Kessler v. Federal Communications Commission

326 F.2d 673, 52 P.U.R.3d 497
CourtCourt of Appeals for the D.C. Circuit
DecidedDecember 20, 1963
DocketNos. 17363, 17369, 17379, 17415, 17420, 17421, 17423-17425, 17474, 17477-17483
StatusPublished
Cited by4 cases

This text of 326 F.2d 673 (Kessler 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
Kessler v. Federal Communications Commission, 326 F.2d 673, 52 P.U.R.3d 497 (D.C. Cir. 1963).

Opinion

WASPIINGTON, Circuit Judge.

These cases challenge the action of the Federal Communications Commission in imposing a “freeze” on the acceptance of applications for most classes of standard radio broadcast stations, pending the adoption of new rules on the subject.

I.

The “freeze” was announced by the Commission in a Report and Order issued on May 10, 1962, effective at the close of business on that day. The Order said, among other things, that the Commission intends “to issue a notice of proposed rule making” relating to possible revision of its rules governing AM broadcast assignments, which “are virtually unchanged from those adopted two decades ago.” The Commission pointed out that “Between 1945 and 1962, the number of ■ authorized standard broadcast stations has grown from 955 to 3,871, and the fact of this tremendous growth coupled with the particular way in which the growth has occurred, has created problems 1 ******which differ greatly from those anticipated when the present standard broadcast rules were adopted,” and that an immediate reexamination of the stand- ' ards employed in assigning new or chang- ' ed standard broadcasting facilities was required.2 The first step necessary for [679]*679this reexamination, the order said, was a partial halt in the Commission’s acceptance of standard broadcast applications. It was said, however, that procedural fairness required that the processing of applications currently on file be completed, although this processing must take into account and seek to avoid unnecessary aggravation of the problems mentioned. The Commission stated that it would also continue to accept for filing certain applications which “would not frustrate the ends we seek to achieve by our re-study, or for which there are strong public interest considerations weighing in favor of acceptance.” It exempted from the “freeze” (a) applications “which would bring service to ‘white’ areas and which would cause no interference to existing stations”; (b) applications for new Class II-A facilities “since, in the Clear Channel Proceeding, we have determined that these new assignments would serve the public interest”; and (c) most applications for Class IV power increases.3

The Commission said that since its Order related “to matters of practice and procedure before the Commission, proposed rule making in accordance with the provisions of Section 4 of the Administrative Procedure Act is not required.” Commissioner Hyde dissented, saying “this is essentially a substantive policy decision and ought to be the subject of a public notice before decision.”

Subsequent to the date of the Order each of the appellants tendered to the Commission applications for standard broadcast facilities, petitions requesting reconsideration of the freeze, and petitions requesting waiver of the freeze.

On October 15, 1962, the Commission released a Memorandum Opinion and Order, deciding that its action in imposing the May 10th freeze was not unlawful, that it would not modify or waive in any case the interim criteria established for the filing of new applications, and that all applications not consistent with the interim criteria would be returned to the applicants.

Following release of this Opinion and Order and return of their applications, appellants sought review in this court.4 The parties have stipulated the questions presented to us, and we now consider them.

II.

The first question to be decided, as stipulated, is whether the Commission’s freeze order of May 10, 1962, corn[680]*680stitutes “a substantive rather than a procedural rule change, and if so, was the Commission required to give notice and/ or follow the public rule making procedure prescribed by Sections 3 and 4 of the Administrative Procedure Act, 5 U. S.C. §§ 1002 and 1003?”

We first consider Section 4 of the Act, 60 Stat. 238-239 (1946), 5 U.S.C. § 1003, which provides insofar as here pertinent:

“(a) Notice; publication and contents
“General notice of proposed rule making shall be published in the Federal Register * * * and shall include (1) a statement of the time, place, and nature of public rule making proceedings * *. Except where notice or hearing is required by statute, this subsection shall not apply to interpretative rules, general statements of policy, rules of agency organization, procedure, or practice, or in any situation in which the agency for good cause finds (and incorporates the finding and a brief statement of the reasons therefor in the rules issued) that notice and public procedure thereon are impracticable, unnecessary, or contrary to the public interest.
“(b) Procedures “After notice required by this section, the agency shall afford interested persons an opportunity to participate in the rule making through submission of written data, views, or arguments with or without opportunity to present the same orally in any manner * * * ’> 5

Admittedly the procedure specified by this section was not followed by the Commission with respect to the May freeze order: it issued the freeze order summarily without prior notice and hearing. As■ already noted, the Commission, with one member dissenting, said in the order that the Section 4 procedure was not required, because the interim procedures established relate to “matters of practice and procedure before the Commission.” The October Memorandum Opinion and Order explained this conclusion as follows:

“Substantive rules are those which change standards of station assignments and procedural rules are those dealing with the method of operation utilized by the Commission in the dispatch of its business. * * * The determinative factor is the context within which the rule was promulgated and, flowing from this context, the essential purpose of the rule. Viewing the interim criteria in terms of these factors, it is clear that the purpose of the ‘freeze’ was not the establishment of new allocation standards without public participation in rule making but, to the contrary, the creation of conditions under which formal rule making proceedings can be held in an effective, efficient, and meaningful manner. In the Report and Order adopting the interim criteria, we noted explicitly that the deteriorating situation in standard broadcast allocations would require a formal rule making proceeding. We also recognized, however, that such a rule making proceeding, possibly of extended duration, could have little meaning if we continued to allocate new stations under the old rules, thus intensifying the very problems our rule making sought to remedy. In this specific context, the Commission concluded that a temporary limited halt in the acceptance of standard broadcast applications was a necessary adjunct to any efficient and effective rule making. We believe the manner in which we chose to meet anticipated problems sur[681]*681rounding our rule making proceeding represented a necessary and proper exercise of our discretion in this area. [Citing Ranger v. Federal Communications Commission, 111 U.S.App.D.C.

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Related

Commonwealth of Pennsylvania v. United States
361 F. Supp. 208 (M.D. Pennsylvania, 1973)
Joseph J. Kessler, T/a Wbxm Broadcasting Company v. Federal Communications Commission, Thomas C. Fleet, Jr., D/B/A Fleet Enterprises v. Federal Communications Commission, Wfli, Inc., Intervenor. Robert A. Jones, D/B/A McHenry County Broadcasting Company v. Federal Communications Commission, Dupage County Broadcasting, Inc. v. Federal Communications Commission, Portage Broadcasting Corporation v. Federal Communications Commission, Frederick Eckardt, D/B/A Mansfield Broadcasting Company v. Federal Communications Commission, Cape Canaveral Broadcasters, Inc. v. Federal Communications Commission, Good Music Broadcasting Company v. Federal Communications Commission, Reuben B. Knight v. Federal Communications Commission, Reuben B. Knight v. Federal Communications Commission and United States of America, Cape Canaveral Broadcasters, Inc. v. Federal Communications Commission and United States of America, Good Music Broadcasting Company v. Federal Communications Commission and United States of America, Dupage County Broadcasting, Inc. v. Federal Communications Commission and United States of America, Thomas C. Fleet, Jr., D/B/A Fleet Enterprises v. Federal Communications Commission and United States of America, Robert A. Jones, D/B/A McHenry County Broadcasting Company v. Federal Communications Commission and United States of America, Portage Broadcasting Corporation v. Federal Communications Commission and United States of America, Frederick Eckardt, D/B/A Mansfield Broadcasting Company v. Federal Communications Commission and United States of America
326 F.2d 673 (D.C. Circuit, 1963)

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Bluebook (online)
326 F.2d 673, 52 P.U.R.3d 497, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kessler-v-federal-communications-commission-cadc-1963.