Sprint Nextel Corp. v. Federal Communications Commission

508 F.3d 1129, 378 U.S. App. D.C. 432, 43 Communications Reg. (P&F) 537, 2007 U.S. App. LEXIS 28284
CourtCourt of Appeals for the D.C. Circuit
DecidedDecember 7, 2007
Docket06-1111, 06-1113, 06-1115, 06-1167, 06-1200
StatusPublished
Cited by20 cases

This text of 508 F.3d 1129 (Sprint Nextel Corp. v. Federal Communications Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sprint Nextel Corp. v. Federal Communications Commission, 508 F.3d 1129, 378 U.S. App. D.C. 432, 43 Communications Reg. (P&F) 537, 2007 U.S. App. LEXIS 28284 (D.C. Cir. 2007).

Opinion

Opinion for the Court filed by Circuit Judge RANDOLPH.

RANDOLPH, Circuit Judge:

The Verizon telephone companies filed a petition requesting the Federal Communications Commission to refrain — to forbear — from applying several regulatory requirements 1 to its broadband services. Forbearance petitions are governed by 47 U.S.C. § 160. The Commission must forbear if it determines that a petition meets the requirements of § 160(a). If the Commission “does not deny the petition for failure to meet” the § 160(a) requirements within a specified amount of time, the “petition shall be deemed granted.” § 160(c). In Verizon’s case, the Commissioners deadlocked with a 2-2 vote on a draft memorandum opinion and order that would have granted the petition in part and denied it in part. 2 After failing to adopt any order before the statutory deadline, the Commission issued a press release announcing that Verizon’s petition “was deemed granted by operation of law.” Individual statements of the Commissioners were also released.

Several telecommunications carriers, a national trade association representing communications companies, and the New Jersey Division of Rate Counsel sought judicial review of the Commission’s disposition of Verizon’s forbearance petition. Petitioners’ main point is that the deadlocked vote on the draft order had the effect of denying Verizon’s petition. In the alternative, they contend that the “deemed” grant constitutes agency action that should be vacated as arbitrary and capricious.

The Hobbs Act grants the courts of appeals exclusive jurisdiction over “all final orders of the” Commission. 28 U.S.C. § 2342(1); see 47 U.S.C. § 402(a). And the Administrative Procedure Act renders final “agency action” subject to judicial review. 3 But in this case where is the Commission “order,” and where is the “agency action”? The Commission did not engage in any “circumscribed, discrete” act. Norton v. S. Utah Wilderness Alliance, 542 U.S. 55, 62, 124 S.Ct. 2373, 159 L.Ed.2d 137 (2004). It did nothing, which is why the “deemed granted” provision kicked in.

The deadlocked vote cannot be considered an order of the Commission nor can it constitute agency action. The votes were actions of the individual Commissioners, not the Commission. Petitioners think the deadlock had the effect of denying the forbearance petition. They point to the general rule that a tied vote retains the status quo. Affirmed by an equally divided court is a judicial example. See, e.g., Neil v. Biggers, 409 U.S. 188, 191-92, *1132 93 S.Ct. 375, 34 L.Ed.2d 401 (1972). A similar rule applies in the legislature. See, e.g., Thomas Jefferson, a Manual of Paeli-amentary PRACTICE § 41, at 91 (Hogan & Thompson 1850) (“[I]f the House be equally divided ... the former law is not to be changed but by a majority.”). These consequences follow from the “almost universally accepted common-law rule” that only a “majority of a collective body is empowered to act for the body.” FTC v. Flotill Prods., Inc., 389 U.S. 179, 183, 88 S.Ct. 401, 19 L.Ed.2d 398 (1967).

The Commission, too, acts by majority vote. Ties therefore do not result in Commission action. See, e.g., WIBC, Inc. v. FCC, 259 F.2d 941, 943 (D.C.Cir.1958). The Commission did not grant Verizon’s petition and it did not deny it. In those instances in which the Commission does not deny a forbearance petition, Congress has spelled out the legal effect: the petition “shall be deemed granted.” 47 U.S.C. § 160(c). The grant does not result in reviewable agency action. Congress,' not the Commission, “granted” Verizon’s forbearance petition. That conclusion is compelled by AT & T Corp. v. FCC, in which we addressed the expiration of regulatory safeguards for certain long-distance telephone providers. See 369 F.3d 554, 555-56 (D.C.Cir.2004). The statute in that case included a sunset provision, which stated that the safeguards “shall cease to apply ... 3 years after the date such [provider] is authorized to provide” long-distance services, “unless the Commission extends such 3-year period by rule or order.” 47 U.S.C. § 272(f)(1). Three years after Verizon was authorized to provide long-distance services, the Commission issued a public notice announcing that the safeguards had ceased to apply pursuant to § 272. AT cfe T, 369 F.3d at 558. AT & T petitioned this court, arguing that the Commission had to explain its decision to permit the sunset to occur. Id. at 559. We dismissed the petition for review, holding that “AT & T incorrectly assumes that the decision whether to sunset the § 272 safeguards lies with the FCC. This is simply wrong. Congress made the decision to extinguish the protections of § 272 by operation of law.” Id. at 560. The same is true here. Congress made the decision in § 160(c) to “grant” forbearance whenever the Commission “does not deny” a carrier’s petition. When the Commission failed to deny Verizon’s forbearance petition within the statutory period, Congress’s decision — not the agency’s — took effect.

AT & T also made clear that the public notice announcing the sunset was not reviewable agency action. See id. at 561-62. The Commission’s press release here is analogous. Because the Commission had taken no action (beyond the implicit decision to treat the vote as a failure to deny the petition), the press release was “purely informational ...; it imposed no obligations and denied no relief.” Indep. Equip. Dealers Ass’n v. EPA, 372 F.3d 420, 427 (D.C.Cir.2004). Nor are the Commissioners’ individual statements accompanying the press release reviewable. Their statements are not institutional Commission actions. See Ill. Citizens Comm. for Broad. v. FCC, 515 F.2d 397, 402 (D.C.Cir.1975).

That the Commission took no action in this case is clearer still in light of the implications of a contrary ruling. The Administrative Procedure Act instructs courts to set aside agency action “found to be arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law.” 5 U.S.C.

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Bluebook (online)
508 F.3d 1129, 378 U.S. App. D.C. 432, 43 Communications Reg. (P&F) 537, 2007 U.S. App. LEXIS 28284, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sprint-nextel-corp-v-federal-communications-commission-cadc-2007.