Opinion ID: 496700
Heading Depth: 2
Heading Rank: 1

Heading: The Hearing Issue

Text: 41 Gencom vigorously contends that the Commission committed reversible error in declining to hold an evidentiary hearing to explore its charges concerning both the availability of cell site No. 5 and Metro Mobile's intention to use that site. It claims that its evidence concerning the residential nature of the proposed location of cell No. 5, coupled with the evidence presented in the Zemaitis affidavit, created a substantial and material question of fact concerning site availability which triggered the FCC's statutory obligation to conduct a trial-like hearing on the matter. See Brief for Gencom Inc. at 28-33. Gencom further contends that its site availability evidence, when viewed in conjunction with Metro Mobile's post-grant decision to relocate cell No. 5, raised a substantial issue as to Metro Mobile's intent to use the Eslinger location. Id. 42 Section 309 of the Communications Act establishes the statutory framework within which the FCC conducts licensing proceedings. See 47 U.S.C. Sec. 309 (1982). In 1960, Congress amended section 309(d) of the Act to significantly heighten the burden a petitioner must satisfy in order to obtain an evidentiary hearing. 11 What emerged from the congressional action is a two-pronged test for determining if allegations made in the course of a licensing proceeding require further FCC inquiry. See 47 U.S.C. Sec. 309(d)(1) & (2); Citizens for Jazz on WRVR v. FCC, 775 F.2d 392, 394 (D.C.Cir.1985). Initially, the Commission must determine whether the applicant seeking a hearing has set forth specific allegations of fact sufficient to show that ... a grant of the application would be prima facie inconsistent with [the public interest, convenience, and necessity]. Citizens for Jazz, 775 F.2d at 394; see 47 U.S.C. Sec. 309(d)(1). At this stage the Commission canvasses the petition and supporting affidavits for concrete factual assertions which if proved in a subsequent hearing would alter the Commission's public interest calculus. See, e.g., United States v. FCC, 652 F.2d 72 (D.C.Cir.1980) (en banc) (legal and economic conclusions concerning market structure unsupported by specific facts insufficient to pass threshold test). The Commission's inquiry at this level is much like that performed by a trial judge considering a motion for a directed verdict: if all the supporting facts alleged in the affidavits were true, could a reasonable factfinder conclude that the ultimate fact in dispute had been established. See Citizens for Jazz, 775 F.2d at 397. 43 If the Commission determines that a prima facie case has been made under section 309(d)(1), it must proceed to the second level of inquiry. Under section 309(d)(2) the Commission must determine whether on the basis of the application, the pleadings filed, or other matters which [the Commission] may officially notice, a substantial and material question of fact is presented. Citizen for Jazz, 775 F.2d at 394; see also Newark Radio Broadcasting Ass'n v. FCC, 763 F.2d 450 (D.C.Cir.1985); California Public Broadcasting Forum v. FCC, 752 F.2d 670 (D.C.Cir.1985); Stone v. FCC, 466 F.2d 316 (D.C.Cir.1972). 44 Here both the Commission's focus and its discretion are wider. It must consider not only petitioner's evidence, but it must weigh that evidence against the facts offered in rebuttal. See Citizens for Jazz, 775 F.2d at 395. It may draw factual and legal inferences from undisputed evidentiary facts, see Stone, 466 F.2d at 323, and it may determine how much weight to accord disputed facts based on the record before it. See Citizens for Jazz, 775 F.2d at 395-96 (The drawing of inferences from undisputed proximate facts, like the balancing of disputed proximate facts, is a matter for the Commission's judgment.). From this analysis the Commission must determine whether the totality of the evidence arouses a sufficient doubt on the point that further inquiry is called for. Id. at 395. 12 45 Our role in reviewing the Commission's determination is a limited one. [T]he decision of whether or not hearings are necessary or desirable is a matter in which the Commission's discretion and expertise is paramount. We must examine the Commission's statement of reasons for denial, and if the Commission's action was not arbitrary, capricious or unreasonable, we must affirm. United States v. FCC, 652 F.2d at 91 n. 87; see also Columbus Broadcasting Coalition v. FCC, 505 F.2d 320, 324 (D.C.Cir.1974); Stone, 466 F.2d at 322; Southwestern Operating Co. v. FCC, 351 F.2d 834, 835 (D.C.Cir.1965) (We have no doubt that Congress intended to vest in the FCC a large discretion to avoid time-consuming hearings....). 46 Under the applicable standard of review, we have little difficulty upholding the Commission's decision not to conduct an evidentiary hearing in this case. The ultimate issue before the FCC can be stated as follows: Did Metro Mobile have a reasonable assurance that the Eslinger property was available for use as a cell site when it filed its application? See Advanced Mobile Phone Service, 54 Rad.Reg.2d (P & F) 185, 191 (1983) (Houston Designation Order) (An applicant need not have a binding agreement or absolute assurance of availability of a proposed site but rather must show that it has obtained reasonable assurance that its proposed site is available.). 47 We agree with the Commission's determination that Metro Mobile's evidence provided a reasonable assurance that the Eslinger site was available as a transmitter location. The Commission had before it a site availability letter predating Metro Mobile's application and the sworn statement of the property owner, both unequivocal in confirming the site's availability. The Zemaitis affidavit (even if believed) alleged no actions or statements by Mrs. Eslinger indicating that she would not honor her commitment to Metro Mobile. 48 The only uncontested item in the record to support Gencom's position was the fact that the Eslinger property was located in a residential neighborhood. The ALJ refused to draw any inference of unavailability from this fact, finding that Gencom had failed to set forth facts indicating that the owners of the property, the Eslingers, are unwilling to permit the necessary changes in the site to accommodate Metro Mobile's plans for that site, or that necessary modifications in the site cannot be made. See J.A. at 390. The ALJ's decision was in accord with FCC precedent, and we cannot say it was unreasonable. See Central Texas Broadcasting Co., 74 F.C.C.2d 393, 405 (1979) (no site availability issue designated against applicant where no facts tending to establish owner's unwillingness to accommodate transmitter alleged). 13 49 When Metro Mobile's rebuttal evidence is factored into the analysis, including the sworn statement of the property owner that she was ready and willing to make any alterations necessary to house Metro Mobile's equipment, the conclusion that Metro Mobile had a reasonable assurance that site No. 5 was available for its use becomes almost inescapable. See Advanced Mobile Phone Service, 54 Rad.Reg.2d (P & F) 418, 422-23 (1983) (New Orleans Designation Order) (designation of site availability issue denied where cellular applicant had produced site availability letter and affidavit of property owner). 50 Nothing in the Zemaitis affidavit directly contradicted Mrs. Eslinger's sworn statements. He claimed that Mrs. Eslinger told him that her property had been substituted as a cell site until a more amenable site could be found. See supra p. 7. Even assuming the statement was made, it is far from self-evident that Mrs. Eslinger was therefore unwilling to accommodate the transmitter if a new site were not found. Moreover, the Commission had before it the sworn statement of Mrs. Eslinger denying ever having spoken to Zemaitis, and that of John Brennan, indicating that Metro Mobile was not presently seeking to replace site No. 5. See supra p. 8. 51 Reviewing the total picture the Commission had before it, nothing suggests to us that a further hearing would produce additional facts that might change the result. Capitol Broadcasting Co. v. FCC, 324 F.2d 402, 405 (D.C.Cir.1963). 52 Nor did Gencom's evidence create a substantial and material factual dispute with respect to Metro Mobile's intent to use the Eslinger property. Zemaitis' assertion that Metro Mobile negotiated for more desirable locations and then settled on the Eslinger site provides little support for the proposition that Metro Mobile did not intend to use the designated site. Similarly, the allegation that Metro Mobile continued its search for a more amenable location after designating site No. 5 does not perforce impugn its intention to use the site at the time its application was filed. It would be perverse indeed for the Commission to draw an inference of misrepresentation from the fact that an applicant aggressively pursued superior locations for its equipment both before and after site designation. Such a rule would render potential licensees timorous in their initial search for transmitter locations and essentially put an end to any post-designation efforts to ameliorate their proposed systems. The Commission's refusal to draw any inference of misrepresentation from these factual assertions was thus eminently reasonable. 53 A similar analysis obtains with respect to the undisputed fact that Metro Mobile chose to relocate cell No. 5 after its application was granted. The decision to relocate all its cells and to add two additional cells coming as it did two and one-half years after the filing of its application is only marginally relevant to Metro Mobile's intent to use site No. 5 when its application was filed. Its weak probative value is further undermined by Metro Mobile's explanation that the overhaul of its entire system was compelled by the necessity of matching the superior coverage of its wireline competitor. The redesign of its entire system to increase its coverage would certainly seem an extravagant measure for an applicant to take to disembarrass itself of a cell site that it had no intention of using. 54 In its initial Cellular Rulemaking, the Commission recognized that a permittee or licensee may wish at some point to modify transmitter locations or add more transmitter locations. See 86 F.C.C.2d at 509. It established a regulatory structure under which operators would have substantial flexibility in adapting their systems to meet consumer needs. Id. at 509-10. Designating misrepresentation issues against grantees who avail themselves of these provisions would render them a trap for the unwary, and disserve the public interest by forever wedding applicants to their initial system proposal however inadequate it has become in light of subsequent developments. In sum, the drawing of inferences from undisputed facts is the Commission's province, see Citizens for Jazz, 775 F.2d at 395; Stone, 466 F.2d at 323, and here the Commission's decision not to draw an inference of misrepresentation from the facts presented is a reasonable one. See Washington Ass'n for Television v. FCC, 665 F.2d 1264 (D.C.Cir.1981) (no hearing on misrepresentation charges necessary where Commission capable of applying its expertise to undisputed facts).