# Appendix — Writers Guild of America, West, Inc. v. American Broadcasting Cos.

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Appendix
- **Published:** January 1, 1980
- **Citation:** 449 U.S. 824

## Text

f? . Supreme Court, U. &

: FILED

| MICHAEL RODAK, JR., CLERK

IN THE

~~

Supreme Court of the United States

OCTOBER TERM, 1979

No. ZO-1L7Z1E

See eeeereeeeeeee

WRITERS GUILD OF AMERICA, WEST, INC., et al.,
Petitioners,
7;
AMERICAN BROADCASTING COMPANIES, INC., ef ai.,

Respondents.

APPENDIX

PETITION FOR WRIT OF CERTIORARI TO THE
UNITED STATES COURT OF APPEALS
FOR THE NINTH CIRCUIT

RONALD L. OLSON SETH M. HUFSTEDLER

Monroe E. Price JOHN SOBIESKI

Nancy Y. BEKAVAC DENNIS M. PEerLuss

CHARLES D. SIEGAL EVELYN BALDERMAN Hutt
MUNGER, TOLLES & BEARDSLEY, HUFSTEDLER &

RICKERSHAUSER KEMBLE

612 South Flower Street 611 West Sixth Street
Fifth Floor Suite 2220
Los Angeles, California 90017 —_ Los Angeles, California 90017
(213) 683-9100 (213) 626-0671

Attorneys for Petitioners
April 28, 1980

PANDICK PRESS WEST COAST, 1945 S. FIGUEROA, LOS ANGELES, CALIFORNIA (213) 747-4321!

5 U.S.C. § 553.

(a) This section applies, according to the provi-
sions thereof, except to the extent that there is in-
volved —

(1) a military or foreign affairs function of the
United States; or

(2) a matter relating to agency management
or personnel or to public property, loans, grants,
benefits, or contracts.

(b) General notice of proposed rule making shall
be published in the Federal Register, unless persons
subject thereto are named and either personally served
or otherwise have actual notice thereof in accordance
with law. The notice shall include—

(1) a statement of the time, place, and nature
of public rule making proceedings;

(2) reference to the legal authority under
which the rule is proposed; and

(3) either the terms or substance of the pro-
pozed rule or a description of the subjects and
issues involved.

Except when notice or hearing is required by statute,
this subsection does not apply—

(A) to interpretative rules, general statements
of policy, or rules of agency organization, proce-
dure, or practice; or

(B) when the agency for good cause finds
(and incorporates the finding and a brief statement
of reasons therefor in the rules issued) that notice
and public procedure thereon are impracticable,
unnecessary, or contrary to the public interest.

7*

A-2

(c) After notice required by this section, the agency
Shall give interested persons an opportunity to partici-
pate in the rule making through submission of written
data, views, or arguments with or without opportunity
for oral presentation. After consideration of the rele-
vant matter presented, the agency shall incorporate in
the rules adopted a concise general statement of their
basis and purpose. When rules are required by statute
to be made on the record after opportunity for an
agency hearing, sections 556 and 557 of this title apply
instead of this subsection.

(d) The required publication or service of a
substantive rule shall be made not less than 30 days
before its effective date, except—

(1) a substantive rule which grants or recog-
nizes an exemption or relieves a restriction;

(2) interpretative rules and statements of
policy; or

(3) as otherwise provided by the agency for
good cause found and published with the rule.

(e) Each agency shail give an interested person the
right to petition for the issuance, amendment, or repeal
of a rule.

Pub.L. 89-554, Sept. 6, 1966, 80 Stat. 383.

A-3

5 U.S.C. § 702.

A person suffering legal wrong because of agency
action, or adversely affected or aggrieved by agency
action within the meaning of a relevant Statute, is
entitled to judicial review thereof. An action in a court
of the United States seeking relief other than money
damages and stating a claim that an agency or an
officer or employee thereof acted or failed to act in an
Official capacity or under color of legal authority shall
not be dismissed nor relief therein be denied on the
ground that it is against the United States or that the
United States is an indispensable party. The United
States may be named as a defendant in any such action,
and a judgment or decree may be entered against the
United States: Provided, That any mandatory or in-
junctive decree shall specify the Federal officer or
Officers (by name or by title), and their successors in
Office, personally responsible for compliance. Nothing
herein (1) affects other limitations on judicial review or
the power or duty of the court to dismiss any action or
deny relief on any other appropriate legal or equitable
ground; or (2) confers authority to grant relief if any
other statute that grants consent to suit expressly or
impliedly forbids the relief which is sought.

Pub.L. 89-554, Sept. 6, 1966, 80 Stat. 392; Pub.L. 94-
574, § 1, Oct. 21, 1976, 90 Stat. 2721.

A-4

United Siates Court of Appeals

FOR THE NINTH CIRCUIT

WriTeRS GUILD OF AMERICA, WEST, INC., et al.,

Plaintiffs-Appellees,
v. No. 77-1058
AMERICAN BROADCASTING Co., INC.,
Defendant-Appellant.
WRITERS GUILD OF AMERICA, WEST, INC., et al.,
Plaintiffs-Appellees,
v. No. 77-1059
NATIONAL ASSOCIATION OF BROADCASTERS,
Defendant-Appellant. OPINION
WRITERS GUILD OF AMERICA, WEST, INC., et al.,
Plaintiffs-Appellees,
v. No. 77-1060
CBS, INc.,
Defendant-Appellant.
Writers GUILD OF AMERICA, WeST, INC., et al.,
Plaintiffs-Appellees,
v. No. 77-1061
NATIONAL BROADCASTING Co., INC.
Defendant-Appellant.
TANDEM PRODUCTIONS, INC., a corporation,
Plaintiff-Appellee,
v. No. 77-1756
NATIONAL BROADCASTING Co., INC.,
a corporation,
Defendant-Appellant.

A-5

TANDEM PRODUCTIONS, INC., a corporation,

Plaintiff-Appellee,
v.
COLUMBIA BROADCASTING SYSTEM, INC., a
corporation; AMERICAN BROADCASTING No. 77-1897

ComPANIES, INC., a corporation; NATION-
AL ASSOCIATION OF BROADCASTERS, a cor-

poration,
Defendants-Appellants.
TANDEM PRODUCTIONS, INC., a corporation,
Plaintiff-Appellee,
v.

COLUMBIA BROADCASTING SYSTEM, INC., a
corporation; NATIONAL BROADCASTING
Co., INC., a corporation; AMERICAN
BROADCASTING COMPANIES, INC., a corpo-
ration; NATIONAL ASSOCIATION OF BROAD-

CASTERS; ROBERT E. Lee; James H. No. 77-2357
QUELLO; CHARLOTTE T. REID; GLEN O.
ROBINSON,
Defendants,
and

FEDERAL COMMUNICATIONS COMMISSION;
RICHARD E. Winey; BENJAMIN C. Hook;
ABBOTT WASHBURN,

Defendants-Appellants.

WriTERS GUILD OF AMERICA, WEST, INC., et all,
Plaintiffs-Appellees,
v.
FEDERAL COMMUNICATIONS COMMISSION, et al.,
Defendants-Appellants.

| No. 77-1103
WRITERS GUILD OF AMERICA, Wiest, INc., |

Plaintiffs-Cross-Appellants,
v.
FEDERAL COMMUNICATIONS COMMISSION, et al.,
Defendants-Cross-Appellees.

No. 77-1602

A-6

Appeal from the United States District Court
for the Central District of California

Before: SNEED and HUG, Circuit Judges, and
ENRIGHT*, District Judge.

SNEED, Circuit Judge:

Plaintiffs Writers Guild of America, West, Inc.
(Writers Guild)! and Tandem Productions, Inc. (Tan-
dem) instituted these consolidated actions against the
Federal Communications Commission (FCC) and its
Commissioners Wiley, Hookes, Lee, Quello, Reid, Rob-
inson, and Washburn, the three major television net-
works (ABC, CBS, and NBC), and the National Asso-
ciation of Broadcasters (NAB) to challenge the adop-
tion of the so-called “family viewing policy” as an
amendment to the NAB Television Code.2. The Writers
Guild plaintiffs sought declaratory and injunctive relief
against the government defendants for violations of the
First Amendment, the Administrative Procedure Act,
and section 326 of the Federal Communications Act,
and against the private defendants on both First

* Honorable William B. Enright, United States District Judge for
the Southern District of California, sitting by designation.

‘The Writers Guild plaintiffs are various directors, actors,
writers, and producers of television programs as well as the Writers
Guild of America, West, Inc., Writers Guild of America, East, Inc.,
Directors Guild of America, Inc., and Screen Actors Guild, Inc.

2 The Family Viewing Policy reads, in its entirety, as follows:

Additionally, entertainment programming inappropriate
for viewing by a general family audience should not be
broadcast during the first hour of network entertainment
programming in prime time and in the immediately preceding
hour. In the occasional case when an entertainment program
in this time period is deemed to be inappropriate for such an
audience, advisories should be used to alert viewers. Adviso-
ries should also be used when programs in later prime time
periods contain material that might be disturbing to significant
segments of the audience.

(Footnote continued on next page)

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Amendment and antitrust grounds. Tandem sought
damages in addition to declaratory and injunctive relief
against the government defendants for violations of the
First Amendment and section 326 of the Federal Com-
munications Act, and against the private defendants on
First Amendment and antitrust grounds. The actions
were consolidated and tried before the district court.‘
The court, in a lengthy and closely reasoned published
opinion, concluded that: (1) threats, influence, and
pressure by the Chairman of the FCC caused the
networks and the NAB to adopt the family viewing
policy; (2) the FCC committed a per se violation of the
First Amendment by exerting improper pressure on the
networks; (3) the FCC violated the Administrative
Procedure Act (APA) by implementing public policy
by informal pressure instead of by complying with the
Act’s procedural requirements; (4) the action of the
networks and the NAB constituted “government ac-
tion” for purposes of the First Amendment both be-
cause adoption of the family viewing policy had been
caused substantially by FCC pressure and because the
networks, the NAB, and the FCC participated in an

(Footnote continued from previous page)

These advisories should be presented in audio and video
form at the beginning of the program and when deemed
appropriate at a later point in the program. Advisories should
also be used responsibly in promotional material in advance of
the program. When using an advisory, the broadcaster should —
attempt to notify publishers of television program listings.

Special care should be taken with respect to the content
and treatment of audience advisories so that they do not
disserve their intended purpose by coataining material that is
promotional, sensational or exploitative. Promotional an-
nouncements for programs that include advisories should be
scheduled on a basis consistent with the purpose of the
advisory.

3 Plaintiff Lear asserted no Sherman Act claim.

“ All issues except for the antitrust aspects of the cases were
consolidated for trial. The parties agreed to defer trial concerning
the amount of damages, if any, suffered by plaintiff Tandem.

A-8

“unprecedented joint venture” in an effort to com-
promise the independent judgments of other broadcast
licensees; and (5) the networks and the NAB violated
the First Amendment by “fail[ing] to exercise inde-
pendent program judgments and instead becom[ing]
surrogates in the enforcement of government policy”
and by agreeing to compromise the independent
programming judgments of individual broadcast licens-
ees. Writers Guild of America, West, Inc. v. FCC, 423
F. Supp. 1064 (C.D. Cal. 1976). All parties have
appealed.

The district court certified its decision in the
Writers Guild suit as a final order pursuant to Fed. R.
Civ. P. 54(b). An interlocutory appeal in the Tandem
suit was authorized by the district court pursuant to 28
U.S.C. § 1292(b). This court permitted the appeal.
The Writers Guild and Tandem suits were consolidated.
Our jurisdiction rests on 28 U.S.C. §§ 1291 and
1292(b).

The primary issues on appeal are: (1) Whether the
district court erred in concluding that the district court
was proper forum for this litigation and that neither the
doctrine of exhaustion of administrative remedies nor
the doctrine of primary jurisdiction required FCC con-
sideration of plaintiffs’ claims prior to district court
action; (2) whether the actions of the networks and the
NAB amounted to “governmental action” for purposes
of the First Amendment; (3) whether the conduct of the
FCC, the networks, and the NAB violated the First
Amendment; (4) whether the conduct of the FCC
violated the Administrative Procedure Act; (5) whether
plaintiff Tandem is entitled to recover damages from
the private defendants for the alleged violation of its
First Amendment rights; and (6) whether the district
court erred in denying plaintiffs an award for attorneys
fees. Because we conclude that this case raises issues of

A-9

major significance to the administration of the regu-
latory scheme pertaining to the broadcast media that
properly rest within the primary jurisdiction of the FCC,
we do not reach issues (2) through (5). Instead, we
vacate the judgment of the district court with instruc-
tions to hold in abeyance plaintiffs’ claims against the
private defendants pending resolution and judicial re-
view of the administrative proceedings before the FCC.

Before proceeding to the jurisdictional issue, it will
prove helpful first to summarize the conduct from which
this dispute arose, and then to present in a somewhat
stark form the legal propositions on which the district
court based its decision.

I. FACTUAL BACKGROUND — PROMULGA-
TION OF THE FAMILY VIEWING POLICY.

The impact of violent and sexually-oriented tele-
vision programming was the subject of intense public
and congressional concern throughout the two decades
preceding the adoption of the family viewing policy as
an amendment to the NAB Television Code.5 The

5 See, e.g., Hearings on Violence on Television Before the
Subcomm. on Communications of the Senate Comm. on Com-
merce, 93d Cong., 2d Sess. (1974); Hearings in Review of Policy
Matters of Federal Communications Commission and Inquiry into
Crime and Violence on Television and a Proposed Study Thereof
by the Surgeon General Before the Subcomm. on Communications
of the Senate Comm. on Commerce, 91st Cong., Ist Sess., ser. 91,
pt. 6 (1969); Hearings for the Investigation of Juvenile Delin-
quency in the United States Before the Subcomm. to Investigate
Juvenile Delinquency of the Senate Comm. on the Judiciary, 88th
Cong., 2d Sess., pt. 16 (1964); Hearings for the Investigation of
Juvenile Delinquency in the United States Before the Subcomm. to
Investigate Juvenile Delinquency of the Senate Comm. on the
Judiciary, 87th Cong., Ist & 2nd Sess., pt. 10 (1961-62 ); Hearings
for the Investigation of Juvenile Delinquency in the United States
Before the Subcomm. to Investigate Juvenile Delinquency of the
Senate Comm. on the Judiciary, 84th Cong., Ist Sess. (1955) and
83d Cong., 2d Sess. (1954). For discussions of more recent

(Footnote continued on next page)

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specific events giving rise to this lawsuit, however,
commenced in June 1974 when the House Appropria-
tions Committee directed the Federal Communications
Commission “to submit a report to the Committee by
December 31, 1974, outlining the specific positive ac-
tions taken or planned by the Commission to protect
children from excessive violence and obscenity.” H. R.
Rep. No. 1139, 93d Cong., 2d Sess. 15 (1974). On
August 1, 1974, the Senate Appropriations Committee
followed suit, “urging the Commission to proceed as
vigorously and as rapidly as possible—within Con-
stitutional limitations—to determine what is its power in
the area of program violence and obscenity, particularly
as to their effect on children.” S. Rep. No. 1056, 93d
Cong., 2d Sess. 19 (1974).

After soliciting suggestions from his staff con-
cerning how best to respond to the congressional direc-
tive, the Chairman of the FCC, Richard Wiley, em-
barked on a course of what is described by the press as
“jawboning,” to have the networks adopt a system of
self-regulation that would reduce the amount of sex and
violence in television programming without the need for
any “formal” Commission action. The FCC staff had
recommended a variety of Commission responses to the
problem, including issuing notices of inquiry, notices of
proposed rulemaking and policy statements. Chairman

(Footnote continued from previous page)

congressional and public concern about televised violence see
Subcomm. on Communications of the House Comm. on Interstate
and Foreign Commerce, 95th Cong., Ist Sess., Report of Violence
on Television (Comm. Print 1977); Krattenmaker & Powe, Tele-
vised Violence: First Amendment Principles and Social Science
Theory, 64 Va. L. Rev. 1123, 1130-32 (1978); Albert, Con-
stitutional Regulation of Televised Violence, 64 Va. L. Rev. 1299,
1310-17 (1978). For an interesting discussion of even earlier
public concern about violence in the media see Krattenmaker &
Powe, supra at 1288-92 (public outcry concerning violence in
motion pictures and in comic books).

**

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Wiley, however, opted for jawboning instead, in the
belief that many of the staff proposals for formal action
would pose serious First Amendment and section 326
problems. 47 U.S.C. § 326.6 A similar use of jawbon-
ing earlier had proven successful in inducing industry
self-regulation in the area of children’s television
programming. See Action for Children’s Television v.
FCC, 564 F.2d 458 (D.C. Cir. 1977) (ACT).

Chairman Wiley’s campaign ultimately involved:
(1) five meetings between himself and/or members of
the Commission staff and industry representatives at
which various proposals for dealing with the problem of
televised sex and violence were discussed; (2) three
public speeches by Chairman Wiley in which he ex-
horted the industry to undertake its own action but
indicated that unless some action were taken, the gov-
ernment might well be forced to become formally
involved with the problem; (3) several telephone con-
versations between Chairman Wiley and various net-
work executives; and (4) suggestions by Chairman
Wiley to various NAB representatives that the NAB
expedite its consideration of a proposal for a Code
amendment incorporating the family viewing policy.
For a detailed account of Chairman Wiley’s and the
FCC’s informal campaign, see Appendix A. The cam-
paign took place between October 1974 and April 1975.
In April 1975 the NAB announced the family viewing

policy.

6 This section provides:

Nothing in this Act shall be understood or construed to
give the Commission the power of censorship over the radio
communications or signals transmitted by any radio station,
and no regulation or condition shall be promulgated or fixed
by the Commission which shall interfere with the right of free
speech by means of radio communication.

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Il. THE DISTRICT COURT DECISION.

In this case plaintiffs mounted a frontal assault on
the manner in which the FCC chose to carry out its
Statutory mandate to “generally encourage the larger
and more effective use of radio in the public interest.”
47 U.S.C. § 303(g). Plaintiffs argued, inter alia, that
Chairman Wiley’s informal tactics improperly pressured
the networks and the NAB into adopting the family
viewing policy; that the FCC’s use of these tactics,
rather than formal regulation to initiate change within
the broadcast industry, violated the First Amendment
and section 326 of the Federal Communications Act;
and that the FCC in effect implemented a new “public”
policy through informal pressure, and thereby failed to
comply with the procedural requirements of the APA.

A. District Court’s Ratio Decidendi.

To encapsulate the essence of plaintiffs’ arguments
and the district court’s ratio decidendi is not easy. We
may begin by sketching briefly a holding of the Su-
preme Court in Adickes v. S. H. Kress & Co., 398 US.
144 (1970). The Court held that an action against S. H.
Kress & Co. under 42 U.S.C. § 1983 would lie if
Adickes could show that Kress had refused to serve her
“because of a state-enforced custom of segregating the
races in public restaurants.” Jd. at 162. This showing
would demonstrate a denial of equal protection under
the color of a custom of the state. A private defendant
in this manner became a participant in joint activity
with the state and was thus liable under 42 U.S.C.
§ 1983.

This analytic structure was employed by the court
below. It first enunciated the bedrock principle that the
right and duty to make independent decisions regarding
access to the television screen rests with the “hundreds

#*%

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of different licensees.” 423 F. Supp. at 1134. The
principle is elaborated in the following quotation from
the district court’s opinion:

“The right and duty to make independent and final
decisions as to who shall and who shall not get
access to the media resides not with the networks
(except in their capacity as owners of local sta-
tions), not with the NAB, not with the FCC, not
with the screen writers, directors or actors, not with
Norman Lear or Tandem Productions and not with
this or any other court. The constitutionality of the
broadcasting system depends on the conclusion
that the right and duty to make these decisions
reside in hundreds of different licensees.” Jd.

The district court next concluded that government
pressure substantially caused the adoption of the family
viewing policy which deprived the individual licensees
of their right and duty to make independent decisions.
This deprivation violated the First Amendment. Gov-
ernmental action exists because of governmental pres-
sure which, as the district court saw it, functioned here
as did state-enforced custom in Adickes. Because the
government pressure was that of the FCC, an agency of
the United States, the district court then fashioned a
cause of action for damages against the private defend-
ants based on Bivens v. Six Unknown Federal Narcotics
Agents, 403 U.S. 388 (1971). Bivens to this case
became what 42 U.S.C. § 1983 was to Adickes. The
similarity of this case to Adickes thereby appears close.
The liability of private parties for constitutional viola-
tions induced by governmental pressure, in Adickes
derived from custom and here from jawboning, follows
easily from modes of relief designed to provide a
remedy for deprivations of constitutional rights. The
finding of a violation of the APA by the FCC also
follows naturally.

ee Rn ne ae ee ae

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The validity of the district court’s analysis
fundamentally depends upon whether its bedrock prin-
ciple is correct and whether its finding of causation is
sound. We are not as certain as the district court was.
For this reason, as well as for certain more specialized
reasons to be developed below, we believe that primary
jurisdiction to consider plaintiffs’ challenges rests with
the Commission. Before turning to our discussion of
primary jurisdiction we should point out that the district
court’s holdings on the liability issues presented in the
case are set forth briefly in Appendix B; this restatement
of the holdings can only provide a glimpse of the district
court’s reasoning, the full force of which only a reading
of the opinion below can provide. We shall set forth the
court’s holdings on the jurisdictional issues in the fol-
lowing paragraphs. Nevertheless, perusal of Appendix
B should, when taken with the discussion that follows,
illustrate the extent to which the district court thrust
itself into the “delicately balanced system of (broad-
cast) regulation.” Columbia Broadcasting System, Inc.
v. Democratic National Committee, 412 U.S. 94, 102
(1973) (CBS v. DNC).

B. Jurisdictional Issues.

The disposition by the district court of defendants’
jurisdictional arguments was consistent with, and in-
separable from, its holdings on liability. At the outset
the district court rejected defendants’ contentions that
under the existing broadcast regulatory scheme, plain-
tiffs’ First Amendment and APA challenges to the FCC
actions should have been pursued initially before the
agency, and thereafter on review to a court of appeals.
The court acknowledged that the statutory review
procedure set out in 47 U.S.C. §§ 402(a), 405 and 28
U.S.C. § 2342 was “fashioned. . . to take advantage of
the Commission’s expertise and to foster a unified
approach to the development of communications law,”

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and is the “established, routine ... method of
challenging orders, decisions, reports, and other actions
of the Commission.” 423 F. Supp. at 1075-76. Never-
theless, the court concluded that this statutory route did
not provide the exclusive avenue of relief for plaintiffs
because: (1) the FCC actions complained of did not
occur in any “proceeding” as that term is used in 47
U.S.C. § 405; hence, plaintiffs were not obligated to file
a petition for rehearing with the Commission prior to
seeking judicial review, 423 F. Supp. at 1075-78; (2)
the FCC actions complained of did not constitute
“orders” within the meaning of 47 U.S.C. § 402(a) or
28 U.S.C. § 2342, which grants exclusive jurisdiction to
a court of appeals, because the actions did not result in
a “formal agency mandate issued at the culmination of
some regular agency proceeding,” 423 F. Supp. at 1079-
80; (3) the FCC actions complained of did amount to
“agency action” within the meaning of 5 U.S.C.
§§ 551(13), 702, and 703, for which judicial review in
the district courts was available unless the doctrine of
exhaustion of administrative remedies was applicable,
423 F. Supp. at 1085-86 & n.24; aiid (4) plaintiffs’
constitutional claims were reviewable in the district
court when the FCC actions complained of did not
amount to final orders reviewable in a court of appeals,
the doctrine of exhaustion of administrative remedies
was inapplicable, and the FCC lacked the power to
award damages for the alleged violations. Jd. at
1086-89.

The court further acknowledged that “the existence
of serious constitutional issues may be a factor encour-
aging exhaustion [of administrative remedies] in cir-
cumstances where the necessity of deciding such issues
may be obviated by an administrative grant of relief on
non-constitutional grounds,” and that “orderly adminis-
trative procedures may [not] be bypassed automati-
cally merely because the plaintiff claims that a particu-

A-16
lar administrative action is unconstitutional or otherwise
in excess of its statutory powers.” Jd. at 1082, 1083
n.21. The court nonetheless rejected defendants’ con-
tention that plaintiffs had not exhausted their adminis-
trative remedies prior to instituting these actions in the
district court. Exhaustion was unnecessary, the court
concluded, because: (1) the FCC was “palpably with-
Out jurisdiction to interfere with broadcaster decision-
making in the manner complained of,” (the bedrock
principle once more), id. at 1083; (2) the FCC was
biased and had already prejudged the issues, so that
resort to the Commission would be futile, id. at 1081-82;
(3) the FCC had imposed an immediate burden on the
exercise of important rights, id. at 1082; and (4) the
FCC lacked the power to provide plaintiffs an adequate
remedy, since it lacked the power to award damages, id.
at 1088. As shall appear below, we have strong
reservations about the validity of the first three reasons.

Finally, the court addressed defendants’ contention
that the doctrine of primary jurisdiction obligated the
court to refer plaintiffs’ claims to the FCC for an initial
determination. The court earlier had concluded that the
FCC was the “primary and exclusive forum” for in-
itiating complaints based upon alleged FCC violations
of section 326 of the Federal Communications Act
because the Act did not give rise to a private cause of
action and dismissed plaintiffs’ claim based thereon.
423 F. Supp. at 1084. As to plaintiffs’ First Amendment
and APA claims, however, the court stated that: (1)
“nothing would be served by having the FCC determine
the factual questions surrounding the adoption of the
family viewing policy,” id. at 1090, even though the
FCC possessed “recognized expertise in balancing the
delicate First Amendment considerations involved in
the television industry,” id.; (2) “the First Amendment
legal questions raised either involve no special FCC

A-17

expertise (e.g., state action and remedies) or are not in
controversy (e.g., the lack of FCC power to censor
protected material), id.; and (3) the issues involved in
the case “are simply not the kind of questions which
need ‘be considered by the Commission in the interests
of a uniform and expert administration of the regulatory
scheme,’ ” id. (quoting United States v. Western Pacific
Railroad, 352 U.S. 59, 65 (1956)). We strongly
disagree with each of these conclusions with respect to
the First Amendment and APA claims.

Ill. PRIMARY JURISDICTION.

The district court’s findings of fact and conclusions
of law on the liability issues, see Appendix B, make
clear that it believed the FCC not only acted in en
unconstitutional manner but also disregarded the
requirements of the APA as well. That is, it achieved an
improper goal in an improper manner. The court’s
conclusions strike at the very core of the pervasive issue
concerning the scope of the FCC’s power in regulating
broadcasting and put at issue a technique of governing,
viz., jawboning, that under one name or another has
long been in use in government generally.

These are serious issues; yet both pertain to matters
of great concern to the FCC and with respect to which it
has special competence. Perhaps the district court is
right and our reservations with respect to its fundamen-
tal holdings are without substance. Nonetheless, we
cannot believe that the ultimate judicial resolution of
these issues will not be aided by the FCC’s thorough
consideration of them. Then, and only then, should
courts step with even modest confidence into these
sensitive and difficult areas.

We acknowledge that were we able to accept as
correct beyond challenge the district court’s bedrock
principle we would perceive less need of deference to
the FCC’s primary jurisdiction. However, the licensees

A-18

are to a degree trustees for the benefit of the public and
subject to reasonable regulations having as a goal a
regime of law “compatible with the First Amendment
rights of the public and the licensees.” CBS v. DNC,
412 US. at 132 (1973). In the conflict of interests
within the television industry between licensees, net-
works, broadcasters, writers, actors, producers, and the
public, it must be remembered that the Commv-
nications Act makes the interests of the public para-
mount. Id. at 122. In CBS v. DNC, the Supreme Court
emphasized that the present system of broadcast regu-
lation strikes a balance between private and public
control of the broadcast spectrum.

Balancing the various First Amendment inter-
ests involved in the broadcast media and determin-
ing what best serves the public’s right to be in-
formed is a task of great delicacy and difficulty.
The process must necessarily be undertaken within
the framework of the regulatory scheme that has
evolved over the course of the past half-century.
For, during that time, Congress and its chosen
regulatory agency have established a delicately
balanced system of a — to serve the
interests of all concerned. .

The regulatory scheme evolved slowly, but
very early the licensee’s role developed in terms of
a “public trustee” charged with the duty of fairly
and impartially informing the public audience. In
this structure the Commission acts in essence as an
“overseer,” but the initial and primary responsi-
bility . . . rests with the licensee. This role of the
Government as an “overseer” and ultimate arbiter
and guardian of the public interest and the role of
the licensee as a journalistic “free agent” call for a
delicate balancing of competing interests. The
maintenance of this balance for more than 40 years

A-19

has called on both the regulators and the licensees
to walk a “tightrope” to preserve the First Amend-
ment values written into the Radio Act, and its
successor, the Communications Act.

Id. at 102, 117.

Invocation of the primary jurisdiction doctrine pro-
vides a needed opportunity to obtain an explicit and
well articulated determination by the FCC of whether
its actions under Chairman Wiley properly walked the
“tightrope.” The classic statement of the principle
underlying the primary jurisdiction doctrine was stated
by Mr. Justice Frankfurter in Far East Conference v.
United States, 342 U.S. 570, 574-75 (1952):

Uniformity and consistency in the regulation of
business entrusted to a particular agency are se-
cured, and the limited functions of review by the
judiciary are more rationally exercised, by prelimi-
nary resort for ascertaining and interpreting the
circumstances underlying legal issues to agencies
that are better equipped than courts by special-
ization by insight gained through experience, and
by more flexible procedure.

Although the doctrines of primary jurisdiction and
exhaustion of administrative remedies serve cognate
ends, Western Pacific Railroad, supra, distinguishes
them in the following manner:

“Exhaustion” applies where a claim is cognizable
in the first instance by an administrative agency
alone; judicial interference is withheld until the
administrative process has run its course. “Primary
jurisdiction,” on the other hand, applies where a
claim is originally cognizable in the courts, and
comes into play whenever enforcement of the claim
requires the resolution of issues which, under a
regulatory scheme, have been placed within the

A-20

special competence of an administrative body; in
such a case the judicial process is suspended pend-
ing referral of such issues to the administrative
body for its views. General American Tank Car
Corp. v. El Dorado Terminal Co., 308 U.S. 422,
433.

Western Pacific Railroad, supra, 352, U.S. at 63-64.
Thus, even if our reservations regarding the district
court’s refusal to find that the plaintiffs had failed to
exhaust available administrative remedies are unsound,
we are convinced that primary jurisdiction in this
proceeding belongs in the FCC.

Our conclusion, although firm and fixed, is reached
in full realization of the considerable force of the district
court’s contrary view. That view rests on assertions that
(1) the position of the FCC was already clear, (2) the
views of the FCC could be presented in this case as well
as in a formal administrative proceeding, (3) the FCC
possessed no special expertise in formulating “a theory
of governmental action under the First Amendment or
[fashioning] appropriate remedies,” 423 F. Supp. at
1091, and (4) the FCC cannot adjudicate a charge of
“serious misconduct” involving itself and its Chairman,
id.

The first of these propositions overstates the facts,
while the second ignores the ordinary constraints im-
posed as a result of being a party to litigation. The
position of the FCC in this lawsuit is clear enough and
the activities of Chairman Wiley are beyond dispute. It
is not known, however, what the Position of the FCC
would have been, or in the future will be, when
confronted by the plaintiffs’ claims in a proper adminis-
trative proceeding. Such a proceeding will make pos-
sible a range of responses by the FCC that are either
foreclosed or made tactically difficult in the setting of
this lawsuit as it developed in the trial court. Children

A-21

shortly after leaving the cradle understand the differ-
ence between being forced to defend against a charge of
naughtiness and being asked to consider whether they
thought they had been nice. In the latter posture their
response is much more likely to be open and forth-
coming. Human psychology does not change too much
between the cradle and the grave.

As to the third proposition, we simply have less
confidence in the district court’s bedrock principle ‘han
it does. Enough has already been said to indicate that
there presently exist constraints on the right of individ-
ual licensees to present on the air such matters as they
wish. Well known are the ramifications of the Fairness
Doctrine, Red Lion Broadcasting Co. v. FCC, 395 US.
367 (1969), the Commission’s rules regarding cigarette
advertising, Banzhaf v. FCC, 405 F.2d 1082 (D.C. Cir.
1968), and the Commission’s position with respect to
indecent language, FCC v. Pacifica Foundation, 438
U.S. 726 (1978). It simply is not true that the First
Amendment bars ail limitations of the power of the
individual licensee to determine what he will transmit to
the listening and viewing public. At issue in this case is
whether a family viewing hour imposed by the FCC
would contravene the First Amendment. This is a
considerably more narrow and precise issue than is the
district court’s bedrock principle and with respect to
which the FCC’s expertise and procedures could pro-
vide enormous assistance to the judiciary.

The district court’s fourth assertion on which it
_ rested its rejection of the primary jurisdiction doctrine
falls of its own weight once the district court’s findings
regarding liability are put in doubt. The FCC and its
Chairman engaged in “serious misconduct” only if the
law is as the district court found it. Weaken that
foundation and what appeared as “serious misconduct”
looks more like, at worst, jawboning of the type often

A-22

praised as effective leadership by those satisfied with its
results and condemned as unprincipled administration
by those who disapprove of those results.

Jawboning relates, of course, to the district court’s
holding that the Commission violated the APA in its use
of informal procedures in the manner described above.
The technique raises serious issues. It is not surprising
that the Commission often seeks to “chart a workable
‘middle course’ in its quest to preserve a balance
between the essential public accountability and the
desired private control of the media.” CBS v. DNC,
412 U.S. at 120. One such “middle course” has been
the tendency of the FCC to rely upon self-regulation by
the broadcast industry to promote the public interest, a
practice that has possibly had the salutary effect of
diminishing the need for formal governmental inter-
vention and regulation. See, e.g., ACT, supra. More-
over, reliance upon self-regulation no doubt has re-
lieved both the FCC and the industry of the need to
confront the dilemma of delineating the precise extent
of the agency’s formal regulatory authority in various
areas. Hence, informal discussions between the Com-
mission and members of the industry that lead to self-
regulation constitute but one aspect of the ongoing
effort by both the government and the licensees to
negotiate the regulatory “tightrope” on which they
confront one another. See CBS v. DNC, 412 US. at
117.

We acknowledge that informal procedures permit
the FCC to exercise “wide-ranging and largely uncon-
trolled administrative discretion in the review of tele-
communications programming” which can be used to
apply “sub silentio pressure” on broadcast licensees.
Bazelon, FCC Regulation of the Telecommunications

A-23

Press, 1975 Duke L. J. 213, 215.7 Regulation through
“raised eyebrow” techniques or through forceful jaw-
boning is commonplace in the administrative context,®

7 See Illinois Citizens Committee for Broadcasting v. FCC,
F.2d 397, 407-10, 425 (D.C. Cir. 1975) (Statement of Bazelon,
C.J., concerning why he voted to grant rehearing en banc); Yale
Broadcasting Co. v. FCC, 478 F.2d 594, 603 (D.C. Cir.) (State-
ment of Bazelon, C.J., concerning why he would grant rehearing en
banc, sua sponte), cert. denied, 414 U.S. 914 (1973); Brandywine-
Main Line Radio, Inc. v. FCC, 473 F.2d 16, 77 n.60 (D.C. Cir.
1972) (Bazelon, C.J., dissenting), cert. denied, 412 U.S. 922
(1973); Robinson, The FCC and the First Amendment: Observa-
tions on 40 Years of Radio and Television Regulation, 52 Minn. L.
Rev. 67, 118-27 (1967).

8 See, e.g., United Steelworkers v. Weber, 99 S. Ct. 2721,
2737-38 & n.2 (1979) (Rehnquist, J., dissenting) (affirmative
action plan adopted under pressure from Office of Federal Contract
Compliance Programs); ACT, supra, 564 F.2d at 473 n.27 (FCC
jawboning to induce self-regulation in children’s programming
area); Hercules, Inc. v. FPC, 552 F.2d 74, 77-78 (3d Cir. 1977)
(FPC jawboning to establish pipeline curtailment priorities in
accordance with FPC policy when FPC lacked power to impose
own curtailment plans without prior notice and hearing ); Consoli-
dated Edison Co. v. FPC, 512 F.2d 1332, 1341 (D.C. Cir. 1975)
(“Regulation through ‘raised eyebrow’ techniques seems inherent
in the structure of most administrative agencies, combining as they
do both policy-making and adjudicative functions.”); Consumers
Union of U.S., Inc. v. Kissinger, 506 F.2d 136, 143 (D.C. Cir.
1974), cert. denied, 421 U.S. 1004 (1975) (Executive Department
efforts to reduce steel imports via “voluntary imports restraints.”’)
(“[N ]Jothing in the process leading up to the voluntary under-
takings or the process of consultation under them differentiates
what the Executive has done here from what all Presidents, and to
a lesser extent all high executive officers, do when they admonish
an industry with an express or implicit warning that action, within
either their existing powers or enlarged powers to be sought, will be
taken if a desired course is not followed voluntarily.”) See also
AFL-CIO v. Kahn, No. 79-1564 (D.C. Cir. June 22, 1979), cert.
denied, 99 S. Ct. 3107 (1979) (“Voluntary” wage-price program
not “mandatory” economic control within meaning of § 3(b) of
Council on Wage and Price Stability Act. )

A-24

and in some instances may fairly be characterized, as it
was by the district court in this case, as official action by
the agency.9

While we agree that the use of these techniques by
the FCC presents serious issues involving the Con-
stitution, the Communications Act, and the APA,1° we
nevertheless believe that the district court should not
have thrust itself so hastily into the delicately balanced
System of broadcast regulation. Because the “line
between permissible regulatory activity and impermis-
sible ‘raised eyebrow’ harassment of vulnerable licens-
ees” is so exceedingly vague, Bazelon, supra, 1975 Duke
L. J. at 217, it is important that judicial attempts to
control these techniques be sensitive to “the particular
regulatory context in which it occurs, the interests
affected by it, and the potential for abuse.” Consoli-
dated Edison Co. v. FPC, 512 F.2d 1332, 1341 (D.C.
Cir. 1975) (footnote omitted). The development of
standards governing the agency’s use of informal meth-
ods to influence broadcast industry policy is an issue
“that should be dealt with in the first instance by those
especially familiar with the customs and practices of the
industry.” Ricci v. Chicago Mercantile Exchange, 409
US. 289, 305 (1973). See also CBS v. DNC, supra, 412
U.S. at 102-03. Deferral to the FCC is, we believe,

®“The Commission approved of his activities before the fact,
permitted him to engage in activities which they knew would be
perceived as regulatory moves by the agency, were regularly kept
abreast of the developments, and provided input into the “
423 F. Supp. at 1122. See id. at 1077 n.13, 1120-23, 1130. But see
Illinois Citizens Committee for Broadcasting, supra, 515 F.2d at
402 (speech by FCC Chairman Burch not “agency action.”)

‘© Courts are becoming increasingly more sensitive both to the
innuendo inherent in the relationship between regulators and
regulatees as well as to the need to formulate appropriate limits on
ex parte contacts between an agency and those whom it is
to regulate. See generally Home Box Office, Inc. v. FCC, 567 F.2d
9, 51-59 (D.C. Cir. 1977); ACT supra, 564 F.2d at 468-78; Moss v.
Civil Aeronautics Board, 430 F.2d 891, 897-902 (D.C. Cir. 1970).

°F

A-25

essential to further the purposes of the delicately bal-
anced system of broadcast regulation. See L. Jaffe,
Judicial Control of Administrative Action, 158-59
(1965); Note, Jurisdiction to Review Federal Adminis-
trative Action: District Court or Court of Appeals, 88
Harv. L. Rev. 980, 984 (1975). Hence, primary
jurisdiction over plaintiffs’ challenges to the official
agency action complained of in this case as a violation
of the APA rests with the FCC.

In conclusion, we think it appropriate to note our
support for the following views expressed by the District
of Columbia Circuit Court in ACT, another case in
which FCC jawboning activities were involved:

The Commission, as the expert agency entrusted by
Congress with the administration and regulation of
the crucial, dynamic communications field, requires
and deserves some latitude in carrying out its
substantial responsibilities. It may not be the sole
guardian of the public’s interest in broad-
casting—licensees, the courts and the general pub-
lic in varying ways share responsibility with it for
defining and advancing that interest—but, in the
formulation of broadcast policy, the Commission
nevertheless must continue to play a leading role.

If our relationship with the Commission and
other federal agencies is to remain a partnership,
we may not succumb to the temptation of casting
ourselves in the unsuited role of primus inter pares.

564 F.2d at 482.

Accordingly, we vacate the judgment of the district
court and remand with instructions to refer plaintiffs’
claims against the government defendants to the FCC,
and to hold in abeyance plaintiffs’ claims against the
private defendants pending resolution and judicial re-
view of the administrative proceedings before the FCC.

Vacated and Remanded.

A-26
APPENDIX A

The following paragraphs provide a reasonably
complete chronological account of the major events, as
established by the district court, 423 F. Supp. at 1092-
1128, that occurred prior to the formal adoption by the
NAB of the family viewing policy. :

Chairman Wiley’s initiative began October 10,
1974, when he delivered a speech to the Illinois Broad-
casters Association in which he focused on “the question
of violence and obscenity on television—particularly as
to the effect of such presentations on our children.11 He
reminded the broadcasters of their “public account-
ability” and “special” responsibilities as licensees, stat-
ing that “[i]f self-regulation does not work, govern-
mental action to protect the public may be re-
quired—whether you like it or whether I like it.” He
emphasized that the issue of sex and violence on
television was on the “front-burner of a rather ‘well-
heated’ Chairman’s desk at the FCC,” and called for
broadcasters to employ “intelligent scheduling, appro-
priate warnings, and perhaps, even some kind of
industry-administered rating program. ...” Chair-
man Wiley referred to an earlier speech that he had
given in Atlanta in which he had advocated fewer
commercials during children’s television programming,

Earlier, in August 1974, Lawrence Secrest, Legal and
Administrative Assistant to Chairman Wiley, delivered a written
proposal to the NAB’s general counsel, requesting the NAB to
strengthen its position on televised violence by reinstating language
that earlier had appeared in the NAB Television Code. The NAB
Television Code Review Board considered the proposal at its
October 1-2, 1974 meeting, and rejected it. Although the topic of
televised violence was discussed at the meeting, the district court
characterized this meeting as “part of the continuing dialogue
about the question of television programming,” rather than as part
of Chairman Wiley’s initiative to the networks and the NAB. 423
F. Supp. at 1096.

Wak

A-27

applauded the industry amendments to the Television
Code that had occurred after that speech, and stated
that he was “optimistic that the combined effect of
government encouragement and enlightened self-
regulation will bring about constructive change in this
very important aspect of public service.”

On November 7, 1974, Chairman Wiley made the
first of several personal lobbying efforts when he and
members of his staff met with the Washington vice
presidents of ABC, CBS, and NBC. He emphasized the
need for action to reduce violent and sex-related
programming on television, and proposed, inter alia,
that each network issue a policy statement setting forth
its position on televised violence and obscenity, that the
stated policies include a provision for cautionary warn-
ings to be televised whenever a program posed a
problem, and that programs for which warnings were
needed be scheduled for viewing later in the evening.

A second meeting occurred on November 22, 1974,
when Chairman Wiley and FCC staff members met for
two hours in the Chairman’s office with the presidents of
the networks and other network executives. Chairman
Wiley directed attention to the existence of a serious
problem concerning “ ‘undue violence’ and ‘fairly ex-
plicit’ sexual material” on television. He again stressed
the importance of confining shows that might prove
harmful to children to the later evening hours and the
desirability of providing warnings before showing
particularly sensitive material. He reemphasized the
need for some action in this area, indicating that the
Commission was reluctant for legal and policy reasons
to promulgate specific programming rules. He sug-
gested that the networks issue a joint policy statement
on the subject of televised sex and violence, and that the
NAB express a new position in its Television Code.
Arthur Taylor, the President of CBS, made it clear that

A-28

he thought an industry-wide solution was necessary to
deal with the problem. Chairman Wiley endorsed an
industry-wide approach and commented that industry-
wide compliance might be encouraged by including in
license renewal forms new questions on stations’ policies
regarding the scheduling of programs containing sex or
violence, or by issuing a general policy statement similar
to the one issued in the children’s television program-
ming/advertising area, outlining what was expected of
licensees regarding sex and violence, particularly when
significant numbers of children were in the audience.
The meeting concluded with the understanding that
each network would send the FCC a statement of its
current standards, that the FCC staff would meet with
network officials in charge of broadcast standards, and
that the participants in the November 22 meeting would
meet again at a later date.

On November 29, 1974, former FCC Commission-
er Nicholas Johnson, in his capacity as chairman of the
National Citizen’s Committee for Broadcasting, wrote
to Chairman Wiley asking that the Commission “afford
the National Citizens Committee for Broadcasting or
other representatives of the public the right to observe
any further negotiations between the Commission and
the television networks with respect to so-called ‘sex and
violence’ in programming.” Wiley refused, stating that
he did not believe “any useful purpose could be served
by opening these meetings to outside groups such as
your own.”

On December 10 and 11, 1974, members of the
FCC staff met separately with executives responsible for
program standards at each of the networks. In these
sessions the FCC sought to clarify its position, to
achieve an understanding of how the networks would
apply a new scheduling policy to specific programs, and
to learn more about the programming practices of the

A-29

networks. On December 17, 1974, the same FCC staff
members met with Chairman Wiley to review the
current status of the discussions with the networks. The
consensus of the group was that the networks had the
idea that ary further move by the Commission would
appear heavy-handed, that the networks knew of the
approaching December 31 deadline for the FCC’s
report to Congress, and that no “reminder” of the
urgency of the situation was necessary. In view of the
ongoing industry effort to deal with the problems, Wiley
requested and received a postponement of the deadline
for submitting the FCC report to Congress from Decem-
ber 31, 1974 to February 15, 1975.

On December 30, 1974, Arthur Taylor, president of
CBS, sent a letter to Wayne Kearl, chairman of the
NAB Television Code Review Board, in which CBS
proposed that the NAB Code be amended to reflect the
principle that “[p]rogramming in the first hour of the
network prime-time schedule should be suitable for
family viewing.” On the same day, the CBS proposal
was released publicly and NBC issued a press release
Stating that its current schedule “reflects the policy of
opening its prime time programming with series suitable
for family viewing . . . NBC intends to continue this
policy, whether or not the NAB Code is amended to
include a provision along these lines.” On January 2 or
3 NBC issued another press release, dated January 5,
1975, in which it announced that it “plan[ned] to
devote the first hour of its prime time network schedule
to programmu: ¢ suitable for general family viewing.”

On January 7, 1975, the NAB Television Code
Review Board met in a special session requested by
CBS, to consider the CBS proposal for a “family
viewing hour.” The Board took no formal action on
the proposal but instead passed a resolution directing
the Program Standards Committee to “review and to

A-30

make recommendations affecting (1) principles relating
to the scheduling of programs in early evening prime-
time periods and (2) the use of suitable advisory
legends as to the nature of program content.” The
group “agreed” that the resolution “[did] not commit
the Program Standards Committee to recommend any
specific action.” The Committee was obligated only to
present a report to the Television Code Review Board
during the NAB convention in April 1975.

On January 8, 1975, ABC announced that “the first
hour of each night of its prime time network entertain-
ment schedule will be devoted to programming suitable
for general family audiences starting with the new
television season in the fall of 1975.” ABC’s announce-
ment also contained the following statement:

We wish to emphasize the necessity to preserve the
basic rights of freedom of expression under the
Constitution and under the Communications Act.
Government action in the area of program content
must be both cautious and carefully limited lest we
do permanent damage to the principles of free
expression which are so fundamental to our society.
All Americans recognize, we are sure, that these are
sensitive and fragile concepts. Accordingly, ABC
strongly supports the concept of self-regulation.

On January 9, 1975, Chairman Wiley and the FCC
staff met again with the participants in the November
22 meeting. The President of the NAB and the Senior
Executive Vice President for Governmental Relations of
the NAB attended the meeting as well, by invitation of
Chairman Wiley. He sought to facilitate an expeditious
adoption of the family viewing policy, to clarify various
aspects of the policy, and to encourage extension of the
policy to the first two hours of prime time programming.
He also inquired whether it would be possible to secure

A-31

NAB Board approval of the proposal prior to the April
convention, given that the FCC had to report to Con-
gress in mid-February.

On January 15, 1975, the NAB Television Board of
Directors met and passed a resolution which provided
in part that:

The Television Board of Directors of the NAB
commends the three television networks for their
individual actions with respect to programming in
the initial hour of network prime time. At the
same time, mindful of the keen interest in the
subject, the Board recommends that the Television
Code Review Board direct its Program Standards
Committee to expedite as much as possible its
review and recommendations affecting (1) prin-
ciples relating to the scheduling of programs in
early evening prime time periods, and (2) the use
of suitable advisory legends as to the nature of
program content... .

The Board requests the Television Code Review
Board to meet on or before February 15, 1975, to
consider these recommendations.

The Program Standards Committee of the Code Review
Board subsequently met on January 28, 1975, to consid-
er what role the NAB should assume concerning the
family viewing policy, and passed the following resolu-
tion:

Because constructive proposals were proffered as to
the approach to be taken by the Television Code
Review Board in response to the NAB Television
Board of Directors’ resolution, the Program Stan-
dards Committee recommends that the same be
presented to the full Television Code Review Board
for its review and resolution.

A-32

The Television Code Review Board met on Feb-
ruary 4, 1975, and adopted the following statement as a
proposed amendment to the NAB Television Code:

Additionally, entertainment programming
inappropriate for viewing by a general family
audience should not be broadcast during the first
hour of network entertainment programming in
prime time and in the immediately preceding hour.
In the occasional case when an entertainment
program in this time period is deemed to be
inappropriate for such an audience, advisories
should be used to alert viewers. Advisories should
also be used when programs in later prime time
periods contain material that might be disturbing
to significant segments of the audience.

These advisories should be presented in the
audio and video form at the beginning of the
program and when deemed appropriate at a later
point in the program. Advisories should also be
used responsibly in the promotion material in
advance of the program. When using an advisory,
the broadcaster should attempt to notify publishers
of television program listings.

On February 10, 1975, Chairman Wiley addressed
the National Association of Television Program Execu-
tives and emphasized that “the question of what is
appropriate for family viewing necessarily must be
judged in highly subjective terms” and that “the lack of
an acceptable objective standard is one of the best
reasons why—the Constitution aside—I feel that self-
regulation is to be preferred over the adoption of
inflexible governmental rules.” Wiley spoke out again
on February 13, 1975 in a speech before the Radio and
Television Commission of the Southern Baptist Con-
vention:

A-33

A number of interested citizens and some members
of Congress contend that the problem of violence
on television is so serious as to warrant some
remedial action by the Federal Communications
Commission. While I understand and share such
concern, I cannot agree that specific governmental
regulation in this highly sensitive First Amendment
area would be desirable at the present time. In-
stead, my view has been that the FCC—in the
discharge of its public interest responsibilities and
consistent with its authority under the Commu-
nications Act—can play a constructive role at this
point by focusing increased industry attention on
the issue and by encouraging the consideration of
self-regulatory reforms... .

Recent events make it appear that our initiative has
been successful and that the broadcast industry
intends to regulate itself in order to obviate the
need or demand for governmental action in this
area.

On February 19, 1975, the FCC submitted its
Report to Congress. See Report on the Broadcast of
Violent, Indecent, and Obscene Material, 51 FCC.2d 418
(1975). The Report recounted the longstanding public
and congressional concern with the effects of television
on young people, mentioned the growing number of
complaints about violent and sexually-oriented pro-
grams filed with the Commission, and noted the receipt
of various petitions to deny broadcast license renewals
as well as petitions for rulemaking in the area of
televised violence. Jd. at 418-19. The FCC Report
reiterated the theme emphasized by Chairman Wiley
throughout the previous five months, i.e., that industry
self-regulation was preferable to formal governmental
action is this area.

A-34

With respect to the . . . question of what is appre-
priate for viewing by children, the Commission is of
the view that industry self-regulation is preferable
to the adoption of rigid governmental standards.
We believe that this is the case for two principal
reasons: (1) the adoption of rules might involve
the government too deeply in programming con-
tent, raising serious constitutional questions, and
(2) judgments concerning the suitability of particu-
lar types of programs for children are highly
subjective. As a practical matter, it would be
difficult to construct rules which would take imto
account all of the subjective considerations in-
volved in making such judgments. We are con-
cerned that an attempt at drafting such rules could
lead to extreme results which would be unaccept-
able table to the American public.

Id. at 419.

Regulatory action to limit violent and
sexually-oriented programming which is neither
obscene nor indecent is less desirable than effective
self-regulation, since government-imposed limita-
tions raise sensitive First Amendment problems. In
addition, any rule making in these areas would
require finding an appropriate balance between the
need to protect children from harmful material and
the adult audience’s interest in diverse program-
ming. Government rules could create the risk of
improper governmental interference in sensitive,
subjective decisions about programming, could
tend to freeze present standards and could also
discourage creative developments in the medium.

Id. at 420.
The Report then outlined the actions taken by

Chairman Wiley in his attempt to “serve as a catalyst
for the achievement of meaningful self-regulation.” Jd.

A-35

After noting the publication of network policy state-
ments concerning program guidelines and the adoption
of the proposed amendment to the NAB Television
Code, the Report concluded that:

This new commitment suggests that the broadcast
industry is prepared to regulate itself in a fashion
that will obviate any need for governmental action
in this sensitive area... .

[ W Je believe the new guidelines represent a major
accomplishment for industry self-regulation, and
we are optimistic that these principles will be
applied in a responsible manner which will be
acceptable to the American people.

Id. at 422, 424.

On March 24, 1975, Chairman Wiley and members
of his staff met with the President of the Association of
Independeat Television Stations (INTV) to discuss the
application of the family viewing policy to independent
stations.’ One of the primary topics of concern to the
independent stations was the fact that many stations
had long-term contractual obligations to broadcast
programs which probably could not meet the Code
Review Board’s proposed requirements.

On April 8, 1975, the NAB Television Board of
Directors formally adopted the family viewing policy as
an amendment to the Television Code. 13

12 The Commission had indicated in its Report to Congress
that it intended to discuss the family viewing policy with INTV
representatives. 51 FCC.2d at 422 n.11.

'3The Board also approved an amendment designed to
. minimize the contract problems of the independent stations, as well
as a general clause which cautioned against the exploitative use of

program warnings.

A-36

APPENDIX B

In its discussion of the liability issues presented in
the case, the district court reached the following con-
clusions which also rest on the bedrock principle al-
ready referred to.

1. Individual broadcast licensees have both
the right and the duty to exercise independent
judgment about. what constitutes programming in
the public interest. Jd. at 1072.

2. The FCC improperly interfered with the
broadcasters’ right/obligation to engage in inde-
pendent decisionmaking. Jd. at 1072-73.

3. The FCC violated the First Amendment by
threatening the possibility of regulatory action
should the broadcast industry not adopt the family
viewing policy. Jd. at 1073, 1094, 1142, 1146-51,
1161.

a. The FCC may offer suggestions when
it believes that it has information or ideas
which broadcasters may wish to consider in
making their independent determination con-
cerning what programming is in the public
interest. Jd. at 1150.

b. The FCC has no right, however, to
accompany its suggestions with vague or ex-
plicit threats of regulatory action should
broadcasters consider and reject the Commis-
sion’s suggestions. Jd. at 1146, 1150, 1161.

c. The FCC has no right to demand or
secure commitments from broadcasters that its
suggestions be accepted. Jd. at 1150.

d. The FCC has no right to launch
orchestrated campaigns to pressure broad-
casters to do what they do not wish to do. Jd.

A-37

e. When the FCC makes recommenda-
tions in areas where the power to regulate
formally is questionable, the FCC must avoid
any appearance or suggestion of pressure. Id.

f. FCC suggestions not accompanied by
clear and unequivocal denials of an intent to
regulate give the appearance of threats. The
Commission and its representatives must avoid
the appearance of impropriety. Jd. at 1157.

g- The meetings between Chairman
Wiley and the industry representatives were
“extraordinary, unnecessary to achieve an
objective of merely making suggestions, sure
to generate undue pressure and to create an
appearance of impropriety, and strongly in-
dicative of an FCC intent to compromise
broadcaster decisionmaking.” Id.

h. Although the FCC may be able to
develop constitutional regulations which deal
with the questions of violence or of program-
ming for children in the early evening hours,
the Commission has no authority to use the
licensing process to control the depiction of
violence or the presentation of adult material
on television unless it first enacts valid regu-
lations giving fair notice to licensees. Jd. at
1073, 1149-50, 1155, 1161.

4. The FCC violated the APA by using

informal pressure to negotiate new public policy
without providing public notice and without
affording any opportunity for interested parties to
be heard. Jd. at 1151-53, 1157, 1162.

a. The FCC here circumvented APA
requirements by negotiating public policy be-
hind closed doors. Jd. at 1152.

A-38

b. Because the FCC acted in the exercise
of its quasi-legislative powers while jawbon-
ing, it was obligated to comply with the
requirements of 5 U.S.C. § 553. Jd. at 1151.

c. Official FCC endorsements of and
recommendations for change in industry pol-
icy must be made in compliance with APA
procedures. Jd. at 1157.

5. Broadcasters are free to adopt a policy such
as the family viewing policy even if the source of
the idea is governmental, and even if governmental
Officials have encouraged the policy, provided that
their adoption of the policy is based on their own
independent judgment that the policy promotes the
public interest. Jd. at 1072, 1130-40.

6. Broadcasters are not free, however, to
program on any basis other than their own inde-
pendent judgment about what constitutes good
programming. Nor may they interfere with the
independent decisionmaking of other broadcasters
by seeking to impose a policy on another broadcast
licensee. Jd. at 1072, 1131, 1143. Broadcasters
who fail to exercise independent program judg-
ments and who become surrogates in the enforce-
ment of government policy violate the First
Amendment. Jd. at 1073, 1140-43.

7. The actions of the networks and the NAB
constituted “governmental action” for purposes of
the First Amendment both because adoption of the
family viewing policy had been caused substan-
tially by FCC pressure and because the networks,
the NAB, and the FCC participated in an
“unprecedented joint venture” to compromise
tiie independent judgments of other broadcast li-
ce,sees. Jd. at 1094, 1140-46.

A-39

8. The networks and the NAB violated the
First Amendment by “‘fail[ing] to exercise inde-
pendent program judgments and instead be-
com|[ing] surrogates in the enforcement of govern-
ment policy” and by agreeing to compromise the
independent programming judgments of individual
licensees. Jd. at 1073, 1140-46, 1154-55, 1161.

a. The adoption of the family viewing
policy by each of the networks violated the
First Amendment. Jd. at 1143-46, 1161.

b. The adoption of the family viewing
policy by the NAB violated the First Amend-
ment. Id.

c. NAB attempts to enforce the family
viewing policy in any way would violate the
First Amendment. Id.

d. Networks are required to program
independently and may not, without violating
the First Amendment, enter into agreements
with the NAB which condition their member-
ship on adherence to the family viewing policy
or enter into any other agreements which
delegate their programming authority over
family viewing matters to the NAB. The
networks’ delegation of that authority in this
case violated the First Amendment. Jd. at
1154, 1161.

e. The private defendants are liable for
any financial damage which Tandem suffered
as a result of the adoption of the family
viewing policy. Jd. at 1157-58, 1162.

A-40

WRITERS GUILD OF AMERICA, WEST, INC.,
a corporation, et al., Plaintiffs,

Vv.

FEDERAL COMMUNICATIONS COMMISSION,
et al., Defendants.

TANDEM PRODUCTIONS, INC.,
a corporation, Plaintiff,

V.

COLUMBIA BROADCASTING SYSTEM, INC.,
a corporation, et al., Defendants.

Nos. CV 75-3641-F, CV 75-3710-F.

United States District Court,
C. D. California.

Nov. 4, 1976.

7

A-41

MEMORANDUM OPINION
FERGUSON, District Judge.

INTRODUCTION

More than half a century ago, Secretary of Com-
merce Herbert Hoover warned that, “We cannot allow
any single person or group to place themselves in a
position where they can censor the material which shall
be broadcast to the public, nor do I believe that the
government should ever be placed in a position of
censoring this material.”’ The plaintiffs in this case
have exposed a joint agreement on the part of the three
major television networks, the Federal Communications
Commission (“FCC”), and the National Association of
Broadcasters (““NAB”’) to permit one group—the NAB
Television Code Review Board—to act as a national
board of censors for American television. The plaintiffs
have evidenced a successful attempt by the FCC to
pressure the networks and the NAB into adopting a
programming policy they did not wish to adopt. The
plaintiffs have proven that the FCC formulated and
imposed new industry policy without giving the public
its right to notice and its right to be heard.

The policy involved is well known. It has been
called the “family hour,” the “family viewing policy,”
the “9:00 rule,” even the “prime time censorship rule.”
Specifically, the policy is that “Entertainment program-
ming inappropriate for viewing by a general family
audience should not be broadcast during the first hour
of network entertainment programming in prime time
and in the immediately preceding hour. In the occa-
sional case when an entertainment program is deemed

1 Hearings on H.R. 7357 Before the House Committee on the
Merchant Marine and Fisheries, 68th Cong., Ist Sess. 8 (1924).

A-42

to be inappropriate for such an audience, advisories
should be used to alert viewers.” NAB, The Television
Code 2-3 (18 ed. June, 1975).

Two different lawsuits have been filed to contest
the means by which this policy was promoted by the
FCC and adopted by the networks and the NAB. The
defendants are the same in both cases: (1) The Federal
Communications Commission and Commissioners
Wiley, Hookes, Lee, Quello, Reid, Robinson and Wash-
burn [the “government defendants”]; (2) American
Broadcasting Companies, Inc. (“ABC”), CBS, Inc.
(“CBS”), National Broadcasting Company, Inc.
(“NBC”), and the National Association of Broad-
casters [the “private defendants” ]. The plaintiffs in CV
75-3641-F include the Writers Guild of America, West,
Inc., Writers Guild of America, East, Inc., Directors
Guild of America, Inc., Screen Actors Guild, Inc.,
Concept Plus II Productions, Four D Productions, Dan-
ny Arnold, Allan Burns, Samuel Denoff, Larry Gelbart,
Susan Harris, Norman Lear, William Persby, Paul Witt,
and Edwin Weinberger (hereinafter “Writers Guild”’).
The plaintiff in CV 73-3710-F is Tandem Productions,
Inc. (“Tandem”). Most of the plaintiffs are creators,
writers, and producers for television programming. The
shows in which they are involved inciude. “All In The
Family,” “Phyllis,” “The Mary Tyler Moore Show,”
“Barney Miller,” “M*A*S*H,” and “Fay.”

The Writers Guild plaintiffs charge the government
defendants with violations of the First Amendment,
section 326 of the Federal Communications Act of 1934,
and of the Administrative Procedure Act (“APA”). All
of the Writers Guild plaintiffs allege that the private
defendants have violated the First Amendment; all but
Lear charge the defendants with a violation of the
Sherman Antitrust Act. Tandem, the producer of “All
In The Family,” charges the defendants with the

A-43

same violations except that it does not include an
Administrative Procedure Act count. All plaintiffs seek
declaratory relief, injunctive relief, and attorneys’ fees.
Tandem asks for damages as well.

Much of the energy associated with this case has
been generated because the plaintiffs and defendants
disagree about the wisdom of the family viewing policy.
In the last analysis, however, this is not the family hour
case. The desirability or undesirability of the family
viewing policy is not the issue. Rather the question is
who should have the right to decide what shall and shall
not be broadcast and how and on what basis should
these decisions be made. This court will not evaluate
the family viewing policy except to say that individual
broadcast licensees have the right and the duty to
exercise independent judgment in deciding whether or
not to follow that policy. This court has nc authority to
declare an end to the family hour. At the same time,
however, neither the FCC nor the NAB has the right to
compromise the independent judgments of individual
station owner licensees. The court will formulate
remedies designed to let those with the right and the
duty to make programming decisions make them with-
out improper interference from government or other
broadcasters. If the family hour continues, it should
continue because broadcasters in their independent
judgment decide that it is desirable policy, not because
of government pressure or NAB regulation. If govern-
ment intervenes in the future to control entertainment
programming on television, it shall do so not in closed-
door negotiating sessions but in conformity with legisla-
tively mandated administrative procedures. If the
government has any power to regulate such program-
ming, it must be exercised by formal regulation sup-
ported by an appropriate administrative record, not by
informal pressure accompanied by self-serving and un-
convincing denials of responsibility. In short, the family

A-44

hour may or may not be desirable. Censorship by
government or privately created review boards cannot
be tolerated.

The legal and factual issues raised by this case and
discussed in this opinion are numerous and complicated.
Section I of this opinion deals in (etail with motions to
dismiss which were made by the defendants several
months ago. The court denied those motions—at that
time only briefly describing its reasons. Section IA
rejects the private defendants’ contention that 47 U.S.C.
§ 405 dictates that the plaintiffs are required to file a
petition for rehearing with the FCC before securing
relief and the private defendants’ alternative contention
that 47 U.S.C. § 402(a) and 28 U.S.C. § 2342 confer
exclusive jurisdiction over the subject matter of this
lawsuit to the court of appeals. Section IB rejects the
defendants’ contention that the doctrine of exhaustion
of remedies is applicable to this case. Section IC
discusses the defendants’ contention that the FCC has
exclusive jurisdiction over the plaintiffs’ claims. The
contention is accepted with respect to section 326 claims
in part ICI and rejected with respect to the APA claims
and First Amendment claims in parts IC2 and IC3.
Section ID rejects the defendants’ contention that the
doctrine of primary jurisdiction has any role to play in
this case.

Section II of the opinion contains the factual
findings of the court entered after considering the weeks
of trial testimony, hundreds of exhibits, and thousands
of pages of deposition testimony. It has not been
possible to discuss all of the evidence in the record
which supports those conclusions. Still less has it been
possible to discuss all of the contrary evidence and each
of the defendants’ comments with respect to the many
items of evidence. Section II, however, does attempt to
present the highlights and most significant evidence

#*

A-45

which has led the court to conclude that the Commis-
sion exerted improper pressure, that the networks im-
properly considered that pressure in making program-
ming judgments, and that the defendants combined in
an effort to compromise the independent judgments of
broadcast licensees through the medium of the NAB.
Accordingly, it first outlines the parties’ general posi-
tions concerning the facts and the court’s general con-
clusions; it then proceeds to enumerate, chronologically,
the court’s specific findings. It concludes with a dis-
cussion of three separate factual issues which do not
lend themselves to chronological consideration.

Section III of the opinion discusses the legal liabi-
lity issues. Section IIIA considers the liability of the
private defendants. Section IIIA explains why broad-
casters are free to adopt (or reject) the family viewing
policy without violating the First Amendment. Section
IIIA2 explains why broadcasters are free to adopt (or
reject) programming policies even in circumstances
where the source of the suggestion is governmental.
Section IIIA3 explains that broadcasters who fail to
exercise independent program judgments and instead
become surrogates in the enforcement of government
policy violate the First Amendment. Section IIIA4
explains why the defendants’ agreement to compromise
the independent programming judgments of individual
licensees violates the First Amendment.

Section IIIB discusses the liability of the govern-
ment defendants. Section IIIBi explains that the gov-
ernment defendants are free to present programming
suggestions, but are not free to issue threats in order to
“persuade” broadcasters. Such threats, it is explained,
involve per se violations of the First Amendment.
Moreover, the section holds that the FCC cannot use the
licensing process (in the absence of issuing valid regu-
lations) to regulate “offensive” material. Section IIB2

A-46

considers the requirements of the Administrative Proce-
dure Act and indicates that the Commission, by using
informal pressures which circumvented the public de-
bate and scrutiny concomitant with rulemaking, vio-
lated its duties under the Act.

Section IV of the opinion deals with remedial
issues. Section IVA discusses requested declaratory
relief in connection with the networks’ adoption of the
family viewing policy in violation of the First Amend-
ment; Tandem’s request for a court order directing CBS
to move “All In The Family” back into the family
viewing period is rejected. Section IVB explains the
extent to which similar declaratory relief is to be
directed against the NAB, while section IVC discusses
the necessity for a declaration forbidding the FCC from
enforcing the family viewing policy. In section IVD the
court rejects plaintiffs request for a declaration that any
programming suggestions emanating from the FCC
would violate the APA and the First Amendment, but
indicates that if the FCC attempts to force changes in
industry policy, it must comply with APA procedures.
Section IVE explains that damages may be awarded
against the private defendants, but, as a result of the
sovereign immunity doctrine, not against the govern-
ment defendants. Finally, section IVF discusses plain-
tiffs’ request for attorneys’ fees and concludes that
despite a strong balance of equities in their favor,
judicial authority to make such awards has been limit-
ed, and no such relief can be granted.

I. JURISDICTIONAL ISSUES

[l, 2] First, the defendants advance a series of
arguments calculated to support the conclusion that the
district court is an improper forum for this litigation.
Two alternative forums are suggested, i.e., the FCC and
the court of appeals. When one considers the nature of
the issues tendered by the plaintiffs’ complaints, the

**

A-47

insubstantiality of the defendants’ suggestions becomes
apparent. The plaintiffs’ complaints require the trier of
fact to determine the character and extent of the
involvement of the FCC (and/or government officials
employed by the FCC) in the adoption of the family
viewing policy by the networks and the NAB. The
plaintiffs contend that the FCC and government offi-
cials employed by the FCC pressured broadcasters into
adopting the family viewing policy; the FCC stren-
uously disagrees. Elementary principles of fairness
require that this factual dispute should be decided by a
trier of fact other than the FCC. Amos Treat & Co. v.
SEC, 113 U.S.App.D.C. 100, 306 F.2d 260 (1962).
Basic principles of judicial administration counsel that
disputed factual questions are not decided by courts of
appeal. United Gas Pipe Line Co. v. FPC, 86
U.S.App.D.C. 314, 181 F.2d 796, cert. denied, 340 US.
827, 71 S.Ct. 63, 95 L.Ed. 607 (1950). Thus it is
appropriate to approach the defendants’ suggestion that
the law requires one of these two forums with a measure
of skepticism. Closer scrutiny of the defendants’ argu-
ments reveals that the jurisdictional scheme created by
the Congress is consistent with one’s common sense
expectations.

[3] Federal district courts have original jurisdiction
of civil actions arising under any Act of Congress
regulating commerce (28 U.S.C. § 1337) and original
jurisdiction of civil actions arising under the Con-
stitution and laws of the United States if the prescribed
$10,000 jurisdictional amount requirement? is satisfied
(28 U.S.C. § 1331). These sections are clearly broad

2None of the defendants have questioned that more than
$10,000 is at stake here, nor could they realistically do so.
Tandem’s complaint, for example, alleges that it has suffered
damages of $10,000,000. See also section II ¥ 37.

A-48

enough to encompass the claims of the plaintiffs. The
question presented, however, is whether or not Congress
has in more specific statutory enactments created ex-
ceptions which apply to this case.

A. Exclusive Jurisdiction Under 47 U.S.C.
§§ 405, 402(a), and 28 U.S.C. § 2342.

The private defendants contend that Congress has
created a statutory scheme which dictates that all
complaints concerning the Commission’s performance
should be brought first to the Commission and then, if
disagreement should persist, to the appropriate court of

appeals.4

The basic sections are 47 U.S.C. § 405, 47 U.S.C.
§ 402(a), and 28 U.S.C. § 2342. Section 4055 provides
in part that after an action has been taken “in any

3 Moreover, the most recent view in the Ninth Circuit is that
the Administrative Procedure Act is a source of subject matter
jurisdiction. See Hazelwood Hospital v. Weinberger, 542 F.2d 757
(9th Cir. 1976); Wirin v. Eide, 543 F.2d 703 (9th Cir. 1976). See
also Rothman v. Hospital Service, 510 F.2d 956 (9th Cir. 1975);
Brandt v. Hickel, 427 F.2d 53 (9th Cir. 1970); Washington v.
Udall, 417 F.2d 1310 (9th Cir. 1969). But see Nguyen Da Yen v.
Kissinger, 528 F.2d 1194 (9th Cir. 1975).

4The contention that the totality of the Federal Commu-
nications Act is designed to create exclusive jurisdiction is consid-
ered in section IC. This section considers the narrower question of
whether these three statutory provisions are as all embracing as the
defendants contend.

5 “After an order, decision, report, or action has been made or
taken in any proceeding by the Commission, or by any designated
authority within the Commission pursuant to a delegation under
section 155(d)(1) of this title, any party thereto, or any other
person aggrieved or whose interests are adversely affected thereby,
may petition for rehearing only to the authority making or taking
the order, decision, report, or action; and it shall be lawful for such
authority, whether it be the Commission or other authority desig-
nated under section 155(d)(1) of this title, in its discretion, to
grant such a rehearing if sufficient reason therefor be made to
appear. A pétition for rehearing must be filed within thirty days
from the date upon which public notice is given of the order,

(Footnote continued on next page)

A-46

proceeding” by the Commission, any person who was
not a party to the proceedings (or any person who relies
on a question of fact or law which the Commission has
not had an opportunity to consider) must file a petition
for rehearing with the Commission before seeking judi-
cial review. Moreover the section provides that the
petition for rehearing must be filed within thirty days of
the date that public notice is given of the action in
question.

Subject to exceptions not relevant here, 47 U.S.C.
§ 402(a)§ provides that proceedings to challenge orders
of the Commission shall be brought under the Adminis-
trative Orders Review Act.” Section two of that act, 28
U.S.C. § 23428 grants exclusive jurisdiction to the court
of appeals to determine the validity of all final orders of
the Commission made reviewable under section 402(a).

(Footnote continued from previous page)

decision, report, or action complained of. No such application
shall excuse any person from complying with or obeying any order,
decision, report, or action of the Commission, or operate in any
manner to stay or postpone the enforcement thereof, without the
special order of the Commission. The filing of a petition for
rehearing shall not be a condition precedent to judicial review of
any such order, decision, report, or action, except where the party
seeking such review (1) was not a party to the proceedings
resulting in such order, decision, report, or action, or (2) relies on
questions of fact or law upon which the Commission, or designated
authority within the Commission, has been afforded no opportunity
to pass... .”

6 “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 19A of
Title 5.”

7 § 402(a) provides that the procedure to be followed is that
set out in Public Law 901, 5 U.S.C. § 1031, et seg. Those sections
referred to were superseded by the Administrative Orders Review
Act, 28 U.S.C. §§ 2341-51.

8 “The court of appeals has exclusive jurisdiction to enjoin, set
aside, suspend (in whole or in part), or to determine the validity of
. . . all final orders of the Federal Communications “ommission
made reviewable by section 402(a) of title 47. . ..”

A-50

Thus from the private defendants’ perspective the
district court is an obviously improper forum. The route
established by congressional direction is first to the FCC
and then to the court of appeal. This route, fashioned
as it is to take advantage of the Commission’s expertise
and to foster a unified approach to the development of
communications law is proffered as the established,
routine, and exclusive method of challenging
orders, decisions, reports, and other actions of the
Commission.9 _

Established and routine it is. Exclusive it is
not.'' The very terms of the statutes reveal that the
petition for rehearing requirement is confined to chal-
lenges of actions taken in “proceedings” of the Commis-
sions and that the exclusive jurisdiction of the court of
appeals is reserved only for the review of “final orders”
of the Commission.

Thus two threshold jurisdictional questions are
presented: (1) Did the government actions criticized in
the plaintiffs’ complaint take place in “proceedings”
within the meaning of 47 U.S.C. § 405? (2) Are the
government actions in question “orders” with the mean-
ing of 47 U.S.C. § 402(a) or 28 U.S.C. § 2342?

1. Proceedings.

At least, it must be recognized that the activities
chaiienged by the plaintiffs cannot be characterized as
the typical proceedings contemplated by statute. The
statute contemplates an action of the Commission in the

form of a written pronouncement accompanied by
public notice. See 47 C.F.R. §§ 1.4(b), 1.104(b),

® Challenges of FCC actions which are not themselves orders

produce orders which become reviewable in the court of appeals.
Fortunately FCC ventures of the character involved here
1 But see section IC1.

7.

A-51

1.106(f); Microwave Communications, Inc. v. FCC, 169
U.S.App.D.C. 154, 515 F.2d 385 (1974). Such
pronouncements serve to generate the kind of record
with which a court of appeal is equipped to deal. Here
however, the plaintiffs do not complain of any formal
action of the Commission.

Indeed an important issue presented by the plain-
tiffs’ allegations is whether or not the Commission has
acted at all. The Commission, itself, takes the position
that it has not taken any action other than a Report to
Congress which recommended that no Commission
action be taken. Instead the Commission suggests that
the plaintiffs are questioning the informal expressions of
view and public speeches of one member of a Commis-
sion which cannot act without a quorum. See WIBC,
Inc. v. FCC, 104 U.S.App.D.C. 126, 259 F.2d 941, cert.
denied, 358 U.S. 920, 79 S.Ct. 290, 3 L.Ed.2d 239
(1958).

[4] Needless to say, the Commission has not issued
a public notice of actions which it denies ever taking.
The plaintiffs, of course, do not accept the Commission’s
position. They charge continuing, pervasive, extra-legal
involvement of the government in broadcaster affairs in
actions taken behind closed doors without any regular
agency proceeding. Although the plaintiffs and the
Commission do not agree as to whether or not the
Commission has acted, they are in accord on the
proposition that no “proceedings” within the meaning
of section 405 have taken place.

The private defendants, however, maintain that if
plaintiffs have been adversely affected by any Commis-
sion action, they are required to seek rehearing as a
condition precedent to judicial review. There is no case
authority to support this sweeping construction of sec-
tion 405, a construction which would appear to read the

A-52

term “proceeding” out of the statute.12 The defend-
ants’ reliance on Citizens Communications Center v.
FCC, 145 U.S.App.D.C. 32, 447 F.2d 1201 (1971) and

12 This does not require rejection of the assumption that if the
FCC actions complained of had taken place in proceedings within
the meaning of section 405, the exclusive statutory mechanisms for
reviewing Commission actions would have to be followed (at least
with respect to the plaintiffs’ claim against the Commission.
Compare section IC). If the plaintiffs in such a situation did not
afford the Commission an opportunity to pass on any of their
claims before going to the court of appeals or had raised some of
them afresh on review in the court of appeals after going to the
Commission, the court of appeals would ordinarily refuse to
entertain them. See e.g., Democratic National Committee v. FCC,
148 U.S.App.D.C. 383, 460 F.2d 891, 911, cert. denied, 409 U.S.
843, 93 S.Ct. 42, 34 L.Ed.2d 82 (1972); Hansen v. FCC, 134
U.S.App.D.C. 100, 413 F.2d 374, 376 (1969); cf Unemployment
Compensation Commission v. Aragan, 329 U.S. 143, 155, 67 S.Ct.
245, 91 L.Ed. 136 (1946).

These well established principles go to the question of what
kinds of questions can be raised in the appellate courts on review of
Commission actions. They have nothing to do with the question of
what constitutes proceedings under section 405 and speak only to
the question of what principles apply if proceedings have taken
place. Also apparently inapplicable at first glance is the plaintiffs’
suggestion that section 405 merely incorporates the general prin-
ciples of the doctrine of exhaustion of remedies and that resort to
the Commission would not be required here even if the actions of
the Commission had been taken in proceedings within the meaning
of the section. To be sure, appellate courts on review of FCC
orders have recognized their discretion to excuse a party’s failure to
raise a point in the Commission proceedings. Washington Utilities
and Transportation Commission v. FCC, 513 F.2d 1142, 1168 n.36
(9th Cir. ), cert. denied sub nom. Nat’l Ass’n of Regulatory Commr’s
v. FCC, 423 U.S. 836, 96 S.Ct. 62, 46 L.Ed.2d 54 (1975); Great
Falls Community TV Cable Co. v. FCC, 416 F.2d 238, 239 ( 9th Cir.
1969). But such cases speak to the proper relationship between the
appellate courts and the Commission, not to the relationship
between the district courts and the Commission. It is not necessary
to decide here whether or in what circumstances the Commission
could ever be called to account for an action taken in an FCC
proceeding by means of an original action in the district court
(other than pursuant to the special provisions of 28 U.S.C. § 2347)
since the plaintiffs do not seek to review actions taken in proceed-
ings. See generally 5 U.S.C. § 703; L. Jaffe, Judicial Review of
Administrative Agencies 425-26 (1965).

7%

A-53

Yale Broadcasting Co. v. FCC, 155 U.S.App.D.C. 390,
478 F.2d 594, cert. denied, 414 U.S. 914, 94 S.Ct. 211,
38 L.Ed.2d 152 (1973), is misplaced.

Neither case defined, or needed to define “proceed-
ings,” because petitions for reconsideration had already
been filed. In both cases, the Commission (far from
denying its actions) had, without affording an opportu-
nity for public input, formally issued an authoritative
statement of policy which arguably set new industry
guidelines. Because the Commission has not attempted
formal regulations’? in this case, any definition of
“proceedings” which might have been produced in
Citizens Center or Yale could not be decisive here.

In Citizens Communications Center, the plaintiff
brought an action in the United States District Court for
the District of Columbia in which it asked for an
injunction which would have restrained the Commission
from promulgating a policy or rule changing the ground
rules applicable to comparative broadcast license re-
newal proceedings unless it first complied with the
requirements of section four of the APA, 5 U.S.C.
§ 553.14 The district court dismissed the suit for lack of
jurisdiction. Subsequent to the dismissal, as the plaintiff
had feared, the Commission issued a policy statement
without resort to the procedures outlined in section four.
See Policy Statement on Comparative Hearings In-
volving Regular Renewal Applicants, 22 F.C.C.2d 424
(1970).

13 Again the Commission’s only formal action here has been to
issue a report which refused to engage in negotiation. The
plaintiffs do not indict the Commission’s professed decision to do
nothing, i. e., to take no formal action. They complain of the
Commission’s informal action.

% The section requires public notice and opportunity for
public input before the Commission imposes new industry policy
and further requires the Commission to produce a concise state-
ment of the basis and purpose of the new policy.

A-54

The Center attacked this Policy Statement on two
fronts. It first filed an appeal from the district court’s
decision. Second, it filed a petition for rehearing with
the Commission and subsequently filed an appeal inter
alia from the Commission’s memorandum opinion and
order denying reconsideration of its Policy Statement.
The Center’s two appeals were consolidated (and those
two appeals in turn were consolidated with those of
other parties). On appeal, the Commission argued that
the issues presented by the Policy Statement were not
yet ripe for adjudication. The court rejected this
contention, noting in part that the “Policy Statement
has been administratively considered and reconsidered
by the Commission. The issues before us are ‘purely
legal.’” 447 F.2d at 1205.

The private defendants attach significance to this
brief comment. They lift it from its context and suggest
it demonstrates the necessity for filing petitions for
reconsideration of all FCC actions. Such a rule of law
might be appropriate if it were confined to formal FCC
actions. If a party were to complain of an official
pronouncement of the Commission, even absent adher-
ence to the procedural requirements for rulemaking, a
requirement of a reconsideration petition could further
orderly adjudication. '5

[5] But such a rule, had it been announced, would
have little bearing on the question of whether section
405 applies to actions of the Commission which have
not only been unaccompanied by public notice but
which the Commission has denied taking. In fact,

18 On the other hand, the desire for orderly adjudication can
be accomplished by reliance on the doctrine of exhaustion of
remedies, leaving the district courts free to afford necessary relief
when exceptions to that doctrine are involved. It may be that
section 405 merely codifies the exhaustion doctrine with its attend-
ant exceptions. But see note 12, supra.

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however, the court in Citizens Center did not speak to
the question of whether or not section 405 usurps the
jurisdiction of the district court to afford immediate
injunctive relief when the FCC has improperly but
formerly acted without complying with the procedural
requirements of section four of the APA. Indeed the
court did not even address the question of whether or
not injunctive relief was appropriately refused by the
district court in the circumstance there presented, one in
which it was conceded that no FCC action of any kind
had yet taken place. The Center’s appeal from the
dismissal in federal court was simply declared to be
moot by the court of appeals. Here the plaintiffs allege
that the FCC informally regulated without agency
proceedings and without public notice. Neither the
court of appeals’ position in Citizens Center nor the
district court’s holding requires that a petition for
reconsideration be filed.

Similarly unconvincing is the private defendants’
reliance on Yale Broadcasting Co. v. FCC, supra, 478
F.2d 594. There the Commission, acting sua sponte,
issued a Public Notice which discussed the responsi-
bility of licensees to review the lyrics of records before
their broadcast. The notice was prompted by a number
of complaints which had been sent to the Commission
concerning the playing of records containing lyrics
which allegedly “permitted” the use of illegal drugs.
See 28 F.C.C.2d 409 (1971). Numerous parties filed
petitions for reconsideration, and the Commission dis-
posed of those petitions in a memorandum opinion and
order which sought to clarify and modify the Public
Notice. See 31 F.C.C.2d 377 (1971). The parties’
appeal questioned the propriety of both Commission
actions. See 478 F.2d at 595 n.1.

The private defendants regard Yale Broadcasting
as “analogous to the present controversy.” But quite
unlike this case the plaintiffs in Yale sought to attack an

A-56

FCC written pronouncement publicly identified as such
and publicly noticed. As in Citizens Communications
Center, the issues were “purely legal.” 447 F.2d at
1205. Here again the very existence of FCC action
gives rise to a serious factual question and no public
notice has been issued. See Microwave Commu-
nications, Inc. v. FCC, supra, 515 F.2d 385. The court
of appeals in Yale did not address the question of
whether or not the Public Notice was an action taken in
a “proceeding” within the meaning of section 405.
Since petitions for reconsideration had been filed any-
way, there was no occasion to decide whether they were
required. Even if it had adopted an expansive inter-
pretation of that term, such an interpretation would
lend no support to the defendants’ attempt to read the
word “proceeding” out of section 405. No proceeding
within the meaning of section 405 is involved here, and
thus no petition for reconsideration is required by that
section.

2. Orders.

[6] This lawsuit is not within the exclusive jurisdic-
tion of the court of appeals. The actions complained of
are not “orders” of the Commission within the meaning
of 47 U.S.C. § 402(a) or 28 U.S.C. § 2342. Prelimi-
narily, it should be recognized that the term “order” in
the Administrative Orders Review Act is not the equiva-
lent of that term in the Administrative Procedure Act.
Section two of the APA defines “order” to include “the
whole or a part of a final disposition, whether affirma-
tive, negative, injunctive, or declaratory in form, of an
agency in a matter other than rule making but including
licensing . . ..” 5 U.S.C. § 551(6) (emphasis added).
If the term “order” as used in the Administrative
Procedure Act were grafted onto the term “order” in the
Administrative Orders Review Act, the court of appeals
would not have exclusive jurisdiction to consider agency

7%

A-57

rules and regulations. In order to avoid this unwelcome
result the courts in interpreting the Review Act have
given the term “order” a more flexible meaning. For
example, the District of Columbia Court of Appeais in
Gage v. United States Atomic Energy Commission, 156
U.S.App.D.C. 231, 479 F.2d 1214, 1218 (1973), dealt
with the problem by stating that the language of the
Review Act “make[s] no distinction between orders
which promulgate rules and orders in adjudicative
proceedings.” Accordingly, the courts have considered
petitions to review FCC orders promulgating rules and
regulations to fall within the scope of 47 U.S.C.
§ 402(a). See, e. g., United States v. Storer Broad-
casting, 351 U.S. 192, 76 S.Ct. 763, 100 L.Ed. 1081
(1956); Columbia Broadcasting System, Inc. v. United
States, 316 U.S. 407, 62 S.Ct. 1194, 86 L.Ed. 1563
(1941); Mt. Mansfield Television, Inc. v. FCC, 442 F.2d
470 (2d Cir. 1971); California Citizens Band Associ-
ation v. United States, 375 F.2d 43 (9th Cir.), cert.
denied, 389 U.S. 844, 88 S.Ct. 96, 19 L.Ed.2d 112
(1967).

[7] Nonetheless, although the term “order” in the
Administrative Orders Review Act has been interpreted
in a manner broader than that used in the Adminis-
trative Procedure Act, it never has been interpreted to
include all agency actions. At the very least the term
“order” implies a formal agency mandate issued at the
culmination of some regular agency proceeding. An
examination of the related statutes confirms that view.

For example, 47 U.S.C. § 408 provides that “all
orders of the Commission, other than orders for the
payment of money, shall take effect within such reason-
able time, not less than thirty days after service of the
order ....” (emphasis added). 28 U.S.C. § 2344
requires that upon “the entry of a final order reviewable
under this chapter, the agency shall promptly give

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notice thereof by service or publication in accordance
with its rules.” Moreover the same section indicates
that the petition to review filed in the court of appeals
“shall contain a concise statement of. . . the nature of
the proceedings as to which review is sought... ..”
(emphasis added). See also 47 U.S.C. § 405. Clearly
the statutory scheme envisions a written order entered
on the FCC docket with appropriate notice to the
parties. Cf. FPC v. Metropolitan Edison Co., 304 US.
375, 58 S.Ct. 963, 82 L.Ed. 1408 (1938). Indeed 47
U.S.C. § 154(j) specifically requires that, “Every. . .
Official act of the Commission shall be entered of record,
and its proceedings shall be public upon the request of
any party interested.” Here the plaintiffs complain of
informal actions of the Commission not entered of
record, not served upon the parties, and taken wholly
outside agency proceedings. Nothing in the language of
the relevant statutes even remotely suggests that these
activities are “final orders” of the Commission within
the meaning of section 2342.

Nor does the case law suggest a different result.
The leading case is United Gas Pipe Line v. FPC, supra,
86 U.S.App.D.C. 314, 181 F.2d 796. There the court of
appeals was asked to review an order of the Federal
Power Commission. Recognizing the fact that 15
U.S.C. §717r(b) granted a party aggrieved by an
“order” of the Federal Power Commission the right to
seek review in the court of appeals, and without denying
the possibility that the petitioner was an aggrieved
party, the court of appeals denied review. The court
stated that review in the court of appeals presupposed
the need for “a record fully encompassing the issues.”
:81 F.2d at 799. In the absence of such record,
appellate courts were recognized to have “no intelligible
basis for decision” and were without “authority to
directly review the Commission’s action.” Jd. And
although the United requirement of an actual hearing

A-59

has been questioned by many courts (see, e. g.,
Deutsche Lufthansa Aktiengesellschaft v. CAB, 156
U.S.App.D.C. 191, 479 F.2d 912, 915-16 (1973)), the
requirement of the need of a record for review has
survived. Indeed, “It is the availability of a record for
review and not the holding of a quasi judicial hearing
which is now jurisdictional touchstone.” Jd. at 916.
Thus in cases where the record is unchallenged, where
the issues are legal and not factual, and where notice
has been provided to the parties the court of appeals
has held that it has jurisdiction despite the absence of
an administrative hearing. Id. at 915-16. Here, how-
ever, there is no “record”; there are material issues of
fact; no notice has been given. None of the indicia of
appellate jurisdiction is present.

[8] Even if section 2342 were somehow deemed to
confer jurisdiction upon the court of appeals as to the
alleged actions of the FCC, that jurisdiction would not
embrace the entirety of this action. The First Amend-
ment claims of the plaintiffs do not necessitate a demon-
stration of FCC action. A demonstration of FCC action
would be one way of meeting the First Amendment
state action requirement, it is not the only way. For
example, the plaintiffs contend that Chairman Wiley,
acting under color of his office, improperly interfered
with programming decisions of the broadcasters. These
allegations are sufficient to meet the state action require-
ment whether or not his actions were approved by other
Commissioners and whether or not his actions might be
deemed “agency action” for purposes of the Adminis-
trative Procedure Act or final orders of an adminis-
trative agency for purposes of the Administrative Orders
Review Act.

[9] Moreover nothing in section 2342 could con-
ceivably be deemed to cede jurisdiction to the court of
appeals over the plaintiffs’ action against the private

A-60

defendants. Since the statute is specifically and ex-
clusively designed to establish a review procedure for
agency orders, there is no method by which the plain-
tiffs could join the private parties as defendants in a
review proceeding before the court of appeals. To be
sure, there is a procedure by which interested parties
may intervene (28 U.S.C. § 2348), but the court of
appeals under section 2342 has no power to hear a case
by private plaintiffs against private defendants and no
authority under 28 U.S.C. § 2349(a) to do anything
more than enter a “judgment determining the validity
of, and enjoining, setting aside, or suspending, in whole
or in part, the order of the agency.” Jd. The initial
power to adjudicate such disputes between private
litigants and to enter appropriate relief is reserved to the
district courts. 16

B. Exhaustion of Remedies.

The defendants contend that even if 47 U.S.C.
§ 405 and 28 U.S.C. § 2342 are not applicable to the
circumstances of this case, the general doctrine of
exhaustion of remedies should be applied to force the
plaintiffs to file their complaints with the Commission.
Specifically they point: (1) to procedures which permit
the Commission on the motion of a party to “‘issue a
declaratory order to terminate a controversy or remove
uncertainty” (5 U.S.C. § 554(c): 47 C.F.R. § 1.2); (2)
to procedures which permit persons to petition for
“issuance, amendment or repeal of a rule or regulation”
(47 C.F.R. § 1.401); (3) to procedures which permit

16 Of course, attacks on Commission orders often are vehicles
for attacks on broadcaster activity. See, e. g. Columbia Broad-
casting System, Inc. v. Democratic National Committee, 412 U.S.
94, 93 S.Ct. 2080, 36 L.Ed.2d 772 (1973), but an indirect attack
could not afford complete relief. For example, Tandem’s claim for
damages could not be considered by the Commission or the court
of appeals. See section IC3.

A-61

persons to file informal requests for Commission action
(47 C.F.R. § 1.41). Thus the defendants invoke “the
long-settled rule of judicial administration that no one is
entitled to judicial relief for a supposed or threatened
injury until the prescribed administrative remedy has
been exhausted.” Myers v. Bethlehem Shipbuilding
Corp., 303 U.S. 41, 50-51, 58 S.Ct. 459, 463, 82 L.Ed.
638 (1938); McKart v. United States, 395 U.S. 185,
193-94, 89 S.Ct. 1657, 23 L.Ed.2d 194 (1969); FCC v.
Schreiber, 381 U.S. 279, 296-97, 85 S.Ct. 1459, 14
L.Ed.2d 383 (1965).

The FCC, for example, states that “in total dis-
regard of principles of exhaustion of remedies, plain-
tiffs, to date, have never attempted to bring their
complaint to the attention of the Commission in the
normal administrative mode, prior to instituting this
suit.” Essentially the argument boils down to this: The
plaintiffs, who allege that the Commission and its staff
sought through extra-legal channels to impose an un-
constitutional scheme of censorship in direct defiance of
established procedures, statutory commands, and con-
stitutional limitations, must continue to suffer irrepa-
rable injury while going through the ritualistic exercise
of asking the Commission to admit guilt which it
strenuously denies.

[10] Ironically, the Commission’s papers on file
with this court (the very papers which argue for exhaus-
tion of remedies ) demonstrate that it has predetermined
the issues adversely to the plaintiffs. It forcefully argues
in its papers that there has been no agency action of any
kind and no violation of section 326 or of the First
Amendment by the Commission or any of its members.
Exhaustion of remedies is not required when the admin-
istrative agency involved is biased (Gibson v. Berryhill,
411 U.S. 564, 575 n. 14, 93 S.Ct. 1689, 36 L.Ed.2d 488
(1973): Steele v. Louisville & Nashville R. R. Co., 323

A-62

U.S. 192, 206, 65 S.Ct. 226, 89 L.Ed. 173 (1944);
Fitzgerald v. Hampton, 152 U.S.App.D.C. 1, 467 F.2d
755, 768-69 (1972); Amos Treat & Co. v. SEC, supra,
306 F.2d at 266-67);'7 or where exhaustion would be
futile. Houghton v. Shafer, 392 U.S. 639, 640, 88 S.Ct.
2119, 20 L.Ed.2d 1319 (1968); Natural Resources
Defense Council, Inc. v. Train, 166 U.S.App.D.C. 312,
510 F2d 692, 703 (1974); Wolff v. Selective Service
Local Board No. 16, 372 F.2d 817, 825 (2d Cir. 1967);
Western International Hotels v. Tahoe Regional Plan-
ning Agency, 387 F.Supp. 429, 433-34 (D.Nev.1975).18

17 The defendants’ reliance on SEC v. R. A. Holman & Co.,
116 U.S.App.D.C. 279, 323 F.2d 284, cert. denied, 375 U.S. 943, 84
S.Ct. 350, 11 L.Ed.2d 274 (1963) is misplaced. As the court
pointed out in Fitzgerald, supra, 467 F.2d at 768 n.64, the
distinguishing characteristic of the Holman case is that the alllega-
tions of participation were contested. Moreover the Holman court
was concerned with the prospect that staying an administmative
process while a court “engaged in an extended inquiry imw the
claimed disqualification of members of the administrative body
could lead to a breakdown in the administrative process. . ..” 323
F.2d at 287. Concern over the problems of delaying administrative
hearings also controlled the court’s decision in Davis v. Secretary,
Department of Health, Education & Welfare, 262 F.Supp. 124
(D.Md.), aff'd, 386 F.2d 429 (4th Cir. 1967). Here the FOC has
announced that it intends at the moment to take no further artion
in this area but will rely on “self regulation.” Moreover, the
- involvement of Chairman Wiley is uncontested. Cf. Berkshire
Employees Association v. NLRB, 121 F.2d 235, 238-39 (3d Cir.
1941). Here the Commission and its members themselves ae on
trial. As in Amos “[T]he asserted infirmity is fundamental.” 306
F.2d at 265. Here as in Amos the court must be concerned that a
“hearing of such importance and vast potential consequences must
be attended, not only with every element of fairness but with the
very appearance of complete fairness.” Jd. at 267. Such a hearing
could not be afforded by the Commission.

18 The optimism about the willingness of the Commission to
change its mind displayed in Morrisseau v. Mt. Mansfield Tele-
vision, Inc., 380 F.Supp. 512 (D.Vt. 1974) is explainable and
distinguishable. Since that case was based on a Communications
Act claim, the question of whether or not the plaintiff had adequate
remedies with the Commission was irrelevant. Adequate e not,

(Footnote continued on next page)

7%

A-63

The private defendants suggest, however, that the
apparent futility of the remedy before the FCC is belied
by the availability of the court of appeal review proce-
dure. The suggestion of the private defendants 1s
twofold: first, that the court of appeals could force the
FCC to give the plaintiffs’ claim appropriate consid-
eration; second, that even if remedies with the FCC
were inadequate, the court of appeals would afford
adequate consideration to the plaintiffs’ claims. The
parties’ first point overlooks the underlying cause of the
remedy’s inadequacy. The inadequacy results not from
any venality on the part of the Commission but rather
because the Commission is understandably biased. Vig-
orous advocates inevitably are. The court of appeals
cannot be expected to transform admittedly interested
parties into impartial observers. 19

[11] The parties’ second point puts the cart
before the horse. Wherever this lawsuit should start,
and whatever its outcome in the initial forum, it can

(Footnote continued from previous page)
they were all he had. Jd. at 515. See discussion in section ICI,
infra. Moreover, in Morrisseau, the Commissioners themselves
were not on trial. Notions about the power of the Secretary of
Transportation to make judgments rather than assessments about
the adequacy of remedies were also at work in D. C. Federation of
Civic Associations v. Volpe, 148 U.S.App.D.C. 207, 459 F.2d 1231,
cert. denied, 405 U.S. 1030, 92 S.Ct. 1290, 31 L.Ed.2d 489 (1972).
Thus these cases are relevant only to the defendants’ attack on the
Communications Act claims. See section IC1, infra.

19 Hortonville Joint School District No. 1 v. Hortonville Educa-
tion Association, ___. U.S. —._.,, 96 S.Ct. 2308, 49 L.Ed.2d 1
(1976) is not to the contrary: (1) this is not a case involving the
special problem of a public employer dealing with employees; (2)
the personal stah:: in the decision present here was not present
there; (3) the nature of the involvement of the Commission and
the Chairman here is of an entirely different dimension; (4) the key
question involved here is one of fact and not policy; (5) the
showing required to show bias or futility for purposes of exhaustion
of remedies is not necessarily coextensive with the showing r-
quired for a due process violation.

A-64

proceed at least to the court of appeals. Compare 28
U.S.C. § 2342 with 28 U.S.C. § 1291. The question is
what kind of record the court of appeals will review.
For the reasons stated previously, a record with findings
of fact entered by the FCC would be fatally defective.
The effectiveness of any remedy in the court of appeals
presupposes that material issues of fact first be present-
ed to an impartial trier of fact.20

[12] Finally, even if the problems of bias and
futility were not involved, exhaustion would not be
required because that doctrine is inapplicable when an
agency has taken an action beyond its jurisdiction and
thereby imposed an immediate burden on the exercise
of important rights. As Professor Davis observes, ‘“‘No
court requires exhaustion when exhaustion will involve
irreparable injury and when the agency is palpably
without jurisdiction.” 3 K. Davis, Administrative Law
Treatise § 20.01, at 56 (1958). See, e.g., Leedom v.
Kyne., 358 U.S. 184, 79 S.Ct. 180, 3 L.Ed.2d 210
(1958); Skinner & Eddy Corp. v. United States, 249
J.S. 557, 39 S.Ct. 375, 63 L.Ed. 772 (1919); Dragna v.
Landon, 209 F.2d 26 (9th Cir. 1953); Ashland Oil Co. v.
Federal Energy Administration, 389 F.Supp. 1119
(N.D.Cal. 1975); A. E. Staley Manufacturing Co. v.
United States, 310 F.Supp. 485 (D.Minn. 1970).

20 Indeed 28 U.S.C. § 2347 provides that the court of appeals
can entertain petitions to review agency orders only “when the
agency has held a hearing” or “when . . . no genuine issue of
material fact is presented. . ..” Moreover, in a case such as this,
the court of appeals would be required to “transfer the proceedings
to a district court for the district in which the petitioner resides or
has its principal office for a hearing and determination as if the
proceeding were originally initiated in the district court. . ..” Id.
This court finds it difficult to accept the idea that any principle of
law, let alone the doctrine of exhaustion of remedies, requires the
plaintiffs to go to the FCC and the court of appeals so that they
finally can be told that they must return to the forum they selected
in the first place.

A-65

This does not mean, of course, that orderly admin-
istrative procedures may be bypassed automatically
merely because the plaintiff claims that a particular
administrative action is unconstitutional or otherwise in
excess of its statutory powers. See, e.g., Boire v.
Greyhound Corp., 376 U.S. 473, 84 S.Ct. 894, 11
L.Ed.2d 849 (1964); Aircraft & Diesel Equipment Corp.
v. Hirsch, 331 U.S 752, 67 S.Ct. 1493, 91 L.Ed. 1796
(1947); Myers v. Bethlehem Shipbuilding Corp., supra,
203 U.S. 41, 58 S.Ct. 459, 82 L.Ed. 638; Boire v. Miami
Herald Publishing Co., 343 F.2d 17 (Sth Cir.), cert.
denied, 382 U.S. 824, 86 S.Ct. 56, 15 L.Ed.2d 70
(1965 ).21

[13] The case law though marked by over-
generalization can be reconciled as Davis observes by
the application of three factors: “[E]xtent of injury
from pursuit of administrative remedy, degree of appar-
ent clarity or doubt about administrative jurisdiction,
and involvement of specialized administrative under-
standing in the question of jurisdiction.” 3 K. Davis,
supra, § 20.03 at 69. In fact, the Ninth Circuit Court of
Appeals has specifically adopted Professor Davis’

21 In fact, the existence of serious constitutional issues may be
a factor encouraging exhaustion in circumstances where the neces-
sity of deciding such issues may be obviated by an administrative
grant of relief on non-constitutional grounds. See, e.g., Aircraft &
Diesel Equipment Corp. v. Hirsch, supra, 331 U.S. at 772, 67 S.Ct.
1493; Montana Chapter of Association of Civilian Technicians, Inc.
v. Young, 514 F.2d 1165, 1167 68 (9th Cir. 1975); Sohm v. Fowler,
124 U.S.App.D.C. 382, 365 F.2d at 915, 918 (1966). But the cases
recognizing this principle also recognize that “the presence of
constitutional questions, coupled with a sufficient showing of
inadequacy of prescribed administrative relief and of threatened or
impending irreparable injury flowing from delay incident to follow-
ing the prescribed procedure, has been held sufficient to dispense
with exhausting the administrative process before instituting judi-
cial intervention.” Aircraft & Diesel Corp. v. Hirsch, supra, 331
U.S. at 773, 67 S.Ct. at 1503.

A-66

formulation commending it as one that “is as complete
and workable as can be stated.” Lone Star Cement
Corp. v. FTC, 339 F.2d 505, 510 (1964).

[14] First, as to the extent of injury, the actions
complained of place a continuing and irreparable bur-
den on First Amendment rights. As the plaintiffs put it,
““Today’s censorship is not caused by tomorrow’s toler-
ance.” There is no reason to believe that swift agency
relief is likely. Even

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385006_2309%3A2. Public record. Not legal advice.
