Opera Plaza Residential Parcel Homeowners Association, a California Nonprofit Corporation v. Tuan Hoang Betty S. Lee-Hoang

376 F.3d 831, 33 Communications Reg. (P&F) 81, 2004 U.S. App. LEXIS 14238, 2004 WL 1562915
CourtCourt of Appeals for the Ninth Circuit
DecidedJuly 12, 2004
Docket02-16682
StatusPublished
Cited by41 cases

This text of 376 F.3d 831 (Opera Plaza Residential Parcel Homeowners Association, a California Nonprofit Corporation v. Tuan Hoang Betty S. Lee-Hoang) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Opera Plaza Residential Parcel Homeowners Association, a California Nonprofit Corporation v. Tuan Hoang Betty S. Lee-Hoang, 376 F.3d 831, 33 Communications Reg. (P&F) 81, 2004 U.S. App. LEXIS 14238, 2004 WL 1562915 (9th Cir. 2004).

Opinion

SILVERMAN, Circuit Judge:

We hold today that § 207 of the Telecommunications Act of 1996, Pub.L. No. 104-104, 110 Stat. 114 (hereinafter “ § 207”), does not confer jurisdiction on the federal courts to hear a routine suit by a condominium homeowners association to enforce its rules against the placement of a satellite television dish in common areas.

I. Facts

In September 1999, Opera Plaza Homeowners Association and Opera Plaza Master Owners Association (collectively “Opera Plaza”) adopted a policy, as part of a “Declaration of Covenants, Conditions and *833 Restrictions,” which prohibited the placement of satellite dishes in common areas of the condominium complex. After adoption of this policy, the Hoangs, who owned one of the condominiums, installed a satellite dish on the exterior of their home in a common area, in violation of the policy. Opera Plaza filed suit in federal court, seeking (1) declaratory relief stating that the Opera Plaza satellite policy is valid, (2) a permanent injunction requiring the Hoangs to remove their satellite dish, and (3) damages from the Hoangs for breach of contract.

The district court dismissed the action for lack of subject matter jurisdiction, noting that only Congress — and not a federal agency — can confer subject matter jurisdiction, and that the Telecommunications Act of 1996 did not authorize the FCC to expand federal subject matter jurisdiction. First, the district court applied the four-factor test from Cort v. Ash, 422 U.S. 66, 95 S.Ct. 2080, 45 L.Ed.2d 26 (1975), and concluded that § 207, and the implementing regulation, 47 C.F.R. § 1.4000(e), did not create a private cause of action. Next the court determined that no substantial federal question was presented by Opera Plaza’s suit, as the federal statute and regulation were relevant only as a possible defense by a satellite TV viewer; under the well-pleaded complaint rule, a federal question was not alleged. Finally, the district court observed that state courts adjudicate analogous claims and that review of federal issues in such state actions could be appealed to the Supreme Court.

II. Jurisdiction and Standard of Review

We have jurisdiction pursuant to 28 U.S.C. § 1291. The existence of subject matter jurisdiction is a question of law reviewed de novo. See Chang v. United States, 327 F.3d 911, 922 (9th Cir.2003).

III. Discussion

Section 207, entitled “Restrictions on Over-the-Air Reception Devices,” provides that “the [Federal Communications] Commission shall ... promulgate regulations to prohibit restrictions that impair a viewer’s ability to receive video programming services through devices designed for over-the-air reception of television broadcast signals, multichannel multipoint distribution services, or direct broadcast satellite services.” The accompanying regulation provides that

[pjarties may petition the [FCC] for a declaratory ruling ..., or a court of competent jurisdiction, to determine whether a particular restriction is permissible or prohibited under this section.

47 C.F.R. § 1.4000(e). Furthermore, 47 C.F.R. § 1.4000(a)(4) provides in relevant part that “[n]o other civil, criminal, administrative, or other legal action of any kind shall be taken to enforce any restriction or regulation prohibited by this section except pursuant to paragraph (d) [which provides for a waiver] or (e) of this section.” The House Committee Report on § 207 (then § 308 1 )

directs the [FCC] to promulgate rules prohibiting restrictions which inhibit a viewer’s ability to receive video programming from over-the-air broadcast stations or direct broadcast satellite services. The Committee intends this section to preempt enforcement of State or local statutes and regulations, or State or local legal requirements, or restrictive covenants or encumbrances that *834 prevent the use of antennae designed for off-the-air reception of television broadcast signals or of satellite receivers designed for receipt of [Direct Broadcast Satellite] services. Existing regulations, including but not limited to, zoning laws, ordinances, restrictive covenants or homeowners’ association rules, shall be unenforceable to the extent contrary to this section.

H.R.Rep. No. 104-204(1), at 123-24 (1995), reprinted in 1996 U.S.C.C.A.N. 10, 91. Moreover, § 205 of the Telecommunications Act of 1996, Pub.L. No. 104-104, § 205, 110 Stat. 114(hereina£ter “ § 205”), amends 47 U.S.C. § 303(v) so that it reads, “the [FCC] ... shall ... [h]ave exclusive jurisdiction to regulate the provision of direct-to-home satellite services.”

Opera Plaza’s argument that the district court erred in dismissing this case for lack of subject matter jurisdiction is three-fold: first, this cause of action “arisfes] under” federal law, see 28 U.S.C. § 1331, because it is predicated on § 207 and 47 C.F.R. § 1.4000(e); second, subject matter jurisdiction exists because federal law completely preempts the field; and third, a substantial federal question exists sufficient to confer subject matter jurisdiction.

A. “Arising Under” Jurisdiction

Opera Plaza argues that the district court erred in dismissing the case for lack of subject matter jurisdiction because its complaint states a cause of action arising under 47 C.F.R. § 1.4000(e). Opera Plaza contends that § 1.4000(e) is the exclusive procedure for testing a restriction such as its satellite policy. Moreover, it argues that while neither §§ 205 nor 207 nor the House Committee Report employs the phrase “cause of action,” the direction by Congress to the FCC and Congress’s intent to create a private cause of action are clear.

“The question whether a statute creates a cause of action, either expressly or by implication, is basically a matter of statutory construction.” Transamerica Mortgage Advisors, Inc. v. Lewis, 444 U.S. 11, 15, 100 S.Ct. 242, 62 L.Ed.2d 146 (1979). However,’’the fact that a federal statute has been violated and some person has been harmed does not automatically give rise to a private cause of action in favor of that person.” Touche Ross & Co. v. Redington, 442 U.S. 560, 568, 99 S.Ct. 2479, 61 L.Ed.2d 82 (1979).

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376 F.3d 831, 33 Communications Reg. (P&F) 81, 2004 U.S. App. LEXIS 14238, 2004 WL 1562915, Counsel Stack Legal Research, https://law.counselstack.com/opinion/opera-plaza-residential-parcel-homeowners-association-a-california-ca9-2004.