RCN Telecom Services, Inc. v. DeLuca Enterprises, Inc.

413 F. Supp. 2d 464, 2005 U.S. Dist. LEXIS 13993, 2005 WL 1660161
CourtDistrict Court, E.D. Pennsylvania
DecidedJuly 12, 2005
DocketCiv.A. 04-264
StatusPublished
Cited by3 cases

This text of 413 F. Supp. 2d 464 (RCN Telecom Services, Inc. v. DeLuca Enterprises, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
RCN Telecom Services, Inc. v. DeLuca Enterprises, Inc., 413 F. Supp. 2d 464, 2005 U.S. Dist. LEXIS 13993, 2005 WL 1660161 (E.D. Pa. 2005).

Opinion

OPINION

STENGEL, District Judge.

RCN Telecom Services, Inc., a cable service provider, filed this suit against De-Luca Enterprises, Inc., a residential land developer, alleging a violation of section 621(a)(2) of the Cable Communications Policy Act of 1984 (“Cable Act”), 47 U.S.C. 541(a)(2). The threshold questions are whether there is an implied private right of action pursuant to the Cable Act and if the Act bars an exclusive agreement between a developer and a cable company that precludes rival cable companies from *467 providing services in a given residential development.

The parties’ cross-motions for summary judgment frame the issues. Because I find that there is a private right of action, that the Act applies, and that there is no genuine issue of material fact regarding liability, I will deny DeLuea’s motion for summary judgment and grant RCN’s cross-motion for partial summary judgment. In the absence of a more complete factual record, however, I will deny RCN’s request for permanent injunctive relief.

I. The Parties and the Nature of the Dispute

A. Service Electric’s Exclusive Agreement

RCN Telecom Services, Inc. (“RCN”) and Service Electric Cable Television, Inc. (“Service Electric”) are telecommunications service providers offering cable television services to residents of Hanover Township, Pennsylvania. DeLuca Enterprises, Inc. (“DeLuca”) and Jaindl Land Company (“Jaindl”) are residential developers. Jaindl owned a 130.93 acre tract of land in Hanover Township and prepared plans to develop the property into a subdivision known as “Monocacy Farms.” On May 15, 2002, Jaindl sold the property to DeLuca. In the Agreement for Purchase of Real Estate, DeLuca acknowledged that Jaindl had “contractually arranged for [Service Electric] to be the provider of cable television service” for the property, and agreed that it would not permit any other cable company to provide service without Jaindl’s express consent. See Agreement for Purchase of Real Estate, Pl.’s Motion for Partial Summ. J., Ex. 4, at 12. In August 2002, 1 Jaindl and Service Electric entered into a “TV Service Contract,” which provided Service Electric the “sole and exclusive right to install, maintain and use cable television facilities to provide [cable television services]” to Mo-nocacy Farms. See TV Cable Service Contract (Subdivision), Pl.’s Motion for Partial Summ. J., Ex. 5, at 1. Service Electric paid Jaindl $183,000.00 for the exclusive right to provide these services to the property.

DeLuca submitted a plan (the “Subdivision Plan” or “Plan”) to the Hanover Township Board of Supervisors to develop the property as a residential subdivision called “Hanover Crossing North.” The Subdivision Plan designates general utility easements on each of the lots in the subdivision. The Hanover Township Board of Supervisors granted final approval of the Subdivision Plan on April 22, 2003, and the Plan was recorded in the Northampton County Recorder of Deeds Office on April 14, 2004. 2

B. RCN’s Request to Install Cable Equipment

During the development and construction in Hanover Crossing North, DeLuca excavated trenches to permit various utility companies-specifically, PPL (electric service), UGI (natural gas service), Verizon (telephone service), and Service Electric (cable television service) — to install their equipment in the utility easements. *468 DeLuca closed the trenches as construction in the development progressed. This process began in October 2003. That same month, RCN requested permission from DeLuca to install cable television equipment in the utility easements designated on the Subdivision Plan. DeLuca requested written consent from Jaindl, but did not receive it. Therefore, DeLuca denied RCN’s request, citing the provision in the Agreement for Purchase of Real Estate which required Jaindl’s express consent in order to allow any cable company other than Service Electric to provide cable services. When RCN advised DeLuca of its intention to file suit in federal court to gain access to the excavated trenches, DeLuca informed RCN that it could have access to the utility easements, but not the excavated trenches. RCN rejected this proposal. As of March 2005, a substantial majority of the excavated trenches had been filled in and closed.

C. RCN’s Claim Against DeLuca

RCN filed this suit, alleging that DeLu-ca violated section 621(a)(2) of the Cable Act and interfered with prospective contractual relations in violation of Pennsylvania state law. DeLuca then filed this motion for summary judgment. DeLuca denies that it violated the Cable Act and disputes whether RCN can bring a private cause of action under the Act. DeLuca also raises unclean hands and estoppel as defenses, alleging that RCN had proposed a similar exclusive service agreement with respect to one of DeLuca’s other properties in June 2001, and that DeLuca relied on RCN’s position that such exclusive agreements are valid and legal when it entered the Agreement for Purchase of Real Estate with Jaindl. RCN also filed a cross-motion for partial summary judgment on its claim that DeLuca violated the Cable Act by denying RCN access to the general utility trenches.

II. Standard for Summary Judgment

Rule 56 of the Federal Rules of Civil Procedure provides that summary judgment will be granted “if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact....” Fed. Rule Civ Proc. 56(c). The moving party bears the initial burden of showing that there is no genuine issue of material fact. Highlands Ins. Co. v. Hobbs Group LLC, 373 F.3d 347, 350-51 (3d Cir.2004). Once the moving party has carried its burden, the nonmoving party must come forward with specific facts to show that there is a genuine issue for trial. Williams v. West Chester, 891 F.2d 458, 464 (3d Cir.1989). A fact is “material” if its resolution will affect the outcome under the applicable law, and an issue about a material fact is “genuine” if the evidence is such that a reasonable jury could return a verdict for the nonmoving party. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). The court must draw all justifiable inferences in favor of the nonmoving party. Highlands, 373 F.3d at 351.

If the party moving for summary judgment is the defendant, or the party without the burden on the underlying claim, the moving party has no obligation to produce evidence negating the nonmoving party’s case. Nat’l State Bank v. Fed. Reserve Bank,

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Zito Media, L.P. v. Haggerty
320 F. Supp. 3d 630 (M.D. Pennsylvania, 2018)
Bro-Tech Corp. v. Thermax, Inc.
651 F. Supp. 2d 378 (E.D. Pennsylvania, 2009)
RCN Telecom Services, Inc. v. Toa Pa Vi, L.P.
612 F. Supp. 2d 555 (E.D. Pennsylvania, 2008)

Cite This Page — Counsel Stack

Bluebook (online)
413 F. Supp. 2d 464, 2005 U.S. Dist. LEXIS 13993, 2005 WL 1660161, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rcn-telecom-services-inc-v-deluca-enterprises-inc-paed-2005.