Elm City Broadcasting Corp. v. United States

235 F.2d 811, 1956 WL 92466
CourtCourt of Appeals for the D.C. Circuit
DecidedJune 14, 1956
DocketNos. 12542, 13002
StatusPublished
Cited by19 cases

This text of 235 F.2d 811 (Elm City Broadcasting Corp. v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Elm City Broadcasting Corp. v. United States, 235 F.2d 811, 1956 WL 92466 (D.C. Cir. 1956).

Opinion

WILBUR K. MILLER, Circuit Judge.

These two cases pose the same basic question: has the Federal Communications Commission the authority, in a proceeding under § 309(b) of the Communications Act of 1934, as amended,1 to deny a petition for intervention seasonably filed by an undoubted party in interest? In the first case, No. 12,542, the would-be intervenor asked review of the denial of intervention before the Commission had reached a final decision on the merits, thus giving rise to the threshold question whether or not the order complained of was interlocutory and therefore reviewable only in connection with an appeal under § 402(b) from the Commission’s final action. In the second ease, No. 13,002, the would-be intervenor appeals from a final order which granted a construction permit to a competitor and also appeals from the earlier denial of intervention.

Had the first case come on for consideration alone, we should have been required to determine whether the order complained of was reviewable before we could have reached the basic question as to the Commission’s authority to deny a party in interest the right to intervene. In the second case, which was filed before the first was ripe for consideration, the basic question is squarely presented and may be reached immediately. For this reason, the first case, No. 12,542, will be dismissed because its preliminary question of reviewability has become moot. We express no opinion as to that question but proceed to consider the second case, No. 13,002.

We summarize the facts. In 1953 Key Broadcasting System and Edward J. Fitzgerald filed applications for construction permits for new standard broadcast stations to operate on 1300 kc at Bay Shore, New York, and Riverhead, New York, respectively. In the same year WAVZ Broadcasting Corporation, which is the intervenor here, applied for a construction permit to change its station WAVZ at New Haven, Connecticut, from 1260 kc daytime only to 1300 kc unlimited hours. Pursuant to the requirement of § 309(b) the three applicants were notified by the Commission February 18, 1954, that a hearing would be necessary; and because it appeared that one or more of their proposals might cause electrical interference2 to two stations in New [814]*814Jersey, one in New York City, and one in Michigan, the Commission also notified their licensees of the nature and pendency of the three applications and' the necessity for a comparative hearing thereon. As § 309(b) requires that such notice be given to all known parties in interest, i.t may be assumed the Commission then knew of none other.

April 28, 1954, the Commission designated the three mutually exclusive ap-. plications for hearing in a consolidated proceeding; and, as § 309(b) requires that all parties in interest be permitted to participate, the licensees of the three stations in New York and New Jersey which might suffer electrical interference were made parties.3 Before the hearing, which began November 19,1954, - Fitzgerald dismissed his application without prejudice, leaving Key and WAVZ as contending applicants.

More than ten days before the date fixed for the hearing, two petitions for intervention based on economic injury, were filed by licensees who had not been notified by the Commission, presumably because it had not known they were parties in interest. The first of these was by a licensee at Bay Shore, New York,’ which alleged it would suffer competition if Key were authorized to construct a station at that place; this petitioner was allowed to intervene. The second petition for intervention was that of Elm City Broadcasting Corporation, petitioner and appellant in the two cases before us, which owns and operates three stations (standard, FM and television) in New Haven, Connecticut, all authorized to operate unlimited hours.

Elm City claimed to be a party in interest, and so entitled to intervene, because of the economic injury it would suffer if the Commission should au- , . ' ■ f thorize the proposed change in the operation of WAVZ, already its competitor in New Haven. The petitioner set forth in some detail the issues on which it proposed. to introduce evidence. . .

Elm City’s petition for intervention was denied November 19, 1954, with. Commissioner Hennock dissenting from the order. The Commission did not base the denial upon a finding that Elm City was not a party in interest — it made no such finding — but rested its order entirely upon the following recital :

“It Further Appearing, That the statement, of matters to be proved is conjectural and speculative and otherwise insufficient in that it does not adequately state the nature of the facts it proposes to develop at the hearing and that the petition is therefore fatally defective and should be denied. * * * ”

With Elm City thus excluded from participation, the hearing began November 19, 1954, and proceeded to conclusion on December 21, 1954.

January 17, 1955, Elm City filed with us a petition for review, under § 402(a) of the Act of the order of the previous. November 19 which denied it intervention. This is the first case, No. 12,542. The Commission released its final decision November. 7, 1955, denying the application of Key Broadcasting System and granting that of WAVZ. Elm City appealed December 7, 1955, under § 402 (b) of the Act from the final decision of the Commission and from the-order denying its petition to intervene. This, is case No. 13,002. ' ' '

In refusing, for the reason recited in its order, to permit Elm, City to intervene, the Commission relied upon § 1.388 (b) of its Rules, which - provides with respect to certain would-be intervenors, including those who allege economic injury:

“(b) Any other person desiring to participate in the hearing may file a petition to intervene, The petition must set forth the interest qf the [815]*815petitioner in the proceedings, must show how such person’s participation will assist the Commission in the determination of the issues in question, and must be accompanied by the affidavit of a person with knowledge as to the facts set forth in the petition. The Commission in its discretion may grant or deny such petition or may permit intervention by such person limited to particular issues or to a particular stage of the proceeding.”

When it was first promulgated, this provision of the Rules was not inconsistent with the governing statute, for § 309 of the Act was then silent as to intervention and merely provided that where the Commission could not find, on ex parte consideration, that the grant of an application would serve the public interest, “it shall notify the applicant thereof, shall fix and give notice of a time and place for hearing thereon, and shall afford such applicant an opportunity to be heard under such rules and regulations as it may prescribe.” 48 Stat. 1085. But in 1952 Congress amended § 309 and as part of a new subsection (b) provided that:

“ * * * The parties in interest, if any, who are not notified by the Commission of its action with respect to a particular application may acquire the status ox a party to the proceeding thereon by filing a petition for intervention showing the basis for their interest at any time not less than ten days prior to the date of hearing. Any hearing subsequently held upon such application shall be a full hearing in which the applicant and all other parties in interest shall be permitted to participate * *

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Bluebook (online)
235 F.2d 811, 1956 WL 92466, Counsel Stack Legal Research, https://law.counselstack.com/opinion/elm-city-broadcasting-corp-v-united-states-cadc-1956.