Appeals Court Rejects Ed Stolz' Suit Trying To Reverse Sale Of Sacramento Station To Entercom

Dismissed

The U.S. Court of Appeals for the DISTRICT OF COLUMBIA Circuit has dismissed in part and denied in part ED STOLZ' lawsuit seeking to reverse the sale of KWOD (now KUDL)/SACRAMENTO to ENTERCOM in 1996.

The long-running saga began when STOLZ soured on the deal before it was consummated and ENTERCOM sued STOLZ' ROYCE INTERNATIONAL BROADCASTING CO. for specific performance in CALIFORNIA state court and won.  STOLZ contended that a change in the definition of the SACRAMENTO market in 2002, just after the Commission's Media Bureau approved the assignment of the station to ENTERCOM, put ENTERCOM over the ownership limits.  Two years later, the Media Bureau denied STOLZ' challenge, followed by a 10 year delay (called inexplicable by the court) before the full Commission affirmed the Bureau decision.

In the present case, the court ruled that ENTERCOM's surrender of its license for KDND/SACRAMENTO to avoid a hearing on the fatal "Hold Your Wee For A Wii" case rendered STOLZ' market cap argument moot.  Rejecting the FCC's contention that STOLZ should have raised one argument earlier in the case (and noting that the precedent the Commission said STOLZ should have raised came after he had already filed his pleading), the court rejected STOLZ' argument on that point anyway due to differences in the facts of the case being cited.

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