Southern Broadcasting Corporation v. Carlson

178 So. 505, 188 La. 959, 1937 La. LEXIS 1323
Supreme Court of Louisiana·Decided December 9, 1937·No. No. 34511127.·Published·Cited by 1 cases

Opinion

O’NIELL, Chief Justice.

This proceeding is a sequel of the case bearing the same title and reported in 187 La. 823, 175 So. 587. According to the allegations in the plaintiff’s petition, Charles C. Carlson, who is the defendant in the suit, owns a radio broadcasting station, WJBW, in New Orleans, and holds, a license-from the Federal Communications Commission to operate the station. He and the plaintiff in this suit, the Southern Broadcasting Corporation, represented by its president, Robert L. Sanders, entered into a written contract, by the terms of which Carlson employed the corporation, for the term of five years, to manage the business of the station. It was stipulated in the contract that Carlson, being the licensee, should retain control of the operation of the station, and have control of its programs, and remain in charge of all business with the Federal Communications Commission. The Southern Broadcasting Corporation was to receive the gross income and pay the operating expenses of the business, and pay to Carlson a stipulated sustaining fee and certain percentages stipulated in the contract.

About eight months after the contract was entered into, the Southern Broadcasting *961 Corporation, through its president, brought this suit against Carlson, complaining that he was violating the contract by interfering with the management of the station and disrupting its business, and attempting to retake charge of the business, with the aim and purpose of compelling the Southern Broadcasting Corporation to relinquish its rights under the contract. The plaintiff prayed for a judgment against Carlson for $12,000 damages, and for an accounting of $180 alleged to have been advanced to him by the corporation. The plaintiff prayed also for a temporary restraining order, and for a preliminary injunction, to be finally perpetuated, to prevent Carlson from violating the contract by interfering with the management of the business in the ways in which it was alleged he was interfering with it.

The judge did not issue a temporary restraining order, but issued a rule on Carlson to show cause why a preliminary injunction should not be granted. Carlson, in response to the rule, pleaded that the court had not jurisdiction ratione materiae, and, in the alternative, that the petition, and a supplemental petition which the plaintiff had filed, did not set forth a right or cause of action. The plea that the court was without jurisdiction was founded upon the proposition that, by virtue of the Federal Communications Act, Act of June 19, 1934, § 301 et seq., as amended, 47 U.S.C.A., § 301 et seq., title 3, Special Provisions Relating to Radio, the matters in controversy were under the exclusive jurisdiction of the Federal Communications Commission, subject only to a right of appeal to the United States Court of Appeals for the District of Columbia, under section 402 of the act, 47 U.S.C.A. § 402. The judge sustained the plea to the jurisdiction of the court, and dismissed the suit. The case was then brought to this court on a writ of certiorari and an alternative writ of mandamus, issued at the instance of the plaintiff.

Having made a thorough analysis of the pertinent provisions of the Federal Communications Act, this court gave the unanimous opinion that the controversy, as set forth in the plaintiff’s petition, was not under the exclusive control or jurisdiction of the Federal Communications Commission, subject to appeal to the United States Court of Appeals for the District of Columbia. Hence this court, by unanimous decree, reversed the ruling of the judge of the civil district court, .and rendered this decree, viz.:

“The defendant’s exception to the jurisdiction of the civil district court is overruled, and it is ordered that the case be reinstated on the docket of the court for further proceedings consistent with the opinion which we have expressed.”

When the case was reinstated on the docket of the civil district court, and the rule to show cause why a preliminary injunction should not be granted came on to be heard, the judge took up for hearing the defendant’s plea of exception- that the plaintiff had no cause of action for a preliminary injunction; and the judge, after hearing the matter, sustained the exception of no cause of action and dismissed the rule for a preliminary injunction.

*963 The plaintiff then filed a petition in this court, praying for a writ of certiorari, and for a decree overruling the exception of no cause of action, and for a writ of mandamus to compel the judge “to proceed with a hearing of the rule” to show cause why a preliminary injunction should not be granted. This court issued the writ of certiorari and a rule on the judge and the defendant, Carlson, to show cause why the relief prayed for by the relator, Southern Broadcasting Corporation, should not be granted.

In response to the writ of certiorari the jiidge has returned the record to this court, and, in response to the rule to show cause why this court should not grant the relief prayed for by the relator, the judge and the respondent, Carlson, say that the judge did not decline to entertain jurisdiction over the case, but, on the contrary, in obedience to the ruling of this court, entertained jurisdiction, by hearing and considering and disposing of the exception of no cause of action for a preliminary injunction. The respondents direct our attention to the fact that the only decree that the judge has rendered is a decree dismissing the rule for a preliminary injunction, on the ground that the plaintiff has no cause of action for a preliminary injunction. In that connection, the respondents say that the judge has proceeded in accordance with the following paragraph in the opinion which we rendered on the former hearing, 187 La. 823, 175 So. 587, 589, 590, viz.:

“Of course, a state court could not, without tile approval of the Communications Commission, order a transfer of a license, or of any right granted thereunder. 47 U.S.C.A. §§ 309(b), (2), 310(b). But the plaintiff in this case is not seeking to obtain from the defendant any right that he may have under his license to operate the radio station, or to prevent the defendant from exercising any right that he may have under the license. The plaintiff is suing for damages for an alleged breach of a contract, and for an injunction to prevent a further breach of the contract, which, as far as we see, is not violative of any provision in the Federal Communications Act of 1934. The statute may prevent the court from granting some of the relief prayed for by the plaintiff; but that is a matter to be determined bn the merits of the case, or perhaps on the defendant’s plea of no cause or right of action. The civil district court has jurisdiction to consider and dispose of the principal demand of the plaintiff in this case, and to determine the extent to which the court may grant an injunction without violating the Federal Communications Act of 1934.”

We do not yet see, in the contract on which this suit is founded, and which forms part of the plaintiff’s petition, any violation of the Federal Communications Act. The plaintiff and the defendant, being the only parties to the contract, filled it with expressions of their intention to avoid any stipulation that might be violative of the Federal Communications Act. For example, at the outset, in article I of the contract, it is said: “This contract shall be subject to all the rules and regulations of the Federal Communications Commission,” etc.

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Southern Broadcasting Corporation v. Carlson, 178 So. 505, 188 La. 959, 1937 La. LEXIS 1323 (La. 1937).

178 So. 505 (Southern Broadcasting Corporation v. Carlson) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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