Gemini Enterprises, Inc. v. WFMY Television Corp.

470 F. Supp. 559, 45 Rad. Reg. 2d (P & F) 1145, 1979 U.S. Dist. LEXIS 12679
CourtDistrict Court, M.D. North Carolina
DecidedMay 1, 1979
DocketC-77-74-G
StatusPublished
Cited by54 cases

This text of 470 F. Supp. 559 (Gemini Enterprises, Inc. v. WFMY Television Corp.) is published on Counsel Stack Legal Research, covering District Court, M.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gemini Enterprises, Inc. v. WFMY Television Corp., 470 F. Supp. 559, 45 Rad. Reg. 2d (P & F) 1145, 1979 U.S. Dist. LEXIS 12679 (M.D.N.C. 1979).

Opinion

MEMORANDUM OPINION AND ORDER

GORDON, Chief Judge.

The complaint in this action alleges that the defendant WFMY Television Corporation (WFMY), CBS, Inc. (CBS), and the National Association of Broadcasters, Inc. (NAB) have engaged in a conspiracy to limit access to broadcast programming and advertising. The specific acts of which the plaintiffs complain are WFMY’s refusal to sell plaintiff Gemini television time with which to advertise Gemini’s astrological forecasting services and WFMY’s refusal to permit plaintiff Marion Hensley, an astrologer, to appear on WFMY’s local programming. The plaintiffs contend that these acts were in furtherance of the alleged conspiracy and violated 42 U.S.C. § 1985(3) by depriving the plaintiffs of the equal protection of the law and First Amendment rights to freedom of expression. 1

The case is before the Court for consideration of defendant NAB’s motion to dismiss for lack of personal jurisdiction and a Rule 12(b) motion made jointly by all defendants.

BACKGROUND

Many of the material facts in this case are not in dispute. The NAB is a trade association of commercial radio and television broadcasters incorporated under the laws of the State of Delaware. NAB’s principal place of business is located in Washington, D. C., with additional offices located in California and New York. Membership in NAB is voluntary. Both WFMY and CBS are members of NAB and are also subscribers to the Television Code.

The Television Code was promulgated by the Television Board of Directors of NAB and sets out a code of conduct for subscribers to follow in broadcast programming and advertising. 2 Two provisions of the Television Code are of particular interest in the present case. They state:

“IV. Special Program Standards
“12. Program material pertaining to fortune-telling, occultism, astrology, phrenology, palmreading, numerology, mindreading, character-reading, and the like is unacceptable if it encourages people to regard such fields as providing commonly accepted appraisals of life.
“IX. General Advertising Standards
“10. The advertising of fortune-telling, occultism, astrology, phrenology, palm-reading, numerology, mind-reading, character-reading or subjects of a like *563 nature is not permitted.” NAB, The Television Code (19th ed. 1976).

WFMY is a CBS affiliate located in Greensboro, North Carolina. WFMY has admitted that the plaintiff Marion Hensley appeared on its local programming from time to time in the years 1973 to 1976. WFMY further admits that after an appearance in November 1976, the station informed the plaintiff that she would not be invited again to appear on WFMY programming. WFMY further agrees that it has from time to time refused to sell advertising time to the plaintiff Gemini and it on at least one such occasion referred to the above quoted sections of the Television Code.

NAB’S MOTION TO DISMISS FOR LACK OF PERSONAL JURISDICTION

NAB has moved to dismiss for lack of personal jurisdiction on the grounds that neither the applicable North Carolina statutory law nor the due process clause of the United States Constitution permits the exercise of jurisdiction by this Court. At the outset, the Court notes that the “minimal contacts” doctrine of International Shoe Co. v. Washington, 326 U.S. 310, 66 S.Ct. 154, 90 L.Ed. 95 (1945), on which NAB relies, is not directly applicable to a federal question case brought in a federal district court when the defendant has been personally served within the United States. The International Shoe decision involved the extraterritorial assertion of personal jurisdiction by a state court. Where defendants reside within the territorial boundaries of the United States, the minimal contacts are present that are required to justify a federal court’s exercise of power over them. Mariash v. Morrill, 496 F.2d 1138, 1143 (2d Cir. 1974); Leasco Data Processing Equipment Corp. v. Maxwell, 468 F.2d 1326 (2d Cir. 1972). The only situation in a federal suit that is directly analogous to the International Shoe case occurs where a federal court attempts to assert personal jurisdiction over a defendant not found within the territory of the United States. See Gkiafis v. Steamship Yiosonas, 342 F.2d 546 (4th Cir. 1965).

The doctrine of International Shoe, however, does have a role to play in the present case because of a curious anomaly that occurs in the jurisdiction of a federal court dealing with federal questions where there is no federal procedure available to bring out-of-state defendants into court without resort to the mechanics of state law. Rule 4(e) of the Federal Rules of Civil Procedure authorizes use of state process when there is no federal statute authorizing nationwide service of process or because the defendant has no agent within the state who can be served. In such cases, the validity of service made pursuant to state law is measured by the statutory and constitutional standards applied to judge service by state courts, See Gkiafis v. Steamship Yiosonas, 342 F.2d at 549-58; see generally, Foster, Judicial Economy; Fairness and Convenience of Place of Trial: Long-Arm Jurisdiction in District Courts, 47 F.R.D. 73 (1969). In the present case, NAB had no agent present in North Carolina to be served and no nationwide service of process is authorized for cases arising under § 1985, Safeguard Mutual Insurance Co. v. Maxwell, 53 F.R.D. 116 (E.D.Pa.1971). Service of process was effectuated in the District of Columbia as authorized by N.C.Gen.Stat. § 1A-1, Rule 4(j). This Court’s jurisdiction over NAB is, therefore, to be judged by the standards which would apply if this suit had been brought in the state courts of North Carolina.

To resolve a question of personal jurisdiction under International Shoe, the Court must engage in a two step examination. First the Court must determine if the applicable North Carolina law would allow exercise of long-arm jurisdiction over NAB. If the answer to this inquiry is yes, the Court must then determine if the exercise of jurisdiction by a court sitting in North Carolina comports with due process. Bowman v. Curt G. Joa, Inc., 361 F.2d 706 (4th Cir. 1966); United Advertising Agency v. Robb, 391 F.Supp. 626 (M.D.N.C.1975).

*564

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Bluebook (online)
470 F. Supp. 559, 45 Rad. Reg. 2d (P & F) 1145, 1979 U.S. Dist. LEXIS 12679, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gemini-enterprises-inc-v-wfmy-television-corp-ncmd-1979.