NEPSK, Inc. v. Town of HoultonNEPSK, Inc. v. Town of Houlton
This suit arises out of a dispute over a cable franchise for the Town of Houlton, Maine (“Town”). In early 1999, the Town decided not to renew the franchise held by NEPSK, Inc., d/b/a Houlton Cable (“Houl-ton Cable”). Instead, it sought competitive proposals for a new cable franchise, and eventually awarded the franchise to Houlton Cable’s competitor, Pine Tree Ca-blevision Associates (“Pine Tree”). Houl-ton Cable then commenced this suit against the Town, alleging multiple violations of the Cable Communications Policy Act of 1984, as amended by the Cable Television Consumer Protection and Competition Act of 1992 and the Telecommunications Act of 1996 (codified in pertinent part at
I.
On April 23, 1984, the Town entered into a cable franchise agreement with Houlton Cable’s predecessor, Houlton CATV, Inc.
1
The franchise ran .for a period of 15 years, and was set to expire in April of 1999. Under federal law,
Houlton Cable submitted a renewal proposal in November, 1997, well after the expiration of the six-month period for initiation of formal procedures. For several months, the Town took no action on the proposal. Then, in April of 1998, the Town Council voted to “invite new applications for the Houlton Cable franchise.” Consistent with the informal renewal procedures prescribed by
On March 31, 2000, the Town issued a Request for Proposals (“RFP”) soliciting proposals for a new, ten-year cable franchise. As the RFP made clear, the Town did not believe it could support more than one franchise. Although it had not undertaken any detailed analysis of the issue, the Town was aware that no municipality in Maine — including those much larger than Houlton — was served by more than one cable company. Accordingly, the Town explained in the RFP that it planned to award only one franchise:
The Town of Houlton recognizes that it cannot award an exclusive cable television franchise to any applicant. Nevertheless, the Town also recognizes that the Town of Houlton can only feasibly support one cable television franchise at one time. Accordingly, the Town intends to award only one cable television franchise during the next ten year period, which will be the franchise as a result of this RFP process.
The Town received proposals from two parties, Houlton Cable and Pine Tree. After considering both proposals, the Town determined that Pine Tree’s “most closely [met] the needs of the Town as determined by public surveys and [the earlier] public hearing.” At a meeting in May, 2000, the Town Council voted to reject Houlton Cable’s proposal, and to pursue negotiations with Pine Tree.
Houlton Cable then initiated this suit against the Town. Count I of its complaint alleged that the Town violated the Act by failing to comply with the formal renewal procedures set forth in
After answering the complaint, the Town moved under
Pursuant to Local Rule 7(b) of the District of Maine, Houlton Cable was obligated to respond to the Town’s motion within ten days. 2 Houlton Cable did not so respond, and, accordingly, was deemed to have consented to the motion. Thus, on December 7, 2000 — one day after the ten-day period had expired' — the district court entered judgment for the Town on Counts I and II “per Local Rule 7(b).”
Houlton Cable filed a motion under
The Town then moved for summary judgment on Count III of Houlton Cable’s complaint, arguing that the provisions of
II.
We turn, first, to the district court’s decisions with respect to Counts I and II. In granting the Town’s motion for judgment on the pleadings, the court relied on District of Maine Local Rule 7(b), which then provided:
Unless within ten (10) days after the filing of a motion the opposing party files written objection thereto, incorporating a memorandum of law, the opposing party shall be deemed to have waived objection.
Houlton Cable conceded that it did not comply with that rule, and that its failure to file a timely response did not constitute “excusable neglect,” permitting reconsideration under
Houlton Cable renews that argument on appeal. We review the district court’s initial application of its local rule for abuse of discretion.
CMM Cable Rep, Inc. v. Ocean Coast Props., Inc.,
Local Rule 7(b) and its predecessor, District of Maine Local Rule 19(c), have been in existence for almost 20 years.
4
Courts in the District of Maine routinely apply such rules in situations where the opposing party fails to file an objection to a motion, regardless of whether the motion is dispos-itive.
See, e.g., Cardente v. Fleet Bank,
We have recognized that “[district courts enjoy broad latitude” in adopting and administering such local rules.
Air Line Pilots Ass’n v. Precision Valley Aviation, Inc.,
We reached a similar result in
United States v. Proceeds of Sale of 3,888 Pounds of Atlantic Sea Scallops,
As our holdings in
Corey
and
Sea Scallops
make clear, it is within the district court’s discretion to dismiss an action based on a party’s unexcused failure to respond to a dispositive motion when such response is required by local rule, at least when the result does not clearly offend equity.
6
See Pinto v. Universidad De Puerto Rico,
As Houlton Cable points out, we have identified such a conflict in the context of motions for summary judgment filed under
Given the potential tension between
waives the right to controvert the facts asserted by the moving party in the motion for summary judgment and the supporting materials accompanying it. The court will accept as true all material facts set forth by the moving party with appropriate record support. If those facts entitle the moving party to judgment as a matter of law, summary judgment will be granted.
Jaroma,
Houlton Cable argues that the district court’s obligation to address the merits of a motion for summary judgment should extend as well to
Although that argument is not without force, it ignores an important—and, in our view, dispositive—difference between the two federal rules. Unlike
Given
III.
We turn to Houlton Cable’s claim that the district court erred in granting summary judgment to the Town on Count III of the complaint. As noted, Count III asserted a claim for relief based on an alleged violation of
A franchising authority may award, in accordance with the provisions of this subchapter, 1 or more franchises within its jurisdiction; except that a franchising authority may not grant an exclusive franchise and may not unreasonably refuse to award an additional competitive franchise. Any applicant whose application for a second franchise has been denied by a final decision of the franchising authority may appeal such final decision pursuant to the provisions of section 555 of this title for failure to comply with this subsection.
Section 555, in turn, authorizes “[a]ny cable operator adversely affected by any final determination made by a franchising authority under
As far as we can tell, the question whether
The difficulty with that argument is that Houlton Cable never submitted an application for a “second” franchise. Hence, the Town never refused such an application, unreasonably or not. The RFP made clear that the Town was soliciting bids for a single franchise. Houlton Cable’s proposal — submitted in response to the RFP — was, therefore, an application for that first, single franchise. Nowhere in its proposal did Houlton Cable indicate that, if the Town decided to grant the initial franchise to Pine Tree, Houlton Cable wished to be considered for a second, competitive franchise.
Houlton Cable concedes as much. However, it maintains that such a desire can be assumed whenever two or more providers submit applications for a single franchise. In Houlton Cable’s view, the losing co-applicant necessarily must be considered as an applicant for a second franchise, whether or not it explicitly asked for such treatment. We disagree. It is one thing to apply for a single franchise; it is quite another to apply for a second, competitive franchise. The latter may be far less profitable and, therefore, far less attractive. As a result, it cannot be presumed that an applicant for a first franchise also wishes to be considered for a second, competitive franchise.
Moreover, as the district court aptly observed, the information a franchising authority — and a reviewing courts — would consider in assessing an application for a second franchise might be very different from the type of information needed to weigh the strengths and weaknesses of competing applications for a first franchise. The choice of one provider over another implicates questions such as which provider offers the better package of services, and at the best price. By contrast, the decision whether to award a second franchise (once one has been established) raises a different set of concerns: Could the municipality’s infrastructure support two cable grids? Would it be technically feasible for a second provider to build its own system over the existing one?
Cf. City of Los Angeles v. Preferred Communications, Inc.,
Of course, both sets of questions could be addressed at once, in the initial selection process. But it does not follow that they must be, or that the Town is obligated to raise the issue of a second franchise
sua sponte.
Rather, if an applicant like Houlton Cable wishes to be considered for a second franchise in the event it is not chosen for the first, it must make that desire explicit in its proposal. Unless and until Houlton Cable submits — and the Town refuses — an actual “request” for a “second” franchise, it has no cause for complaint under
IV.
For the reasons set forth above, we affirm the judgment of the district court on Counts I, II, and III.
So ordered.
Notes
. With the exception of certain services not relevant here, "a cable operator may not provide cable service without a franchise.”
. Rule 7(b) has since been amended to permit response "within twenty-one (21) days after the filing of a motion.”
. After the district court dismissed Counts I and II of Houlton Cable's complaint, the parties consented to further proceedings in the case before a magistrate judge.
See
. Local Rule 19(c) provided: "Unless within 10 days after the filing of a motion the opposing party files a written objection thereto, he shall be deemed to have waived objection.”
.
See, e.g.,
D. Ariz. LR 1.10(i) ("If a motion does not conform in all substantial respects with the requirements of this Rule, or if the opposing party does not serve and file the required answering memoranda, ... such non-compliance may be deemed a consent to the denial or granting of the motion and the Court may dispose of the motion summarily.”); C.D. Ill. LR 7.1(B)(1) ("If no response
. We have cautioned that this discretion "is not unbridled.”
United States v. Roberts,
This case does not require us to determine whether and how
Roberts
might apply where, as here, the tardy party failed to offer a "credible explanation of what [went] wrong.”
Id.
at 25. Houlton Cable does not argue that the district court erred by failing to take into account equitable considerations like those we outlined in
Roberts.
Instead, in both the district court and on appeal, Houlton Cable has argued only that the court's strict application of Local Rule 7(b) creates an impermissible conflict with Federal