Warner Cable of Massachusetts Inc. v. Community Antenna Television Commission

362 N.E.2d 897, 372 Mass. 495
CourtMassachusetts Supreme Judicial Court
DecidedMay 4, 1977
StatusPublished
Cited by9 cases

This text of 362 N.E.2d 897 (Warner Cable of Massachusetts Inc. v. Community Antenna Television Commission) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Warner Cable of Massachusetts Inc. v. Community Antenna Television Commission, 362 N.E.2d 897, 372 Mass. 495 (Mass. 1977).

Opinion

Kaplan, J.

The plaintiff “Warner” corporations, licensees of community antenna television (CATV) systems, brought an action in the Supreme Judicial Court for the county of Suffolk (county court) against the Community Antenna Television Commission (Commission) to invalidate certain regulations promulgated by the Commission, and to secure an adjudication that they were entitled to rate increases proposed by them. A single justice referred the action to a special master and, upon confirmation of the master’s report, a partial summary judgment was entered in effect approving those rate increases. Thereafter a single justice reserved and reported the whole case to the full court for disposition.2 We hold that the regulations in question were valid, and that the issue of the proposed increases in rates was for the Commission in the first instance and not for the court.

The Commonwealth entered upon the regulation of CATV systems (actually cable systems)3 by the enactment of St. 1971, c. 1103, effective on November 16, 1971, embodying a new c. 166A of the General Laws. The authority to license the operators of such systems was confirmed in the cities and towns as “issuing authorities,”4 with oversight and ultimate control of the licensing function in the newly created Commission. G. L. c. 166A, §§ 3-9, 11-14.5 For a minimum period of three years, the issuing authorities were to determine the rates and charges of their respective licensees, provided that the monthly [497]*497charges to subscribers should not in any event exceed $7.6 During the three-year period the Commission was to study the necessity and desirability of itself undertaking rate regulation under the statute; if it reached an affirmative conclusion, it would proceed with such a program under rules for the purpose to be formulated by it pursuant to the statute. G. L. c. 166A, § 15.

On December 18, 1974, the Commission in a “First Report and Order” announced that it had completed its study and, for reasons which it elaborated, had determined to go ahead with rate regulation. At the same time it published tentative “Procedural Regulations for Determination of Changes in Cable Television Rates and Charges” which, with amendments, took effect on March 1, 1975.7

The plaintiffs had been licensed to operate CATV systems in Malden, Chelsea, Somerville, Winthrop, Medford, and Everett.8 Their charges to subscribers — which, as far as appears, they had themselves voluntarily adopted — were a basic $5 monthly for service to subscriber’s first set, and $1 monthly (at three of the cities) or $1.50 monthly (at the others) for each additional set.

Under the March, 1975, regulations of the Commission, a licensee desiring to raise its charges to subscribers must, as a first step, petition the issuing authority, which was to accord a full hearing and render a report within ninety days. If the report was negative, the licensee could, as a second step, apply to the Commission for relief. In that case the Commission was obliged to afford a de novo hearing and to render a decision as soon as practicable. [498]*498The statute provided (§ 15) for judicial review by the Superior Court of all questions of fact and law at the suit of any party claiming to be aggrieved by the Commission’s decision.

On February 26, 1975 (anticipating by two days the effective date of the regulations), the plaintiffs petitioned their respective issuing authorities for a 50% increase of the basic monthly charge to $7.50 and for a charge of $2.50 monthly for each additional set. Their petitions were denied. They applied respectively to the Commission on dates between May 16 and August 27, 1975.

Through October, 1975, the Commission had not set a date for the de novo hearing, although the record does indicate that on August 7 there had been a “conference with all parties,” and it appears, further, that by the end of October there was internal Commission understanding that the economic situation might well justify interim rate increases for some licensees. On October 31 the plaintiffs applied to the Commission to determine interim rates. But on November 4 they filed their action in the county court praying (among other things) for an injunction, preliminary and final, against interference by the Commission with their charging subscribers at the rates of $7.50 and $2.50 as originally proposed to the issuing authorities.

When the single justice heard the plaintiffs’ motion for a preliminary injunction on November 13, the Commission had already held (on November 7) a “prehearing conference” regarding the application for interim rates. The single justice denied the motion, without prejudice to a renewal when the Commission acted, or failed to act promptly, on the interim rates application. On November 21 the plaintiffs renewed their motion. It appeared at the argument on the renewed motion that the Commission on November 25, after hearing, and upon a reasoned decision, had entered an order for interim rates allowing, under bond, a basic monthly charge to subscribers of $6.80 (to commence as of December 1), but not allowing any increase of existing charges for additional sets. The single justice was not prepared to grant interlocutory relief [499]*499beyond the interim rates allowed by the Commission, and he accordingly denied the renewed motion.

On December 2 the plaintiffs by leave amended their complaint in the county court to allege that the interim rates allowed by the Commission were confiscatory.9 At the same time they moved for the appointment of a master, presumably to inquire into the issue of confiscation. Although the Commission had started on the road to a determination of final rates by holding a prehearing conference on December 16, and by issuing formal notice to the parties on January 12, 1976, a single justice on January 20 entered an order referring “the case” to a special master to make findings of fact and report to the county court.

Thereafter two proceedings ran on parallel tracks: the Commission took evidence under the ratemaking provision of its statute and the March, 1975, regulations; the special master took evidence typical of a hearing on rates. Hearings before the Commission ended on March 4, 1976, hearings before the special master on April 13.

On April 2, 1976, the Commission rendered a lengthy analytic decision — joined in by three Commissioners, with a fourth concurring in the result — approving the basic monthly rate of $7.50 proposed by the plaintiffs, but denying any increase in the rates for additional sets. (Receipts from the charges for additional sets have been less than 10% of the total receipts.) Two Commissioners dissented from the increase allowed, each with opinion. Review by the Superior Court of the Commission’s decision was sought by the present plaintiffs (July 1, 1976) and, in a cross petition, by the issuing authorities of Malden, Chelsea, Somerville, Medford, and Everett (July 15); both petitions named the Commission as defendant. The cross petitioners have moved to consolidate the peti[500]*500tions, and the cases are pending in the Superior Court.

It was not until June 30, 1976, that the special master filed his report in the county court action.

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362 N.E.2d 897, 372 Mass. 495, Counsel Stack Legal Research, https://law.counselstack.com/opinion/warner-cable-of-massachusetts-inc-v-community-antenna-television-mass-1977.