Council Tree Communications, Inc. v. Federal Communications CommissionCouncil Tree Communications, Inc. v. Federal Communications Commission
OPINION OF THE COURT
This case involves a challenge to two orders of the Federal Communications Commission (FCC) enacting new rules regarding competitive bidding for wireless communications spectrum licenses. Petitioners assert that the new rules are invalid and that an auction conducted pursuant to those rules must be nullified. For the reasons that follow, the petition for review must be dismissed because it is incurably premature.
I.
The Communications Act of 1934 directs the FCC to design a system to allocate spectrum licenses by “establishing] a competitive bidding methodology” via regulation.
On June 13, 2005, Petitioner Council Tree Communications, Inc. (Council Tree), a company organized to identify and develop investment opportunities for minority and women-owned businesses in the communications industry, wrote an ex parte letter to the FCC proposing changes to the then-existing competitive bidding regulations. In particular, Council Tree sought to prevent abuse of DE benefits by prohibiting those DEs affiliated with large incumbent wireless companies from receiving “bidding credits” at spectrum license auctions. These credits are discounts of 25% or 15% from a DE’s winning bid.
On February 3, 2006, the FCC released a Further Notice of Proposed Rulemaking in the Matter of Implementation of the Commercial Spectrum Enhancement Act and Modernization of the Commission’s Competitive Bidding Rules and Procedures, 71 Fed.Reg. 6992 (Feb. 10, 2006), which proposed and sought comment on modifications similar to those suggested in Council Tree’s letter to the FCC.
After receiving over fifty comments and reply comments, the FCC released on April 25, 2006 and published in the Federal Register on May 4, 2006 a Second Report and Order and Second Further Notice of Proposed Rulemaking (Second Order), 71 Fed.Reg. 26, 245 (May 4, 2006) (codified at 47 C.F.R. pt. 1). That Second Order adopted new rules that: (1) take bidding credit eligibility away from DEs that have certain material relationships with other entities; and (2) extend the repayment period to prevent the unjust enrichment of DEs that lose their eligibility after winning a license. Dissatisfied with these rules, on May 5, 2006, Petitioners filed a petition with the FCC to reconsider the Second Order.
On June 2, 2006, the FCC released an Order on Reconsideration of the Second Report and Order (Reconsideration Order), 71 Fed.Reg. 34,272 (June 14, 2006) (codified at 47 C.F.R. pt. 1), to “clariffy] certain aspects [and] address[ ] certain procedural issues” raised in Petitioners’ petition for reconsideration. The Reconsideration Order did not expressly grant or deny the petition, but essentially rejected all of the arguments contained therein.
Instead of waiting for the FCC to publish its Reconsideration Order in the Federal Register, Petitioners filed a petition for review with this Court on June 7, 2006, along with an emergency motion to stay the effectiveness of the new rules and the auction of Advanced Wireless Services licenses (Auction 66), which would be conducted pursuant to the FCC’s new rules.
1
Petitioners challenge those rules as: (1) not in accordance with the notice and comment requirements of the Administrative Procedure Act,
II.
We begin, as we must, with questions of jurisdiction: (1) whether Petitioners’ petition for review is incurably premature; and, if so, (2) whether the motions panel’s earlier per curiam Order vitiates that prematurity. 2
A. Incurable Prematurity
We have no jurisdiction to consider an incurably premature petition for review.
Tenn. Gas Pipeline Co. v. FERC,
In the case at bar, it is undisputed that at the time Petitioners filed their June 7, 2006 petition for review, their petition for reconsideration of the Second Order was still pending before the FCC and remains pending to this day,
see
Reply Br. at 5, so the petition for review is incurably premature as to the non-final Second Order...
See TeleSTAR, Inc. v. FCC,
The petition for review is also incurably premature with respect to the Reconsideration Order because it does not comply with the Hobbs Act. Title
On the entry of a final order reviewable under this chapter, the agency shall promptly give notice thereof by service or publication in accordance with its rules. Any party aggrieved by the final order may, within 60 days after its entry, file a petition to review the order in the court of appeals wherein venue lies.
In
Western Union Telegraph Co. v. FCC,
It is not a principle of law that all agency action need be reviewable as soon as it is effective and ripe — or indeed that all agency action need be reviewable at all. Here the governing statutes,28 U.S.C. § 2344 and47 U.S.C. § 405 , provide that review is unavailable until the date the [FCC] gives public notice, whether or not the order becomes effective and otherwise ripe before then.
Id.
at 377;
see also Horsehead Res. Dev. Co. v. EPA
Like AT & T in
Western Union,
Petitioners here filed their petition for review seven days before the Reconsideration Order was published in the Federal Register. Their petition is therefore incurably premature.
3
As we are not bound by
Western Union,
however, Petitioners criticize it. Specifically, they argue that the Court of Appeals for the D.C. Circuit (1) did not examine the “specific sequencing language” of
First, Petitioners insist that
The Supreme Court has stated repeatedly that the “power of an administrative agency to administer a congressionally created ... program necessarily requires ... the making of rules to fill any gap left,
Here, Congress has not directly spoken to what “entry” means in the Hobbs Act. Petitioners argue that
Because Congress has not defined “entry” in the Hobbs Act and its meaning is ambiguous, we proceed to step two of the
Chevron
analysis and consider whether the regulations are based on a reasonable interpretation of the statute. First, it appears that the FCC’s definition of “entry” as Federal Register publication is inherently reasonable.
Compare with Horsehead,
In addition, we observe that some members of Congress have indicated their approval of these regulations. When Congress amended
The Senate amended [§ ] 405 of the Communications Act by providing that specified pleading periods for seeking agency reconsideration or judicial reviewof Commission decisions commence from the date on which the Commission gives “public notice” of its decisions.... Recently, the Commission adopted rules which refine the meaning of “public notice.” Addition of new [§ ] 1.103 to the Commission’s rules, Amendments to [§ ] 1.4(b), Report and Order, 85 F.C.C.2d 618 (1981).
By adopting these rules, the Commission determined that public notice, as that term is used in [§ ] 405, only can take the form of a written document. See [§ ] 1.4(b) of the Commission’s rules as amended, 47 C.F.R. [§ ] 1.4(b) (1981). The kind of written document constituting public notice will be governed generally by the kind of proceeding that is involved. For example, in notice and comment rulemaking proceedings, public notice of a final Commission decision will occur on the date such decision is published in the Federal Register. See [§ ] 1.4(b)(1) (1981).... The Conferees believe that in rulemaking proceedings it is important that the public have the opportunity to obtain a copy of the full’text of the Commission decisions before pleading periods for appeal begin. See 47 C.F.R. [§ ] 1.4(b)(1) (1981).
H.R.Rep. No. 97-765, at 57 (1982) (Conf. Rep.),
as reprinted in
1982 U.S.C.C.A.N. 2261, 2301. If the Conference believed that either
Petitioners also criticize
Western Union
for relying on
The time within which a petition for review must be filed in a proceeding to whichsection 402(a) of this title applies, or within which an appeal must be taken undersection 402(b) of this title in any case, shall be computed from the date upon which the Commission gives public notice of the order, decision, report, or action complained of.
Finally, the Supreme Court’s statement that the “requirement of administrative finality” is to be “interpreted pragmatically,”
Bell v. New Jersey,
In sum, because we find persuasive the line of cases from the Court of Appeals for the D.C. Circuit beginning with
Western Union,
we hold that a petition to review a rulemaking order of the FCC is incurably premature when it is filed before the rule-making order is published in the Federal Register. Title
B. No Excuse for Prematurity
Petitioners next argue that a per curiam Order in which a motions panel of this Court reached the merits of their emergency motion for stay is “law of the case.” Under this doctrine, “one panel of an’ appellate court generally will not reconsider questions that another panel has decided on a prior appeal in the same case.”
In re City of Phila. Litig.,
We find the law of the case doctrine inapplicable here. First, the Order was issued by a motions panel. As the Court of Appeals for the Ninth Circuit has explained:
Reconsideration by a merits panel of a motions panel’s decision, during the course of a single appeal, differs in a significant way from an appellate court’s reconsideration of a decision on the merits issued by that court on a prior appeal. A party seeking to overturn a merits panel’s decision obtained by its opponent has previously had the opportunity to file petitions for en banc review and certiorari challenging the earlier decision: the issue is presented to the appellate court for a second time only after the court’s first decision has survived all of the customary obstacles to finality. Motions panel decisions are rarely subjected to a similar process pri- or to the time that the case is presented to the[ ] merits panel. Full review of a motions panel decision will more likelyoccur only after the merits panel has acted. For this reason, while a merits panel does not lightly overturn a decision made by a motions panel during the course of the same appeal, we do not apply the law of the case doctrine as strictly in that instance as we do when a second merits panel is asked to reconsider a decision reached by the first merits panel on an earlier appeal.
United States v. Houser,
Second, Petitioners ask us to treat the Order as binding on a question of subject matter jurisdiction. As the Court of Appeals for the Fourth Circuit has explained:
The ultimate responsibility of the federal courts, at all levels, is to reach the correct judgment under law. Though that obligation may be tempered at times by concerns of finality and judicial economy, nowhere is it greater and more unflagging than in the context of subject matter jurisdiction issues, which call into question the very legitimacy of a court’s adjudicatory authority.
Am. Canoe Ass’n v. Murphy Farms, Inc.,
In light of the foregoing, we hold that the law of the case doctrine does not bar a merits panel from revisiting a motions panel’s assumption of subject matter jurisdiction.
See Hiivala v. Wood,
Furthermore, whereas the All Writs Act served as a proper basis for deciding the emergency motion,
see Reynolds Metals Co. v. FERC, 111
F.2d 760, 762 (D.C.Cir.1985) (citing the All Writs Act’s “well established requirements that we routinely apply to
motions for stay pending appeal,
among which is the likelihood of irreparable harm” (emphasis added)), it may not be used to consider the underlying petition. It is settled law that “[t]he All Writs Act is not an independent grant of appellate jurisdiction.”
Clinton v. Goldsmith,
What the All Writs Act permits — and what the motions panel did in this case — is to issue writs “in aid of ... jurisdiction[ ].”
III.
In conclusion, Petitioners’ petition for review is incurably premature because the Second Order is non-final, and the Reconsideration Order had not been published in the Federal Register at the time the petition was filed. Moreover, neither the law of the case doctrine nor the All Writs Act permits us to excuse the prematurity. Accordingly, we lack jurisdiction to reach the merits of Petitioners’ challenges to the FCC’s new spectrum licensing rules and Auction 66, and we will dismiss the petition for review.
Notes
. Auction 66 commenced on August 9, 2006 and ended on September 18, 2006.
. Although the FCC did not raise these jurisdictional issues until filing its merits brief, it is axiomatic that we must satisfy ourselves of our appellate jurisdiction even had the parties not asked us to do so.
See, e.g., Adapt of Phila. v. Phila. Housing Auth.,
. The cases applying
. Petitioners’ reliance on a Seventh Circuit case,
North American Telecommunications
Association v.
FCC (NATA),
. In any event, only legal issues decided expressly or by necessary implication are law of the case.
See Bolden v. Se. Pa. Transp. Auth.,
. It is also true that under the All Writs Act, we would “have the authority to compel agency action unreasonably withheld or delayed if the putative agency action, once forthcoming, would be reviewable in this Court.”
Int’l Union, United Mine Workers of Amer. v. U.S. Dep’t of Labor,