Garden State Broadcasting Ltd. Partnership v. Federal Communications Commission

996 F.2d 386, 302 U.S. App. D.C. 120
CourtCourt of Appeals for the D.C. Circuit
DecidedJune 29, 1993
DocketNos. 91-1043, 91-1599, 92-1065 and 92-1388
StatusPublished
Cited by1 cases

This text of 996 F.2d 386 (Garden State Broadcasting Ltd. Partnership v. Federal Communications Commission) 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
Garden State Broadcasting Ltd. Partnership v. Federal Communications Commission, 996 F.2d 386, 302 U.S. App. D.C. 120 (D.C. Cir. 1993).

Opinion

Opinion for the court filed by Circuit Judge KAREN LeCRAFT HENDERSON.

KAREN LeCRAFT HENDERSON, Circuit Judge:

Garden State Broadcasting Limited Partnership (Garden State) appeals to this court three separate, but related, orders of the Federal Communications Commission (FCC or the Commission). In its first appeal, Garden State challenges the Commission’s dismissal of its application for a television station license. The FCC determined that Garden State had abused the licensing process by filing solely in order to obtain a cash settlement from the existing station operator and that Garden State lacked candor because it withheld information about its motivation for filing. We uphold the Commission’s decision.

In its second and third appeals, Garden State challenges the FCC’s approvals of sub[122]*122sequent transfers of the television station to new license holders. We conclude that Garden State’s second appeal is moot and that it lacks standing to raise the claims in its third appeal. Therefore, we dismiss the appeals. We also sua sponte impose sanctions on Garden State for filing and prosecuting three patently frivolous appeals.1

I.

The events leading to Garden State’s first appeal began in 1986 when Mainstream Television Limited Partnership (Mainstream) applied to the FCC for a permit to operate Channel 9 in Secaucus, New Jersey.2 Jean Wells served as the sole general partner of Mainstream and was to be the general manager of the station. Sidney Fetner was one of several limited partners. Lewis Cohen and his law firm, Cohen & Berfield, represented Mainstream..

While Mainstream’s application was pending, RKO applied to assign the station to WWOR-TV, a subsidiary of MCA, Inc. (MCA). Over Mainstream’s objection, the FCC granted the assignment. In so doing, the FCC rejected Mainstream’s assertion that RKO’s service to northern New Jersey was inadequate. Mainstream sought review in this court but withdrew its appeal after it signed a settlement agreement with RKO by which RKO paid Mainstream $5.37 million on April 1, 1987. Wells received approximately $178,000, Fetner received $1.3 million and Cohen & Berfield was paid approximately $500,000 of the settlement proceeds. WWOR began operating Channel 9 two days later.

On April 30, 1987, less than four weeks after WWOR took over the station, Wells, Fetner and Cohen met in New York for dinner and began organizing Garden State to challenge anew WWOR’s operation of Channel 9. Again, Wells agreed to serve as the sole general partner while Fetner served as one of twelve limited partners and funded the contribution of several other limited partners.

To prepare its challenge,- Garden State hired an expert to analyze Channel 9’s programming and determine if it met New Jersey’s needs. Wells, who testified that she regularly watched Channel 9, continued to observe the programming to increase her familiarity with WWOR’s operation of the station. On December 23, 1987, two days after WWOR applied for renewal of its license with the FCC, Garden State filed a mutually exclusive application to construct a station operating on the same channel. Citing the similarity between Garden State’s application and the recently settled Mainstream challenge, WWOR contended that Garden State was abusing the FCC’s application process and should therefore be disqualified. Almost two years later, not having achieved a resolution of the dispute, WWOR initiated settlement negotiations with Garden State. WWOR eventually agreed to pay Garden State approximately $2 million to settle, and, as required by the Federal Communications Act (the Act), 47 U.S.C. §§ 151 et seq., the parties submitted the agreement to an administrative law judge (ALJ) for approval. See 47 U.S.C. § 311(d). The ALJ ordered a hearing on the agreement to ascertain if it violated the Act’s ban on settlements with applicants who file only to obtain a settlement. See 47 U.S.C. § 311(d)(3).

After the hearing, the ALJ approved the settlement, noting, however, that none of the participants in Garden State’s April 30 organizational meeting could remember when that meeting had taken place. Because Garden State alleged that it had filed only after Wells perceived inadequacies in WWOR’s programming, the ALJ recognized that the date of the initial meeting was a “material circumstance that is troubling in not being resolved with the precision of clear and convincing evidence.” J.A. at 50. Nonetheless, [123]*123he concluded that any adverse inference flowing from the failure to establish the timing of the initial meeting was offset by Garden State’s vigorous prosecution of its application. Id Despite the ALJ’s explicit concern, Garden State made no attempt to reopen the record or to produce evidence documenting when the meeting occurred.

The FCC, however, concluded sua sponte that the record was inadequate to support the ALJ’s findings and set aside the settlement. It declared that “repeated significant memory lapses” of Garden State’s witnesses regarding the timing of the initial dinner meeting called into question Garden State’s motivation in filing. J.A at 39. The FCC also concluded that Garden State’s “vigorous litigation” of the case consisted of nothing more than “a lengthy list of pleadings filed to prevent or delay discovery on the abuse of process issue itself.” Id Finally, the Commission stated that Wells’s, Fetner’s and Cohen’s previous participation in the Mainstream application suggested that they knew settlement was possible, if not probable, when they filed the application. Id Accordingly, the FCC remanded the case to the ALJ.

On remand, Garden State finally produced evidence that the organizational dinner meeting had in fact occurred on April 30th — much earlier than Garden State’s witnesses had previously suggested. In his law firm records, Cohen discovered his April 30th airline ticket to New York City and an April 30th credit card receipt from the restaurant where Cohen met Wells before the two joined Fetner. In addition, Fetner’s widow produced an April 30th credit card receipt from the restaurant where the organizational meeting occurred. The late disclosure of the evidence led the ALJ to conclude that Garden State had not been candid earlier in the application process. He also concluded that Garden State had abused the FCC process by filing only to obtain a settlement. The ALJ noted that in earlier testimony Garden State’s witnesses had declared that its licensing challenge was premised “from its inception on perceived inadequacies” in WWOR’s programming. J.A. at 1067. Because the ALJ concluded that Garden State’s promoters could not have formed an opinion on WWOR’s programming only 27 days after WWOR began operating the station, and because Wells had admitted as much in earlier testimony,3 the ALJ determined that the April 30th date of the meeting undermined Garden State’s professed reason for filing its application. Accordingly, the ALJ rejected. Garden State’s application.

Garden State filed timely exceptions to the ALJ’s order.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
996 F.2d 386, 302 U.S. App. D.C. 120, Counsel Stack Legal Research, https://law.counselstack.com/opinion/garden-state-broadcasting-ltd-partnership-v-federal-communications-cadc-1993.