Ellis v. Tribune TV Co.

363 F. Supp. 2d 121, 2005 U.S. Dist. LEXIS 4208, 2005 WL 665675
CourtDistrict Court, D. Connecticut
DecidedMarch 21, 2005
DocketCIV.A.3:03 CV 833(CF)
StatusPublished
Cited by1 cases

This text of 363 F. Supp. 2d 121 (Ellis v. Tribune TV Co.) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ellis v. Tribune TV Co., 363 F. Supp. 2d 121, 2005 U.S. Dist. LEXIS 4208, 2005 WL 665675 (D. Conn. 2005).

Opinion

RULING ON MOTION TO DISMISS AND MOTION FOR SUMMARY JUDGMENT

DRONEY, District Judge.

The plaintiff, Neil Ellis, brought this action seeking injunctive relief pursuant to *124 47 U.S.C. § 401(b) against the defendant, Tribune Television Company (“Tribune”). The action challenges Tribune’s compliance with an order issued by the Federal Communications Commission (“FCC”) on August 3, 2001, concerning the cross-ownership rules promulgated by the FCC at 47 C.F.R. § 73.3555(d)(3). Now pending-before the Court are Ellis’ motion for summary judgment and Tribune’s motion to dismiss. For the following reasons, the motion to dismiss [Doc. # 20] is DENIED and the motion for summary judgment [Doc. # 12] is GRANTED.

I. Background 1

On November 16, 1999, Tribune submitted an application to the FCC to transfer control of Tiberius Broadcasting, Inc., licensee of WTXX-TV, Channel 20(UPN), Waterbury, Connecticut, from Counterpoint Communications Inc. (“Counterpoint”) to Tribune. At the time of that application, Tribune already was managing WTXX pursuant to a “Management Services Agreement” with Counterpoint, and also owned and operated WTIC-TV, Channel 61(FOX), in Hartford, Connecticut. WTXX and WTIC serve overlapping broadcasting communities in Connecticut. Because WTXX would be the second station owned by Tribune in the designated market area (“DMA”), its proposed acquisition of WTXX was governed by 47 C.F.R. § 73.3555(b)(2) (“the television duopoly rule”).

In its subsequent review of Tribune’s application for ownership of both stations, the FCC noted that:

[The television duoploy rule] provides, in pertinent part, that the same entity may own or control two television stations in the same market so long as: (i) at the time the application is field, at least one of the stations is not ranked among the top four stations in audience rankings in the DMA; and (ii) at least 8 independently owned and operating full-power commercial and noncommercial educational television stations would remain in the market after the proposed acquisition.

Although WTXX is not ranked among the top four stations in the DMA, there would not have been eight remaining independently owned and operated television stations in the Hartford DMA following the proposed merger. Therefore, in its application, Tribune requested a waiver from the television duopoly rule on the ground that WTXX was a “failing station,” which is defined by the FCC as one that has been struggling for “an extended period of time both in terms of its audience share and financial performance.” In its August 3, 2001 order on Tribune’s request (“the 2001 Order”), the FCC agreed that WTXX was a failing station and granted Tribune a waiver from the television duopoly rule, thereby allowing Tribune to take control of WTXX.

While Tribune’s application for acquisition of WTXX was pending, however, Tribune acquired ownership of the Hartford Courant, a daily newspaper of general circulation published in Hartford, as part of a larger transaction in which Tribune acquired the Times Mirror Company. 2 Because the Hartford Courant was within the “Grade A signal contours” of both WTIC *125 and WTXX, Tribune’s ownership of all three entities violated the television/newspaper cross-ownership rules promulgated by the FCC. Therefore, Tribune filed an amendment to its earlier filed request to acquire WTXX, which requested a two-year period following the acquisition of that station to achieve compliance with the cross-ownership rule by selling WTXX. 3

The cross-ownership rule provides that “no license for [a] ... TV broadcast station shall be granted to any party ... if such party directly or indirectly owns, operates, or controls a daily newspaper and the grant of such license will result in’ the Grade A signal contour of that television station encompassing the entire community in which such newspaper is published.” 47 C.F.R. § 73.555(d)(3). In the 2001 Order, the FCC ultimately concluded that “granting Tribune a temporary period to come into compliance with the television/newspaper rule is appropriate.” Therefore, after balancing the request for an extension against any potential harm to media diversity in the Hartford media market, the FCC “accord[ed] Tribune six (6) additional months in which to brings its interests into compliance with the Commission’s relevant ownership rules.” 4 During this “short term temporary waiver,” however, the FCC “expect[ed] Tribune to exercise its best efforts to sell the necessary assets to come into compliance with the rule.” Although the order did not define “best efforts,” the concurring statement of Commissioner Gloria Tristani stated: “ ‘Best efforts’ is a meaningful and well-established standard in commercial law, and Tribune should not anticipate receiving additional time beyond this six-month period.” This limited waiver was set to expire on February 6, 2002.

Due to its inability to comply with that order before February 6, 2002, Tribune “requested an additional six months to achieve compliance with the newspaper/broadcast cross-ownership rule by selling WTXX.” Because the FCC concluded that Tribune had met the “high hurdle necessary to justify an additional six months in which to achieve compliance with ... the cross-ownership rule,” it granted Tribune’s request. 5 In so doing, the FCC once again noted that it “expected] Tribune to continue to exercise its *126 best efforts and to expand its current efforts if needed to sell the necessary assets to come into compliance with the rule by [August 19, 2002]”.

On August 6, 2002, Tribune submitted a request for a permanent waiver of the requirements of the cross-ownership rules, as applied to Tribune and WTXX through the 2001 Order. On August 19, 2002, Tribune’s second six-month extension expired. As of the date of this opinion, Tribune’s request for waiver still has not been acted upon by the FCC, but no further extensions of time have been granted.

II Procedural History of This Case

On May 9, 2003, Ellis filed a complaint in the District of Connecticut pursuant to 47 U.S.C. § 401(b), which provides:

Orders of Commission. If any person fails or neglects to obey any order of the Commission other than for the payment of money, while the same is in effect, the Commission or any party injured thereby, or the United States, by its Attorney General, may apply to the appropriate district court of the United States for the enforcement of such order.

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Bluebook (online)
363 F. Supp. 2d 121, 2005 U.S. Dist. LEXIS 4208, 2005 WL 665675, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ellis-v-tribune-tv-co-ctd-2005.