United States v. Any & All Radio Station Transmission EquipmentUnited States v. Any & All Radio Station Transmission Equipment
ORDER
On Junе 9, 1998 the Plaintiff, the United States of America (the Government), filed a motion for a summary judgment under
I.
The present cause of action involves an unlicensed FM micro-broadcasting station, known as Radio Free Lenawee, in Adrian, Michigan. The Claimant, Rick Strawcutter, is the owner and operator of the radio station, as well as the pastor of the Church of the Lord Jesus Christ, in Adrian, Michigan. Strawcutter describes the format of his radio station as being primarily Christian and politically oriented, asserting that he encourages the presentation of divergent religious and political opinions by inviting persons with opposite viewpoints to appear on the radio broadcasts.
The existence and operation of Radio Free Lenawee was brought to the attention of the Federal Communications Commission (FCC) office in Detroit, Michigan between November 4, 1996 and November 13, 1996 as the result of numerous telephone calls, several newspaper clippings, and letters from approximately seven persons. On November 12, 1996, the FCC received a telephone call from the manager of a licensed FM broadcast translator station in Toledo, Ohio 2 who complained that his translator’s signal was receiving interference from a station which identified itself as Radio Free Lenawee. Two days later, the FCC sent a field agent and an engineer to investigate the complaint. As a result, the FCC determined that an FM station (to wit, Radio Free Lenawee) was broadcasting on a 97.7 MHZ frequency from a building at 2903 Bent Oak Highway, Adrian, Michigan 3 without authorization. 4
On November 18, 1996 Strawcutter informed the FCC, inter alia, that he had a constitutional right to conduct his radio broadcasts without interference from the federal government. On November 22, 1996, the FCC determined that Strawcutter’s radio station was operating at a level which exceeded the broadcast strength that was allowable under the law for an unlicensed radio station. 5 The FCC аgents’ efforts to inspect the premises of the radio station were rebuffed by Strawcutter, who was served notice by letter that his Radio Free Lenawee broadcasts were in violation of the Communications Act. 6 At the same time, Strawcutter provided the FCC agents with a letter which provided in part that “[ajfter diligent research, [he] has come to a sincerely held conclusion that the [FCC] in reality has no Constitutional [sic] regulatory power over *741 FM stations which run a power level less than 100 watts.”
Thereafter, the FCC conducted six field tests between November 25,1997 and February 28, 1997, which established that Straw-cutter’s radio station continued to operate in excess of the strength allowed by
On July 22, 1997, the Government commenced this in rem forfeiture action against the radio transmission equipment at 2903 Bent Oak Highway, Adrian, Michigan, the site of the Radio Free Lenawee broadcasts. According to Strawcutter, he first learned of the claimed interference with the Toledo translator station on the following day (July 23, 1997), 7 after which he immediately shut off his radio transmission. Two days later, Strawcutter advised the FCC that he (1) had ceased all transmissions upon learning of the interference, (2) would not commence rebroadcasting until a directional antenna, which would assure no future interference, had been installed, (3) would allow a conditional inspection of Radio Free Lenawee, and (4) believed that his rights under the First Amendment were paramount to the authority of the federal government to deny all non-edueational broadcasts under 100 watts.
In response to the FCC’s Complaint, Strawcutter filed a claim of ownership on August 5, 1997, 8 which was followed by his answer approximately two weeks later. Since the subject property was never arrested, he and the Government entered into a stipulated Order waiving seizure of the property as a predicate for in rem forfeiture, which was entered by the Court on December 19,1997.
In his answer to the Complaint, Strawcut-ter maintains that the FCC’s regulation which prohibits unlicensed micro-broadcasting of the type he is engaging in is invalid becаuse it violates (1) the First Amendment, (2) the Equal Protection principles of the Fifth Amendment, (3) the Due Process Clause, (4) the FCC’s statutory mandate “to encourage the larger and more effective use of radio in the public interest,”
II.
[t]he judgment sought shall be rendered forthwith if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.
The moving party has the burden of demonstrating that there is no genuine issue as to any material fact, and summary judgment is to be entered if the evidence is such that a reasonable jury could find only for the moving party.
See Anderson v. Liberty Lobby, Inc.,
In assessing a summary judgment motion, the court must examine any pleadings, depositions, answers to interrogatories, admissions, and affidavits in a light that is most favorable to the non-moving party.
III.
The Communications Act created the FCC and gave it licensing authority over radio broadcasts.
Commensurate with the FCC’s licensing responsibility, the Communications Act gives it statutory authority to issue regulations that it deems to be necessary to prevent interference between stations and to carry out the provisions of the Communications Act.
The FCC provides a procedure for seeking a waiver or an amendment of its regulations, as well as for reconsideration of its decisions.
[pjrior to founding Radio Free Lenawee, I have made three previous attempts to establish low power radio and/or UHF television stations through the FCC guidelines, including utilizing the help of engineers experienced with FCC applications. However, I found it bureaucratically impossible to obtain such licenses from the FCC, even after submitting at least one application for license.
The Government, in its challenge to Straw-cutter, has four options to choose from in pursuing those persons who engage in radio broadcasts in contravention of the Communications Act or the FCC regulations. The first three options allow the FCC to: (1) initiate an “in house” money forfeiture, so named because the action that does not require judicial authorization,
It is this latter provision upon which the Government is relying in bringing this in rem action. The statute provides:
[ajny electronic, electromagnetic, radio frequency, or similar device, or component thereof, used, sent, carried, manufactured, assembled, possessed, offered for sale, sold, or advertised with willful and knowing intent to violatesection 301 or 302a of *743 this title, or rules prescribed by the Commission under such sections, may be seized and forfeited to the United States.
Because the burden of proof lies upon Strawcutter as the claimant,
id.,
the analysis proceeds to whether he can prove a defense to forfeiture by a preponderance of the evidence.
See United States v. One Defender Lobster Vessel Named Betty II,
In order to evaluate the Government’s argument (to wit, this Court does not have jurisdiction to entertain Strawcutter’s regulatory challenge), a more detailed review of the regulatory and statutory framework of the Communications Act is required. As indicated above, the FCC’s regulations include procedures for obtaining a waiver or amendment of the regulations, as well as for seeking reconsideration of final FCC deсisions.
Any proceeding to enjoin, set aside, annul, or suspend any order of the Commission under this chapter (except those appeal-able under subsection (b) of this section) shall be brought as provided by and in the manner prescribed in chapter 158 of Title 28.
[t]he court оf 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 bysection 402(a) of title 47.
Strawcutter, by contrast, argues that this Court does have jurisdiction to entertain his challenge to the relevant FCC regulation. District courts have federal subject matter jurisdiction over asset forfeiture actions pursuant to statutory authority which states:
[t]he forfeitures provided for in this chapter ... shall be recoverable, except as otherwise provided with respect to a forfeiture penalty determined undersection 503(b)(3) of this title, in a civil suit in the name of the United States brought in the district where the person or carrier has its principal operating office or in any district through which the line or system of the carrier runs: Provided, That any suit for the recovery of a forfeiture imposed pursuant to the provisions of this chapter shall be a trial de novo....
IV.
Having reviewed the legal issues presented, the Court concludes that the doctrine of primary jurisdiction, which was not raised *744 by either party, controls the disposition of the Government’s motion and the case as presently filed. Generally stated, the primary jurisdiction doctrine providеs that:
in cases raising issues of fact not within the conventional experience of judges or cases requiring the exercise of administrative discretion, agencies created by Congress for regulating the subject matter should not be passed over.
Far East Conference v. United States,
[tjhis is so even though the facts after they have been appraised by specialized competence serve as a premise for legal consequences to be judicially defined. Uniformity and consistency in the regulation of business entrusted to a particular agency arе secured, and the limited functions of review by the judiciary are more rationally exercised, by preliminary resort for ascertaining and interpreting the circumstances underlying legal issues to agencies that are better equipped than courts by specialization, by insight gained through experience, and by more flexible procedure.
Far East Conference,
Thus, “where Congress has provided statutory review procedures designed to permit agency expertise to be brought to bear on particular problems,
those ‘procedures are to he exclusive.” Whitney Nat’l Bank v. Bank of New Orleans & Trust Co.,
Importantly, the primary jurisdiction doctrine applies even though the statutory and regulatory scheme at issue is not by its own terms exclusive. Neither
Nevertheless, the doctrine of primary jurisdiction applies even when the statutory scheme enacted by Congress does not expressly provide that it is the exclusive means for proceeding, especially when the federal agency “has played a vital role in the development” of the nation’s laws concerning the relevant subject area, “a role which makes its views of рarticular benefit to the courts where ultimately the validity of the arrangement will be tested.”
11
Id.
at 421-22,
Therefore, under the doctrine of primary jurisdiction, Strawcutter is precluded from initially raising his challenges to FCC regulations in any forum other than before the FCC since its regulations provide a means for such review.
Imрortantly, however, the doctrine of primary jurisdiction is as equally applicable to the Government as it is to Strawcutter. In
Far East Conference
the Supreme Court precluded the Government from bringing in the district court an antitrust action in a shipping case because it had not sought initial consideration before the Federal Maritime Board, which had previously been deemed to have exclusive jurisdiction over such matters because of the scope and evident purpose of the Shipping Act.
Far East Conference,
The Government seeks to рrevail by asserting that the absence of any FCC order should preclude Strawcutter from raising his constitutional challenges to FCC regulations *746 in this Court. The Government reasons that the only reason such an order from the FCC is lacking is because Strawcutter has deliberately avoided such a decision by refusing to apply for a waiver or amendment of the FCC regulations. Although the Government’s argument has a visceral appeal, its attempt to place upon Strawcutter the responsibility for the absence of an FCC order is in reality only a disingenuous sleight of hand. The Government’s position ignores the power of the FCC to issue a cease and desist order to Strawcutter, which for some unexplained reason it chose not to exercise. 12 Since the doctrine of primary jurisdiction applies to the Government just as it does to Strawcutter, it is equally responsible for having failed to obtain a final FCC order.
The Government also argues that district courts only have jurisdiction to entertain statutory, but not regulatory, challenges to FCC authority. This position has been accepted by a district court in Minnesota in which the judge held that
However,
1400 Laurel
is inapposite from the instant ease in that it neither considered nor evaluated the doctrine of primary jurisdiction in its analysis of the issues. Moreover, in making its decision, the
1400 Laurel Ave.
court examined two cases, in which the courts of appeals Concluded that
In
Dougan,
the FCC had issued a final forfeiture order against an unlicensed radio broadcaster.
Dougan,
The Ninth Circuit agreed and dismissed the broadcaster’s appeal in favor of having the parties litigate the issue in district court on the Government’s
In addition to
1400 Laurel Ave.
and an unpublished and electronically unreported case that was cited by the Government (to wit,
United States v. Neset,
On the other hand, and more persuasive than those eases which were cited by the Government is a recent decision from the Northern District of California which involved facts that are remarkably similar to those in the present cause of action. In
United States v. Dunifer,
Significantly, the Court invoked the doctrine of primary jurisdiction in issuing a stay until the FCC rendered a final order.
Id.
at 1238. After the FCC upheld the forfeiture order on the basis that its Class D regulations do not violate the First Amendment or its mandate to regulate in the public interest, the Government filed a motion for the еntry of a summary judgment in the district court, in which it raised the same argument as in Strawcutter’s case.
Id.
The trial judge denied the motion, ruling that
In summary, the application of the primary jurisdiction doctrine does not place any undue burden upon the Government inasmuch as the Communications Act includes a procedure whereby the FCC may issue a cease and desist order which will enable the Government and Strawcutter to present their arguments.
A rejection of this doctrine here would result in unnecessary duplication and conflicting litigation. Some opponents might participate before the [federal agency]; others might well wait for termination of the [agency’s] activities and then sue in the district courts for an injunction accomplishing the same ultimate end. The different records, applications of different standards and conflicting determinations that would surely result from such duplica-tive procedures all militate in favor of the conclusion that the statutory steps provided in the Act are exclusive.
Whitney,
When а court applies the doctrine of primary jurisdiction, it may stay its action pending an agency decision or order dismissal of the proceedings before it.
See ITT World Communications,
V.
Accordingly, for the reasons that have been stated above, the Government’s motion for the entry of a summary judgment is denied and, pursuant to the doctrine of primary jurisdiction, this case is dismissed without prejudice.
IT IS SO ORDERED.
Notes
.
. An FM translator is a low power radio station that receives the signal of a Ml power station and simultaneously rebroadcasts the signal on a different frequency. These translator stations are licensed by the FCC as a means of improving radio reception in areas that might otherwise be under-served due to distance or terrain obstructions.
See Turro v. F.C.C.,
. On the same day, these individuals monitored the translator station from Toledo, but no noticeable interference from Radio Free Lenawee was detected on the translator station's input frequency of 97.7 MHZ or output frequency of 100.7 MHZ.
. Strawcutter acknowledges that he founded Radio Free Lenawee in November 1996, from which he began broadcasting on FM frequency 97.7 MHZ at a power level of between ten and ninety-five watts. However, he submits that, prior to his initial broadcast, a radio engineering firm was hired by him tо research and identify a frequency that would not cause interference with any other broadcast.
. FCC regulation
. The letter indicated that (1) the station was operating in excess of the emission limitations of
. Although Strawcutter states that he learned of this hy reviewing the affidavit attached to the complaint, a discrepancy exists in the record on this point because the Government indicates that it served the complaint upon Strawcutter’s attorney two dаys later, on July 25, 1997.
. He is the only person to have filed such a claim, and the time for filing ownership claims has now expired.
. This prohibition is conditioned on the existence of certain circumstances which are not relevant here.
. Particularly relevant .here is that the FCC is given statutory authority to issue cease and desist orders against unlicensed radio broadcasters such as Strawcutter.
Where any person (1) has failed to operate substantially as set forth in a license, (2) has violated or failed to observe any of the provisions of this chapter, or section 1304, 1343, or 1464 of Title 18, or (3) has violated or failed to observe any rule or regulation of the [FCC] authorized by this chapter or by a treaty ratified by the United States, the [FCC] may order such person to cease and desist from such action.
Based on the present record, the only other discemable theory under which the exclusive jurisdiction of the Courts of Appeals might be invoked is that the FCC issued an "order” within the meaning of
More precisely,
. Interestingly, the Supreme Court indicated that the exhaustion of administrative remedies principle plays a role in establishing the exclusiveness of jurisdiction which is the hallmark of the doctrine of primary jurisdiction.
[Congress] has enacted a specific statutory scheme for obtaining review, and where [it] has directed such a procedure ... the doctrine of exhaustion of administrative remedies comes into play аnd requires that the statutory mode of review be adhered to notwithstanding the absence of an express statutory command of exclusiveness.
Whitney,
. See supra note 10.
. The opinion's citation to "
.
Although the District Court granted a renewed summary judgment motion by the Government because Dunifer lacked standing to assert his affirmative defenses,
Dunifer,