Tele-Communications of Key West, Inc. v. United States of America

757 F.2d 1330, 244 U.S. App. D.C. 335, 1 Fed. R. Serv. 3d 960, 1985 U.S. App. LEXIS 28530
CourtCourt of Appeals for the D.C. Circuit
DecidedApril 2, 1985
Docket84-5008
StatusPublished
Cited by94 cases

This text of 757 F.2d 1330 (Tele-Communications of Key West, Inc. v. United States of America) 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
Tele-Communications of Key West, Inc. v. United States of America, 757 F.2d 1330, 244 U.S. App. D.C. 335, 1 Fed. R. Serv. 3d 960, 1985 U.S. App. LEXIS 28530 (D.C. Cir. 1985).

Opinion

Opinion for the court filed by Circuit Judge WRIGHT.

J. SKELLY WRIGHT, Circuit Judge:

This is an appeal from a District Court order dismissing, for failure to state a claim, a complaint filed by Tele-Communications of Key West, Inc. (TCI), a purveyor of cable television service. The issue presented is whether the dismissal was, in fact, proper under Federal Rule of Civil Procedure 12(b)(6). As discussed below, we hold that the District Court erroneously dismissed TCI’s First and Fifth Amendment claims but properly dismissed TCI’s statutory antitrust claim. Consequently, we affirm in part and reverse and remand in part.

I. Background

The undisputed facts underlying this case are as follows. For ten years, from 1974 through 1983, TCI (and its predecessor-in-interest) provided cable television service to Homestead Air Force Base in Florida. In June of 1983, however, the Air Force requested bids for cable television service to the base from a variety of parties. After receiving bids, the Air Force awarded an exclusive service contract to another company and ordered TCI to remove its cables and other equipment from *1333 the base’s cable television right-of-way by the end of December 31, 1983. 1

On December 13, 1983, TCI filed an action in the District Court here requesting injunctive and declaratory relief. See Complaint for Declaratory and Injunctive Relief for Injury to First Amendment Rights, Fifth Amendment Rights and Antitrust Violations, Appendix (App.) at B. Specifically, TGI requested an order requiring the Air Force to allow TCI to leave its cable equipment where it was; such an order would have enabled TCI to continue service to the base. See Complaint, supra, at 9. TCI also requested that the court issue a declaratory judgment to the effect that any attempt on the part of the Air Force to prevent TCI from continuing to serve those on the base who desired such service would violate TCI’s First and Fifth Amendment rights and the Sherman Antitrust Act. See id. at 8-9.

The same day TCI also filed a motion for a preliminary injunction, contending that it would be irreparably harmed if it was not granted relief by December 31, 1983. See Motion for Preliminary Injunction. The next day, December 14, 1983, a hearing on this motion was set for December 27, 1983.

On December 23, 1983, the Air Force filed a motion to dismiss TCI’s entire complaint for failure to state a claim or, in the alternative, for summary judgment. TCI, on December 27, 1983, then filed an opposition to the motion to dismiss and a motion to strike the Air Force’s motion for summary judgment or, in the alternative, for a discovery and briefing schedule for cross-motions for summary judgment. In these responses TCI asserted that the standard for dismissal had not been met and that the standard and procedures for summary judgment had not been complied with. See Opposition to Defendants’ Motion to Dismiss Under Rule 12(b)(6); Plaintiff’s Motion and Memorandum of Points and Authorities to Strike Defendants’ Motion for Summary Judgment or, in the Alternative, for a Discovery and Briefing Schedule for Cross-Motions for Summary Judgment.

On December 27,1983, the District Court heard oral argument on TCI’s motion for a preliminary injunction and on the Air Force’s motion to dismiss. At that time the court observed that it would not dispose of the case on summary judgment because to do so would be unfair. See Excerpt of Proceedings at 3, App.L. The next day, December 28, 1983, the District Court issued an order and memorandum opinion dismissing the complaint and denying the request for a preliminary injunction. See Tele-Communications of Key West, Inc. v. United States, 580 F.Supp. 11 (D.D.C.1983).

TCI now appeals from the dismissal of its claims for permanent injunctive and declaratory relief, asserting that that dismissal was erroneous under the Rule 12 standards or as a summary judgment. The Air Force, on the contrary, defends the District Court’s decision as procedurally proper and substantively correct. After determining the correct standard of review and evaluating the propriety of the District Court’s decision, we will examine the District Court’s disposition of each of TCI’s claims.

II. The Standard for Our Review of the District Court’s Decision

TCI’s first contention on appeal is that reversal is required because the District Court erroneously considered materials outside the pleadings in considering the motion to dismiss. The Air Force does not disagree with the proposition that the District Court had such external materials before it at the time it was contemplating the motion to dismiss; the Air Force explains this phenomenon by noting that TCI’s request for a preliminary injunction was before the court at the same time and that the Air Force presented extra-pleading materials in opposing that motion. See brief for appellees at 5 n. 3. The Air Force apparently contends, however, that the Dis *1334 trict Court did in fact, in its review of the motion to dismiss, take all the facts alleged in TCI’s complaint as true. See id. at 5. Based on this interpretation of the District Court’s decision, the Air Force disagrees with TCI’s contention that reversal is mandated. The Air Force also contends in the alternative that if the District Court did consider materials outside of TCI’s complaint, the District Court’s decision should be affirmed as a summary judgment. See id. at 5 n. 3.

We conclude that, in the circumstances of this case, the dismissal cannot properly be treated as a summary judgment, even if materials outside of TCI’s complaint were considered by the District Court. We also conclude, however, that although consideration of external materials is improper under a Rule 12(b)(6) motion to dismiss, reversal based on such consideration alone would serve no useful purpose. Where such consideration has occurred, rather, normal 12(b)(6) review will be in order.

A. Potential for Reviewing the District Court Decision as a Summary Judgment

The normal course of action when materials outside the complaint are considered is for a nominal motion to dismiss to be treated as a motion for summary judgment. As Rule 12(b) states, “If, on a [Rule 12(b)(6) motion], matters outside the pleading are presented to and not excluded by the court, the motion shall be treated as one for summary judgment and disposed of as provided in Rule 56.” See also Carter v. Stanton, 405 U.S. 669, 92 S.Ct. 1232, 31 L.Ed.2d 569 (1972) (per curiam), Shehadeh v. Chesapeake & Potomac Tel. Co. of Md., 595 F.2d 711, 719 n. 41 (D.C.Cir.1978); Scanwell Laboratories, Inc. v. Thomas, 521 F.2d 941, 949 (D.C.Cir.1975), cert. denied,

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Bluebook (online)
757 F.2d 1330, 244 U.S. App. D.C. 335, 1 Fed. R. Serv. 3d 960, 1985 U.S. App. LEXIS 28530, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tele-communications-of-key-west-inc-v-united-states-of-america-cadc-1985.