Record and brief — Memphis Mobile Telephone, Inc. v. Federal Communications Commission

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81- 16 60 FILED

NO. MAR O 1082

IN THE pense gape

SUPREME COURT OF THE UNITED SPx?E<

OCTOBER TERM, 1981

MEMPHIS MOBILE TELEPHONE, INC., AND

RADIO TELEPHONE INDUSTRIES, INC.,

Petitioners,

Vv

THE FEDERAL COMMUNICATIONS

COMMISSION, ET AL.,

Respondents.

ON WRIT OF CERTIORARI

TO THE

UNITED STATES COURT OF APPEALS

FOR THE DISTRICT OF COLUMBIA

CIRCUIT

PETITION FOR WRIT OF CERTIORARI

JOHN M. BALLENGER

Suite 304

6121 Lincolnia Road

P.O. Box 11278

Alexandria, VA 22312

(703) 750-1112

Counsel for Petitioners

QUESTION PRESENTED

Whether a consolidated administra-

tive proceeding in which the Federal

Communications Commission (a) investi-

gated alleged anticompetitive conduct

of four radio common carriers and (b)

acted upon a construction permit appli-

cation of only one of those carriers

constituted an "investigation" which is

reviewable by the United States Court

of Appeals under 47 U.S.C.A. § 402(a)

or constituted a "licensing" proceed-

ing and is reviewable only under 47

U.S.C.A. § 402(b).

(i)

LIST OF PARTIES

The petition is brought by Memphis

Mobile Telephone, Inc., and Radio Tele-

phone Industries, Inc. Both were peti-

tioners before the Court of Appeals.

The Federal Communications Commis-

sion and the United States of America

were respondents before the Court of

Appeals.

Mahaffey Message Relay, Inc.,

Mobilfone Communications, AAA Anserphone

Inc. - Jackson and Airsignal Inter-

national, Inc., were intervenors be-

fore the Court of Appeals.

LIST OF PETITIONERS'

AFFILIATES

The following information is pro-

vided pursuant to the requirements of

Rule 28.1. Memphis Mobile Telephone,

Inc., is affiliated, through stock owner-

ship, with the following corporations:

(ii)

El Dorado Mobile Telephone, Inc.; Russell-

ville Radio Telephone Company, Inc.;

Little Rock Radio Telephone Company,

Inc.; Grant County Radio Telephone

Company, Inc.; Mississippi County

Communications Company, Inc.; Hot Springs

Radio Telephone Company, inc.; Morrilton

Radio Telephone Company, Inc.; Conway

Radio Telephone Company, Inc.; Malvern

Radio Telephone Company, Inc.; Pocahontas

Radio Telephone Company, Inc.; and Bates-

ville Radio Telephone Company, Inc.

Radio Telephone Industries, Inc., is not

affiliated with any other companies.

(iii)

TABLE OF CONTENTS

Page

QUESTION PRESENTED -------~------- (i)

LIST OF PARTIES ---------------- (ii)

LIST OF PETITIONERS' AFFILIATES - (ii)

INDEX ----------+---------------- (iv)

OPINIONS BELOW ------------------ 2

JURISDICTION eniincialiinninnaainie 3

STATUTORY PROVISIONS INVOLVED --- 3

STATEMENT OF THE CASE ----------- 5

ARGUMENT ------------------------ 23

CONCLUSION ---------------------- 44

TABLE OF AUTHORITIES

Cases:

Campos v. F.C.C., 650

F.2d 890 (isai) --------- 26

Columbia Broadcasting

Sys. v. Federal Comn.

Com'n, 211 F.2d 644

(D.C. Cir. 1954) -------- 25

Cook Inc. v. United

States, 394 F.2d 84

(7th Cir. 1968) --------- 31

(iv)

Page

Functional Music, Inc.

v. FCC, 274 F.2d

543, 547 (D.C. Cir.

1958) ---------------- 24, 30

Gerico Investment Co.

v. Federal Commun.

Com'n, 240 F.2d

410 (D.C. Cir. 1957)-- 24

Helena TV, Inc. v.

Federal Communica-

tions Commission,

269 F.2d 30 (9th

Cir. 1959) ----------- 31

Kessler v. FCC. 326 F.2d

653 (D.c. Cir. 1964)-- 24

Mahaffey Message Relay,

Inc., 79 F.C.C. 2d

399 (1980) ----------- 2

Mahaffey Message Relay,

Inc., 79 F.C.C. 2d

414 (1979) ----------- 3

National Ass'n of Broad-

casters v. FCC, 554

F.2d 1118 (D.C. Cir.

1976) ---------------- 25

Rhode Island Television

Corporation v. FCC,

320 F.2d 762 (D.C. Cir.

1963) ---------------- 25

Scripps-Howard Radio v.

Federal Communications

Commission, 316 U.S. 4,

16, 62 S.CT, 875, 882

(1942) --------------- 28

Page

Tomah-Mauston Broad-

casting Co. v

FCC, 306 F.2d 811

(D.C. Cir. 1962) ------- 24

Valley Vision, Inc.

v. F.C.C., 399 F.2d

511 (9th Cir. 1968) ---- 31

WHDH, Inc. v. United

States, 457 F.2d 559,

561 (lst Cir. 1972) ---- 31

Statutes:

47 U.S.C. § 203 ----------- 11

47 U.S.C. § 208 ----------- 10, 17,

36, 41

47 U.S.C. § 313 ----------- ll

47 U.S.C. § 402(a) -------- through-

out

47 U.S.C. § 402(b) -------- through-

out

47 U.S.C. § 403 ----------- 16, 17,

36, 41

(vi)

NO.

IN THE

SUPREME COURT OF THE UNITED STATES

OCTOBER TERM, 1981

MEMPHIS MOBILE TELEPHONE, INC., AND

RADIO TELEPHONE INDUSTRIES, INC.,

Vv.

THE FEDERAL COMMUNICATIONS COMMISSION,

ET AL.

PETITION FOR A WRIT OF CERTIORARI

Petitioners Memphis Mobile Tele-

phone, Inc., and Radio Telephone Indus-

tries, Inc., respectfully pray that a

writ of certiorari issue to review the

Orders of the United States Court of

Appeals for the District of Columbia

Circuit entered in this proceeding on

November 10, 1981, and December 9, 1981.

2

OPINIONS BELOW

The Orders of the Court of Appeals,

not reported, appear in the Appendix

hereto. The November 10, 1981, Order

dismissed the Petition for Review of an

administratively final Order of the Fed-

eral Communications Commission (hereafter

referred to as "the Commission") re-

leased July 23, 1981. A copy of the

Commission's Order, also unreported,

appears in the Appendix hereto. The

Commission's Order affirmed an earlier

Report and Order of the Commission's

Review Board. The Review Board's Report

and Order, reported at Mahaffey Message

Relay, Inc., 79 F.C.C. 2d 399 (1980),

affirmed, in part, and reversed in part,

an earlier Initial Decision by

3

Administrative Law Judge Daniel M. Head.

Judge Head's Initial Decision is report-

ed at Mahaffey Message Relay, Inc., 79

F.C.C. 2d 414 (1979).

JURISDICTION

The Dismissal Order of the Court

of Appeals was entered on November 10,

1981. A timely Petition for Rehearing

and Suggestion for Rehearing En Banc

was denied on December 9, 1981, and

this petition for certiorari was filed

within 90 days of that date. This

Court's jurisdiction is invoked under

28 U.S.C.A. § 1254 (1).

STATUTORY PROVISIONS INVOLVED

Section 402(a) and (b) of the

Communications Act of 1934, 47 U.S.C.A.

§§ 402(a), (b):

Sec. 402(a) Any ge

to enjoin, set aside, ann

or suspend any order of the

4

Commission under this Act

(except those appealable

under subsection (b) of this

section) shall be brought as

provided by and in the manner

prescribed in chapter 19A of

Title 5.

(b) Appeals may be taken

from decisions and orders of

the Commission to the United

States Court of Appeals for

the District of Columbia in

any of the ne cases:

(1) By any applicant

for a construction permit or

station license, whose appli-

cation is denied by the Commis-

sion.

(2) By any applicant for

‘the renewal or modification of

any such instrument of authori-

zation whose application is

denied by the Commission.

(3) By any party to an

application for authority to

transfer, assign, or dispose

of any such instrument of

authorization, or any rights

thereunder, whose application

is denied by the Commission.

(4) By any applicant for

the permit required by section

325 of this title whose applica-

tion has been denied by the

Commission, or by any permittee

under said section whose per-

mit has been revoked by the

Commission.

(5S) By the holder of any

5

construction permit or sta-

tion license which has been

modified or revoked by the

Commission.

(6) By any other person

who is aggrieved or whose

interests are adversely affec-

ted by any order of the Commis-

sion granting or denying any

application described in para-

graphs (1) - (4) of this sub-

section.

(7) By any person upon

whom an order to cease and

desist has been served under

section 312 of this title.

(8) By any radio operator

whose license has been suspended

by the Commission.

STATEMENT OF THE CASE

Memphis Mobile Telephone, Inc., and

Radio Telephone Industries, Inc., timely

filed their Petition for Review with

the U. S. Court of Appeals for the

District of Columbia Circuit pursuant

to Section 402(a) of the Communications

Act of 1934, 47 U.S.C.A. § 402(a). In

petitioners’ judgment § 402(a) was the

proper statutory provision for judicial

6

review inasmuch as those portions of the

Commission's orders wnich petitioners ask

the Court of Appeals to review were in-

vestigatory in nature rather than being

an exercise of the Commission's licen-

sing powers.

The Commission filed a Motion to

Dismiss with the Court of Appeals on

the grownds that the agency proceeding

was a licensing proceeding reviewable

only pursuant to Section 402(b) of the

Communications Act of 1934, 47 U.S.C.A.

§ 402(b).

The Court of Appeals agreed with

the Commission that the agency proceed-

ing was a licensing proceeding and that

§ 402(b) was the exclusive provision of

the Communications Act governing appeals

of licensing proceedings. The Court

thus dismissed the Petition for Review

7

on the basis that it was untimely filed

under § 402(b). '

The issue raised, then, is whether

the Commission's proceeding was an in-

vestigation, a licensing proceeding, or

both. If it is found that the Commis-

sion's proceeding was both an investi-

gation and a licensing proceeding, then

an issue is raised whether the proceed-

ing is separable for the purpose of

judicial review or whether § 402(b) is

the controlling, and exclusive, provision

for review. An understanding of the

nature and background of the Commission's

proceedings is essential to resolution

of these issues.

1/ The Petition for Review was timely,

however, under 402(a) of the

Communications Act.

8

On August 4, 1976, and September

30, 1976, the Commission consolidated

several then pending proceedings for

oral hearing before an Administrative

Law Judge. The consolidated proceed-

ing was, in turn, divided into three

distinct phases which were thereafter

designated Phases I, II and III, respec-

tively.

Phase I, which was investigative

in nature, arose out of complaints and

petitions filed with the Commission by

Memphis Mobile Telephone, Inc., alleging

that Mahaffey Message Relay, Inc., a

Commission licensee and common carrier

by radio, unilaterally and together with

three other Commission licensees and

common carriers, those being Otis L.

Hale d/b/a Mobilfone, AAA Anserphone,

Inc.-Jackson, and Airsignal International,

9

Inc., had engaged in anticompetitive con-

duct intended to preclude Memphis Mobile

Telephone, Inc., from entering the radio

common carrier market in Memphis, TN.

According to the Commission's Designation

Order, Phase I of the proceedings was

convened for the following purposes:

To determine whether Mahaffey

Message Relay, Inc., AAA Anser-

phone-Jackson, and Otis L. Hale

d/b/a Mobilphone have jointly

engaged in conduct intended to

prevent the filing of competing

applications for radio carrier

frequencies in the greater Men-

phis, Tennessee metropolitan

— subsequent to January l,

To determine the facts and cir-

cumstances surrounding Mahaffey's

filing of applications for 450

MHz and lowband one-way frequen-

cies in the Memphis Metropolitan .

= subsequent to January l,

Hearing on the issues raised in Phase I

required eight days of oral testimony and

involved the active participation of six

10

separate parties, all represented by

counsel. Phase I was clearly the predom-

inant phase of the consolidated proceed-

ings. It lasted significantly longer

than Phase III, involved more parties,

and related to issues of gréater prece-

dental significance than Phase III. The

Petition for Review filed with the U. S.

Court of Appeals for the District of

Columbia Circuit sought review of the

issues in Phase I only.

Phase II of the agency proceedings

arose out of complaints filed by Radio

Telephone Industries, Inc., and Messrs.

Larry Short and Douglas Wagnon pursuant

to Section 208 of the Communications Act

of 1934, as amended, 47 U.S.C. § 208.

The complaints alleged generally that

Mahaffey Message Relay, Inc., had

constructed a vertically integrated

11

monopoly by requiring that terminal equip-

ment owned by its customers be installed

and maintained by Mahaffey Communications

Company, a separate family owned company,

in violation of Sections 203 and 313 of

the Communications Act, 47 U.S.C. 203 and

313. Hearing on the issues raised in

Phase II required five days of oral testi-

mony and involved the active participation

of five parties. The issues involved in

Phase II were not appealed to the Court

of Appeals.

Phase III, the licensing phase of

the consolidated agency proceedings, in-

volved three applications by Mahaffey

Message Relay, Inc., for construction

permits in the Domestic Public Land

Mobile Radio Service (DPLMRS). Hearing

on the issues in Phase III required one

day only of oral testimony and involved

12

the active participation of only two par-

ties, those being Mahaffey Message Relay,

Inc., and the Commission's own Common

Carrier Bureau. The issues involved in

Phase III, like those involved in Phase II,

were not appealed to the Court of Appeals.

At the time of the oral hearing in

Phase III, the licensing phase, neither

Radio Telephone Industries, Inc., nor

Memphis Mobile Telephone, Inc., were

parties to that phase of the proceeding.

Memphis Mobile Telephone, Inc., had

originally been a party in both Phases

I and III, but its status as a party in

Phase III was terminated by the Commis-

sion itself. At the time of that termin-

ation, the Commission apparently viewed

the two phases of the consolidated

proceedings as two separate proceedings,

Phase I as an investigation and Phase

13

III as a construction permit application

proceeding. The issue of Memphis Mobile

Telephone's status as a party in Phase

III was addressed by the Administrative

Law Judge in an Order released January

31, 1979, as follows:

"Turning to the question of

MMT's request to retain its

Status as a party .. . MMT's

intent is to file proposed

findings in connection with

Phase III. However, this

would not serve any useful

purpose since MMT no longer

has any interest in Mahaffey's

application .. . Therefore,

we see no reason to continue

MMT's party status on Phase

III issues. On the other

hand, MMT's request can be

interpreted as asking to main-

tain its party status in rela-

tion to Phase I issues, in

which MMT substantially partici-

pated . . . we agree with the

Bureau's position that MMT

should retain its party status

on Phase I issues ... we

will continue MMT's status as

a party but only with regard

to any further activities

involving Phase I issues."

14

The Judge viewed Memphis Mobile Telephone,

Inc., as a party to the investigation

conducted by the Commission in Phase I,

but not as a part in "interest in Mahaf-

fey's application," which was under con-

sideration in Phase III only. For that

reason, Memphis Mobile Telephone's

status as a party in Phase iII was ter-

minated.

The Judge's decision to terminate

Memphis Mobile Telephone's status as a

party in Phase III was upheld by the

Commission in an Order dated November

30, 1979, with the following explana-

tion:

"In our view, the ALJ did not

abuse his discretion. Since

MMT's application has been

dismissed it no longer has

standing as a competing appli-

cant .. . Airsignal, AAA-

Anserphone and Otis L. Hale

(Mobilfone) are party-respon-

dents in the case for purposes

15

of participation with respect

to an issue which was tried

in Phase I of the proceeding.

MMT has participated in that

Phase and... retains its

Status as a party thereto."

The above explanations accurately re-

flect the Commission's understanding of

the nature of its own proceedings at

that time. The Commission viewed Phase

III as a licensing proceeding in which

Memphis Mobile Telephone was without

standing to participate, and viewed

Phase I as an investigation in which

Airsignal, AAA-Anserphone, and Mobile-

fone were "party-respondents" and in

which Memphis Mobile Telephone had

standing as a party.

Because of Memphis Mobile Telephone's

lack of standing in Phase III, the Peti-

tion for Review filed with the Court of

Appeals sought review of the Commission's

16

actions or inactions with respect to the

issues raised in Phase I only. In con-

trast to Phase III, the proceedings in

Phase I did not directly involve the

merits of Mahaffey's applications, i.e.,

there was no determination to be made

whether the applications should be granted

or denied. Rather, Phase I was investi-

gative in nature and involved an inquiry

not only into alleged unilateral anti-

competitive conduct by Mahaffey, but also

into alleged joint anticompetitive con-

duct by Mahaffey, Airsignal, AAA Anser-

phone and Mobilfone. In conducting the

inquiry in Phase I, the Commission was

not exercising any of its licensing

powers, but was instead exercising its

power to conduct an inquiry pursuant to

Section 403 of the Communications Act

of 1934, 47 U.S.C. 403.

17

Alternatively, Phase I might be

viewed as an adjudicatory enforcement

proceeding convened in response to com-

plaints filed with the Comm:ssion by

petitioners and convened either pursuant

to powers conferred by 47 U.S.C. 208 or

47 U.S.C. 403. If the Commission was

not exercising its investigative juris-

diction under Sections 208 or 403, then

it had no jurisdiction to even proceed

against Airsignal, AAA Anserphone or

Mobilfone, parties characterized by

the Commission itself as "party-respon-

dents," for not one of them had a

license application pending in the

subject proceedings.

The joint conduct into which the

Commission inquired in Phase I, conduct

alleged by petitioners to be anticompeti-

tive in nature, involved an agreement

18

among and between Mahaffey, Airsignal,

AAA Anserphone and Mobilfone : which

had the effect of dividing among the

four of them the radio common carrier

market in the greater Memphis, TN, area,

to the exclusion of potential competitors,

including Memphis Mobile Telephone, Inc.

The horizontal market division accom-

plished by that agreement, illegal per

se under the antitrust laws, was essen-

tially ignored by the Commission as being

merely an expedient means to accomplish

the settlement of issues which might

otherwise have arisen in the context of

a comparative hearing upon the merits of

mutually exclusive DPLMRS applications.

Even if that were so, and even if the

Commission were ultimately to find and

2/ Mobilfone disputes that it ever

entered into the agreement.

19

conclude that the agreement was consis-

tent with the public interest and not

contrary thereto, the fact is that the

agreement was never presented to the

Commission by the parties for the Commis-

sion's consideration, approval or dis-

approval. And the Commission itself,

now that it is aware of the agreement's

existence, has refused to formally

address the merits or demerits of the

agreement itself, has refused to consider

the inherently anticompetitive impact of

that agreement, and has refused to compel

the parties co the agreement to bring the

agreement before the Commission for

approval or disapproval.

By their agreement, the four respon-

dents divided the relevant market among

themselves along both geographic and

product lines. Under the terms of that

20

agreement, the parties have allocated

Memphis proper to Mahaffey as its market

territory; have allocated South Haven,

MS, to AAA Anserphone; and have allocated

West Memphis, AR, to Airsignal and Mobil-

fone. Of the fourteen frequencies avail-

able, the parties decided to allocate

six to Mahaffey, three to AAA Anserphone,

three to Airsignal, and two to Mobilfone.

In terms of the nature of service to be

provided, the parties allocated inter-

connected mobile telephone service to

Mahaffey and AAA Anserphone, non-inter-

connected repeater service to Mobilfone

and Airsignal, and interconnected

repeater service to Mahaffey. Petition-

ers cannot imagine a more restrictive

anticompetitive horizontal market divi-

sion than that accomplished by the four

parties who were respondents in Phase I

21

of the agency proceedings. Nonetheless,

the Commission refused to take any

remedial action.

The anticompetitive conduct of the

four respondents and the inherently anti-

competitive nature of the settlement

agreement were the principal issues

raised by petitioners and presented to

the Commission in agency appellate pro-

ceedings. In its "Application for Review"

filed with the Commission, petitioners

argued at page -3- that:

"THE REVIEW BOARD'S CONCLU-

SION THAT AN EXTRA RECORD

SETTLEMENT AGREEMENT, NOT

SUBMITTED TO OR APPROVED BY

THE COMMISSION, MAY NOT

CONSTITUTE ANTI-COMPETITIVE

CONDUCT IN AND OF ITSELF

RAISES AN IMPORTANT ISSUE OF

LAW AND POLICY WHICH WARRANTS

COMMISSION REVIEW"

The petitioners, after presenting their

argument, asked the Commission to

". . . serutinize the

22

settlement agreement as if

the same were submitted to

it for approval pursuant to

47 C.F.R. 21.29... (and)

. disapprove the ‘settle-

ment agreement as being anti-

competitive for the reasons

set forth above .. ."

In response to the Application for

Review, the Commission failed or refused

to address any of the issues raised, and

simply denied the Application in a

summary order. Petitioners were thus

aggrieved by the failure of the Commis-

sion to find and conclude, as a conse-

quence of its investigation, that the

four respondents jointly engaged in anti-

competitive conduct, and by the Commis-

sion's failure to find and conclude that

the settlement agreement, entered into

without approval of the Commission, was

illegal and of no force and effect.

Based upon that grievance, petitioners

filed their Petition for Review with the

23

U. S. Court of Appeals for the District

of Columbia Circuit pursuant to 47 U.S.C.

§ 402 (a).

The substantive issue which peti-

tioners wish to present to the Court of

Appeals for review is

whether a horizontal market

division entered into among

four radio common carriers

constitutes anticompetitive

conduct cognizable by the

Federal Communications Commis-

sion and, if so, what remedies

are available from the Commis-

sion to aggrieved parties as

a consequence thereof.

The Court of Appeals has thus far declined

review, but has instead dismissed the

Petition fcr Review on the grounds that

the Petition was brought under 47 U.S.C.

§ 402% a) rather than 47 U.S.C. § 402(b) .

ARGUMENT

Section 402 of the Communications

Act is a difficult jurisdictional pro-

vision which repeatedly plagues appellate

24

counsel and the Courts of Appeals in its

application and interpretation. Certio-

rari should |. granted so that the Supreme

Court might provide clear guidance to the

lower courts and to counsel concerning

the proper procedures to be followed in

the review and appeal of Commission

decisions under that statutory provision.

The magnitude of the uncertainty

which currently exists is evidenced by

the fact that some petitioners, aggrieved

by decisions of the Commission, seek

review under both Sections 402(a) and

402(b). Gerico Investment Co., v. Feder-

al Commun. Com'n, 240 F.2d 410 (D.C. Cir.

1957); Kessler v. FCC, 326 F.2d 653 (D.C.

Cir. 1964); Tomah-Mauston Broadcasting

Co. v. FCC, 304 F.2d 811 (D.C. Cir.

1962); Functional Music, Inc. v. FCC,

25

274 F.2d 543 (D.C. Cir. 1958); Columbia

Broadcasting Sys. v. Federal Comm. Com'n,

211 F.2d 644 (D.C. Cir. 1954); Rhode Is-

land Television Corporation v. FCC, 320

F.2d 762 (D.C. Cir. 1963); and National

Ass'n of Broadcasters v. F.C.C., 554 F.2d

1118 (D.C. Cir. 1976). Such a cumbersome

procedure compels the Court of Appeals, in

every case in which there is a dual filing,

to consume precious additional judicial

resources determining which of the two

avenues of review is the more appropriate

one. Proper functioning of the appellate

process requires clarification of the

Statute by the Supreme Court so that the

awkward, expensive, and judicially in-

efficient practice of filing under both

sections 402(a) and 402(b) will no

longer be encouraged or deemed necessary

by any appellate counsel.

26

Petitioners, secondly, submit that

dismissal of their Petition for Review

by the U. S. Court of Appeals for the

District of Columbia Circuit conflicts

with the decision of the U. S. Court of

Appeals for the Seventh Circuit in

Campos v. F.C.C., 650 F.2d 890 (1981).

The Court of Appeals there held that

Section 402(b) of the Communications Act

is to be narrowly construed, and found

review of radio operator license pro-

ceedings to be proper under 402(a). In

the instant proceeding, in contrast, the

Court of Appeals construed 402(b) very

broadly as being the exclusive review

provision where any part of the proceed-

ings below involved an excercise of the

Commission's licensing functions. Peti-

tioners believe a more enlightened con-

struction of 402(a) and 402(b) would

27

allow appeal of separable portions of

the same proceeding under separate perti-

nent statutory provisions. Thus, in the

instant circumstances, Phase I, an in-

vestigation, is reviewable under 402(a);

Phase II, a complaint proceeding, is

reviewable under 402(a); and Phase III,

a licensing proceeding is reviewable

under 402(b). Petitioners submit that

no other rational resolution of the

jurisdictional issue presented is possi-

ble in these unique circumstances where:

(a) the FCC has consolidated

an investigation of multiple

respondents with complaints

filed by multiple complainants,

and further consolidated both

proceedings with construction

permit applications of one of

the four respondents,

(b) the consolidated proceeding

was thereafter segregated into

three separate and distinct

phases, each with different

parties and issues, and

28

(c) the construction permit

applications of three of the

party-respondents to the Phase

I investigation were bifurcated

into separate Commission proceed-

ings which are still pending.

Such an interpretation by the Supreme

Court would, petitioners believe, prevent

apparent conflicts between the decisions

of the various Courts of Appeals.

Thirdly, petitioners note that the

statutory purpose for the distinction

between Sections 402(a) and 402(b) was

to place venue of Section 402(b) appeals

in the U. S. Court of Appeals for the

District of Columbia Circuit. In Scripps-

Howard Radio v. Federal Communications

Commission, 316 U.S. 4, 16, 62 S.CT. 875,

882 (1942), the Supreme Court discussed

the difference between Section 402(a)

and 402(b) in the following language:

"It is urged that the orders

reviewable under § 402(a), as

to which the power to grant

29

stays is undeniable, are in-

trinsically different from

those reviewable under §402(b).

But while the two sections

route appeals to different

courts, the differentiation

was in large measure the pro-

duct of Congressional solici-

tude for the convenience of

litigants. It had no relation

to the scope of the judicial

function which the courts were

called upon to perform. For

example, if the Commission

on its own motion modifies

a station license, review is

had under §402(a) in the

appropriate district court.

However, if it grants an

application for modification

of a license, an appeal lies

under §402(b) to the Court

of Appeals for the District

of Columbia. Both cases give

rise to the same kind of issues

on appeal. Both orders are

equally susceptible of being

Stayed on appeal. As the legis-

lative history of the Act

plainly shows, Congress pro-

vided the two roads to judicial

review only to save a licensee

the inconvenience of litiga-

ting an appeal in Washington

in situations where the Commis-

sion's order arose out of a

proceeding not instituted by

the licensee."

Although Section 402 was amended and

30

modified somewhat in 1952, the Courts of

Appeals still recognize that the distinc-

tion between Sections 402(a) and 402(b)

is one of forum selection. In Functional

Music, Inc. v. F.C.C., 274 F.2d 543, 547

n.10 (D.C. Cir. 1958), for example, the

Court of Appeals, citing Scripps-Howard

Radio Co. v. Federal Communications

Comm., supra, noted that:

"The orders encompassed by

§402(b) directly affect the

radio-licensing function of

the Commission, and in the

interest of uniformity, appeal

therefrom is concentrated in

the Court of Appeals for the

District of Columbia Circuit.

All other Commission orders

may be reviewed alternatively

in the Court of Appeals for

the Circuit where the party

resides or has its principal

office, or in the Court of

Appeals for the District of

Columbia Circuit. 64 Stat.

1130 (1950), 5 U.S.C.A. §1033

(1952) ."

Forum selection considerations also

appear to be an important factor in the

31

decisions of the courts in Helena TV,

Inc. v. Federal Communications Commis-

sion, 269 F.2d 30 (9th Cir. 1959); WHDH,

Inc. v. United States, 457 F.2d 559, 561

(lst Cir. 1972); Valley Vision, Inc. v.

F.C.C., 399 F.2d 511 (9th Cir. 1968); and

Cook Inc. v. United States, 394 F.2d 84

(7th Cir. 1968).

In the instant proceeding, peti-

tioners have sought review in the United

States Court of Appeals for the District

of Columbia Circuit, a proper forum for

review of a Section 402(a) or a Section

402(b) order. No party has grounds to

complain that petitioners are forum

shopping or that their rights have in

the slightest been adversely affected

by the bringing of the petition in the

U. S. Court of Appeals for the District

of Columbia Circuit. Petitioners do not

32

believe it is appropriate for their Peti-

tion for Review to have been dismissed

when the statutory purpose(s) for any

distinctions between Sections 402(a) and

402(b) have thus been completely satis-

fied.

A fourth reason for granting certi-

orari is to prevent the procedural con-

fusion and administrative delays which

will otherwise result in the processing

of separate, but related, proceedings

still pending before the Commission.

The Court is advised that Airsignal,

Mobilfone, AAA-Anserphone, and Mahaffey

all have DPLMRS applications pending be-

fore the Commission and that those pro-

ceedings directly involve the greater

Mempr’« «- .- .mmon carrier market.

AAA-Anserphone's application for con-

struction permits in South Haven, MS, is

33

pending in FCC File No. 20032-C2-P-(4)-

74. Mobilfone's application for con-

struction permits in West Memphis, AR,

is pending in FCC File No. 8942-C2-P-(2)-

73. Airsignal's application for con-

struction permits in West Memphis, AR,

is pending before the FCC in File No.

20076-C2-P-(4)-74. Those three appli-

cations were the subject, inter alia,

of the settlement agreement between the

“party-respondents" in Phase I, although

none of the three applications was

actually before the Commission in its

investigation in the consolidated pro-

ceedings below. All three were pending

in separate dockets. When the investi- .

gation was completed, the Commission, in

its final Order, stated in footnote 1

thereof that:

". . . we deem it appropriate that

the Common Carrier Bureau resume

34

processing of those appli-

cations (of the three party-

respondents) and determine,

consistent with its delega-

tion of authority, whether

the grant of those applica-

tions would serve the public

interest, convenience and

necessity."

Memphis Mobile Telephone, believing

Phase i of the proceedings below to have

been an investigation of the conduct of

the four party-respondents and not a

licensing proceeding as the Commission

now claims, has asked the Commission,

in its disposition of the three above-

referenced applications, to take admin-

istrative notice of the unlawful conduct

disclosed in the consolidated proceed-

ings below. The Common Carrier Bureau

has yet to take any action upon that

request or upon Memphis Mobile Telephone's

Petition to Deny the three applications,

and all three are still awaiting initial

35

disposition.

If the Court views Phase I of the

proceedings below to have constituted

an exercise of the Commission's licens-

ing powers and not, as petitioners sub-

mit, its investigative powers, then the

inevitable result will be bifurcated

judicial review of the separate pro-

ceedings. Thus, if the Court of Appeals'

Dismissal Order is ultimately upheld,

and if the Commission thereafter grants

the pending applications of the three

party-respondents, Memphis Mobile Tele-

phone would be forced by circumstances

to file Petitions for Review of all

three applications under 47 U.S.C. 402(b),

or under both 47 U.S.C. 402(b) and 402(a).

This awkward procedure would be

necessary in order for Memphis Mobile

Telephone to obtain judicial review of

36

the issues raised in Phase I of the pro-

ceeding below. What Memphis Mobile Tele-

phone would much prefer is for the Court

to recognize Phase I for what it actually

is, an exercise of the Commission's in-

vestigatory powers under 47 U.S.C. 208

or 47 U.S.C. 403, and reviewable under

47 U.S.C. 402(a), thereby paving the way

for early judical review of an issue

common to all five proceedings.

Petitioners believe that the party-

respondents themselves view Phase I of

the proceedings below to have been an

investigation of their conduct; just

as petitioners do. In recent corres-

pondence to the Commission, party-respon-

dent AAA Anserphone, Inc.-Jackson stated:

"The Commission has concluded

on the basis of an evidentiary

hearing that AAA Anserphone,

Inc.-Jackson (AAA) did not

engage in anticompetitive

conduct in the prosecution of

37

its .. . application .

That decision was appealed

by Memphis Mobile Telephone,

Inc. (MMT) to the United

States Court of Appeals

for the District of Columbia

Circuit .. . Enclosed is

a copy of the Court's Order

of November 10, 1981, which

granted the Commission's

motion to dismiss MMT's

appeal as untimely filed.

Accordingly, the Commission's

findings as to AAA's qualifi-

cations are no longer subject

to judicial review, and the

Commission's disposition of

MMT's charges of anti-competi-

tive conduct should be con-

Sidered res judicata .. ."

It would thus appear that AAA views

Phase I of the proceedings below to have

constituted an investigation of its

conduct which is aow res judicata in its

own pending construction permit applica-

tion proceeding. Petitioners do not

consider themselves bound by the repre-

sentatives of AAA, but would agree that

Phase I constituted an investigation of

38

the conduct of AAA Anserphone, Inc. -

Jackson; that AAA's application was not

before the Commission in that proceeding;

and that AAA's application is now pend-

ing resolution by the Commission and is

neither administratively final nor

judicially reviewable at this time.

What is judicially reviewable is the

action or inaction of the Commission

in its investigation in Phase I, and

that review may be conducted pursuant

to 47 U.S.C. §402(a).

Finally, but most important from

the viewpoint of your petitioners, peti-

tioners believe the dismissal Order of

the Court of Appeals to be erroneous as

a matter of law. The impact of that

Order is to unjustly deprive petitioners

of their right of judicial review. It

is petitioners’ opinion that the Court

39

below misconstrued the applicability of

47 U.S.C.A. § 402(b). The Court of

Appeals erroneously concluded that peti-

tioners are persons aggrieved or whose

interests are adversely affected by an

order of the Commission granting an appli-

cation for a construction permit or

station license. [47 U.S.C.A. § 402(b)

(1), (6) (1976)]. Contrary to the Court

of Appeals’ conclusion, neither Memphis

Mobile Telephone, Inc., nor Radio Tele-

phone Industries, Inc., can be considered

an "aggrieved" person pursuant to Section

402(b) (6) inasmuch as neither company,

upon conclusion of the consolidated pro-

ceedings below, was a party to the

Mahaffey Message Relay applications, the

only applications then before the Commis-

sion in the involved proceedings. To

the contrary, petitioners’ aggrievement

40

arises from their status as complainants

against the anticompetitive actions of one

or more of the four party-respondents whose

conduct the Commission was investigating.

. Not only were Memphis Mobile Tele-

phone, Inc., and Radio Telephone Indus-

tries, Inc., neither applicants nor pro-

testants to any application in the con-

solidated proceedings below, the party-

respondents AAA Anserphone-Jackson,

Inc., Mobilfone Communications, and

Airsignal International, Inc., also were

neither applicants nor protestants in

those proceedings. Insofar as the

Commissions’ actions, or inactions, in

the consolidated proceedings below

affected the rights of Memphis Mobile

Telephone, Inc., Radio Telephone Indus-

tries, Inc., AAA Anserphone-Jackson,

Inc., Mobilfone Communications, and

41

Airsignal International, Inc., the Commis-

sion was not exercising any of its licens-

ing powers. Assuming the Commission had

power to, in some fashion, adjudicate the

rights of the above named parties, it was

exercising investigative or adjudicatory

powers conferred upon it by statute under

47 U.S.C.A. § 403 or § 208.

The only applicant in the proceed-

ings below was Mahaffey Message Relay,

Inc., and the only party to Mahaffey's

applications, either in support of or

in opposition thereto, was the Commis-

sion's own Common Carrier Bureau. Neither

Mahaffey Message Relay, Inc., nor the

Common Carrier Bureau has asked for

judicial review of the Commission's

disposition of Mahaffey's applications.

Thus no party to the proceedings below

has asserted any claim that it is

42

aggrieved by the Commission's disposition

of the Mahaffey applications. Jurisdic-

tion pursuant to 47 U.S.C.A. § 402(b) (6),

therefore, cannot and could not be asserted

in the U. S. Court of Appeals for the

District of Columbia Circuit. The Commis-

sion's actions, insofar as petitioners

were aggrieved thereby, fell outside of

the scope of 47 U.S.C.A. § 402(b).

Parties aggrieved by Commission actions

which fall outside the scope of 47 U.S.C.A.

§ 402(b) may only seek judicial review

pursuant to 47 U.S.C.A. § 402(a).

Section 402(b) requires the U. S.

Court of Appeals for the District of

Columbia Circuit to examine the nature

of the injury alleged to have been suf-

fered by the party seeking judicial

review. Under 47 U.S.C.A. § 402(b) (6),

if that injury is caused by the grant-

43

ing or denial of a construction permit

or station license application, appeal

must be brought pursuant to Section 402

(b) rather then Section 402(a). In the

proceedings below, petitioners were not

parties to the applications of Mahaffey

Message Relay, Inc., but were parties

to the Commission's investigation of

alleged anticompetitive behavior of four

party-respondents, and were complainants

in their own right against the conduct

of those parties. Petitioners are in-

jured by the Commission's failure to

find and conclude that the four party-

respondents have engaged in unlawful

anticompetitive behavior, and by the

Commission's failure to take any remedial

action whatsoever with respect thereto.

Petitioners’ injury can only be judicially

reviewed under 47 U.S.C.A. §402(a), and

44

we ask this Court to so conclude.

CONCLUSION

For these reasons, a writ of certi-

orari should issue to the judgment and

Orders of the United States Court of

Appeals for the District of Columbia

Circuit.

Respectfully submitted

John M. Ballenger

Suite 304

6121 Lincolnia Road

P.O. Box 11278

Alexandria, VA 22312

(703) 750-1112

Counsel for Petitioner

la

APPENDIX

UNITED STATES COURT OF APPEALS

For the District of Columbia Circuit

No. 81-1973 SEPTEMBER TERM, 1981

(Service Date November 10, 1981

George A. Fisher, Clerk)

Memphis Mobile Telephone, Inc., et al.,

Petitioners

Vv.

Federal Communications Commission and

United States of America,

Respondents

BEFORE: Wald, Mikva and Edwards”

Circuit Judges

ORDER

Upon consideration of respondent's

motion to dismiss, intervenor's memor-

andum in support thereof, petitioner's

response, and respondent's and inter-

venor's replies, it is

ORDERED by the Court that the mtion

is granted and the petition for review

is dismissed. The order that petitioners

seek to have us review was plainly an

* Circuit Judge Edwards did not parti-

cipate in this order.

2a

order granting applications for construc-

tion permits and was thus subject to

ap al only under 47 U.S.C. § 402(b)(1),

( 5°19 76) Petitioners did not appeal

within the thirty (30) day period set by

id. § 402(c). Their appeal is therefore

untimely .

Per Curiam

3a

APPENDIX

UNITED STATES COURT OF APPEALS

For the District of Columbia Circuit

No. 81-1973 SEPTEMBER TERM, 1981

(Service Date December 9, 1981

George A. Fisher, Clerk)

Memphis Mobile Telephone,

Inc., et al.,

Petitioners

Vv.

Federal Communications

Commission and United

States of America,

Respondents

BEFORE: Wald and Mikva, Circuit

Judges

ORDER

On consideration of petitioners’

petition for rehearing filed November 24,

1981, it is

ORDERED by the Court that the afore-

said petition is denied.

Per Curiam

4a

APPENDIX

BEFORE THE

FEDERAL COMMUNICATIONS COMMISSION

WASHINGTON, D.C.

In the Matter of

MAHAFFEY MESSAGE RE-

LAY. INC. Memphis, Tenne-

For Construction Per-

mits for facilities in

the Domestic Public Land

Mobile Radio Services,

to operate in Memphis,

Tennessee

RADIO TELEPHONE INDUS-

TRIES, INC. et al.

Complainants

v.

MAHAFFEY MESSAGE RE-

LAY, INC.

Defendant

ORDER

20554

CC

FCC 81-338

94713

DOCKET NO.

20871

)File Nos.

)8331-C2-P-(8)-73

)8557-C2-P-(4)-73

) 21635-CD-P-75

Vee

)

)

)

)

DOCKET NO.

) 20938

File Nos.

yTS-76-209

) 76-965

) 76-1244

)

)

)

)

Adopted: July 16, 1981;

5a

Released: July 23, 1981

By the Commission: Commissioner

Fogarty Concurring

and issuing a state-

ment; Commissioner

Dawson abstaining

from voting.

1. The Commission has before

it for consideration: (a) an Applica-

tion (79 FCC 2d 399, released May 20,

1980), filed June 19, 1980 by Memphis

Mobile Telephone, Inc. and Radio

Telephone Industries, Inc.; (b) an

Opposition, filed July 14, 1980, by

Airsignal International, Inc.; (d)

an Opposition, filed July 14, 1980, by

Otis L. Hale d/b/a Mobilfone Communi-

cations.

2. IT IS ORDERED, That

pursuant to Section 1.115(g) of the

Commission's Rule the — for

Review, filed June 19, 1980, by Memphis

Mobile Telephone, Inc. and Radio Tele-

phone Industries, Inc. IS DENIED.

3. IT IS FURTHER ORDERED, that

6a

1/

this proceeding IS TERMINATED.

FEDERAL COMMUNICATIONS COMMISSION *

William J. Tricarico

Secretary

* See attached concurring statement of

Commissioner Joseph R. Fogarty.

I7 By Memorandum Opinion and Order, FCC

76-647, released August 4, 1976, AAA

Anserphone, Airsignal International, and

Mobilfone were made respondents to this

am for purposes of participating

in Issue 1. Since Issue 1 involved an

alleged conspiracy to block the filing

of competing applications for radio

common carrier frequencies in the Memphis,

Tennessee area, our action herein removes

the previous impediment to the grant of

those applications. Nevertheless, we

will not grant the applications filed by

AAA Anserphone, Inc.-Jackson (FCC File

No. 20032-C2-P-(4)-74), Airsignal Inter-

national, Inc. (FCC File No. 20076-C2-

P-(4)-74) and Mobilfone Communications

(FCC File No. 8942-C2-(2)-73) at this time

since only Mahaffey's applications are

before us in this proceeding. Rather,

we deem it appropriate that the Common

Carrier Bureau resume processing of

those applications and determine, con-

sistent with its delegation of authority,

whether the grant of those applications

would serve the public interest, conveni-

ence and necessity.

7a

CONCURRING STATEMENT

OF

COMMISSIONER JOSEPH R. FOGARTY

In Re: Mahaffey Message Relay, Inc.,

Memphis, Tennessee.

While I concur in the Commission's

decision to deny review of this proceed-

ing, I remain troubled by the issue of

Mahaffey's refusal to certify new shops

providing mobile equipment maintenance

in violation of Section 202(a) of the

Communications Act. On this issue, the

ALJ found that Mahaffey had unreasonably

limited the entry of service shops by

refusing to certify new shops on the

arbitrary ground that Memphis already

had enough maintenance service pro-

viders. In addition to finding this

violation of Section 202(a), the ALJ

also found that Mahaffey's refusal con-

stituted an anticompetitive practice

intended to ensure the competitive advan-

tage of a maintenance business owned by

the brother of Mahaffey Radio's president.

As a sanction, the ALJ ordered Mahaffey

to establish a program for inspecting

and approving maintenance shops which are

technically competent to install and

service equipment compatible with the

Mahaffey system, submit such program to

the Common Carrier Bureau for approval,

and take immediate action on the request

of one such shop, General Electronics.

Altheugh the ALJ's disposition of

this issue was not appeaied to the Review

8a

Board, Board Member Ohlbaum's dissent L/

from the affirmance of the ALJ's decision

submitted that Mahaffey's instant appli-

cation should be denied and that revoca-

tion proceedings should be instituted

against Mahaffey's existing licenses.

The dissent argued that Mahaffey had no

reasonable basis for refusing approval

of new maintenance shops. Noting that

the ALJ, in imposing a more lenient sanc-

tion, had relied on the apparent lack of

evidence of actual harm resulting from

the misconduct, Board member Ohlbaum sub-

mitted that this proceeding is not an

adjudication of a complaint for damages,

and the extent of demonstrated fin-

ancial injury to other parties is of

little significance to the Commission's

proper concern with Mahaffey's fitness

to be a licensee.

The dissent also advised that if

Mahaffey was allowed to remain a licensee,

the Commission should provide that

Mahaffey's power to approve service shops

to maintain subscriber-owned equipment

be suspended until Mahaffey adopts stand-

ards acceptable to the Commission. Board

Member Ohlbaum further suggested that the

Commission give consideration to ruling

specifically that the base station oper-

ator may not reserve to itself the author-

ity to approve the qualifications of shops

providing installation and maintenance of

I7 Mahaffey Message Relay, Inc., Dissent-

ing Statement of Board Member Daniel

R. Ohlbaum, 79 FCC 2d 411, 411-13

(Rev.Bd. 1980).

9a

subscriber-owned mobile equipment. Noting

that the Commission's new DPLMRS rules

insure inter-system equipment compati-

bility, Board Member Ohlbaum observed

that there was no apparent reason to

put in the hands of the base station

operator the power to approve mainten-

ance shops which has been abused in this

case.

I find Board Member Ohlbaum's dissent

compelling in terms of emphasizing the

gravity and basic licensing implications

of Mahaffey's misconduct. However, this

issue was not appealed to the Review

Board, and therefore the Commission's

discretion to reach this matter de novo

in considering the instant application

for review is circumscribed. 2/ I

also note that while the Commission has

assessed monetary forfeitures and allowed

private claims for damages in Section

202(a) cases, 3/ there appears to be

no Commission precedent for disqualifica-

tion of an applicant or revocation of a

license on this ground alone. in past

cases involving Section 202(a) violations,

the Commission has merely ordered that the

2/ Community Broadcasting Service, Inc.;

; Communications

Act, Section 5(d)(5); and Section

1.115(c) of the Commission's Rules.

3/ Edwards Industries, Inc., 74 FCC 2d

322 (1979); American Satellite Corp.,

73 FCC 2d 317 (1979).

10a

offensive practice be discontinued,

which is the relief and sanction which

has been ordered in this case. 4/

While I therefore am constrained

to concur in the Commission's denial of

review, I believe that the Commission

should direct the Common Carrier Bureau's

attention to this case history of main-

tenance shop certification authority

abuse and, in particular, to dissenting

Board Member Ohlbaum's cogent point that

the Commission should consider amending

the DPLMRS rules to provide specifically

that the base station operator may not

reserve to itself the authority to

approve the qualifications of installa-

tion and maintenance firms providing

service to subscriber-owned mobile equip-

ment. I also expect that the Common

Carrier Bureau will closely scrutinize

the program for inspecting and approv-

ing maintenance shops to be submitted

by Mahaffey, and that Mahaffey will

recognize that any further anticompeti-

tive conduct will put its licenses in

mortal jeopardy.

47 W.P. Keliipio v. Telephone Co.,

54 FCC 2d 529 (1975); Carter v.

AT&T, 13 FCC 2d 420 (1967).

Supreme Court, U.S,

FIiLEBD

APR 10 1982

No. 81-1660

ALEXANDER L. STEVAS

IN THE CLEF K

SUPREME COURT OF THE UNITED STATES

OCTOBER TERM, 1981

' MEMPHIS MOBILE TELEPHONE, INC., AND

RADIO TELEPHONE INDUSTRIES, INC.,

PETITIONERS,

Vv.

THE FEDERAL COMMUNICATIONS

COMMISSION, ET AL.,

RESPONDENTS .

ON WRIT OF CERTIORARI TO THE

UNITED STATES COURT OF APPEALS FOR THE

DISTRICT OF COLUMBIA CIRCUIT

OPPOSITION BRIEF FOR RESPONDENT

MAHAFFEY MESSAGE RELAY, INC.

NORMAN E. JORGENSEN

Kadison, Pfaelzer, Woodard

Quinn & Rossi

1229 19th Street, N.W.

Washington, D.C. 20036

(202) 452-8300

Counsel for Mahaffey Message

Relay, Inc.

QUESTIONS PRESENTED

Whether parties that failed to file

a timely appeal of a Federal Communications

Commission order granting a construction

permit in the Domestic Public Land Mobile

Radio Service, pursuant to 47 U.S.C. §

402(b), may nevertheless invoke the juris-

diction of an appellate court by claiming

that the single order is severable into

district and separately appealable pro-

ceedings.

(i)

LIST OF RESPONDENT'S

AFFILIATES

The following information is provided

pursuant to the requirements of Rule 28.1.

Mahaffey Mesyage Relay, Inc. (Mahaffey)

is affiliated with Communications Market-

ing, Inc.

(ii)

TABLE OF CONTENTS

QUESTION PRESENTED -------------- (i)

LIST OF RESPONDENT'S AFFILIATES = (ii)

GER qcecsesesessese coceeo-- ---~ (iii)

JURISDICTION ------- ------------- 1

STATEMENT OF THE CASE <-<-<------- 1

ARGUMENT ----------- oooeee------- 7

CONCLUSION ---------------------- 22

TABLE OF AUTHORITIES

Cases:

American Telephone and

Telegraph v. FCC, 602 F.

54-401 1D. Cir 1979) -- 9,17

Campos v. FCC, 650 F. 2d

(7th Cir. 1981) ----- 19

National Association of

Broadcasters v. FCC, 504

“ <. Gare

1976) qannnnnn nnn nn wns oe 4

National Association of

R latory Utility Com-

mission v. FCC, 525 F.

2d 630 (D.C. Cir.

1976), cert. denied, 425

U.S. 992(1976) ---------- 14

E

United States v. FCC, 652

F

Statutes:

47

47

47

47

47

47

47

47

47

47

U.S.C.

U.S.C.

U.S.C.

U.S.C.

U.S.C.

U.S.C.

U.S.C.

U.S.C.

U.S.C.

U.S.C.

(en banc)

D.C. Cir. 1980)

309(d) --------

309(e) --------

2342 ----------

(iv)

Page

20

14

2

2

15

Passim

Passim

6,7,18

15

15

15

16

JURISDICTION

Respondent received Memphis Mobile

Telephone Inc.'s (MMT) petition for writ

oi certiorari on March 10, 1982. This

brief in opposition is filed within 30

days of that date, pursuant to Sup. Ct.

R. 22.1.

STATEMENT OF THE CASE,

Between 1973 and 1975, Mahaffey

filed applications with the Federal

Communications Commission (FCC) for

construction permits for radio common

carrier frequencies in and around Memphis,

Tennessee. Competing applications were

filed by Airsignal International, Inc.

(Airsignal); Otis L. Hale d/b/a Mobilfone

Communications (Mobilfone) and AAA

Answerphone, Inc. - Jackson (AAA).

Beginning in 1975, Memphis Mobile Tele-

phone, Inc. (MMT) filed a series of

objections against these applications.

2

MMT also tendered for filing certain

competing applications.

By Memorandum Opinion and Order,

FCC 76-647, released August 4, 1976,

attached hereto as Appendix A, the FCC

deisgnated the applications of Mahaffey

for hearing under the docket number 20871.

The issues under consideration included

an inquiry into whether Mahaffey, Airsignal

AAA and Mobilfone had engaged in conduct

intended to prevent the filing of compet-

ing applications for radio common carrier

frequencies in the Memphis area. This

proceeding was later consolidated with

certain complaints directed against

Mahaffey by Radio Telephone Industries,

Inc. (RTI) and others, L/ with Order, FCC

77M-113, released, January 19, 1977.

1/

The complaints alleged that Mahaffey

was in violation of sections 201 and 202 of

the Communications Act of 1934. The Commis-

sion designated issues for hearing to explore

the factual basis of the alleged violations,

and to determine what sanctions against

Mahaffey, 44 any, were appropriate. Memoran-

dum 0 n and Onder, FCC 76-901, released

SenCEnbeX 30, 1976, docket number 20938.

3

The consolidated proceeding was

heard in three evidentiary "phases" in

order to promote convenience and effi-

ciency. Phase I dealt with the alleged

anticompetitive behavior of Mahaffey,

Airsignal, Mobilfone and AAA. Phase III

dealt with Mahaffey's actual application

for a construction permit. Petitioners

erroneously allege that these phases

constituted separate and distinct proceed-

ings which could be appealed in isolation

to the Court of Appeals. As noted more

fully at pages 8-10, infra., this claim

misstates the record of the proceedings.

After extensive oral hearings and

written submissions, the "Initial Decision

of Administrative Law Judge Daniel M. Head",

FCC 79D-25, released July 5, 1979, was

issued. This decision held that Mahaffey

and the respondents had not engaged in

joint conduct intended to prevent the

filing of competing applications, and that

Mahaffey's applications for radio common

carrier facilities were filed in good

faith and would serve the public interest.

Thus, the lack of any anticompetitive

conduct by Mahaffey was an important fac-

tor in the ultimate decision to grant

Mahaffey's applications.

MMT and RTI filed exceptions to the

Initial Decision. The FCC's Review Board,

affirmed the decision of the Presiding

Judge. MMT and RTI then filed an "Appli-

cation for Review", asking the full Com-

mission to overturn the decision of the

Review Board. In its Order, FCC 81-338,

released July 23, 1981, the FCC summarily

dismissed the MMT/RTI Apxlication for

Review. It is this final order that

Petitioners attempted to appeal under

Section 402(a) of the Communications Act

to the Unted States Court of Appeals for

the District of Columbia Circut.

5

Petitioners' court appeal was filed

on August 28, 1981, which was more than

30 days after the Commission's final Order

was released. Thus, pursuant to 47 U.S.C.

§ 402(b), the appeal was untimely. See

47 U.S.C. § 402(c). Petitioners claimed,

however, that the appeal was timely pur-

suant to 47 U.S.C. § 402(a).2’ Petitioners

claimed they were not appealing the grant

of Mahaffey's applications; rather, they

were only appealing those issues that

dealt with the alleged anticompetitive

conduct of Mahaffey, Airsignal, AAA, and

Mobilfone. The FCC, supported by

Mahaffey, 2/ moved to dismiss MMT's peti-

ti n on the grounds that it involved a

licensing matter and therefore could be

2/ Section 402(a) allows for a Larger period

~ to <ike an appeal than does section 402(b).

3/ Mahagfey filed a Memorandum in Support

of Motion to Dismiss urcth The Court of

Appeals, attached hereto as Appendix B.

6

appealed only under Section 402(b) of the

Communications Act.

The United States Court of Appeals

for the District of Columbia Circuit agreed

with the Commission and Mahaffey. On

November 10, 1981, it granted the Com-

mission's motion to dismiss MMT's peti-

tion for appeal, stating that "the order

that petitioners seek to have us review

was plainly an order granting applica-

tions for construction permits and was

thus subject to appeal only under 47

U.S.C. § 402(b)(1), (6) (1976). Peti-

tioners did not appeal within the thirty

(30) day period set by id. § 402(c).

Their appeal is therefore untimely."

Order, No. 81-1973 (Nov. 10, 1981)4/

. MMT and RTI now petition this court

for a writ of certiorari, again claiming

that the phases of the proceeding below

4/ This Onder is attached hereto as Appendix C.

are severable and separately appealable,

and that the issues they wish to appeal

are governed by 47 U.S.C. § 402(a). A

careful examination demonstrates that

these claims are without merit.

ARGUMENT

Section 402(c) of the Communications

Act, 47 U.S.C. § 402(c), states that

appeals under Section 402(b) “shall be

taken by filing a notice of appeal with

the court within thrity days from the date

upon which public notice is given of the

decision or order complained of" (Emphasis

added). The Commission Order which MMT

and RTI seek to have reviewed became ef-

fective on July 24, 1981. Thus, the

appeal was due to be filed with the Court

of Appeals on or before August 23, 1981.

Petitioners' appeal was filed on August

28, 1981.

8

The failure of MMT and RTI to timely

file their appeal affects the basic juris-

diction of the Court of Appeals. Rule 26(b)

of the Federal Rules of Appellate Proce-

dure specifically provides that:

{T]he Court may not enlarge

the time for filing a notice

of appeal.... Nor may the

Court enlarge the time pre-

scribed by law for filing a

petition to enjoin, set aside,

suspend, modify, enforce or

otherwise review, or a notice

of appeal from an order of an

administrative agency....

Petitioners have attempted to cir-

cumvent this basic jurisdictional require-

ment by claiming that they are only appeal-

ing one of the issues adjudicated below,

and that this issue does not concern a

licensing matter. Furthermore, they

erroneously allege that the three "phases"

of the proceeding below were actually

distinct, separately appealable proceed-

ings, and that the particular issue they

seek to have reviewed may be appealed

under 47 U.S.C. § 402(a). These are all

untenable contentions which do not cor-

rectly reflect the record of the proceed-

ings below. The Commission's findings

in phases I and III are not susceptible

of appellate review because final orders

of administrative agencies cannot be

divided into distinct appealable matters.

American Telephone and Telegraph Co. v.

FCC, 602 F. 2d 401 (D.C. Cir. 1979).

Petitioners submit that the phase I

issues are reviewable under § 402(a)

while the phase III issues fall under

§ 402(b). Petition at 27. The applic-

able case law dispells this claim. A

given FCC order may not be reviewed under

both sections 402(a) and 402(b).

National Association of Broadcasters v.

Fcc, 554 F. 2d 118 (D.C. Cir. 1976).

Petitioners' attempt to separate the FCC

10

order in question violates this basic

principle.

Even if the court were to accept

Petitioners' basic premise that a given

order could be appealable under both Sec-

tions 402(a) and 402(b), it must still

reject Petitioners appeal on the facts

of this case. The findings in phase I

were actually an integral part of a

licensing procedure. Such a procedure

may be reviewed only by means of a pro-

per appeal (under § 402(b)) of the FCC's

grant of Mahaffey's application for con-

struction permits. Thus, contrary to

Petitioners' claim, the phase I findings

cannot be reviewed separately under

§ 402(a) because they were merely sub-

sidiary findings; they did not constitute

a final order over which the court of

appeals has jurisdiction.

MMT and RTI ontend that the Commis-

sion divided thé proceedings into separate

phases because it realized that each

11

phase was of a distinct nature, phase I

being an investigation and phase III

being a construction permit application.

Petition at 12-13. This claim misstates

the record of the proceedings. The

separate phases, to which petitioners

repeatedly refer, represent a division of

the proceedings for evidentiary purposes.

The consolidated multi-party hearing was

separated into three parts simply for

administrative convenience and to avoid

forcing parties to attend hearing ses-

sions which dealt with issues in which

they had no particular interest. At the

prehearing conference, the presiding

judge stated explicitly that the struc-

turing of the proceedings into phase did

not mean that the matters in issue were

considered to be severable. The trans-

cript of the prehearing conference,

attached hereto as appendix D, contains

the following:

JUDGE NAUMOWICZ: .. . I do

not think that anyone would

12

object if we set up a hearing

schedule for issue 1 [the so-

called joint anticompetitive

conduct issue] which would

simply cover issue 1, but

recognizing that that the ingtiel

decision on issue 1 wou!

art of the overall initial

ecision in this consolidated

pr oceeding :

The transcript demonstrates conclusively

that the proceedings were divided for

purposes of administrative convenience,

not because the Commission viewed them

as separate proceedings.

MMT and RTI contend that the Commis-

sion itself recognized the "separateness"

of the three phases, based upon the fact

that their standing as parties in phase

III was terminated while standing in

phase I was retained. Petition at 12-14.

But, the termination of MMT's standing in

phase III simply reflected the fact that

MMT had a legitimate, cognizable interest

in phase I issues (based upon its status

as the alleged victim of anticompetitive

13

conduct), but not in the phase III issues

(based upon the fact that MMT voluntarily

withdrew its competing application).

Both phases I and III involved radio

licensing. MMT simply had no legally

cognizable interest in the phase III

radio licensing issues. Denying MMT

standing in this regard in no way con-

stituted a recognition by the FCC that

the two phases were of a distinct nature

for purposes of judicial review.

Petitioners' claim that the phase I

issues were investigatory in nature, and

may be separately under section 402(a).

However, the record indicates that phase

I was part of the Commission's inquiry

into the desirability of granting Mahaf-

fey's application, and not a separate

investigation. Hearings concerning

alleged anti-competitive behavior are an

integral part of the FCC's licensing

function - they are held to determine

14

whether an applicant is qualified to be

a licensee. The question of anti-

competitive behavior is relevant to the

determination of whether a grant of a

license application would be in the pub-

lic interest, since the public interest

has an “antitrust component" .2/ See, e.g.,

National Association of Regulatory Utility

Commissioners v. FCC, 525 F.2d 630, 636

(D.C. Cir. 1976), cert denied, 425 U.S.

992 (1976).

It is important to note that the

issues in phases I and III derived from

a single designation order. 4/ The ulti-

mate issue contained in the designation

order in Docket Number 20871 sought:

To determine in light of the

evidence adduced pursuant to

issued (1) (2) and (3) above7/

5/ However, it is not the function of the FCC

~ to enforce the antitwst Laws. United States

v. FCC, 652 F. 2d 72, 87-88 (D.C. Cin. TIBO)

(en banc).

6/ See Appendix A, Docket Number 20871 (August 4,

zo 1976), 41 Fed. Reg. 32644 (1976).

7/ The referenced issues (1), (2) and (3) inckude

~ the phase I issues.

15

whether the public interest,

convenience and necessity will

be served by a grant of any or

all of the applications of

Mahaffey Message Relay, Inc. in

whole or in part.

Based upon this designated issue, it is

clear that the phase I inquiry involved

a radio licensing matter, squarely within

the purview of section 402(b) for purposes

of judicial review. Moreover, the legal

authorities under which the Commission

designated the hearing were sections 309(d)

and (e) of the Communications Act, 47

U.S.C. §§ 309(d), ce) .2/ Those sections

constitute the essence of the FCC's radio

licensing function - to consider applica-

tions for construction permits or licenses.

8/ The Commission referred only to Sections 309(d)

and (e) as its authority to designate for

hearing see Appendix A, at § 16. Ths, there

4s no basis for Petitioners’ assertion, at

pages 16-17 of the Petition, that the hearing

on the phase I issues was conducted pursuant

to the FCC's investigative on adjudicatory

powers under 47 U.S.C. § 403 on 47 U.S.C. §

208, and was not related to the Commission's

Licensing power. Such an assertion is at

odds with the Language of the onder.

16

The jurisdiction of the court of

appeals can be invoked "to enjoin, set

aside, suspend (in whole or in part), or

to determine the validity of - (1) all

final orders of the [FCC]...." 28 U.S.C.

§ 2342 (Jurisdiction of the Court of

Appeals) (Emphasis added). This fact

provides further support for the proposi-

tion that Petitioners cannot be granted

appellate review of phase I findings only,

since those findings did not represent a

“final order". Rather, they were merely

factors in the Commission's decision to

grant Mahaffey's application. Thus, since

the grant of Mahaffey's application was

not challenged (since by doing so Peti-

tioners would lose their argument that

they were not appealing a licensing

decision), MMT and RTI are challenging a

mere subsidiary finding, which is not

susceptible of appellate review.

17

The United States Court of Appeals

for the District of Columbia Circuit has

previously ruled that a challenge to a

finding contained in an FCC order that

does not contest the order itself is not

susceptible of judicial review. American

Telephone and Telegraph Co. v. FCC, 602

F. 2d 401 (D.C. Cir. 1979). In that case

the court found that:

-.-Congress explicitly limited

our review to agency orders. If

we were to construe that term

to encompass every agency move

which might cause someone future

harm, we would in effect be

reading the congressional limi-

tation out of existence....

Such a reading would be entirely

implausible. It would cause

considerable mischief. It would

in effect permit the Courts of

Appeals at the whim of parties

not otherwise aggrieved to

scrutinize administrators'

passing remarks, overturn their

subsidiary factual determina-

tions, and stalk “heir every

step along alternative paths of

reasoning. 602 F. 2d at 409.

In light of this precedent, the Petitioners

cannot disclaim an interest in appealing

18

the grant of the authorization of Mahaffey,

and still seek to challenge the findings

pertaining thereto.

In the proceedings below, the FCC

granted Mahaffey's application for con-

struction permits. Petitioners may attack

an order of the Commission that grants

such an application only in the manner

prescribed by Congress: by the filing of

a notice of appeal in the United States

Court of Appeals for the District of

Columbia Circuit, under Section 402(b) of

the Communications Act, within thirty days

of the public notice of the Commission's

final order. See 47 U.S.C. § 402(c).

Although Petitioners filed in the correct

court, / their request for appellate review

9/ Petitioners contend that the distinction

between sections 402(a) and 402(b) is one of

forum Selection, and that since they sought

review in the United States Court of Appeals

for the District of Columbia Circuit, which

may be a proper forum for either a 402(a)

on a 402(b) appeal, no party can complain

that they are guilty of forum shopping.

Mahaffey does not dispute this claim. The

problem 46 that the claim is f<rivilous -

the 4ssue 45 not one of forum Shopping but

nather one of timeliness. It 4 insignifi-

cant that the appeal was filed in the proper

court since it was not filed on time.

19

was not made in the requisite time. MMT

and RTI cannot escape the consequences of

an untimely filing by claiming the order

may be reviewed under section 402(a).L0/

Since a timely appeal was not taken, the

court of appeals did not have jurisdiction

to review the order. The petition for

review was property dismissed.

The two principal authorities relied

upon by Petitioners provide no support

for the position they are advocating. At

pages 26 through 28, Campos v. FCC, 650

F. 2d 890 (7th Cir. 1981), is cited as

authority for the proposition that section

402(b) must be narrowly construed. Peti-

tioners can find no comfort in this prece-

dent because the case is clearly distin-

guishable on its facts. Radio common car-

rier licenses were not at issue in Campos.

10/ Section 402(a) petitions must be filed within

— " 60 days of the date of public notice. Peti-

tioners ee on ee

would have been timely under § 402(b)

20

Rather, individuals were challenging re-

strictions concerning the issuance of

commercial operators licenses.1Y Such

licenses are not clearly included in any

of the categories enumerated in section

402(b). In contrast, the instant case

involves radio licensing and thus falls

precisely within a section 402(b) category.

Thus, section 402(b) need not be construed

broadly to conclude that it governed Pe-

titioners' appeal.

At pages 28 through 29, Petitioners

cite at length excerpts from Scripps-

Howard Radio v. FCC, 316 U.S. 4 (1942),

for the proposition that the distinction

between sections 402(a) and 402(b) is one

of forum selection. However, as discussed

at page supra, forum selection is not

an issue here. The issue is one of time-

liness, and the fact that review was

11/ An operators License is issued to certify

——~ that an individual is qualified to perform

various technical and engineering tasks.

21

sought in the proper court does not give

that court jurisdiction to consider an

untimely appeal.

Petitioners also contend that the

dismissal order of the court of appeals

was erroneous as a matter of law because

it unjustly deprived them of their right

of judicial review. This is a frivilous

Claim. Petitioners were not deprived of

their right to judicial review - they had

thirty days in which to file their appeal.

By missing the filing deadline they waived

their right to judicial review.

Finally, petitioners submit that the

court of appeals miscontrued the applic-

ability of section 402(b). Petition

at 38-39. They contend that they were

not “persons aggrieved" or persons whose

interests were “adversely affected" by

any order of the Commission granting or

denying any application. 47 U.S.C.

§§ 402(b)(6). However, the record clearly

22

demonstrates that petitioners' were indeed

"aggrieved" on “adversely affected" by

the Commission's grant of Mahaffey's

application. Since only final orders of

the FCC can be appealed, and since the

final order in this case granted a license

application, MMT and RTI cannot legiti-

mately claim that the order they appealed

did not grant or deny an application.

See pages 9-10, supra. Furthermore,

MMT filed competing applications for many

of the frequencies in the Memphis area.

The grant of Mahaffey's application

directly affected MMT's capability to pro-

vide radio common carrier services in the

Memphis Market.

CONCLUSION

For the reasons stated herein,

Mahaffey believes that the United States

Court of Appeals for the District of

Columbia Circuit properly dismissed MMT

23

and RTI's petition for appellate review.

Hence, a writ of certiorari should not

issue to the judgment and orders of the

court of appeals.

Respectfully submitted

Norman E. Jorgensen

Kadison, Pfaelzer,

Woodard, Quinn &

Rossi

1229 19th Street, N.W.

Washington, D.C. 20036

(202) 452-8300 ,

$$$

APPLNDIX A

Before the c

FEDERAL C/MMUNICATIONS COMMISSION FCC 76-647

Washington, D.C. 20554 41431

In the Matter of ;

MAHAFFEY MESSAGE RELAY, INC. ) Docket No. 20871

Memphis, Tennessee ) File No. 8331-C2-P-(8)-73

) 8557-C2-P-(4)-73

: 21635-CD-P-75

MEMPHIS MOBILE TELEPHONE, INC. ) Docket No. 20872

Memphis, Tennessee ; File No. 20003-CD-P-76

For Construction Permits for facilities ) 7 .

in the Domestic Public Land Mobile Radio )

Services to operate in Memphis, Tennessee. )

MEMORANDUM OPINION AND ORDER .

pa Adopted: July 7, 1976 3 Released: August h, 1976

By the Commission: Commissioner Robinson absent.

1. The Comnission hae under consideration the above--aptioned

mutually exclusive applications of Mahaffey Message Relay, Inc.,

(Mahaffey) and Memphis Mobile Telephone, Inc. (MMT) for construction

permite in the Domestic Public Land Mobile Radio Service (DPLMRS) in the

Memphis, Tennessee metropolitan area. Also before the Couwnission are

various pleadings filed by MiT directed against Mahaffey °/ and two of the

or Leave to Intervene, Petition to Deny and Petition for

Waiver of the Cut-Off Rules filed by MMT May 19, 1975; Complaint,

Petition to Deny and Motion to Dismiss Applications filed by MMT

October 21, 1975; Mahaffey's Oppositions and MMT's replies. MMT's

various pleadings do not fully satisfy our procedural rules and

have been challenged on thie ground; however, es indicated in our

subsequent discussion, they treat matters of concern. Consequently,

we accept them as informal objections pursuant to Section 1.41 of

the Commission's Rules, and will deal with them on their merite.

- _~

— —

.

2a .

other applicants 2/ for frequencies in this erea; a "Motion for Re-

consideration” filed by MMT August 26, 1975; and an “Application for

Review" filed by MMT November 3, 1975.

2. MMT alleges that during the spring of 1973 - soon efter

it informed Mahaffey of ite intention to seek state certification to

radio common carrier service - Mahaffey and Otis Hale d/b/a

rules =/ would prevent it fros filing any subsequent competing

ications. MMT alleges further thet Maheffey's motivation

lack of good faith in filing ite applications ie evidenced by «

subsequent agreement among all of the other Memphis applicants for

radio common carrier frequencies which eliminated frequency conflicts

while still blocking MMT's mga eA of applying for 450 Miz

frequencies. In abandoned six the twelve

cations but

ite leter-filed nt

ey's filings did +

Riis Te y>

satisfy the need provisions of Section 21.516 of the Rules 5/,

should therefore be rejected without « hearing.

), Tennessee. It appears that all of Mahaffey's stations

eervice primarily to Meaphis metropolitan area subscribers.

with another Seinces cum cevbtcatale So Goummes tee

filing within days after the public notice listing the first

prior-filed application, with which subsequent applications are in

conflict, as uaving been accepted for ‘tiling.

5/ Section 21.516 requires an applicant for additional facilities to

show that there is an unsatisfied need for the additional service,

and that the applicant's present facilities are inadequate to perve

that need.

applican

AAA Anserfone, Inc. - Jackson; and Airsignal

International, Inc.) 6/ respondents to this proceeding (issue 1). We assume

in the present hearing. In the event that they do not participate, it

inferences about the bona

:

E

:

i

5

|

i

|

3

J

to the Memphis metropolitan service

low-band paging frequency (33.58

In December, 1975, the applicants

3

ef

fi

ft;

i

requested that various proposals for conflicting frequencies be deleted

from their applications (see para. 6 below). Meatwhile, on May 4, 1975,

MMT had received ite Tennessee state certification, and on May 19,

1975, Mahaffey filed two applications for the frequencies

in the service area (43.58 and 43.22 Miz). On July i, 1975, mT

filed a competing application for 43.58 Miz. Airsignal also filed an

application for this frequency, but dismissed it in December, 1975.

“5S. On Mey 19, 1975, Mi tendered an application for four

of the 450 Miz Mahaffey had applied for in May, 1973. At

the same time, MMT Petitioned for Leave to Intervene, to Deny Mahaffey's

450 Miz applications, and requested a waiver of the cut-off rules.

MIT's tion was returned as untimely filed after preliminary staff

review footnote 4%). On August 28, 1975 MMT resubmitted its

450 Miz application with a "Petition for Reconsideration". The applica-

tion was Sgain returned, and on November 3, 1975, MMT submitted an

®, for Review" apparently under the misconception that the

second return of its application was the diemissal by delegated authority

of its reconsideration request 7/. Because we grant part of the

@7 The epplications are: AAA - F.C.C. File No. 20032-C2-P-(4)-74;

Airsignal - F.C.C. File No. 20076-C2-P-(4)-74; Otis Hale - F.C.C.

File No. 8942-C2-P-(2)-73.

we

Section 21.28(d) of the Rules provides for the return without pre-

judice of received after the dates prescribed in Section

21.30(b) of the Rules. ‘This application will be eligible for

refiling only after a final decisio . rendered by the Commission

with respect to the present applicai.ons or after the diomissal or

removal of the present applications from this hearing.

relief requested in MYfT's May 19, 1975 "Petition to Intervene", it is

included in our discussion of MMI's other informal pleadings directed

at Mahaffey's filings. Other than this, however, there is no reason

to grant MMT's requests and they will therefore be denied.

THE AGREEMENT

G. On December 8, 1975, AAA, Airsignal, and Mahafley amended

the nature of the service proposed by the amending @pplicants, and ace

not

consistent with the public interest 9/

The applicants participating in the present agreement submitted a

recitation ofthe circuustances leading to the agreement; nonetheless,

§7 WF -c.c. 24 556 (1973).

9/ Ia at 558.

consideration of avoiding a hearing voiced by the 450 Miz applicante

must be considered in the context of MMT's allegations regarding their

alleged cooperation in blocking MMT's possibility of entry into this

may ,Accordingly, we are adding an appropriate issue to explore

the background of the agreement.

AAA

8. On November 5, 1975, MMT filed a "Petition to Deny"

AAA's application stating that although AAA's application represents

that it intends to locate and serve the residents of DeSoto County from

Southaven, Mississippi, AAA in fact intends to extend its marketing

ee ee oe one SS eae

and ite Mississippi Public Service certification. Further, MMT

contends, AAA does not show a need for four new 450 MHz frequencies

and its proposed one-way paging frequency on the basis of the small

ihe contanplated hearing” conduct. Accordingly, we will deny MMTI's

“Petition to Deny” in all other respects.

9. On March 18, 1976, MMT filed an amended “Petition to Deny”

Airesignal's application. MMT contends that Airsignal misrepresented

ite intended service area when it filed for frequencies at West Memphis,

Arkansas, since it fully intended to serve Western Tennessee and Memphis;

Cp See anes \y Sane ee to restrain

trade in this service area; and that Airsignal did not have an Arkansas

Public SePvice Commission tapsc) certificate when it filed ite applica-

tion in June, 1973, and that a subsequent application before the APSC

has been dismissed for failure to prosecute. Airsignal relies upon

state certificat tes t

ceo Gianiaash of Dae caghhantien ty M058 uno Gho Seauit of its decision

not to prosecute the application rather than an attempt to defraud this

Commission. MMT's petition is insufficient to raise character issues

against Airsignal; however, as with AAA, we desire a further investigation

into Airsignal's participation in the alleged anti-competitive conduct

Therefore, we will deny MMT's “Petition to Deny" except to the extent

indicated above.

10. MMT filed protests against both Mahaffey's paging and

450 Miz applications. MNT states that Mahaffey, in collusion with

conjunction with the Commission's requirement that an applicant obtain

MMT alleges that Mahaffey

:

.

i

|

7

Genial of Mahaffey's applications or, in the alternative, that it be

allowed intervention pursuant to Section 1.223(d) of the

as a competing applicant with Mahaffey's 450 Miz applications by granting

ite request for a waiver of the cut-off provisions of the rules.

MMT complains further that Mahaffey's applications also violate

Section 1.726 of the Rules 1)/ and deliberately committed acts of

Giscrimination and preference. Moreover, MMT urges

that Mohaffey disregarded Section 21.516 of the Rules when it filed

for the two additional one-way frequencies for Collierville and

Munford with so few subscribers using those channels.

22. Aside from the limited intervention we are

E

rules. MMT's request essentially rely upon alleged violations of

Section 21.516 of the Rules, and Mahaffey's participation in the .

alleged anticompetitive activity. As indicated, these matters will be

explored in the hearing ordered herein and MMT will be able to

ij” Section 1.223(4) applies to intervention by parties in interest

after applications have been designated for hearing. Rather than

require MMT to request formal intervention after this Order is

released, we will waive the requirement and allow MMT to intervene

and present evidence relating to Mahaffey's 450 Miz applications.

11/ Section 1.726 requires that formal complaints alleging such matters

as discrimination or unreasonable preference must specify the carrier

and a description of the particular acts relied upon which constitute

a violation of the Communications Act. - ~_

gusthetgute thereon. Finally, we will deny MAT" request for a

wai

tim of anti-competitive conduct.

Moreover, if we granted MMT's request it in turn would be cut off

12. We agree with MMT that Mahaffey's channel-loading

two-way facilitie

40 F.C.C. 24 329 (Rev. Ba. 1974).

a 13. Additionally, we are not persuaded that sufficient

need exists for the additional low-band one-way facility proposed

at Collierville, Tennessee by Mahaffey. And we note that Mahaffey,

has been granted the additional use of one-way facilities in the

game general service area. 12/ Therefore, we will require that

Mahaffey under issue (3) support the need for this additional one-way |

facility and demonstrate the incapability of the existing one-way and

two-way facilities to provide the proposed service.

14. We question Mahaffey's good faith in originally filing

for nearly all the 450 Mis frequencies available, and especially the

filing of the two additional applications for the only r

: immediately after MMT obtained its :

- pequired state authorization. Consequently, we will include an issue

to determine the facts and circumstances surrounding Mahaffey's

filing of-additional applications for nearly all of the available 450

Miz frequencies and the lowband one-way frequencies in the Memphis

metropolitan market.

|

:

:

127” Mahaffey was granted potential shared - of frequency 158.72

Miz with Aireignal in Docket 19801 (FCC 754-2695, released October

3, 1975, recon. denied FCC 75R-434, released Nov. 25), and its

cpenionssen for 43.22 Miz at Munford was granted July 8, 1975

- ie ad

‘

=

, 15. In view of the foregoing, the Commission finds that

Mahaffey Message Relay, Inc., and Memphis Mobile Telephone, Inc., are

legally, technically, financially, and otherwise qualified to receive

a grant of their above-captioned applications except for the issues

16. Accordingly, IT IS ORDERED, That promeah to Sections

309(4) and (e) of the Communications Act of 1934, as amended, the

applications of Mahaffey Message Relay, Inc., and

- Memphis Mobile Telephone, Inc., are designated for hearing in a

consolidated guoceesing upon the following issues:

"(1) To determine whether Mahaffey Message Relay, Inc.,

AAA Anserphone-Jackson, Airsignal International, Inc.,

and Otis Hale 4/b/a Mobilephone have jointly engaged

in conduct intended tp prevent the filing of competing

applications for radio common carrier frequencies in

the greater Memphis, Tennessee metropolitan area.

(3) To determine the nature and extent of the services

now rendered by Mahaffey Message Relay, Inc., and the

capacity of ite existing facilities in light of Section

21.516(b) of the Commission's Rules and Regulations.

(4) To determine the nature and extent of the services

proposed by Mahaffey Message Relay, Inc., and Memphis

Mobile Telephone, Inc.

(5) To determine the total area and population to be served’

“by Mahaffey Message Relay, Inc., and Memphis Mobile

Telephone, Inc., within the 43 dbu contour of each -

proposed staticn based upon the standards set forth 4

Section 21.504 of the Commission's Rules and Regulations,

and to determine the need for the proposed service in

+ CS veh.

(6) To Goteruiae, in light of the evidence adduced pursuant

‘ to issuee (1)(2) and (3) above, whether the public

interest, convenience and necessity will be served by a

grant of any or all of the applications of a Message

Relay, Inc., in whole or in part. °

—

(7) To determine, in consideration of all the evidence

adéuced under the proceeding issues, whether the

interest, convenience or necessity will be

served by a grant of either the application of Mahaffey

Relay, Inc., or the application of Memphie

Mobile Telephone, Inc.,for authority to operate on

43.58 Miz. ‘

7: I? IS FURTHER ORDERED, That the burden of proof on

Somes Q), OS on S Tp Giesed ce Ge sexgactive pevttce exnat

therein, and on issues (4) and (5) the burden of proof is placed

jointly on the competing applicants named under those issues.

18. IT 16 FURTHER ORDERED, That the hearing ordered herein

shall be held at a place and time to be specified in a subsequent

order of the Chief Administrative Law Judge.

19. IT IS FURTHER ORDERED, That the Chief, Common Carrier

Bureau is made a party to the proceeding.

20. IT 18 FURTHER ORDERED, That AAA-Answerphone Inc.-Jackson;

Aireignal International, Inc.; and Otis Hale d/b/a Mobilephone ARE

MADE respondents to this heariag for the purpose of participating with

respect to iasue (1) above.

21. I? IS FURTHER ORDERED, That the parties herein may

avail themselves of an opportunity te be heard by filing with the Commission

pursuant to Section 1.221(e) of the Rules wie twenty (20) days of the

release date of this Memorandum Opinion and Order, a written notice

stating an intention to appear on the date set for hearing and present

evidence on the issues specified.

FEDERAL GOMMUNICATIONS COMMISSION

Vincent J. Mullins:

Secretary

“>

- * lda _

APPENDIX B

IN THE

UNITED STATES COURT OF APPEALS

FOR THE i

DISTRICT OF COLUMBIA COURT

MEMPHIS MOBILE TELEPHONE, INC. )

and ;

RADIO TELEPHONE INDUSTRIES, INC. ;

(Petitioners) }

v. ; Case No. 81-1973

FEDERAL COMMUNICATIONS COMMISSION }

and

UNITED STATES OF AMERICA }

(Respondents)

MEMORANDUM OF MAHAFFEY

SUPPORT OF MOTION TO DISHISS

1/

Mahaffey Message Relay, Inc. (Mahaffey), by its attorneys,

hereby files a Memorandum in support of the "Motion to Dismiss"

(Motion) of the Federal Communications Commission (FCC) directed

against the “Petition for Review" (Petition) of Memphis Mobile

Telephone Company, Inc. (MMT) and Radio Telephone Industries, Inc.

(RTI) in the above cause. The following is respectfully shown:

1/ Mahaffey timely filed a "Petition for Leave to Intervene”

inthe proceeding on September 17, 1981.

* lla

Unitehn States Court

FOR THE DISTRICT OF COLUMBIA

: |

No. 81-1973 |

APPENDIX C

Memphis Mobile Telephone, Inc., et al

Petit

Vv.

Federal Communications Commission and

United States of America,

Respondents

BEFORE: Wald, Mikva and Edwards*, Circuit vuu

ORDER

Upon consideration of respondent's motion to dismiss,

_intervenor's memorandum in support thereof, petitioner's

response, and. respondent's and intervenor's replies, it is

ORDERED by the Court that the motion is granted and the

petition for review is dismissed. The order that petitioners

seek to have us review was plainly an order granting applications

for construction permits and was thus subject to appeal only under

47 U.S.C. § 402(b) (1), (6) (1976). Petitioners did not appeal

within the thirty (30) day period set by id. § 402(c). Their

appeal is therefore untimely. ,

Per Curiam

\

\

\

*Circuit Judge Edwards did not participate in this order.

—- * — a hg Se: oT ye ws ene

~—UNIT.D STATES OF Ah.ERICA

APPENDIX D

FEDERAL COMMUNICATIONS COMMISSION

Stenographic Transcript Of

HEARINGS

IN THE MATTER OF: MAHAFFEY MESSAGE RELAY, INC.

Memphis, Tennessee Docket No. |

MEMPHIS MOBILE TELEPHONE , oa

Memphis, Tennessee Docket ‘No. |

RADIO TELEPHONE INDUSTRIES, INC. Docket No. |

PLACE: WASHINGTON, D.C.

DATE: January 19, 1977

VOLUME: 1

PAGES: 1 thru 59

FEDERAL DATA RETRIEVAL SYSTEMS, INCORPORATED

4931 Bethesda Avenue

Bethesda, Maryland 20014

Beers BB &BB&BHS RB RSF E KBE Swe we kB ew we OH

l3 a

you can get out of the way today, that is fine.

MR. MAYER: Yes, sir, but I just wanted to make you

aware that this is proceeding at the same time as the interro-

gatories.

JUDGE NAUMOWTCZ: Anything else we should discuss

before we go about sett:ng up dates?

MR. BECKER: sour Honor, do you contemplate any

procedure whereby issue 1 could be disposed of expeditiously?

JUDGE NAUMOWICZ: Let me see. Issue l.

MR. BECKER: That is the only issue which involves

the Resvondent-parties, the parties labeled as Respondents in

the hearing order. ,

Those Resoondent-parties do not have applications in

this proceeding and are only in the proceeding for issue 1 and

one of your earlier decisions indicated there might be a possi-

bility of a procedure whereby issue 1 could be handled expedi-

tiously.

JUDGE NAUMOWICZ: I ama little bit reluctant at this

time to use the word “expeditiously” in the sense that we would

contemplate an early decision on issue 1 rather than the other

issues.

The Commission has had occasion to address itself to

that quite recently in the RKO-New York proceeding. It indicated

it did not want to do that.

However, I do not think that anyone would object if

F. D. R. Sysrems, inc.

Seee e® en w@ we w

6 S&S &

Se Feeesuesugaus

l4a

we set up a hearing schedule for issue 1, which would simply

cover issue 1, but recognizing that the initial decision on

In other words, we may get issue 1 out of the way,

let us say, in 90 days, but you would not expect a decision on

that as if it were the only issue in the case. It would be

On proceeding with the evidence.

JUDGE NAUMOWICz: Does anybody have any problem with

cutting issue 1 out for the Purpose of taking evidence on it?

MR. JORGENSEN: Well, I had a Suggestion for a Proce-

dure, Your Honor, that accords with your ruling or at least the

subject discussed here.

I foresaw the entire hearing, once consolidated, as

Sort of a three Part hearing. fr would agree with mr. Becker

that issue 1 Should be heard first.

The second Part of the hearing, I would it to be the

docket that deals with Radio Telephone Industries, Inc. and

allow the comparative Proceeding to be the third Phase of the

I do not know how that Strikes other parties, but

it seemed like @ very logical and Sensible division, to me.

MR. MAYER: The Bureau would have no objection to

=A. =

,weeeeenmeseweeseesee@eaeeaeaeesee e

15a

that procedure, Your Honor.

MR. BLOOSTON: Your Honor, as I envision what Mr.

Jorgensen has suggested, it would be in accordance with your

earlier statement that the parties not interested in other

issves may absent themselves.

As I see the proceeding, after you take evidence on

issue 1 and complete that phase, then the Respondents from then

on would not have to participate in any other phase of the

proceedings if they did not want to.

JUDGE NAUMOWICZ: That would seem so to me, Mr.

Blooston, but again chat would be up to each one of the parties

as to what phases they want to be in and what phases they want

to be out of. They have a right to be in everything.

All right. Shall we go off the record and discuss

scheduling?

(Nodding of heads.)

JUDGE NAUMOWICZ: We are off the record now.

(Discussion was held off the record.)

JUDGE NAUMOWICZ: Back on the record.

Mr. Miller, perhaps you would like to note your

appearance at this time.

MR. T. MILLER: Yes. I am Terrence Miller. I am an

officer of Memphis Mobile Telephone and Radio Telephone Indus-

tries in Memphis, Tennessee.

JUDGE NAUMOWICZ: All right. Let the record show tha‘

FP. 5. R. Sysrems, inc.

Office Court, U.S. }

FILED

MAY @° 1992

No. 81-1660

STEV4s,

ss CLERK

Iu the Supreme Cont of the United States

OcTOBER TERM, 1981

MEMPHIS MOBILE TELEPHONE, INC., ET AL.,

PETITIONERS

v.

FEDERAL COMMUNICATIONS COMMISSION, ET AL.

ON PETITION FOR A WRIT OF CERTIORARI TC

THE UNITED STATES COURT OF APPEALS FOR

THE DISTRICT OF COLUMBIA CIRCUIT

MEMORANDUM FOR THE FEDERAL RESPONDENTS

IN OPPOSITION

REx E. LEE

Solicitor General

Department of Justice

Washington, D.C. 20530

(202) 633-2217

TABLE OF AUTHORITIES

Cases: Page

American Telephone & Telegraph Co. v. FCC,

gf reer eoee

Campos V. FCC, 650 F.2d 890 2.02... ceeneeeenee

Mahaffey Message Relay, Inc., 79 F.C.C.2d 399...... 2, 3,

Mahaffey Message Relay, Inc., 79 F.C.C.2d 414...... 2,

ed

SC

wn

am

A as

i i kL masvipinsonedle 4,5

Ce 4

4S, CQ een

47 U.S.C. 402(b) (6) -..................... sieeientlinaemmniionntiin 5,

47 U.S.C. 402(c) ............... siaicnlecentiaigenitbiccignensiiitiaieitan

Miscellaneous:

oS

&

eS

a

eonwh

In the Supreme Court of the United States

OCTOBER TERM, 1981

No. 81-1660

MEMPHIS MOBILE TELEPHONE, INC., ET AL.,

PETITIONERS

Vv.

FEDERAL COMMUNICATIONS COMMISSION, ET AL.

ON PETITION FOR A WRIT OF CERTIORARI TO

THE UNITED STATES COURT OF APPEALS FOR

THE DISTRICT OF COLUMBIA CIRCUIT

MEMORANDUM FOR THE FEDERAL RESPONDENTS

IN OPPOSITION

1. In 1973, four radio common carriers filed ap-

plications with the Federal Communications Commis-

sion (“FCC”) seeking permits for construction of

two-way mobile communication base stations in the

Memphis, Tennessee, area.' These applications were

1The four carriers were Mahaffey Message Relay, Inc.,

AAA Anserphone, Inc.-Jackson, Airsignal International, Inc.,

and Otis L. Hale d/b/a Mobilfone Communications. A two-

way mobile communication base station is a transmitter at a

fixed location designed to provide two-way communications

with mobile transmitting units, such as car telephones and

two-way radios.

(1)

mutually exclusive because of frequency conflicts

among them. In 1975, one of these radio common

carriers, respondent Mahaffey Message Relay, Inc.

(“Mahaffey”), and the petitioner Memphis Mobile

Telephone, Inc. (“MMT”) also filed mutually exclu-

sive applications for one-way signalling stations in

the Memphis area.* Mahaffey Message Relay, Inc., 79

F.C.C.2d 399, 400-402 (1980).* Also in 1975, the four

two-way applicants eliminated the frequency conflicts

among their applications by agreement. MMT there-

after filed pleadings with the FCC claiming that the

four applicants had acted anticompetitively in reach-

ing that agreement.* In 1976, the Commission des-

ignated Mahaffey’s two-way applications and the con-

flicting one-way applications of Mahaffey and peti-

tioner MMT for hearing. The issues designated were

whether the four applicants for two-way permits had

engaged in the anticompetitive activities that MMT

had alleged, and the merits of the various one- and

two-way applications. 41 Fed. Reg. 32644, 32646

(1976).° In a separate order, the Commission des-

2A one-way signalling station is used to transmit com-

munications by radio to portable “pagers” or “beepers.”

8’ The decision of the Federal Communications Commission

Review Board is reported at 79 F.C.C.2d 399.

* Petitioners considered themselves potential competitors

of the four two-way applicants, although they had no com-

peting applications pending at the time of agreement. See

Mahaffey Message Relay, Inc., 79 F.C.C.2d 414, 433-435

(1979). (The Initial Decision of the Administrative Law

Judge is reported at 79 F.C.C.2d 414.)

5 Although the two-way permit applications of the other

three applicants were not directly before the Commission in

the proceeding initiated (see 79 F.C.C.2d at 400), the appli-

cants were joined as respondents by the Commission so as to

afford them an opportunity to be heard in response to the

ignated for hearing certain complaints filed by peti-

tioner Radio Telephone Industries, Inc. and others

that respondent Mahaffey had refused to provide

service to certain customers. 41 Fed. Reg. 44737

(1976).

An Administrative Law Judge ordered these cases

consolidated. He divided the consolidated proceeding

into three phases “as a matter of procedural conven-

ience,” so that parties could attend only those portions

of the hearings in which they had an interest. 79

F.C.C. 2d at 417. Phase I dealt with MMT’s allega-

tions of anticompetitive conduct; Phase II with the

complaints about Mahaffey’s refusal to provide serv-

ice; and Phase III with the merits of the various con-

struction permit applications.*

After hearings, the ALJ issued an initial decision.

The ALJ determined that the 3-phase structure that

he had used for the hearings was not suited for issu-

ance of a decision, and instead organized his findings

of fact and conclusions of law to correspond to the

two designation orders. 79 F.C.C.2d at 418. With

respect to the issues framed by the first designation

order, the ALJ found no evidence of anticompetitive

conduct; he also ruled that Mahaffey’s one-way and

two-way permit applications should be granted. 79

F.C.C. at 419-469, 497-500, 502. On consideration of

the issues framed by the second designation order, the

ALJ determined that Mahaffey had imposed unrea-

sonable equipment maintenance requirements and di-

rected that Mahaffey undertake certain remedial ac-

tions. 79 F.C.C.2d at 469-496, 500-503.

allegations of anticompetitive practices. 41 Fed. Reg. 32645

(1976).

® MMT’s application for a one-way signalling station was

withdrawn and ultimately dismissed. 79 F.C.C.2d at 402 n.3.

4

The Commission’s Review Board affirmed, granting

the construction permits. 79 F.C.C. 2d at 410-411.

In so doing, it agreed with the ALJ that Mahaffey

had not, either by itself or in concert with the other

applicants for permits, engaged in disqualifying anti-

competitive conduct. Jd. at 406. The Commission

declined to review the Review Board’s decision (Pet.

App. 4a-6a).

Thirty-nine days later, invoking 47 U.S.C. 402(a),

petitioners filed a petition for review in the United

States Court of Appeals for the District of Columbia

Circuit, pressing their claims of anticompetitive con-

duct. The Commission moved to dismiss on the

ground that the order in question was reviewable only

under 47 U.S.C. 402(b), which requires that appeals

be filed within 30 days. The court dismissed the

petition (Pet. App. la-2a). The court stated (ibid.):

“The order that petitioners seek to have us review

was plainly an order granting applications for con-

struction permits and was thus subject to appeal only

under 47 U.S.C. § 402(b) (1), (6) (1976). Petition-

ers did not appeal within the thirty (380) day period

set by [47 U.S.C.] § 402(c). Their appeal is there-

fore untimely.”

2. The decision of the court of appeals is clearly

correct. It does not raise any issue requiring resolu-

tion by this Court and does not conflict with a deci-

sion of any other court of appeals. The petition for a

writ of certiorari should accordingly be denied.

This case is governed by the plain language of the

statute. Section 402(a), under which petitioners

brought their petition for review, is a residual clause

that confers jurisdiction upon the courts of appeals

to review “any order of the Commission * * * except

those appealable under subsection (b) of this section

5

* * *.” Section 402(b) confers jurisdiction upon the

United States Court of Appeals for the District of

Columbia Circuit to hear eight categories of appeals,

including those taken “[b]y any applicant for a con-

struction permit * * * whose application is denied

by the Commission” (47 U.S.C. 402(b)(1)) or “[b]y

any other person who is aggrieved or whose interests

are adversely affected by any order of the Commis-

sion granting or denying any ap/tication described in

paragraph [] (1) * * *” (47 U.S.C. 402(b) (6)).

Appeals falling within any of the eight categories

covered by Section 402(b) must be commenced by fil-

ing of a notice of the appeal within 30 days of an-

nouncement of the Commission action sought to be

reviewed. 47 U.S.C. 402(c). Review under Section

402(a), when available, may be sought within 60

days of the agency order. See also 28 U.S.C. 2344.

The Commission’s order grants respondent Mahaf-

fey construction permits, and petitioners claim to be

aggrieved by it. Petitioners’ petition for review

was accordingly untimely. Petitioners argue (Pet.

26-27), however, that because the Commission’s deci-

sion not only granted construction permits but also

addressed other issues, the various issues underlying

the order are severable and those issues not relating

to the technical merits of the construction permit ap-

plications are reviewable under Section 402(a). Spe-

cifically, petitioners claim that because the hearings

were divided into “phases,” the appeal should also be

frarmented along those lines.’

TIn fact, the “phases” to which petitioners refer were

created only for convenience during the hearing stage. The

agency did not separate the competition issue from the tech-

nical merits of the applications in either the designation

orders or the ALJ’s and Review Board orders.

Petitioners cite no authority for this position, and

their contentions are irreconcilable with the plain

language of the statute. The sole order from which

they appeal is clearly an “order of the Commission

granting or denying an[ ] application [for a con-

struction permit].” 47 U.S.C. 402(b)(6). The fact

that the Commission’s decision also addresses other

issues does not make it any less “an order granting

[construction permits].”* Moreover, the issues that

petitioners seek to sever—the existence of anticom-

petitive conduct—were directly relevant to the ulti-

mate grant of the construction permits. Thus, peti-

tioners seek impermissibly to challenge a finding in

a Commission order without challenging the order

itself by the prescribed route. See, e.g., American

Telephone & Telegraph Co. v. FCC, 602 F.2d 401,

407-409 (D.C. Cir. 1979). The plain language of

the statute precludes the fragmented system of re-

view that petitioners advocate.’

8 Section 402(b) (6) speaks in terms of persons aggrieved

by a particular category of order; it does not limit the review

to particular findings or conclusions underlying the order.

* Contrary to petitioners’ assertion (Pet. 26), Campos v.

FCC, 650 F.2d 890 (7th Cir. 1981), is not contrary to the

decision of the court of appeals. Campos involved denial of

applications for operator licenses, a type of order “ ‘not

precisely described by any of the categories of appeals pro-

vided for in Section 402(b),’” and for that reason was

reviewable under Section 402(a). 650 F.2d at 892-893.

Petitioners also argue (Pet. 28-32) that their lateness

should be overlooked because they filed in the right court

and the primary purpose of Section 402 is to ensure a con-

venient forum. But Congress established a jurisdictional

time limitation, as well as requiring filing in a particular

court, and the court of appeals properly gave effect to both

of these requirements.

7

Petitioners’ additional argument (Pet. 38-44) that

their petition for review was not covered by Section

402(b) because they were not parties to Mahaffey’s

applications and thus were not “aggrieved” by issu-

ance of the construction permits is frivolous. Sec-

tion 402(b) refers to any person “who is aggrieved

* * * by any order of the Commission granting or

denying” construction permits. 47 U.S.C. 402(b) (6)

(emphasis added). The filing of petitioners’ peti-

tion for review demonstrates that petitioners regard

themselves as aggrieved by the Commission’s order.

Were petitioners not aggrieved by the order of the

Commission, no petition for review would lie under

either Section 402(a) or Section 402(b). See also

28 U.S.C. 2344. °

In these circumstances, the court of appeals prop-

erly dismissed the petition for review for failure to

meet the 30-day limit imposed by statute.

It is therefore respectfully submitted that the peti-

tion for a writ of certiorari should be denied.

REx E. LEE

Solicitor General

May 1982

® 3G. &. Government painting orrice; 1962 373353 664

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