Jefferson Amusement Co. v. Federal Communications Commission

226 F.2d 277
Court of Appeals for the D.C. Circuit·Decided September 8, 1955·No. No. 12471·Published·Cited by 3 cases

Opinion

FAHY, Circuit Judge.

The appeal is from an order of the Federal Communications Commission of September 29, 1954, released October 4, 1954, dismissing, on the basis of Section 1.363(a) of the Commission’s Rules and Regulations, appellant’s application for a television station on Channel 4 in Port Arthur, Texas. Section 1.363(a) provides :

“Repetitious applications. — (a) Where an applicant has been afforded an opportunity to be heard with respect to a particular application for new station * * * and the Commission has, after hearing or default, denied the application or dismissed it with prejudice, the Commission will not consider a like application involving service of the same kind to the same area by the same applicant, or by his successor or assignee, or on behalf of or for the benefit of the original parties in interest, until after the lapse of 12 months from the effective date of the Commission’s order. The Commission may, for good cause shown, waive the requirements of this rule.”

When appellant Jefferson filed its application on November 24, 1952, three other applications for the same channel in the same area were pending before the Commission. The first of these had been filed by the Lufkin Amusement Company in 1948', but the general freeze on television applications prevented it from being considered until 1952. After the freeze was lifted, intervenor Port Arthur College also applied for Channel 4 in the Beaumont-Port Arthur area. On July 11, 1952, the Commission designated these two applications for a consolidated hearing. A few days later intervenor Smith Radio Company filed a third conflicting application. This was also consolidated in the Channel 4 proceeding, by order of November 26, 1952, and a hearing was scheduled for December 15,1952. On December 5, 1952, however, Lufkin requested that its application be dismissed without prejudice. Since it did not establish to the satisfaction of the Motions Commissioner that there was “good cause” within the meaning of Section 1.366 1 to warrant dismissal without prejudice, its application was dismissed with prejudice, on December 16, 1952.

Beginning December 10, 1952, several petitions were aimed at Jefferson’s application by Port Arthur College and Smith, including petitions alleging that the relationship between Jefferson and Lufkin required dismissal of Jefferson under Section 1.363(a).2 On December 12, 1952, the hearing in the Channel 4 proceeding was suspended so that it could be determined whether Jefferson’s application should be dismissed or consolidated for hearing with the Port Arthur College and Smith applications. This suspension has remained in effect.3 On April 22, 1953, the Commission dismissed Jefferson’s application under Section 1.363(a). Although the dismissal was rescinded upon the filing of a petition for rehearing, further proceedings and reconsideration eventuated in the new dismissal order of October 4, 1954, now on appeal.

The Commission found substantial though not complete identity of interest between Lufkin and Jefferson. It also found that Lufkin enjoyed “negative control” over Jefferson by virtue of Lufkin’s 50% stock ownership in a corporation which in turn owned 50% of Jefferson’s outstanding voting stock. The Commis[279] sion concluded that Jefferson had filed its application “on behalf of or for the benefit of” Lufkin within the meaning of Section 1.363(a). The Commission also found that both applications concern “service of the same kind to the same area,” and that no “good cause” existed which would justify waiving the requirements of Section 1.363 (a).

We assume the correctness of these findings and conclusions of the Commission. Nevertheless, Jefferson’s application could not be dismissed under Section 1.363(a) unless, after affording Lufkin an opportunity to be heard, the Commission had dismissed its application after hearing or default. There was no hearing. The Commission does not contend otherwise. It says Lufkin defaulted. It says that this default consisted in an “abandonment” by Lufkin of its application, evidenced by the filing of the petition for dismissal, the statement in the petition that Lufkin “did not desire to prosecute its application at this time,” and Lufkin’s failure to appeal the dismissal or to take any other steps evincing an intent to participate further in the Channel 4 proceedings. We think this is an erroneous interpretation of the term “default” as it is used in Section 1.363(a).

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Jefferson Amusement Co. v. Federal Communications Commission, 226 F.2d 277 (D.C. Cir. 1955).

226 F.2d 277 (Jefferson Amusement Co. v. Federal Communications Commission) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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