Maritel, Inc. v. Collins

422 F. Supp. 2d 188, 2006 U.S. Dist. LEXIS 11050, 2006 WL 689001
CourtDistrict Court, District of Columbia
DecidedMarch 20, 2006
DocketCivil Action No.: 03-2418 (RMU)
StatusPublished
Cited by41 cases

This text of 422 F. Supp. 2d 188 (Maritel, Inc. v. Collins) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Maritel, Inc. v. Collins, 422 F. Supp. 2d 188, 2006 U.S. Dist. LEXIS 11050, 2006 WL 689001 (D.D.C. 2006).

Opinion

MEMORANDUM OPINION

URBINA, District Judge.

Denying the Plaintiff’s Motion for Summary Judgment,- Granting the Defendant’s Motion to Dismiss or for Summary Judgment

I. INTRODUCTION

This case concerns a final rule promulgated by the United States Coast Guard which implements a system of marine communications between the Coast Guard and certain ships. The plaintiff, Maritel, Inc. (“Maritel”), brings suit against the Coast Guard and Thomas H. Collins in his official capacity as Admiral and Commandant of the Coast Guard (collectively, “the defendant” or “the Coast Guard”) under the Administrative Procedures Act (“APA”), 5 U.S.C. §§ 702 et seq., asking the court to set aside the Coast Guard’s rule. The plaintiff alleges that the Coast Guard’s rule is arbitrary and capricious, an abuse of discretion and contrary to law. Specifically, the plaintiff alleges that the Coast Guard’s rule violates section 301 of the Communications Act of 1934, 47 U.S.C. §§ 301 et seq., and the Fifth Amendment takings clause, and does not reasonably address the plaintiffs formally-submitted comments to the rule.

The plaintiff has filed a motion for summary judgment and the defendant has filed a motion to dismiss or for summary judgment. Because the Coast Guard’s Final Rule promulgates equipment requirements, as authorized by the Federal Communications Commission (“FCC”), rather than frequency requirements, and because the Coast Guard gave due consideration to the plaintiffs comments, its decision is not arbitrary and capricious, an abuse of discretion, or otherwise contrary to law. Accordingly, the court denies the plaintiffs motion for summary judgment and grants the defendant’s motion for summary judgment as to the plaintiffs APA claims. Because the plaintiffs Fifth Amendment takings claim is not ripe for review, the court dismisses that claim.

II. BACKGROUND

A. Factual Background

The plaintiff, a maritime communications firm, is a current FCC licensee for Variable Public Coast (“VPC”) Channels 87A, 87B, 88A, and 88B. Compl. ¶¶ 2, 12. In 1997, one year before the plaintiff acquired licenses for these channels, the Coast Guard requested that the FCC designate Channels 87B and 88B for use in the Automatic Identification System 1 *192 (“AIS”), which assists in preventing collisions and allows the Coast Guard to monitor naval traffic. Id. ¶¶ 9, 14. The FCC denied the Coast Guard’s request and instructed it to negotiate directly with VPC licensees to select frequencies for AIS. Id. ¶ 15; Maritime Communications, 1998 WL 390925, 13 F.C.C.R. 19,853, 19,876-77 ¶¶ 48-49 (1998) (“the 1998 FCC Decision”) (codified at 47 C.F.R. § 80.371(c)(3)). The FCC, through regulation, required the Coast Guard to submit to each VPC licensee, within six months of the conclusion of competitive bidding procedures for the licenses, a proposed plan specifying two “narrowband” channel pairs for AIS use. 47 C.F.R. § 80.371(c)(3). If an agreement could not be reached within one year of the Coast Guard’s proposal, the Coast Guard could petition the FCC to select the AIS channels itself. Id.

At a subsequent FCC public auction, the plaintiff paid over $6.8 million for all nine maritime VPC licenses to build a marine communications system. Compl. ¶ 12. And, in accordance with the 1998 FCC decision, the plaintiff and the Coast Guard negotiated a “Memorandum of Agreement” (“MOA”), which allowed the Coast Guard to use Channels 87A and 87B. Id. ¶ 16. The FCC’s Wireless Telecommunications Bureau issued a Public Notice in June 2002 that acknowledged the MOA and authorized the temporary use of shipborne AIS equipment on “existing ship station licenses.” Add’l Freq. for the U.S. Coast Guard’s Ports and Waterways Safety Sys. (“June 2002 Public Notice”), 17 F.C.C.R. 10,960 (June 13, 2002).

Meanwhile, as a result of the Coast Guard’s allegedly contrary interpretation of a separate MOA provision, 2 the plaintiff notified the Coast Guard in May 2003 that it was invoking the MOA’s termination clause. PL’s Statement of Facts ¶ 22. The plaintiff told the Coast Guard that it was willing to renegotiate to find other suitable AIS frequencies, but the Coast Guard proceeded to publish an Interim Rule implementing the AIS and soliciting comments from interested parties. Id. ¶ 23; Automatic Identification System; Vessel Carriage Requirement (“AIS Interim Rule”), 68 Fed.Reg. 39,353 (proposed July 1, 2003). The interim rule laid out the Coast Guard’s requirement that certain types of vessels install AIS equipment (“carriage requirements”) by a certain date. Id. at 39,367. The Interim Rule also incorporated several international standards, one of which envisioned that AIS equipment would operate by default on Channels 87B and 88B. Id. at 39,359 (requiring that certain vessels install AIS that complies with International Telecommunication Union Recommendation M.1371-1); Technical Characteristics for a Universal Shipborne Automatic Identification System, Recommendation ITU-R M.1371-1, Annex 2, Table 2 (Def.’s Mot., Ex. 2) (“ITU Recommendation”).

The plaintiff formally submitted four comments in response to the Interim Rule. First, the plaintiff claimed that the Coast Guard did not have authorization to require shipowners to install and operate AIS transmitters that broadcast on Channel 87B because the MOA no longer existed. Compl. ¶24. Second, the plaintiff charged that the Coast Guard had unilaterally taken Channel 88B without attempt *193 ing to negotiate for it, in violation of the 1998 FCC decision. Id. Third, the plaintiff submitted an independent engineering study that purportedly demonstrated that the parties’ competing uses of Channels 87B and 88B would cause harmful mutual interference. Id. ¶ 25. Finally, the plaintiff commented that AIS’s interference with the plaintiffs licensed channels would render those channels useless and thus constituted a Fifth Amendment taking. Id. ¶ 26.

On October 22, 2003, the Coast Guard published its Final Rule. Automatic Identification System; Vessel Carriage Requirement, 68 Fed.Reg. 60,559, 60,563 (October 22, 2003) (“AIS Final Rule”) (codified at 46 C.F.R. pts. 26, 161, 164-65). In its comments to the Final Rule, the Coast Guard asserted that it “requested and received frequency authorizations from the Federal Communications Commission (FCC) and the National Telecommunication and Information Agency (NTIA).” Id.; Compl. ¶ 27. The Coast Guard cited the Wireless Telecommunications Bureau’s June 2002 Public Notice to support its conclusion that “FCC policies currently authorize” use of Channels 87B and 88B for AIS. Compl. ¶27; AIS Final Rule, 68 Fed.Reg. at 60,-563.

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Bluebook (online)
422 F. Supp. 2d 188, 2006 U.S. Dist. LEXIS 11050, 2006 WL 689001, Counsel Stack Legal Research, https://law.counselstack.com/opinion/maritel-inc-v-collins-dcd-2006.