Mark Leyse v. Clear Channel Broadcasting, Inc

545 F. App'x 444
CourtCourt of Appeals for the Sixth Circuit
DecidedNovember 5, 2013
Docket10-3739
StatusUnpublished
Cited by13 cases

This text of 545 F. App'x 444 (Mark Leyse v. Clear Channel Broadcasting, Inc) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mark Leyse v. Clear Channel Broadcasting, Inc, 545 F. App'x 444 (6th Cir. 2013).

Opinion

AMENDED OPINION *

JANE B. STRANCH, Circuit Judge.

In 2005, Mark Leyse received a prerecorded telemarketing call from a Clear Channel radio station. He sued Clear Channel for violating the Telephone Consumer Protection Act of 1991 (TCPA), Pub.L. No. 102-243, 105 Stat. 2394 (1991), which prohibits certain prerecorded telemarketing calls. The district court dismissed the action, finding that the Federal Communications Commission (FCC) had issued regulations exempting the type of call at issue from the TCPA’s prohibitions, that the FCC was authorized by Congress to do so, that the court should defer to the resulting regulation under Chevron U.S.A. v. Natural Res. Def. Council, 467 U.S. 837, 104 S.Ct. 2778, 81 L.Ed.2d 694 (1984), and that the regulation passed muster under Chevron.

On appeal, in addition to arguing over what deference the resulting regulation is due and whether the regulation binds the court under that level of deference, Clear Channel argues that the Hobbs Act deprives this court of subject-matter jurisdiction. While we ultimately conclude that the district court did not have subject-matter jurisdiction to consider Leyse’s arguments about the procedural invalidity of the FCC regulations, both the district court and this court do have subject-matter jurisdiction to consider whether the call at issue in this case fits within the scope of that exemption. Because we find that it does, we AFFIRM the judgment of the district court.

*446 I. BACKGROUND

In June 2005, a radio station owned by Clear Channel called Leyse’s residential telephone number and delivered the following prerecorded message:

Hi, this is Al “Bernie” Bernstein from 106.7 Lite FM. In case your favorite station went away, I want to take just a minute to remind you about the best variety of yesterday and today at 106.7. Motown, classic 70s from James Taylor, Elton, and Carole King; it’s all here. Each weekday, we kick off the workday with an hour of continuous, commercial-free music. This week, when the music stops at 9:20, be the tenth caller at 1-800-222-1067. Tell us the name of the Motown song we played during that hour, and you’ll win one thousand dollars. Easy money. And the best variety from 106.7 Lite FM.

Leyse filed a class-action complaint that same month against the defendants (collectively, “Clear Channel”) in the United States District Court for the Southern District of New York, alleging that the prerecorded telephone call violated the TCPA, 47 U.S.C. § 227(b)(1)(B), and the corresponding regulation 47 C.F.R. § 64.1200(a)(2). The New York district court granted Clear Channel’s motion to dismiss for failure to state a claim under Rule 12(b)(6) of the Federal Rules of Civil Procedure because the court concluded that the FCC had exempted the type of call at issue from the TCPA’s prohibitions against prerecorded calls. Leyse v. Clear Channel Broad., Inc., No. 05 CV 6031 HB, 2006 WL 23480 (S.D.N.Y. Jan. 5, 2006). The court held that the FCC’s determination was entitled to deference under Chevron because Congress expressly authorized the FCC to “implement and create exemptions to § 227” and because the exemptions created under this authority were promulgated after notice-and-comment rulemaking. Id. at 3.

Leyse appealed to the Second Circuit. During the appeal, the FCC submitted a letter responding to questions posed by the Second Circuit in which the FCC stated its position that the call at issue did not ■violate § 227 because the FCC had exempted such calls. In the letter, the FCC also argued that the agency’s 2003 rule delineating the exemption was protected from collateral attack by the Federal Communications Act and the Hobbs Act, which together “specify the precise procedure for obtaining judicial review of FCC orders and vest exclusive jurisdiction in the courts of appeals.” The Second Circuit dismissed the action without prejudice for lack of a federal question and did not reach either the merits of Leyse’s arguments or the jurisdictional question posed by the FCC. Leyse v. Clear Channel Broad., Inc., 301 Fed.Appx. 20, 21-22 (2d Cir.2008).

In April 2009, Leyse filed the present action — one materially identical to the New York action — in Ohio. In May 2009, Clear Channel filed a motion to dismiss for failure to state a claim and the district court granted that motion in June 2010. In doing so, the court concluded that the FCC had exempted the type of call at issue here, a “hybrid call” that both announces a contest and promotes the station generally. The court accorded Chevron deference to the FCC’s decision to exempt the call, reasoning that Congress expressly delegated to the FCC the power to decide what calls to exempt, that the FCC exercised this power through “notice-and-eomment rulemaking procedures in the 2003 and 2005 Orders,” and that the FCC had consistently articulated its position. 1

*447 Leyse timely appealed the district court’s decision. On appeal, he again argues that Clear Channel’s message was “not within the scope” of the FCC’s exemption. He also argues that even if the message were covered by the exemption, this court should undertake a Chevron analysis and refuse deference to the FCC’s rule based on a number of procedural infirmities, including: that the rule was “interpretative” as it was only interpreting existing law; that it was not a “logical outgrowth” of the FCC’s Notice of Proposed Rulemaking (NPRM); that the FCC had not made the findings required by the TCPA statute as part of the rulemaking; that the reasoning supporting the rule is at odds with reasoning supporting other FCC rules under the TCPA; that comments during the NPRM overwhelmingly opposed exemption of the type of call at issue; and that factual findings about the absence of complaints did not support the order’s reasoning. As a result, Leyse argues, the rule is arbitrary and capricious and therefore invalid.

In response, Clear Channel argues that the Hobbs Act precludes subject-matter jurisdiction in this case and that the district court’s dismissal should be affirmed. Clear Channel contends that the Hobbs Act and the Federal Communications Act, 47 U.S.C. § 402(a), operate together to deprive the district court below (and this court on appeal) of jurisdiction to consider Leyse’s lawsuit under the TCPA. In Clear Channel’s view, Leyse’s lawsuit is an impermissible collateral attack on the FCC’s decision to permit the challenged call and others like it.

II. STANDARD OF REVIEW

We review the district court’s decision to grant a motion to dismiss de novo. Pe-dreira v. Ky. Baptist Homes for Children, Inc.,

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Bluebook (online)
545 F. App'x 444, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mark-leyse-v-clear-channel-broadcasting-inc-ca6-2013.