United States v. Storer Broadcasting Co.

351 U.S. 192, 76 S. Ct. 763, 100 L. Ed. 2d 1081, 100 L. Ed. 1081, 1956 U.S. LEXIS 1851, 1 Media L. Rep. (BNA) 1983
CourtSupreme Court of the United States
DecidedMay 21, 1956
Docket94
StatusPublished
Cited by404 cases

This text of 351 U.S. 192 (United States v. Storer Broadcasting Co.) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Storer Broadcasting Co., 351 U.S. 192, 76 S. Ct. 763, 100 L. Ed. 2d 1081, 100 L. Ed. 1081, 1956 U.S. LEXIS 1851, 1 Media L. Rep. (BNA) 1983 (1956).

Opinions

Mr. Justice Reed

delivered the opinion of the Court.

The Federal Communications Commission issued, on August 19, 1948, a notice of proposed rulemaking under the authority of 47 U. S. C. §§ 303 (r), 311, 313 and 314 (Communications Act of 1934, as amended, 47 U. S. C. § 301 et seg.). It was proposed, so far as is pertinent to this case, to amend Rules 3.35, 3.240 and 3.636 relating to Multiple Ownership of standard, FM and television broadcast stations. Those rules provide that licenses for broadcasting stations will not be granted if the applicant, directly or indirectly, has an interest in other stations beyond a limited number. The purpose of the limitations is to avoid overconcentration of broadcasting facilities.

As required by 5 U. S. C. § 1003 (b), the notice permitted “interested” parties to file statements or briefs. Such parties might also intervene in appeals. 47 U. S. C. § 402 (d) and (e). Respondent, licensee of a number of radio and television stations, filed a statement objecting to the proposed changes, as did other interested broad[194]*194casters. Respondent based its objections largely on the fact that the proposed rules did not allow one person to hold as many FM and television stations as standard stations. Storer argued that such limitations might cause irreparable financial damage to owners of standard stations if an obsolescent standard station could not be augmented by FM and television facilities.

In November 1953 the Commission entered an order amending the Rules in question without significant changes from the proposed forms.1 A review was sought [195]*195in due course by respondent in the Court of Appeals for the District of Columbia Circuit under 5 U. S. C. 1 1034,2 47 U. S. C. | 402 (a),3 and 5 U. S. C. § 1009 (a), (c).4 Respondent alleged it owned or controlled, within the meaning of the Multiple Ownership Rules, seven standard radio, five FM radio and five television broadcast stations. It asserted that the Rules complained of were in conflict with the statutory mandates that applicants should be granted licenses if the public interest would be served and that applicants must have a hearing before denial of an application. 47 U. S. C. § 309 (a) and (b).5

[196]*196Respondent also claimed:

“The Rules, in considering the ownership of one (1%) per cent or more of the voting stock of a broadcast licensee corporation as equivalent to ownership, operation or control of the station, are unreasonable and bear no rational relationship to the national Anti-Trust policy.” •

This latter claim was important to respondent because allegedly 20% of its voting stock was in scattered ownership and was traded in by licensed dealers. This stock was thus beyond its control.

Respondent asserted it was a “party aggrieved” and a “person suffering legal wrong” or adversely affected under the several statutes that authorize review of FCC action. See notes 2, 3 and 4, supra. It stated its injuries from the Rules thus:

“Storer is adversely affected and aggrieved by the Order of the Commission adopted on November 25, 1953, amending the Multiple Ownership Rules, in that :
“(a) Storer is denied the right of a full and fair hearing to determine whether its ownership of an interest in more than seven (7) standard radio and five (5) television broadcast stations, in light of and upon a showing of all material circumstances, will [197]*197thereby serve the public interest, convenience and necessity.
“(b) The acquisition of Storer's voting stock by the public under circumstances beyond the control of Storer, may and could be violative of the Multiple Ownership rules, as amended, and result in a forfeiture of licenses now held by Storer, with resultant loss and injury to Storer and to all other Storer stockholders.”

On the day the amendments to the Rules were adopted, a pending application of Storer for an additional television station at Miami was dismissed on the basis of the Rules.

While the question of respondent’s right to appeal has not been raised by either party or by the Court of Appeals, our jurisdiction is now mooted. It may be considered. Federal Communications Comm’n v. National Broadcasting Co., 319 U. S. 239, 246. Jurisdiction depends upon standing to seek review and upon ripeness. If respondent could not rightfully seek review from the order adopting the challenged regulations, it must await action to its disadvantage under them, and neither the Court of Appeals nor this Court has jurisdiction of the controversy. Under the above-cited Code sections, review of Commission action is granted any party aggrieved or suffering legal wrong by that action.6

[198]*198We think respondent had standing to sue at the time it exercised its privilege. The process of rulemaking was complete. It was final agency action, 5 U. S. C. § 1001 (c) and (g), by which Storer claimed to be “aggrieved.” When the authority to appeal was substantially the same, we held that an appellant who complained of the grant of a license to a competitor because it would reduce its own income had standing to appeal against a contention, admittedly sound, that such economic injury to appellant was not a proper issue before the Commission. We said:

“Congress had some purpose in enacting §402 (b)(2). It may have been of opinion that one likely to be financially injured by the issue of a license would be the only person having a sufficient interest to bring to the attention of the appellate court errors of law in the action of the Commission in granting the license. It is within the power of Congress to confer such standing to prosecute an appeal.” Federal Communications Comm’n v. Sanders Radio Station, 309 U. S. 470, 477.

We added that such an appellant could raise any relevant question of law in respect to the order.

Again in Columbia Broadcasting System v. United States, 316 U. S. 407, this Court considered the problem of standing to review Commission action under the then existing §402 (a), 48 Stat. 1093, and the Urgent Deficiencies Act, 38 Stat. 219.

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351 U.S. 192, 76 S. Ct. 763, 100 L. Ed. 2d 1081, 100 L. Ed. 1081, 1956 U.S. LEXIS 1851, 1 Media L. Rep. (BNA) 1983, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-storer-broadcasting-co-scotus-1956.