Gene A. Folden, Coastal Communications Associates, and Judith A. Longshore v. United States

379 F.3d 1344, 2004 U.S. App. LEXIS 16710
CourtCourt of Appeals for the Federal Circuit
DecidedAugust 16, 2004
Docket20-1616
StatusPublished
Cited by426 cases

This text of 379 F.3d 1344 (Gene A. Folden, Coastal Communications Associates, and Judith A. Longshore v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gene A. Folden, Coastal Communications Associates, and Judith A. Longshore v. United States, 379 F.3d 1344, 2004 U.S. App. LEXIS 16710 (Fed. Cir. 2004).

Opinion

SCHALL, Circuit Judge.

Gene A. Folden, Coastal Communications Associates (“Coastal”), and Judith A. Longshore (collectively, “plaintiffs”) appeal the decision of the United States Court of Federal Claims (i) granting the United States’ motion to dismiss for failure to state a claim upon which relief could be granted, and (ii) granting the United States’ motion to dismiss for lack of subject-matter jurisdiction. Folden v. United States, 56 Fed.Cl. 43 (2003). On the first point, the court determined that plaintiffs failed to state a claim for breach of contract because they were unable to establish the existence of an implied-in-fact contract with the government arising from their filing of lottery applications for cellular communication licenses with the Federal Communications Commission (the “Commission”). Id. at 51-55. On the second point, the court determined that it lacked subject-matter jurisdiction over plaintiffs’ claims because it concluded that decisions ancillary to the licensing power of the Commission fall within the exclusive jurisdiction of the United States Court of Appeals for the District of Columbia Circuit pursuant to 47 U.S.C. § 402(b). Id. at 55-60.

We agree with the Court of Federal Claims that plaintiffs’ claims are covered by subsection 402(b), which places them within the exclusive jurisdiction of the D.C. Circuit. Accordingly, we affirm the court’s dismissal for lack of subject-matter jurisdiction.

BACKGROUND

I.

We begin by setting forth the evolution of the regulatory regime by which the Commission issues telecommunications licenses, for it is essential to understanding plaintiffs’ theory of recovery in the case. By statute, the Commission is charged *1347 with granting applications for licenses if it finds that “public interest, convenience, and necessity would be served by the granting thereof . . . .” 47 U.S.C. § 309 (2000). To facilitate the allocation of cellular licenses, the Commission divided the United States into two geographic markets — metropolitan statistical areas (MSAs) and rural service areas (RSAs). Folden, 56 Fed.Cl. at 44. In each type of market, the Commission granted two competing licenses: one to a wireline operator, an established local telephone company, and the other ... to a nonwireline operator, any party other than an established local telephone company. Id. Plaintiffs are nonwireline operators in seven RSA markets. Id.

To award the first thirty MSA cellular licenses, the Commission employed comparative hearings. 1 See Certain Cellular Rural Service Area Applications, 14 F.C.C.R. 4619, 4619 (1999). In 1981, however, through an amendment to the Communications Act of 1934 (Communications Act), Congress authorized the Commission to allocate licenses by a system of random selection or lottery. See Omnibus Budget Reconciliation Act of 1981, Pub.L. No. 97-35, ch. 2, 1242, 95 Stat. 357, 736-37 (1981) (codified at 47 U.S.C. 309(i)). The House of Representatives conference report explained that [b]y the establishment of basic qualifications and the elimination of initial comparative hearings, the conferees intend that much of the present delay and expense can be eliminated with no adverse effect on the provision of services to the public. H.R. Conf. Rep. No. 97-208, at 897, reprinted in 1981 U.S.C.C.A.N. 1010, 1259. However, despite agreeing that a lottery would speed service to the public, the Commission declined to adopt a lottery process for allocating telecommunications licenses. Selection from Among Mutually Exclusive Competing Applications Using Random Selection or Lotteries Instead of Comparative Hearings, 89 F.C.C.2d 257, 258, 282-83 (1982) (explaining that although it was clear that Congress intended for the Commission to implement lotteries, various considerations led the Commission to conclude that “the public interest would best be served by declining to implement this statute”).

In response, Congress passed a revised lottery statute, which imposed upon the Commission the mandatory requirement that lottery rules and procedures be adopted within 180 days. Communications Amendments Act of 1982, Pub.L. No. 97-259, § 115, 96 Stat. 1087, 1094-95 (1982) (codified at 47 U.S.C. § 309(i) as amended); H.R. Conf. Rep. 97-765, at 38, reprinted in 1982 U.S.C.C.A.N. 2261, 2282 (“1982 Conf. Rep.”). Congress instructed that upon selecting a lottery winner, the Commission was to determine whether the winner was qualified pursuant to 47 U.S.C. §§ 308(b), 309(a) (2000). 2 1982 Conf. Rep. *1348 at 39, reprinted in 1982 U.S.C.C.A.N. at 2283. If the initial winner was determined to be unqualified, the Commission was to conduct a subsequent lottery ... with the same applicant pool with each applicants selection probabilities recomputed as necessary . . . . Id.

In 1984, the Commission adopted rules for awarding cellular licenses by lottery. 47 C.F.R. 1.821-1.823, 22.33 (1984); see also Selection from Among Mutually Exclusive Competing Cellular Applications Using Random Selection or Lotteries Instead of Comparative Hearings, 98 F.C.C.2d 175, 175, app. B (1984) (explaining the amendments to the regulations providing for the use of lotteries for awarding cellular licenses). Pursuant to the regulations, the Commission was allowed to employ a random selection process, or lottery, to choose the “tentative selectee” from among mutually exclusive license applicants. 47 C.F.R. § 1.822(b). Once the tentative selectee was named, the lottery continued with each of the remaining applicants, with the Commission ranking them in the order in which they were selected as “alternative selectees.” Id. The Commission would award the license to the tentative selectee only after determining that it was qualified. Id. If it were not, the Commission would name the next-ranked alternative selectee as the new tentative selectee and then evaluate its qualifications, repeating the process until the license was awarded. Id.

In 1988, the Commission amended the rules pertaining to lotteries. Under the amended regulations, after the tentative selectee was named, each remaining applicant was no longer to be randomly selected and ranked in order of selection. Rather, in accordance with the amended version of 47 C.F.R. § 1

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379 F.3d 1344, 2004 U.S. App. LEXIS 16710, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gene-a-folden-coastal-communications-associates-and-judith-a-longshore-cafc-2004.