Justia Communications Law Opinion Summaries

The issue before the Supreme Court in this case was whether the Alltel Entities (collectively Petitioners Alltel Communications, Inc. and its regional subsidiaries), were included in the definition of "telephone company" for the purpose of increased license fees in S.C. Code Ann. section 1220-100 (2000). Pursuant to cross motions for summary judgment, the Administrative Law Court (ALC) granted summary judgment in favor of Petitioners, finding that they were not telephone companies for purposes of section 12-20-100. Alternatively, the ALC found that if the statute were ambiguous, Petitioners would prevail under the rule that an ambiguity in a taxing statute must be construed in favor of the taxpayer. Though the court of appeals recognized that the application of section 12-20-100 to Petitioners was not "absolutely clear," it reversed the grant of summary judgment and remanded the matter to the ALC for additional fact finding. Upon review, the Supreme Court reversed the court of appeals and reinstated the ALC's grant of summary judgment in favor of Petitioners. The term "telephone company" was not a defined term and its application to Petitioners was "doubtful." The presence of an ambiguity in a tax assessment statute requires that a court resolve that doubt in favor of the taxpayer.View "Alltel v. SCDOR" on Justia Law

Plaintiffs are holders of Savient’s 4.75% convertible senior notes due in 2018, which are unsecured and subject to the terms of an indenture. Collectively, Plaintiffs own a face value of $48,709,000, approximately 40% of the outstanding Notes. Defendants are members of Savient’s board of directors USBNA serves as trustee for the Indenture governing the Notes. Following dismal sales of its new drug, KRYSTEXXA, Savient’s Board approved a financing transaction to exchange some existing unsecured Notes for new senior secured notes with a later maturity date. Through the Exchange, Savient exchanged around $108 million in Notes, raised around $44 million in new capital, and issued additional SSDNs with a face value of approximately $63 million. Like the Notes, the SSDNs are subject to an indenture for which USBNA serves as trustee. Plaintiffs sought a declaration that Savient was insolvent and brought derivative claims alleging waste and breach of fiduciary duty in connection with the Exchange Transaction; alleged breach of fiduciary duty and waste claims in connection with the Board’s approval of retention awards for certain Savient executives. The chancellor dismissed the receivership claim for lack of standing and granted a declaration that an Event of Default has not occurred.View "Tang Capital Partners LP, v. Norton" on Justia Law

The controversy at the center of this case arose from a newspaper article written by Defendant Katherine Gregg that sparked an "acrimonious and childish on-air rant" by Defendant Dan Yorke, a well-known radio talk show host, about Plaintiff Robert I. Burke, a local restaurateur. The article described an annual St. Patrick's Day lunch hosted by William Murphy, the then-Speaker of the House of Representatives of the Rhode Island General Assembly, at one of Burke's restaurants. The lunch, a private event, was in large measure a "roast" of local public figures. In a story published by the Providence Journal, Gregg was openly critical of an "off the record" rule that allowed members of the media to attend the event, but banned them from disclosing the jokes made during the lunch. Her article attributed the creation and enforcement of the policy to both Burke and Murphy. Apparently incensed by the article, Yorke used his talk show as a platform to hurl a series of crude and disparaging remarks at Burke. Burke filed a complaint alleging various counts of libel and slander against Gregg, the Providence Journal Company, Yorke, and Citadel Broadcasting Corporation. Two other plaintiffs also joined in the action: BOEA, Inc. and the Food & Beverage Corporation. Food & Beverage Corp., which operated Burke's restaurant and is a parent corporation of BOEA, alleged its own counts of libel, slander, and interference with contractual relations against Yorke and Citadel. BOEA, the entity that operates Federal Reserve Special Events, alleged libel, slander, and breach of contract against Yorke and Citadel. All defendants filed motions to dismiss pursuant to Rule 12(b)(6) of the Superior Court Rules of Civil Procedure, and those motions were granted by a justice of the Superior Court. The plaintiffs appealed to the Supreme Court. "It is beyond question that Burke was justifiably offended by Yorke's . . . broadcast. Yorke's rambling diatribe would without a doubt ruffle the sensibilities of any listener at whom it was directed. Nevertheless, 'it is a prized American privilege to speak one's mind, although not always with perfect good taste * * *.' Therefore, his opinions unquestionably represented his interpretation of the facts presented in her article. Furthermore, as discussed above, even if Gregg's assertion that Burke was responsible for the 'off the record' rule was false or inaccurate, [the Court] concluded that as a matter of law it was not defamatory. Therefore, Yorke's comments were based on disclosed, non-defamatory facts, and [the Court] affirm[ed] the judgment of the Superior Court dismissing those claims." The Court vacated the decision pertaining to the breach of contract claim, and remanded the case for further proceedings on that issue.View "Burke v. Gregg" on Justia Law

Based on unethical actions during the 2004-2005 hurricane season, the Legislature enacted Section 626.854(6), Florida Statutes: A public adjuster may not directly or indirectly through any other person or entity initiate contact or engage in face-to-face or telephonic solicitation or enter into a contract with any insured or claimant under an insurance policy until at least 48 hours after the occurrence of an event that may be the subject of a claim under the insurance policy unless contact is initiated by the insured or claimant. An adjuster sued. The trial court upheld the law, accepting an interpretation that it prohibited only in-person or telephonic communication, that it primarily regulates conduct, not speech, and furthers an important governmental interest. The appeals court reversed, finding that the section regulates commercial speech and that the Department failed to demonstrate that prohibiting property owners from receiving information from public adjusters for 48 hours is justified by the possibility that some public adjuster may unduly pressure traumatized victims or otherwise engage in unethical behavior. The Florida Supreme Court affirmed, holding that the statute unconstitutionally restricts commercial speech and was not narrowly tailored to serve interests in ensuring ethical conduct by public adjusters and protecting homeowners. View "Atwater v. Kortum" on Justia Law

Petitioner's son was charged with assault and battery on a person over 60 years of age and with resisting arrest. The petitioner is the alleged victim. The son unsuccessfully moved to suppress a recording made by a third party, allegedly in violation of the wiretapping statute, G.L. c. 272, 99. The recording includes statements made by the defendant and the petitioner. The motion was denied. Petitioner sought relief under G.L. c. 211, 3, on the ground that the introduction of the recording into evidence in the defendant's trial would violate her privacy rights. The Massachusetts Supreme Court affirmed. Nothing in G.L. c. 211, 3, or rule 2:21 grants a nonparty to a criminal case standing to obtain review of an interlocutory order. The Legislature has expressly provided a civil remedy, including compensatory and punitive damages as well as attorney's fees, for any aggrieved person whose oral or wire communications are unlawfully intercepted, disclosed, or used, or whose privacy is violated by means of an unauthorized interception. G.L. c. 272, 99 Q. The petitioner does not address this remedy or explain why it would not be adequate to vindicate her privacy interests. View "In re Wadja" on Justia Law

MCI sued CMES on theories of negligence and trespass, and sought damages consisting of the costs to repair a severed cable, compensation for the loss of use of the cable during the time it took to repair it, and punitive damages. The district court granted partial summary judgment in favor of CMES, holding that MCI could not recover loss of use damages. On appeal, the Eleventh Circuit certified the following question: "Under Georgia law, may a telecommunications service provider whose cable is severed recover loss-of-use damages measured by the rental value of substitute cable when it has not rented such cable or otherwise incurred any monetary loss apart from the cost of repair?" The court concluded that a telecommunications carrier was not entitled to loss of use damages measured by the hypothetical cost to rent a replacement system where it suffered no actual loss of use damages and did not need to rent a replacement system because it was able to reroute calls within the existing redundant cable system the carrier necessarily installed in order to operate its business.View "MCI Communications Services v. CMES, Inc." on Justia Law

Plaintiff and defendant, both women, met in 2005 through a chatroom connected with a television series. Defendant, in Illinois, used her own name and aliases to communicate with plaintiff, in Los Angeles. One alias was that of a man, and a romantic relationship developed through the Internet, telephone, and mail. Defendant disguised her female identity using a voice-altering device. Plaintiff purchased airline tickets for a meeting in Denver, but her new “boyfriend” cancelled the plans. Plaintiff was informed that he had attempted suicide. In 2006 the two planned to live together in Colorado, but defendant subsequently informed plaintiff, using another alias, that the man had died of cancer. The deception continued for seven more months until plaintiff’s real friends confronted defendant and obtained a videotaped admission as to what had occurred. Plaintiff’s third amended complaint, alleging fraudulent misrepresentation and seeking damages for the cost of a therapist, lost earnings, and emotional distress, was dismissed. The appellate court affirmed, holding that claims made in the previous complaint, but not incorporated into the third amended complaint, had been abandoned. The supreme court affirmed, holding that a claim for fraudulent misrepresentation does not apply to a personal relationship with no commercial component.View "Bonhomme v. St. James" on Justia Law

Two appeals are were consolidated from chancery-court cases. In the first case, Diamondhead Country Club and Property Owners Association, Inc. sued Thomas R. Alfonso, III, and Anne Scafidi Cordova,1 d/b/a Bay Jourdan Publishing Co. (BJP) for breach of a contract to publish "The Diamondhead News." In 1997, the chancery court entered a preliminary injunction order preventing BJP from publishing "The Diamondhead News," selling advertising, collecting or disposing of advertising revenues derived from the publication the paper, and interfering with the printing, publication, or distribution of "The Diamondhead News." The chancery court also found that an arbitration clause in the publishing contract was inapplicable to the lawsuit. The chancery court denied BJP’s two subsequent motions to compel arbitration of the breach-of-contract dispute. BJP appealed the chancery court’s latest denial of arbitration. In the second case, BJP sued Diamondhead and Gulf Publishing Co., Inc., d/b/a "The Sun Herald" (“Gulf Publishing”), for intentional interference with the publishing contract. Gulf Publishing filed a motion for summary judgment. The court granted summary judgment to Gulf Publishing and directed the entry of a final judgment as to Gulf Publishing pursuant to Mississippi Rule of Civil Procedure 54(b). BJP appealed the grant of summary judgment. Upon review, the Supreme Court affirmed the chancery court’s order denying BJP’s third motion to compel arbitration because the issue was ruled upon previously, and no appeal was taken. Finding genuine issues of material fact for trial, the Court reversed the chancery court’s order granting summary judgment to Diamondhead and Gulf Publishing, and remanded the second case for further proceedings. View "Alfonso v. Gulf Publishing Co., Inc." on Justia Law

The United States Court of Appeals for the Ninth Circuit certified a question to the Washington Supreme Court concerning whether an "early termination fee" (ETF) in a broadband internet service contract constituted an "alternative performance provision" or as a liquidated damages clause. Appellants are all customers who either incurred this ETF for canceling early or were threatened with this ETF for attempting to cancel early. All Appellants were dissatisfied with Clearwire’s service, alleging that instead of the fast and reliable service promised, they received inconsistent and painstakingly slow speeds. Plaintiff Chad Minnick sued Clearwire in King County Superior Court in April 2009, claiming that Clearwire was committing false advertising and was imposing ETFs unlawfully. He then filed the first amended complaint in May, which added the other 11 plaintiffs through class certification. In July, Clearwire removed the case to the federal district court where it filed a motion to dismiss all of Appellants' claims. The district court granted Clearwire's motion. Appellants then appealed to the Ninth Circuit, arguing that the ETF was a liquidated damages provision and not an alternative performance provision as the trial court found. Under Washington law, an alternative performance provision is distinguishable from a liquidated damages provision because it provides a "real option" to the promisor and the alternatives are reasonably equal to each other. Here, the ETF provided a "real option" at the time of contracting because Appellants wanted to retain the control and flexibility that the early cancellation allowed them. Further, the ETF was less expensive than the remaining payments for the majority of the contract's life, thereby indicating the options were reasonably related. The ETF also allowed Appellants to benefit from reduced monthly premiums under the fixed-term contract but also enjoy some of the flexibility of the month-to-month subscription. Therefore, the ETF is an alternative performance provision that is not subject to a penalty analysis.View "Minnick v. Clearwire US, LLC" on Justia Law

Qwest Corporation and the Colorado Public Utilities Commission (PUC) appealed a district court's judgment in favor of the Colorado Office of Consumer Counsel (OCC) that reversed the PUC's decision setting the maximum rate for certain telephone services. Upon review, the Supreme Court concluded that the PUC regularly pursued its authority because it considered all of the statutorily-mandated factors and its decision is supported by substantial evidence. The Court therefore reversed the judgment of the district court.View "Ofc. of Consumer Counsel v. Pub. Utils. Comm'n" on Justia Law