Orange Park Florida T v. Inc. v. Federal Communications Commission, Clay Television, Inc., IntervenorOrange Park Florida T v. Inc. v. Federal Communications Commission, Clay Television, Inc., Intervenor
Opinion for the Court filed by Circuit Judge STARR.
Orаnge Park Florida T.V., Inc. appeals a decision by the Federal Communications Commission denying its application for a construction permit to construct a UHF television station and granting the competing application of the intervenor, Clay Television, Inc. Orange Park challenges the denial of its application as arbitrary and capricious and the award to Clay as contradictory of Commission regulations. We conclude that the Commission reasonably found Orange Park unqualified for comparative consideration and therefore affirm that portion of the FCC’s decision. We also hold, however, that the FCC erred in the course of granting Clay’s application and therefore remand that matter to the Commission.
I
The chain of events leading to this appeal began in November 1980, when Clay Television filed an application with the FCC to construct a television station to broadcast over UHF channel 25 in Orange Park, Florida.
See
The AU found Orange Park “basically unqualified” under
The AU went on to deny Orange Park’s request for a waiver of the minimum spacing requirements. Orange Park’s primary argument in this respect was that broadcasting from a short-spaced site with the proposed 1,000-foot antenna and contemplated signal strength would create no more interference than would be occasioned by broadcasting from a fully-spaced site with a maximum height antenna and a maximum-strength signal permitted under the Commission’s regulations. The AU rejected this “equivalеnt protection” rationale, holding that that notion, under settled Commission precedent, was inapplicable to UHF broadcasting.
Initial Decision, supra,
note 2,
Clay’s application for a construction permit fared no better than Orange Park’s in the AU’s initial decision, for Clay was found in violation of another Commission regulation,
Unlike Orange Park, however, Clay enjoyed success in seeking review of the AU’s determination. In interlocutory review of the AU’s ruling on the ownership transfer issue, the full Commission concurred with the AU’s determination that both the language of
After exhausting its administrative remedies, Orange Park brought this appeal pursuant to
II
On appeal, Orange Park mounts a two-pronged attack on the Commission’s decision. First, it challenges the FCC’s denial of its request for a waiver of the Commission’s minimum spacing rules as an arbitrary and capricious departure from precedent.
See
A
Orange Park’s objections to the Commission’s determination that it was unqualified to obtain á construction permit need not long detain us. Its violation of the minimum spacing rules is clear and undisputed. That being so, Orange Park’s only hope lay in the possibility of a Commission-granted waiver from its rules. But it is elementary that the judiciary may disturb a Commission refusal to waive its rules only in the event of an abuse of discretion.
See North Texas Media, Inc, v. FCC,
In essence, Orange Park argues that in two respects the FCC departed without justification from prior precedent addressing the showing necessary to obtain a waiver: first, by requiring it to prove as a threshold matter that no fully-spaced sites were available; and second, by rejecting the “equivalent protection” rationale upon which Orange Park relied to prove that its operations from a short-spaced site would not cause significant interference.
Commission precedent makes clear that an applicant seeking waiver of the minimum spacing rules must, as an initial matter, establish the nonavailability of fully-spaced sites.
See Townsend Broadcasting Corp.,
Nonetheless, if we assume
arguendo,
as did the ALJ, that Orange Park’s request left the gate, we find reasonable and consistent with Commission precedent the determination that it was hobbled at the first turn. As already mentioned, Orange Park set forth no evidence of how much interference its station would cause, choosing instead to rely solely on the “equivalent protection” rationale. It did so in the face of unequivocal Commission precedеnt that the Commission considered “equivalent protection” analysis inapplicable to UHF broadcasting because of the unique nature of UHF signal propagation.
See Pappas Telecasting, Inc.,
49 Rad.Reg.2d (P & F) 1688, 1690 (Comm’n 1981);
Carolina Christian Broadcasting, Inc.,
48 Rad. Reg.2d (P & F) 355, 358 (Broadcast Bur. 1980);
see also Carolina Broadcasting Co.,
16 Rad.Reg.2d (P & F) 801, 803-04 (Comm’n 1969). We find it unnecessary to
In sum, the FCC’s denial of Orange Park’s waiver request was fully consistent with agency precedent. Since Orange Park has not shown, or indeed even attempted to demonstrate, that this precedent is unreasonable or contrary to law, we affirm the Commission’s decision in this respect.
B
Having upheld the Commission’s decision to disqualify Orange Park, we must next address Clay’s and the Commission’s contention that Orange Park lacks standing to appeal the award to Clay. Their argument is that Orange Park was ineligible for the construction permit in any case and so was not injured by the award to Clay. Since in their view Orange Pаrk suffered no injury because of the award, it satisfied neither the statutory requirement that parties appealing Commission decisions be “aggrieved” or “adversely affected” by such decisions 14 nor the constitutional requirement of standing that a litigant plead “injury in fact” fairly traceable to the conduct complained of and likely to be redressed by the requested relief. 15
1
For the statutory leg of their argument, Clay and the FCC rely primarily, and belatedly, on this court’s decision a generation ago in
Simmons v. FCC,
Since appellant’s application was rightly denied he has no ground for complaint. He does not contend that he is worse off than he would have been if intervenor’s application, as well as his own, had been denied. Accordingly, he is not “aggrieved” or “adversely affected” by the granting of intervenor’s application and has no . standing to appеal from it.
Id. at 579 (footnote omitted).
Despite the brevity of this explanation, we are persuaded, upon reflection, that Simmons does not apply to the present case. In contrast to Simmons, Orange Park vigorously asserts that it is worse off by virtue of the Commission’s award to Clay. Had the Commission dismissed Clay’s application, Orange Park points out, channel 25 would have remained available and Orange Park could have filed a new (and presumably conforming) application. In further contrast to Simmons, where it was uncertain whether the disqualified candidate was able to cure the defect in its application (or was willing to do so), here Orange Park specifically alleges that dismissing Clay's application would have made it easier for Orange Park to amend its application to specify a fully-spaced site; 17 that fully-spaced sites were available; and that Orange Park was willing to make such an amendment had Clay’s application been dismissed. Supplemental Brief of Appellant at 6. It would thus appear that an improper award of the construction permit to Clay constituted more than harmless error as to Orange Park.
At the same time, we cannot fail to recognize that, aside from the facts that Simmons did not allege that he was worse off by virtue of the FCC’s allegedly erroneous award to the competing applicant and that, if given the opportunity he could and would reapply for the permit, there is substantial similarity between the facts of
Simmons
and those of this cаse. In particular, the disqualifying features of Simmons’ application were, it appears, readily curable through amendments; thus, it would appear that Simmons, like Orange Park, was deprived by award to a competitor of the opportunity to cure the remediable defect in his initial application.
Cf. Teleprompter,
Nonetheless, while the factual setting of
Simmons
bears a resemblance to that of the present case, we also cannot fail to observe that the doctrine of standing prevailing at that time has changed significantly in the intervening decades. Of particular importance is the abandonment of the “legal right” requirement that governed when
Simmons
was decided. Under that requirement, to establish standing a litigant had to demonstrate that the defendant’s conduct infringed a legal right enjoyed by the litigant. Thus, in a situation analogous to the one before us, the Supreme Court held that a disappointed bidder for a government contract lacked standing to contest the award to a successful bidder, because the procurement laws under which such contracts were made conferred no legal rights on bidders; they were intended solely to protect the Government.
See Perkins v. Lukens Steel Co.,
The Commission does not dispute that by awarding a construction permit to Clay instead of dismissing Clay’s application, the Commission deprived Orange Park of a second chance to apply for channel 25. Nor does it take issue with Orange Park’s assertion that it readily could have cured the disqualifying feature in its original application by specifying a fully-spaced site. Instead, the Commission characterizes Orange Park’s injury as its failure to secure a permit in the proceedings below. This injury, the Commission’s argument runs, was solely Orange Park’s fault; it cannot be traced to the FCC’s award to Clay. While the Commission’s argument is correct as far as it goes, it does not meet the assertion of an injury that is separate and distinct from Orange Park’s initial failure to secure a permit, namely, the opportunity to try again were Clay to lose.
Cf. Delta Data Systems Corp. v. Webster,
2
Moving beyond
Simmons
itself, we turn to the bedrock constitutional requirements arising under Article III. In our view, Orange Park’s allegations clearly satisfy the requirement that a litigant plead injury in fact fairly traceable to the defendant’s allegedly illegal conduct and likely to be redressed by the relief requested.
See, e.g., Allen v. Wright,
We are likewise convinced that Orange Park’s allegations satisfy statutory and prudential standing requirеments.
Satisfied that Orange Park has fulfilled standing requirements for contesting the award to Clay, we turn at last to the specifics of that challenge.
C
Orange Park assails the Commission’s largesse in permitting Clay to cure its violation of the ownership-change provision, namely
Orange Park relies primarily on
Reuters,
the Commission properly granted licenses to Reuters pursuant to the express provisions of its rules. Moreover, neither the [Commission staff] nor the Commission itself embraced the proposition that the [report on which Associated relied] was intended to alter the FCC’s long-standing rules governing applications.
Id.
at 950. In sum, we determined that the Commission could not justify a departure from its rules in light of (1) the dеprivation visited upon Reuters, which had faithfully abided by the rules and held licenses in hand, and (2) the tenuous basis for Associated’s ill-timed application.
Reuters
did not hold, as Orange Park would have it, that an agency may never grant exceptions to its rules. Indeed, we could not have held so broadly without upsetting precedent recognizing that “[a]ny rule of general applicability will involve particular cases of hardship, for which an agency would be empowered to make individual dispensations.”
Basic Media,
Contrary to Orange Park’s assertions, the facts before us differ in vital respects from those in
Reuters.
For one thing, the FCC’s action in this case works no deprivation of a vested property interest. As we expressly recognized in
Reuters,
“such a vested interest must be given due weight in any consideration of fundamental fairness.”
Here, on the contrary, it appears that the source of confusion over the filing dates was the Commission’s own staff.
Cf. New York State Energy Research & Development Authority v. FERC,
D
But a problem remains. As we have stated in the clearest terms, “[w]hen an agency decides to make an exception to the general rule, it is ... required to have stated the reasons for the exception clearly on the record.”
Basic Media,
We therefore vacate that portion of the Commission’s decision permitting Clay to cure its violatiоn of
Judgment accordingly.
Notes
. As we explained in an earlier decision, "[a] construction permit is a prerequisite to the issuance of a new station license and ‘except in rare [instances], it is also a guarantee of a license to оperate the station once constructed.’”
Bamford
v.
FCC,
.
Clay Television, Inc.,
.
[A]I1 applications for new television broadcast stations ... will not be accepted for filing if they fail to comply with the requirements specified in paragraph ] ... (c) ... of this section.
Paragraph (c) of§ 73.610 then provides in relevant part:
(c) Minimum assignment and station adjacent channel separations applicable to all zones.
(1) ... channels 14-69 55 miles.
. The Commission promulgated minimum separation requirements for television broadcast antennas as part of its comprehensive system of allocating television channels so as to provide each broadcaster with some degree of protection from interference.
See
.
Clay Television, Inc.,
.
A new file number will be assigned to an application for a new station ... when it is amended so as to ... result in an assignment or transfer of control (whether by a single amendment or by a series of amendments), which in the case of an authorized station, would require the filing of an FCC Form 314, 315 or 345.... All parties agree that if Clay were the licensee of an existing station, i.e., “an authorized station" within the meaning ofsection 73.3572(b) , an FCC Form 315 would be required to accomplish a 50% ownership transfer. See Brief of Appellee at 21; Brief of Intervenor at 2; Brief of Appellant at 23 n. 55; see also47 C.F.R. § 73.3540(a) , (d) (1983); Clay Broadcasters, Inc., 21 Rad.Reg.2d (P & F) 442, 446 (Comm’n 1971). The effect of assigning a new file number is removal from competitive consideration with other filed applications. See47 C.F.R. § 1.227(b)(1) (1984).
.
See Initial Decision, supra
note 2,
. Clay Television, Inc., FCC No. 82-417 (Commission Memorandum & Order dated Sept. 21, 1982), J.A. at 142.
. In rendering its initial decision, the AU apparently did not have the benefit of information about the conflicting practices of the FCC staff. Clay first raised this issue in seeking interlocutory review of the AU’s initial dеtermination that its application should be dismissed for running afoul of
. Id. at 4, J.A. at 145.
.
Clay Television, Inc.,
. On appeal of the ALJ’s decision to the Commission's Review Board, Orange Park maintained, as it had before the ALJ, that it satisfied this threshold requirement by showing that because of their proximity to an airport, none of the available fully-spaced sites could accommodate the 1,000-foot antenna it proposed to erect.
See Decision of Review Board, supra
note 5,
We accept the Commission’s explanation that
WSET
does not apply. This court has previously recognized and upheld as reasonable the Commission’s practice of holding new applicants to stricter standards for obtaining a waiver than it does existing licensees.
See North Texas Media,
. From those portions of the hearing transcript supplied in the parties’ submissions, it appears that Orange Park’s engineering expert formulated his “equivalent protection” rationale with scant attention to Commission regulation. See Hearing Transcript at 266-69, J.A. at 104-07. It further appears that the expert decided to rely exclusively on the rationale because none of the FCC staff raised any questions about Orange Park’s submission — concerning, for example, estimates of the geographic area and number of persons affected by interference from Orange Park's proposed operations. See id. at 292, J.A. at 111. Finally, Orange Park never supplied such information even after the ALJ clearly expressed dissatisfaction with the lack of additional datа and doubt as to the validity of “equivalent protection" reasoning, id. at 292-93, J.A. at 111-12, even though Orange Park could have submitted additional information on interference when it sought to have the Commission order the AO to revisit the short-spacing issue. Clay Television, Inc., FCC No. 82M-3203, at 1 n. 1 (Commission Memorandum & Order dated Oct. 15, 1982), J.A. at 147 n. 1. Considering this approach to meeting its burden of justifying a waiver before the agency, we are persuaded it ill behooves Orange Park to contend that the Commission improperly left it in the dark.
.
(b) Appeals may be taken from decisions and orders of the Commission to the United States Court of Appeals for the District of Columbia in any of the following cases:
(1) By any aрplicant for a construction permit or station license, whose application is denied by the Commission.
(6) By any other person who is aggrieved or whose interests are adversely affected by any order of the Commission granting or denying any application described in paragraphs (1) — (4) of this subsection.
.
See, e.g., Allen v. Wright,
. In their original submissions to this court, none of the parties saw fit to address the question of Orange Park's standing, aside from a passing reference, unsupported by legal authority, in a footnote to the FCC’s brief.
See
Brief of Appellee at 31 .n. 19. At oral argument, this court drew attention to the decisions of this circuit relevant to the issue аnd ordered further briefing. In their post-argument reflections, Clay and the Commission more fervently maintained that Orange Park did indeed lack stand
. Specifically, Orange Park cites Commission precedent holding that amendments by applicants filed after a comparative hearing has been designated will only be permitted if the applicant seeking to amend shows that competing applicants would not be disadvantaged by the amendment.
See
Supplemental Brief of Appellant at 6 n. 3 (citing
Erwin O’Connor Broadcasting Co.,
. Although Orange Park has not said in so many words that it would reapply for channel 25, this intention is manifestly evident from Orange Park's litigating this issue and its allegation that it considers itself aggrieved by the loss of the "opportunity to amend to cure its short-
. As counsel for the Commission correctly pointed out at oral argument, a licensee’s interest in a broadcast license (or a construction permit,
see supra
note 1) is not a full-fledged, indefeasible property interest, since it is limited in duration, and held only so long as the licensee operates in the public interest.
See Sanders Brothers Radio Station,
. We are not presented with the kind of rule to which the FCC has never carved out exceptions.
Cf. Basic Media,