Judge: Nexstar Must Turn Over Document in WPIX Case
Nexstar must turn over documents related to its local marketing agreement with Mission Broadcasting to operate WPIX New York, said an order Saturday in the broadcaster’s breach of contract case against Comcast in docket 1:21-cv-06860 in the U.S. District Court for Eastern New York. Nexstar had disputed Magistrate Judge Stewart Aaron’s order that its relationship to Mission and WPIX was relevant to the case (see 2211010063). “Given Magistrate Judges’ broad discretion” in handling discovery disputes “plainly there was no abuse of discretion,” wrote District Judge John Koeltl.
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Nexstar had argued that Koeltl had already considered and rejected arguments by Comcast that Nexstar exercises “de facto control” over WPIX in a May 2 ruling on whether this case could proceed while the FCC considered a petition for declaratory ruling on the same matter. “But this is not so,” Koeltl wrote. The May 2 ruling didn’t address the merits of the case and so didn’t bar the magistrate judge’s decision, Koeltl said.
Nexstar had also argued that Comcast’s requests for documents weren’t relevant to its counterclaim that Nexstar interfered with its contract with Mission. Nexstar had said it would move to stay discovery on the counterclaim if the Magistrate Judge’s decision on discovery wasn’t blocked by Koeltl. “Nexstar has not met its heavy burden to show that the Magistrate Judge’s order was clearly erroneous or contrary to the law,” wrote Koeltl. “The Court is confident that the Magistrate Judge can manage any issues with respect to the timing of discovery."
The lawsuit stems from a dispute over retransmission consent fees, and was originally filed by Nexstar in New York State Supreme Court in New York County in June 2021, before being moved to the district court. Nexstar sought to raise retrans rates for WPIX using after-acquired clauses its retransmission consent contracts with Comcast, and the MVPD responded by declining to pay the higher rates and filing a petition for declaratory ruling with the FCC arguing that Nexstar was in violation of the agency’s ownership rules.The FCC doesn't appear to have acted on the ruling other than to classify it as an informal complaint.
WPIX had been part of Tribune when Nexstar bought the company, and divestiture of WPIX was part of the FCC’s Nexstar/Tribune order. WPIX was divested to E.W. Scripps in a deal that included a clause giving Nexstar an option to buy the station. Nexstar transferred that option to Mission, which bought the station in Dec. 2020 and entered into the LMA with Nexstar. A similar case over the same matter is also taking place with Charter in the superior court of Delaware in docket N21C-08-086. Comcast, and Nexstar didn’t comment.
In a Monday order, Aaron laid out a schedule for the case, with discovery set to close June 9.