Dickinson v. Cosmos Broadcasting Co., Inc.
Dickinson v. Cosmos Broadcasting Co., Inc.
Opinion
William L. Dickinson and the other plaintiffs in an action filed in the Montgomery *Page 262 Circuit Court appeal from that court's final order dismissing the action for lack of subject-matter jurisdiction. We affirm.
Each candidate signed a form contract printed by the National Association of Broadcasters, in order to advertise on the television stations. This contract included the following language:
*Page 263"It is my understanding that: If the time is to be used by the candidate himself within 45 days of a primary or primary runoff election, or within 60 days of a general or special election, the above charges represent the lowest unit charge of the station for the same class and amount of time for the same period. . . . It is agreed that use of the station for the above-stated purposes will be governed by the Communications Act of 1934, as amended, and the FCC's rules and regulations, particularly those provisions reprinted on the back hereof, which I have read and understand."
(Emphasis added.) As stated in the contract, various provisions of the Communications Act of 1934 are listed on the back of the contract. One of those provisions,
The "lowest-unit-charge" requirement is not only an element of the contracts between the candidates and the stations, but is imposed upon federally regulated broadcasters as part of a comprehensive statutory and regulatory scheme to provide legally qualified candidates for political office with reasonable and affordable access to the airwaves. See
Like many other ratemaking procedures, determining the "lowest unit charge" is a complex process. Congress specifically designated the Federal Communications Commission ("FCC") to enforce "lowest-unit-charge" compliance "because [the FCC] has the expertise necessary to make such determinations based upon its understanding of the complex and often arcane practices of the broadcast advertising industry." In re:Exclusive Jurisdiction with Respect to Potential Violations of the LowestUnit Charge Requirements of Section 315(b) of the Communications Act of1934, as Amended, 6 F.C.C.R. 7511 ¶ 15 (1991), on reconsideration, 7 F.C.C.R. 4123 (1992) ("1991 FCC Declaratory Ruling").
In response to this lawsuit and to other similar litigation, the FCC initiated proceedings to consider: (1) whether claims that involve "lowest unit charges" and other elements of § 315(b) compliance fell under the exclusive original jurisdiction of the FCC, pursuant to its authority to enforce § 315(b), or (2) whether the claims were properly to be brought in a state court or in a federal court. SeeNotice of Intention to Issue Declaratory Ruling with Respect to ExclusiveAuthority of FCC to Determine Whether Broadcasters Have Violated LowestUnit Charge Requirement of Section 315(b), 6 F.C.C.R. 5954 ¶¶ 2-6 (1991).
The FCC has broad regulatory authority over broadcasters. Since the enactment of the Communications Act of 1934, the FCC has been charged with the responsibility for enforcing federal policy in the broadcasting field. *Page 264
"Federal regulation of broadcasting, whether by radio or television, is comprehensive. By the Communications Act's licensing provision federal law governs who may broadcast and over what frequencies. Under that statute and the regulations adopted pursuant to it, broadcast licenses may be issued only after the Federal Communications Commission (FCC) determines that issuance is in the public interest. Licensees' broadcasting discretion is subject to a number of important limits such as the personal attack rule, the fairness doctrine, the prime-time access rule, and the equal opportunity rule. Federal regulations also govern billing for media advertising, refusal to sell advertising time, sponsorship information, alcoholic beverage advertising, amounts of commercial time, penalties for false, misleading, or deceptive advertising, loudness of commercials, and the number of commercials permitted during a given program."KVUE, Inc. v. Moore,
Many of the parties to this lawsuit contributed their opinions during a notice and comment period. Afterwards, the FCC issued the 1991 FCC Declaratory Ruling, in which it declared:
"[A]ny state cause of action dependent on any determination of the lowest unit charge under Section 315(b) of the Communications Act, or of some other duty arising under that subsection, is preempted by federal law. The sole forum for adjudicating such matters shall be this Commission."
6 F.C.C.R. 7511 ¶ 1. The FCC, fearing that various courts could interpret the requirements of § 315(b) in disparate ways and thus thwart the goal of a unified regulatory system for the broadcast industry, declared that it would be the sole forum in which to bring such a claim. Id. at ¶ 7. The intention was to prevent piecemeal and potentially contradictory resolution of disputes involving the computation of the "lowest unit charge."
The candidates have crafted their complaint to avoid any mention of § 315(b), apparently trying to avoid FCC preemption of their claims. However, an analysis of the separate claims reveals that each one, at its core, is integrally related to § 315(b) and cannot exist independently of that statutory provision. It would be folly to allow the candidates to shape the language of their complaint in a manner that converts what are essentially federal-law claims into state-law claims. See the 1991 FCC Declaratory Ruling, 6 F.C.C.R. 7511 ¶ 5 n. 9 (quoting Zell Miller for Governor v. Pacific Southern Co., No. 1:91-CV-RLV, slip op. at 11-12 (N.D.Ga. June 4, 1991) (not published in F. Supp.)).
Initially, the candidates allege breach of contract. The basis of this claim is that the contracts between the candidates and the television stations contained a clause in which the stations agreed to charge the candidates the "lowest unit charge" for political advertisements, and that the stations overcharged them by charging a rate higher than the contract price. "`Breach' consists of the failure without legal excuse to perform any promise forming the whole or part of the contract."McGinney v. Jackson,
Next, the candidates assert a claim of "negligence, wantonness, or willfulness." The candidates' complaint states that because "[e]ach defendant operates its respective television station under a broadcast license issued by the Federal Communications Commission," the stations have "an affirmative duty to provide political candidates with reasonable access to the lowest unit charge for advertising." See the second amendment to the complaint, at ¶ 68. The candidates then state that the stations violated what the candidates describe as an affirmative duty; that the stations violated it intentionally, negligently, wantonly, or willfully; and that the candidates were damaged as a result. The 1991 FCC Declaratory Ruling details two causes of action that are specifically preempted by federal law and that are subject to exclusive FCC jurisdiction. The first is a dispute "dependent on" § 315(b), and the second is a dispute "arising from a duty imposed by" § 315(b). This second count is entirely *Page 266 premised upon an asserted affirmative duty owed to the candidates by the stations to provide the "lowest unit charge." It is disingenuous for the candidates to assert that this could be an independent state-law tort claim when it is inextricably linked to the stations" statutory and contractual obligation to provide candidates the "lowest unit charge" for advertising rates.
The candidates' third claim is for "money had and received." This is essentially a derivative claim of fraud. The candidates assert that the defendant stations overcharged them and are therefore in possession of money that is not rightfully theirs.
Hancock-Hazlett Gen. Constr. Co. v. Trane Co.,"The essence of the theories of unjust enrichment or money had and received is that a plaintiff can prove facts showing that defendant holds money which, in equity and good conscience, belongs to plaintiff or holds money which was improperly paid to defendant because of mistake or fraud."
The candidates' fourth claim alleges that the stations knowingly misrepresented to them that they would be charged the "lowest-unit-charge" rate. Again, we note that it is impossible to divorce the two concepts of "lowest unit charge" as prescribed by § 315(b) and the candidates' claim of misrepresentation. The only method by which the television stations can establish the proper legal performance of their contractual obligations is by looking to a determination of § 315(b) charges. This is precisely the area of law preempted by the FCC in its 1991 Declaratory Ruling.
The final claim alleged by the candidates is fraudulent suppression. The candidates assert that the stations were in a position of superior knowledge of the advertising-rate structures and were therefore under a duty to disclose the proper amount to be billed to the campaigns, and that they failed to do so. Because the basis of this claim is that the stations had a duty arising under § 315(b), even the most talented wordsmith cannot avoid the obvious conclusion that the 1991 FCC Declaratory Ruling, asserting primary original jurisdiction over any cause of action dependent on a "duty arising under that subsection [315(b)]," clearly manifests the FCC's intent to cover this kind of claim. Merely avoiding any reference to § 315(b) and couching the claim in terms of fraudulent suppression cannot alter the fact that any duty the stations may have had to supply true facts to the candidates would have arisen from the contract containing the language of § 315(b) and the language of the statute operating independently of the contract. Because the candidates' claim of fraudulent suppression cannot persist without integral reference to § 315(b), the claim is within the realm of FCC preemption.
Each of the five claims the candidates asserted against the stations is premised, at base, on a determination of each station's "lowest unit charge" or upon a duty imposed by § 315(b). Because the claims are so intimately intertwined with a determination of the "lowest-unit-charge" formula, the claims cannot exist as distinct *Page 267 state-law tort and contract claims, but instead are subsumed by the 1991 FCC Declaratory Ruling. Proper original jurisdiction thus lies with the FCC.
The candidates rely upon the language from Miller v. FCC,
The 1991 FCC Declaratory Ruling also was considered in separate litigation in California. In Wilson v. A.H. Belo Corp.,
We find the reasoning of the Ninth Circuit more persuasive and conclude that the 1991 FCC Declaratory Ruling qualifies as a final order.
Bennett v. Spear,"As a general matter, two conditions must be satisfied for agency action to be `final': First, the action must mark the `consummation' of the agency's decisionmaking process[;] . . . it must not be of a merely tentative or interlocutory nature. And second, the action must be one by which `rights or obligations have been determined,' or from which `legal consequences will flow.'"
The 1991 FCC Declaratory Ruling squarely meets both prongs of theBennett test. First, the Declaratory Ruling represents the consummation of the FCC's decisionmaking process because it was adopted only after a notice and comment period and was subject to reconsideration. See 1991 FCC Declaratory Ruling, 6 F.C.C.R. 7511 (1991), on reconsideration, 7 *Page 268 F.C.C.R. 4123 (1992). Second, definite legal consequences flow from its adoption. The exclusive original jurisdiction for claims dependent on, or arising from, a duty imposed by § 315(b) is limited to the FCC itself. We consider the ousting of state circuit courts and federal district courts of subject-matter jurisdiction to be an important "legal consequence."
Because we find the 1991 FCC Declaratory Ruling to be a final order, we conclude that the substance of the Declaratory Ruling is reviewable only by a federal court of appeals.
"The court of appeals (other than the United States Court of Appeals for the Federal Circuit) has exclusive jurisdiction to enjoin, set aside, suspend (in whole or in part), or to determine the validity of — (1) all final orders of the Federal Communications Commission made reviewable by section 402(a) of title 47."
However, even if the 1991 FCC Declaratory Ruling were not a final order, we still would hold that the Ruling represents a proper exercise of regulatory authority by the FCC. Unlike the Eleventh Circuit inMiller, we are confronted with a live controversy. We find the 1991 FCC Declaratory Ruling makes sense in light of the FCC's comprehensive role in regulating the television-broadcast industry. Courts should generally defer to a permissible construction of a statute by the agency charged with its enforcement.
Clarke v. Securities Indus. Ass'n,"It is settled that courts should give great weight to any reasonable construction of a regulatory statute adopted by the agency charged with the enforcement of that statute. The Comptroller of the Currency is charged with the enforcement of banking laws to an extent that warrants the invocation of this principle with respect to his deliberative conclusions as to the meaning of these laws."
We agree with the substance of the FCC's Declaratory Ruling, that federal communications law preempts state causes of action for claims dependent upon, or arising from, a duty created by § 315(b). The FCC's regulation of television broadcasting is pervasive, and Congress has invested the FCC with the power to enforce the Communications Act of 1934. See KVUE, Inc. V. Moore,
We also find persuasive the FCC's view that violations of the Communications Act *Page 269
of 1934 have not traditionally been seen to provide a private cause of action. See Forbes v. Arkansas Educ. Television Communication NetworkFound.,
The candidates argue that applying the Declaratory Ruling retroactively violates their substantive-due-process rights. We cannot agree. In Alabama, retroactivity is generally disfavored. See Alabama Home BuildersLicensure Bd. v. Grzelak,
Landgraf,"We have regularly applied intervening statutes conferring or ousting jurisdiction, whether or not jurisdiction lay when the underlying conduct occurred or when the suit was filed. . . . Application of a new jurisdictional rule usually `takes away no substantive right but simply changes the tribunal that is to hear the case.'"
Furthermore, the candidates do not possess "matured" state-law claims. They never had claims under state law. Without jurisdiction, a court has no power to act. In this case, jurisdiction was never proper in the Alabama circuit court; thus, Alabama courts had no power to remedy any alleged wrong.
The candidates' final argument is that the "saving clause" of the Communications Act of 1934 precludes federal preemption of their claims. The clause states that the Act does not "abridge or alter the remedies now existing at common law. . . ."
"`The question of jurisdiction is always fundamental, and if there is an absence of jurisdiction over either the person, or the subject matter, a court has no power to act, and jurisdiction over the subject matter cannot be created by waiver or consent.'" Mobile Gulf R.R. v.Crocker,
AFFIRMED.
HOOPER, C.J., and MADDOX, HOUSTON, COOK, BROWN, JOHNSTONE, and ENGLAND, JJ., concur.
SEE, J., recuses himself.
"Broadcast media rates
"The charges for the use of any broadcasting station by any person who is a legally qualified candidate for any public office in connection with his campaign for nomination for election, or election, to such office shall not exceed —
"(1) during the forty-five days preceding the date of a primary or primary runoff election and during the sixty days preceding the date of a general or special election in which such person is a candidate, the lowest unit charge of the station for the same class and amount of time for the same period; and
"(2) at any other time, the charges made for comparable use of such station by other users thereof."
Reference
- Full Case Name
- William L. Dickinson v. Cosmos Broadcasting Company, Inc.
- Cited By
- 28 cases
- Status
- Published