Radio Station Wow, Inc. v. Johnson

326 U.S. 120 (1945)

Purchase the Printed Copy at bsmsphd.com

Nature of the Case

To access this section all you need to do is click here and register.

Facts

Woodmen of the World Life Insurance Society (D), a fraternal benefit association of Nebraska, owns radio station WOW. The Society (D) leased this station for fifteen years to Radio Station WOW (D), Inc., a Nebraska corporation formed to operate the station as lessee. After Ds had jointly applied to the Federal Communications Commission for consent to transfer the station license, P, a member of the Society, filed this suit to have the lease and the assignment of the license set aside for fraud. While this suit was pending, the Federal Communications Commission consented to the assignment of the license, and Society (D) transferred both the station properties and the license to the lessee. Society (D) then answered P's suit that 'the Federal Communications Commission . . . has and concedes that it has no jurisdiction over the subject matter of P's action, except jurisdiction to determine the transfer of the license to operate said radio station, which jurisdiction after full and complete showing and notwithstanding objections filed thereto, was exercised in the approval of the transfer of said license to Radio Station WOW, Inc. (D). P's reply admitted, 'that the Federal Communications Commission has and concedes that it has no jurisdiction over the subject matter of P's action except jurisdiction to determine the transfer of the license to operate said radio station.' The courts ruled there was no fraud. The Supreme Court of Nebraska reversed and entered judgment for P, directing that the lease and license be set aside and that the original position of the parties be restored as nearly as possible. Nebraska held that the fact that the property involved was used in a licensed business was an incident to the suit only. Ds appealed.