Dolan v. United Cable Television Corp.

422 N.E.2d 15, 96 Ill. App. 3d 734, 52 Ill. Dec. 334, 1981 Ill. App. LEXIS 2693
CourtAppellate Court of Illinois
DecidedApril 9, 1981
DocketNo. 80-2261
StatusPublished
Cited by4 cases

This text of 422 N.E.2d 15 (Dolan v. United Cable Television Corp.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dolan v. United Cable Television Corp., 422 N.E.2d 15, 96 Ill. App. 3d 734, 52 Ill. Dec. 334, 1981 Ill. App. LEXIS 2693 (Ill. Ct. App. 1981).

Opinion

Mr. JUSTICE JOHNSON

delivered the opinion of the court:

The case before us is an interlocutory appeal from a preliminary injunction entered in favor of plaintiffs, Charles M. Dolan and Communications Management Corporation, as general partners in Cablevision of Chicago, a limited partnership, and against United Cable Television Corporation and the city of Burbank, Illinois, together with the members of its city council.

Plaintiffs filed a lawsuit in the circuit court of Cook County seeking to prevent defendants from interfering with plaintiffs’ contractual rights to operate a cable television system in the city of Burbank.

The trial court entered a temporary restraining order against defendants pending a full hearing. On July 18, 1980, the court entered its preliminary injunction order. The injunction prohibited defendants from interfering with or terminating plaintiffs’ rights under a franchise ordinance adopted by defendant city of Burbank through its aldermen. The issue on appeal is whether the trial court abused its discretion in issuing a preliminary injunction.

We affirm.

Defendant city of Burbank, on March 28,1979, by unanimous vote of the seven-member city council, adopted ordinance No. 18-8-79 granting a franchise to Cablevision of Chicago (hereafter Cablevision) to erect, maintain, and operate the only cable television system in the community. Plaintiffs accepted the franchise, in writing, by way of a letter directed to the city administrator on March 29,1979.

Briefly, the cable television system in this case delivers electronic signals by cable from the source of the signals to a subscriber’s television. The signal originates at a central transmitter. It is relayed from there to a satellite above the earth. It is transmitted from the satellite to a receiving station in the area of service. From the receiving station, the signal is processed through electronic equipment and transmitted to a substation located in or near a given community. The signal is then processed and delivered to subscribers’ homes through coaxial cable.

The city ordinance granting the franchise created the basis of agreement between Cablevision and Burbank. Section 18 of the ordinance became the crucial clause in the conflict which arose between the parties. Section 18 provided that:

“Construction of the system shall commence within thirty days after all required utility company licenses have been obtained by the company and service shall be available to every resident of the city within twelve months thereafter, provided that construction shall begin at a date no later than one year from the acceptance of the franchise.”

Cablevision began performing its obligations immediately upon accepting the terms and conditions of the ordinance. The company began negotiating with the utility companies, Illinois Bell Telephone and Commonwealth Edison, in March 1979. They were of great importance in the erection of the system.

The physical process of erecting the system includes “strand-mapping” or the survey of every pole in the community which is to receive service. The strand-mapping is jointly performed by employees of the cable television company and the utility companies. Once it is completed, the utility must be prepaid to do “make-ready” work which is the arrangement of the phone and power wires on the utility poles so that the cable wires can be placed a safe distance between them.

By July 1979, the utility companies had begun the preliminary work for Cablevision. They furnished maps and outlines of the work that was to be done. Strand-mapping and design engineering work was begun in Burbank. As well, Cablevision ordered microwave transmitting equipment. By August 1979, Cablevision had expended approximately $350,000 for strand-mapping and microwave equipment.

During September and October 1979, Cablevision told the utility companies that they needed to acquire certain licensing by February 15, 1980. The deadline was not met after several meetings with the companies. They gave a variety of reasons for the delay. The primary reason given was lack of experienced utility personnel. By April 1980, completed work on the system in Burbank included strand-mapping, make-ready surveys, and make-ready work.

On March 29, 1980, 1 year after acceptance of the franchise, one of the city aldermen, Thomas J. Roach, wrote Cablevision a letter which stated:

“In accordance with that ordinance I am notifying you that the construction schedule in Section 18 appears to be violated.”

The letter went on to invite Cablevision representatives to attend a meeting on April 21, 1980, to discuss the matter. Aldermen Roach was unable to attend that meeting, and it was rescheduled to May 7,1980. The letter also made inquiries into the progress of construction. Cablevision representatives responded to the letter from Alderman Roach and attended the meeting on May 7. Detailed reports were given on the amount of time, work, and money that had been expended in erecting the system prior to the meeting. Construction was the main topic of discussion. Cablevision was requested to submit monthly written reports on the progress of construction. The representatives agreed to submit such reports. There was no further mention of any violation of the franchise or an intent to declare revocation.

On May 12, 1980, licenses were issued by the utility companies for only 5 of the 14 sections of the target community. Stranding of the coaxial cable could not begin until licenses were issued by the utilities, and licenses could not be issued until all make-ready work had been performed. Cablevision requested permits that were required by city ordinance so that strand wires and cable could be attached to the utility poles. Burbank failed to issue the permits at that time.

On May 14, 1980, the city administrator advised Cablevision that its franchise had been forfeited and revoked by a vote of 6 to 1 of the city council. The revocation was made in the form of an ordinance, No. 12-8-80, which provides in section 1:

“That any and all rights, title, interest and franchise granted to Cablevision of Chicago under ordinance No. 18-8-79 entitled ‘An Ordinance Granting a Cable Television Franchise in the City of Burbank to Cablevision of Chicago’ passed March 28, 1979, are hereby forfeited and revoked and declared null and void”

and which provides in section 3:

“All ordinances or parts of ordinances in conflict with the provisions of this ordinance are hereby repealed insofar as they conflict herewith.”

On June 11, 1980, defendant city of Burbank hired United Cable Television Corporation (hereafter United), defendant, to erect a cable television system in Burbank.

Cablevision filed a complaint for injunctive and other relief against the city of Burbank, its aldermen, and United on June 17, 1980. The complaint was followed by a verified motion for a temporary restraining order and preliminary injunction on June 19, 1980. On that date a temporary restraining order was entered, and on July 18, 1980, following a hearing, the trial court entered its order for a preliminary injunction.

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Bluebook (online)
422 N.E.2d 15, 96 Ill. App. 3d 734, 52 Ill. Dec. 334, 1981 Ill. App. LEXIS 2693, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dolan-v-united-cable-television-corp-illappct-1981.