Gannett Satellite Information Network, Inc. v. Metropolitan Transportation Authority

579 F. Supp. 90
CourtDistrict Court, S.D. New York
DecidedFebruary 6, 1984
Docket83 Civ. 5777 (WCC)
StatusPublished
Cited by6 cases

This text of 579 F. Supp. 90 (Gannett Satellite Information Network, Inc. v. Metropolitan Transportation Authority) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gannett Satellite Information Network, Inc. v. Metropolitan Transportation Authority, 579 F. Supp. 90 (S.D.N.Y. 1984).

Opinion

OPINION AND ORDER

CONNER, District Judge.

This action presents interesting constitutional questions concerning the power of the Metropolitan Transportation Authority (the “MTA”), a public benefit corporation existing pursuant to Title 11 of Article 5 of the New York Public Authorities Law, § 1260 et seq., to require newspapers to obtain a fee-bearing license prior to placing coin-operated newspaper vending machines *92 (“newsracks”) at commuter railroad stations owned or controlled by the MTA through its subsidiaries, the Long Island Railroad Company (“LIRR”) and the Metro-North Commuter Railroad Company (“Metro-North”) (collectively “MTA” or “defendants”). Plaintiff Gannett Satellite Information Network, Inc. (“Gannett”), publisher of the national daily newspaper USA Today commenced this action on August 4, 1983 pursuant to 42 U.S.C. § 1983, alleging that defendants’ licensing scheme violates its rights under the First and Fourteenth Amendments to the United States Constitution and Article I, § 8 of the New York State Constitution. Gannett seeks to have the Court permanently enjoin defendants “from removing, tampering with, limiting, imposing fees or conditions upon, or in any other way disturbing the placement by plaintiff of newsracks in public areas of railroad passenger stations owned, operated, controlled, or maintained by defendants in the Metropolitan Area.” Complaint at 15. The case is currently before the Court on the parties’ cross-motions for summary judgment. For the reasons stated below, plaintiff’s motion is granted.

Background

The following facts are undisputed:

Since at least 1965, several commercial newspapers have maintained newsracks at commuter train stations, owned or leased by defendants, pursuant to license agreements which require each newspaper to pay an annual fee of the greater of $25 per machine or $50 per station and to adhere to various conditions on the placement of the racks. See Def.Rule 3(g) Statement at § 1 ¶ 5; Def.Mem. in Opp. to Prelim.Inj. at 4; Ex. 9 to Boyle Aff. at 1-2. In September 1982, Gannett began to publish USA Today, a daily morning newspaper. On April 4, 1983, just one week before it planned to commence distributing USA Today in the New York area, plaintiff first contacted the MTA seeking permission to place news-racks at various LIRR and Metro-North stations. See Ex. G to Derle Aff. Although plaintiff never received approval from the MTA, on April 11, 1983 Gannett began distributing USA Today' through newsracks which it had placed at both Metro-North and LIRR stations. See Pl.Rule 3(g) Statement at ¶ 18. 1 On April 13, the MTA informed Gannett that if it did not remove these “unauthorized” machines by Friday, April 15, MTA employees would remove them beginning on Monday, April 18. See Ex. G to Derle Aff. When plaintiff failed to retrieve its newsracks as directed, defendants carried out their threat and impounded the machines. See Pl.Rule 3(g) Statement at II 20.

Following this seizure, defendants initially refused to allow Gannett to place USA Today newsracks at the MTA stations until Gannett entered into a license agreement. However, defendants subsequently agreed to allow Gannett to replace and leave its newsracks at the stations while representatives of the parties discussed a license agreement. See Ex. 7 to Boyle Aff.; Complaint at H 30. On June 8, defendants provided plaintiff with two proposed license agreements, one for the LIRR stations and the other for Metro-North facilities. See Ex. 4 to Boyle Aff. On June 21, defendants sent plaintiff a revised draft of the proposed LIRR agreement. See Ex. 5 to Boyle Aff. Among the terms of those proposed agreements 2 was the requirement that Gannett pay an annual license fee of the greater of $75 per machine or $150 per station. 3 See Appendix A at 1; Appendix B *93 at 1. Ultimately, Gannett and the MTA failed to reach an accord on the terms of a license agreement, and in mid-July Gannett, upon orders from the MTA, removed its USA Today newsracks from the commuter stations.

Discussion

Gannett posits three separate theories to support its claim that defendants’ licensing scheme is constitutionally infirm. 4 First, plaintiff contends that defendants have failed to establish any standards to govern the licensing of newsracks, and have delegated to their employees unbridled discretion to deny, limit or condition Gannett’s constitutional right to place newsracks in commuter stations. Second, Gannett alleges that through their licensing scheme defendants seek to extract a fee that is not generally applicable to other entities, differs from fees imposed upon other newspapers, and constitutes a tax that singles out plaintiff and the press for special treatment. Finally, plaintiff claims that defendants’ requirement that Gannett obtain a license and pay a fee for the privilege of placing newsracks on MTA property is an unconstitutional prior restraint on Gannett’s First and Fourteenth Amendment rights.

It has long been settled that the freedoms of speech and press protected by the First Amendment 5 extend to the distribution of newspapers as well as to their publication. See Lovell v. Griffin, 303 U.S. 444, 452, 58 S.Ct. 666, 669, 82 L.Ed. 949 (1938). Moreover, it is equally well established that this First Amendment protection is not lost merely because the paper being distributed is sold, rather than given away. See Heffron v. International Society for Krishna Consciousness, Inc., 452 U.S. 640, 647, 101 S.Ct. 2559, 2563, 69 L.Ed.2d 298 (1981). Indeed, numerous courts have already held that because newsracks play an important role in the process of newspaper distribution, they are entitled to full constitutional protection. See, e.g., Southern New Jersey Newspapers, Inc. v. New Jersey Dept, of Trans., 542 F.Supp. 173, 183 (D.N.J.1982); Miami Herald Pub. Co. v. Hallandale, No. 80-6535-Civ.-ALH, slip op. at 7 (D.Fla. July 1, 1981); Westchester Rockland Newspapers, Inc. v. Yonkers, 5 Media L.Rep. (BNA) 1777, 1780 n. 10 (S.D.N.Y.1979). Thus, Gannett’s use of newsracks as a means of distributing USA Today is a constitutionally protected activity.

Gannett’s right to distribute USA Today on public property is not, of course, absolute. “[T]he First Amendment does not guarantee access to property simply because it is owned or controlled by the government.” United States Postal Service v. Greenburgh Civic Assns.,

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