negonsott v. Samuels, 113 S. Ct. 1119, 1123 (1993) (quotation omitted). By explicitly permitting “alternative renewal procedures,” Congress plainly contemplated that cable operators would seek renewal through means other than those specified in the statute. Indeed, nothing in the Cable Act precludes arbitration as an alternative renewal procedure: arbitration is neither expressly nor impliedly prohibited by any provision of the Cable Act, and the limited requirements of informal renewal can be accommodated through arbitration.

[796]

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Related

Negonsott v. Samuels
507 U.S. 99 (Supreme Court, 1993)
Vogel v. Vogel
627 A.2d 595 (Supreme Court of New Hampshire, 1993)
Wenners v. Great State Beverages, Inc.
663 A.2d 623 (Supreme Court of New Hampshire, 1995)

Cite This Page — Counsel Stack

Bluebook (online)
674 A.2d 983, 140 N.H. 792, 3 Communications Reg. (P&F) 948, 1996 N.H. LEXIS 31, Counsel Stack Legal Research, https://law.counselstack.com/opinion/community-tv-corp-v-town-of-belmont-nh-1996.