Warner Cable Communications, Inc., an Illinois Corporation v. City of Niceville

911 F.2d 634, 68 Rad. Reg. 2d (P & F) 359, 1990 U.S. App. LEXIS 15942
CourtCourt of Appeals for the Eleventh Circuit
DecidedSeptember 12, 1990
Docket89-3273
StatusPublished
Cited by42 cases

This text of 911 F.2d 634 (Warner Cable Communications, Inc., an Illinois Corporation v. City of Niceville) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Warner Cable Communications, Inc., an Illinois Corporation v. City of Niceville, 911 F.2d 634, 68 Rad. Reg. 2d (P & F) 359, 1990 U.S. App. LEXIS 15942 (11th Cir. 1990).

Opinion

TJOFLAT, Chief Judge:

Plaintiff below, Warner Cable Communications, Inc. (Warner), appeals from the district court’s entry of summary judgment in favor of defendant below, the City of Niceville (City), on two of Warner’s claims. Warner also appeals the judgment of the district court, entered in favor of the City after a bench trial, on a third claim. We affirm both judgments.

I.

The City of Niceville is a municipal corporation chartered, organized, and existing under the constitution and laws of the State of Florida. Warner is a corporation organized under the laws of the State of Illinois. Warner, through its predecessor corporation, began supplying cable television services to the City in 1971, pursuant to a franchise agreement with the City. The current franchise agreement between the parties was enacted by the Niceville City Council in 1980 as Ordinance 438. 1 It is a nonexclusive franchise, expiring in 1995.

Subsequent to the City’s enactment of Ordinance 438, Congress passed the Cable Communications Policy Act of 1984 (Cable Act), 2 Pub.L. 98-549, 98 Stat. 2779 (codified at 47 U.S.C. §§ 521 et seq. (Supp. V 1987)), which authorizes local governments to own and operate their own cable television systems, id. § 533(e). In 1985, after receiving numerous consumer complaints about Warner’s service, the City began to explore the possibility of constructing and operating its own system. Following a favorable preliminary report from the outside firm commissioned by the city council to investigate the feasibility of such a system, a resolution concerning a City-owned cable system was submitted to the voters on July 15, 1985. The resolution passed by an overwhelming majority.

Prior to the July 1985 vote, the City had granted a second nonexclusive cable franchise to a Warner competitor, Cosmic Communications, Inc. Upon learning of the City’s plans to construct its own system, Cosmic determined that it could not compete as the third cable provider in Niceville. Cosmic then surrendered its franchise and successfully bid to become the City’s consultant on the cable project. Cosmic conducted a second, more in-depth technical and financial feasibility study and reported that a City-owned system, charging a lower rate than Warner, could operate economically. The report contemplated that the City’s system would attract more than fifty percent of Warner’s Niceville subscribers.

In October 1985, the city council accepted Cosmic’s report and enacted Ordinance 581, which authorized the City to issue revenue bonds for the purpose of constructing and operating a cable television system. Pursuant to state law, the City filed a bond validation petition in the Circuit Court for Okaloosa County. See Fla.Stat. § 75.01 et *636 seq. (1989) (statutory mechanism for court approval of municipal bond financing). The court order granting the petition was appealed by Warner, which intervened in the proceeding, and was affirmed by the Florida Supreme Court. See Warner Cable Communications v. City of Niceville, 520 So.2d 245 (Fla.1988).

On November 5, 1985, Warner filed suit against the City, alleging that the City’s conduct violated Warner’s constitutional rights to freedom of speech and due process. Warner sought damages, a declaration that Ordinance 581 was unconstitutional, and injunctive relief against enforcement of the ordinance: Warner also alleged that the City’s prospective editorial control over programming on the City’s cable system would violate the Cable Act. When the City subsequently delegated editorial control to an independent commission, Warner amended its complaint to allege that such a delegation was barred by the Florida Constitution’s prohibition against delegation of unfettered legislative authority.

After extensive discovery and submission of voluminous factual materials to the district court, both parties moved for summary judgment. The district court granted the City’s motion for summary judgment on all but Warner’s due process claim, holding that (1) the first amendment issue was not ripe; (2) the claim under the Cable Act was mooted by the creation of an independent editorial commission; and (3) the commission did not represent an unlawful “delegation” under the Florida Constitution or, in the alternative, the Cable Act implicitly preempted the Florida Constitution. After a bench trial, the district court denied the due process claim as well. Warner appealed, asserting as error (1) the district court’s application of the wrong legal standard to the first amendment claim and its determination that the claim was not ripe; (2) the court’s “misconstruction” of the due process claim; and (3) the court’s conclusion that the City could, under the Florida Constitution, properly constitute an independent commission to assume editorial control.

II.

Warner challenges the constitutionality of Ordinance 581 on first amendment grounds. Warner’s attack anticipates the eventual success of the City’s entry into the cable business as Warner’s competitor. According to Warner, the City will be able to offer lower prices to cable subscribers, which “will create a press owned and controlled by the government, and will silence the only private cable operator, thereby ‘muzzlpng] one of the very agencies the Framers of our Constitution thoughtfully and deliberately selected to improve our society and keep it free.’ ” (Quoting Mills v. Alabama, 384 U.S. 214, 219, 86 S.Ct. 1434, 1437, 16 L.Ed.2d 484 (1966)).

The district court granted summary judgment to the City after deciding that the first amendment claim was not yet ripe. The court reasoned (1) that Warner had no protected first amendment interest in retaining its full Niceville market, undiminished by competition; and (2) that Warner could assert a valid first amendment claim only if the City’s action would have the effect of totally suppressing Warner’s speech by driving Warner out of business. Since the outcome of the City’s competition with Warner was by no means certain, the court held that Warner had failed to demonstrate an immediate, direct injury and that the claim was therefore not justiciable. We agree with the district court with respect to (1) above but disagree with respect to (2). We conclude that Warner fails to assert a protected first amendment interest even if the projected City-owned system will surely render Warner’s continued operation in Niceville economically infeasible. Accordingly, we affirm the district court’s grant of summary judgment on the first amendment claim, although we rely in part on different grounds. See Garside v. Osco Drug, Inc., 895 F.2d 46, 48-49 (1st Cir.1990) (appellate court may affirm district court’s grant of summary judgment on any ground that appears in record).

Warner’s argument is essentially as follows.

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Bluebook (online)
911 F.2d 634, 68 Rad. Reg. 2d (P & F) 359, 1990 U.S. App. LEXIS 15942, Counsel Stack Legal Research, https://law.counselstack.com/opinion/warner-cable-communications-inc-an-illinois-corporation-v-city-of-ca11-1990.