David Ortiz Radio Corporation v. Federal Communications Commission, Ramon Rodriguez and Associates, Incorporated, Intervenor

941 F.2d 1253, 291 U.S. App. D.C. 336, 69 Rad. Reg. 2d (P & F) 1011, 1991 U.S. App. LEXIS 18866
CourtCourt of Appeals for the Federal Circuit
DecidedAugust 20, 1991
Docket90-1412
StatusPublished
Cited by6 cases

This text of 941 F.2d 1253 (David Ortiz Radio Corporation v. Federal Communications Commission, Ramon Rodriguez and Associates, Incorporated, Intervenor) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
David Ortiz Radio Corporation v. Federal Communications Commission, Ramon Rodriguez and Associates, Incorporated, Intervenor, 941 F.2d 1253, 291 U.S. App. D.C. 336, 69 Rad. Reg. 2d (P & F) 1011, 1991 U.S. App. LEXIS 18866 (Fed. Cir. 1991).

Opinion

Opinion for the court filed by Circuit Judge BUCKLEY.

BUCKLEY, Circuit Judge:

During preliminary proceedings for a broadcast license, two applicants accused a third of potentially disqualifying skullduggery involving misrepresentation, concealment of material facts, and abuse of process. Without convening hearings, the Federal Communications Commission found the allegations to be without merit, and it ultimately awarded the license to the alleged wrongdoer. Because the FCC skated past the accusers’ central arguments and misapplied its own policy concerning character qualifications, we remand.

I. BackgRound

This proceeding involves the award of a construction permit for a newly authorized *1255 FM radio channel serving southwest Puer-to Rico. The first applicant, David Ortiz Radio Corporation (“Ortiz”), proposed to transmit from Cerro Guaniquilla. Ortiz had actually secured permission to use a hill about half a mile from Cerro Guaniquil-la. Upon discovering the error and the unavailability of the originally designated site, Ortiz located an alternative site and filed an amended application. The FCC found no intent to deceive and accepted the amendment. The Commission ultimately granted the license to Ramon Rodriguez & Associates, Inc. (“RRAI”).

Ortiz challenges the licensing decision on three bases: (1) In its license application, RRAI falsely certified that it had reasonable assurance of a transmitter site; (2) RRAI subsequently concealed its lack of a site from the Commission for over seven months; and (3) seeking information with which to discredit Ortiz, an RRAI principal abused the Commission’s process by posing as an FCC official.

A. Transmitter Site-related Charges

On December 8, 1982, RRAI applied for the license and, like Ortiz, listed Cerro Guaniquilla as its transmitter site. In March 1983, RRAI submitted an amendment in which it reaffirmed its intention to transmit from that site; it withdrew that amendment in July and submitted an amendment listing a different site in August. These facts led other applicants to charge RRAI with misrepresenting the status of its transmitter site in the application and with concealing its site problems from the FCC thereafter.

One of the applicants, F.M. Minority Broadcasting, filed a Petition to Enlarge the Issues in July 1987, in which it moved that the Commission consider the misrepresentation charge and determine in the light of it whether RRAI had “the minimum qualifications of character” to receive a license. Joint Appendix (“J.A.”) 172-73. RRAI responded with an affidavit from its principal shareholder, Ramon Rodriguez, dated July 21, 1987 (“July 1987 affidavit”). He explained that the application listed Cerro Guaniquilla because he had learned that it was the site selected by Ortiz, understood that it belonged to the government of Puerto Rico, and believed “to the best of my layman’s knowledge [that] if the land was government owned and available to Mr. Ortiz, it was to be available to us also.” J.A. 192.

According to the affidavit, Rodriguez applied for a land-use permit and paid a filing fee at the Puerto Rico Department of Natural Resources in November 1982. In a letter dated December 3, the agency responded that the government did not own the land. From additional inquiries, Rodriguez learned that the land actually belonged to a different government agency, the Conservation Trust of Puerto Rico; the Trust, however, denied Rodriguez’s request to erect a transmitter tower. The affidavit states that RRAI

[immediately ... moved to start looking for another site which, after many efforts [on] our part, we found in “Penones de Melones”; and [on] June 14, 1983 we received a letter from the owners telling us that they were in agreement to rent the land to us....
We then, on June 29, 1983, prepared and filed an amendment to change the original site before the Federal Communications] Commission, and it is the one that we have at this moment.

J.A. 193.

F.M. Minority termed the RRAI filing “a litany of misrepresentation and lack of candor.” J.A. 210. It noted, among other things, that RRAI had not informed the FCC of its new site on June 29,1983, as the Rodriguez affidavit indicated. Although the engineering documents bore that date, the amendment was not submitted until August 26. F.M. Minority had originally sought a hearing on whether the RRAI application contained a misrepresentation; now, in light of RRAI’s tardiness in disclosing its site problems, it amended the petition to include the issue of post-application concealment as well.

In February 1988, the AU added the misrepresentation issue but said nothing about concealment. J.A. 239. F.M. Minority submitted a “motion for clarification” *1256 that asked about the concealment issue. The motion contended that RRAI had known it had been without a site since early December 1982, but had waited eight months before apprising the FCC of the fact, and that during that period, RRAI had submitted two documents to the FCC — a March 1983 amendment and a July letter withdrawing it — that continued to list the original location as the proposed transmitter site. In light of these communications, F.M. Minority urged the FCC to investigate whether RRAI had “misrepresented, concealed or was lacking in candor,” J.A. 253, and whether RRAI had violated an FCC regulation requiring applicants to inform the Commission “as promptly as possible and in any event within 30 days” if the information in the pending application “is no longer substantially accurate and complete in all significant respects,” 47 C.F.R. § 1.65(a) (1990). On April 13, 1988, the AU denied the motion as an untimely attempt to enlarge the issues. He also noted that the facts demonstrated “no undue delay by Rodriguez in finding and amending to a new site once he discovered that the government site was unavailable.” J.A. 415.

Although the AU had refused to add the concealment issue, the misrepresentation issue remained. Rodriguez gave a deposition on April 26 and filed an affidavit on May 2 (“May 1988 affidavit”). Whereas in his earlier affidavit he had spoken of his “layman’s knowledge” about the availability of a government-owned site, he now said he had consulted an attorney. He also disclosed when he first learned there was a problem with the Guaniquilla site, and when he was advised of its unavailability: He said he had received the December 3, 1982, letter from the Department of Natural Resources disclaiming government ownership of the property on December 8— coincidentally, the day that the RRAI application was filed with the FCC in Washington — and that the Conservation Trust had denied him the site on January 10, 1983. After discovery but before the planned hearing, RRAI moved for summary judgment on the issue. In July 1988, the AU granted the motion. He said he found no evidence that RRAI had intended to deceive the FCC and noted that intent is a necessary element of misrepresentation.

Having disposed of the misrepresentation issue, and F.M. Minority having withdrawn its application, the AU proceeded with a comparison of the remaining applicants, RRAI and Ortiz.

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941 F.2d 1253, 291 U.S. App. D.C. 336, 69 Rad. Reg. 2d (P & F) 1011, 1991 U.S. App. LEXIS 18866, Counsel Stack Legal Research, https://law.counselstack.com/opinion/david-ortiz-radio-corporation-v-federal-communications-commission-ramon-cafc-1991.