Opinion ID: 6930056
Heading Depth: 2
Heading Rank: 1

Heading: The Atlantic City Proceeding

Text: Amcell petitioned the Commission’s Mobile Services Division to grant Thompson’s application to construct the Atlantic City system. Amcell also proposed that the Commission require, as a condition on the grant, that paragraph 16 of Thompson’s agreement with TDS be abrogated. TDS, in opposition, asked the Commission to abrogate the super-majority clause of Thompson’s agreement with the minority owners. Each claimed that the other’s provision violated section 310 of the Communications Act of 1934, 47 U.S.C. § 310(d) (1988), which prohibits applicants like Thompson from transferring to another de jure or de facto control of their systems without FCC approval. The Mobile Services Division accepted Amcell’s proposal but rejected TDS’s request. See Ellis Thompson, 3 FCC Red 3962 (1988). TDS appealed to the Chief of the Common Carrier Bureau. The Bureau, concluding that paragraph 16 unlawfully interfered with Thompson’s ability to conduct the business of his licensee, affirmed both the grant of Thompson’s application and the abrogation of the paragraph. See Ellis Thompson, 4 FCC Red 2699 (1989). The Bureau also declined to abrogate the supermajority provision, noting that it restricted only Thompson’s right to sell and not his right to make daily business decisions. See id. at 2601. TDS appealed the Bureau’s order to the Commission while it simultaneously sued Amcell in the federal district court for the District of Columbia. In that suit, TDS alleged two causes of action relevant here: first, that Amcell had tortiously interfered with TDS’s contractual relations with Thompson; and second, that Amcell had tor-tiously interfered with TDS’s prospective business relations with Thompson. The district court dismissed the complaint, holding that because the order of the Common Carrier Bureau had abrogated paragraph 16 and was entitled to res judicata effect, TDS no longer had any contractual interest in the Atlantic City system. On appeal, we held that the district court had erred by dismissing TDS’s claim for interference with prospective business relations, which did not depend on the abrogated paragraph 16. However, we upheld the dismissal of the claim of tortious interference with contractual relations. See Telephone & Data Sys., Inc. v. American Cellular Network Corp., 966 F.2d 696, 700 (D.C.Cir.1992). While the collateral litigation proceeded, TDS applied to the Commission for review of the Common Carrier Bureau’s decision. After the pleading deadline, but before the Commission had ruled, TDS filed a “supplement” that notified the Commission of the option and indemnity agreements between Amcell and Thompson; TDS alleged that these agreements, in combination with the management agreement, showed that Amcell enjoyed de facto control of Thompson in violation of § 310(d). TDS requested the Commission to “require Amcell to cease exercising control of Thompson’s cellular system and [to] abrogate all of the agreements between Amcell and Thompson under which Amcell has exercised control.” In the alternative, TDS made a formal Request for Inquiry Under § 403 of the Act, asking the Commission to investigate Amcell’s dealings with Thompson. The Commission denied TDS’s application for review. See Ellis Thompson Corp., 7 FCC Red 3932 (1992). It agreed with the Bureau that paragraph 16 infringed Thompson’s ability to conduct his business but that the supermajority provision did not. The Commission also rejected TDS’s allegations of de facto control, for the six-factor inquiry mandated by Commission precedent showed that Thompson retained sufficient control. Because of that conclusion, the Commission dismissed as moot TDS’s request for a § 403 investigation. See 7 FCC Red at 3936 n. 4. TDS now appeals the order.