Minneapolis Cablesystems v. City of Minneapolis

• Decision Date: 17 October 1980
• Docket Number: No. 51381.,51381.
• Citation: 299 NW 2d 121
• Parties: MINNEAPOLIS CABLESYSTEMS, etc., Appellant, v. CITY OF MINNEAPOLIS, et al., Respondents, Northern Cablevision of Minneapolis, Inc., intervenor, Respondent.
• Court: Minnesota Supreme Court

299 N.W.2d 121 (1980)

MINNEAPOLIS CABLESYSTEMS, etc., Appellant, v. CITY OF MINNEAPOLIS, et al., Respondents Northern Cablevision of Minneapolis, Inc., intervenor, Respondent.

No. 51381.

Supreme Court of Minnesota.

October 17, 1980.

O'Connor & Hannan and Joe Walters and Douglas Franzen, IDS Center, Minneapolis, for appellant.

Robert J. Alfton, City Atty., J. David Abramson, Asst. City Atty., Minneapolis, for City of Minneapolis.

Briggs & Morgan and Leonard Keyes and R. Scott Davies, Minneapolis, for Northern Cablevision of Minneapolis, Inc.

Heard, considered and decided by the court en banc.

YETKA, Justice.

Minneapolis Cablesystems brought this action on December 11, 1979, against the City of Minneapolis for a declaratory judgment that City Council Resolution 79R-396 awarded plaintiff a franchise to build and operate a cable television system in Minneapolis. Minneapolis Cablesystems also sought to enjoin the city council from rescinding the alleged franchise and sought judgment declaring rescission of Resolution 79R-396 to be null and void.

The Hennepin County District Court issued a temporary restraining order on December 14, 1979, preventing the city from rescinding the alleged franchise. The TRO was renewed at special term on December 18. Northern Cablevision's motion to intervene was granted at that time.

After trial, Findings of Fact, Conclusions of Law, and an Order for Judgment were issued against Minneapolis Cablesystems on all claims. Minneapolis Cablesystems appealed from the March 25, 1980 Order for Judgment that denied both declaratory and injunctive relief. We affirm.

A number of issues have been raised before this Court, but the primary issue is a simple one and that is whether the City of Minneapolis entered into a binding contract with appellant to grant the latter a franchise to operate a cable television system in the City of Minneapolis.

The facts of this case are not in dispute. On June 4, 1979, the City of Minneapolis issued an "Invitation for Applications" to provide cable television service to the city. Applicants were advised by the invitation that an ordinance would set forth conditions to accompany the grant of a franchise, as required by state regulations.

The city authorized distribution of a draft ordinance on June 8. The draft ordinance indicated that a franchise would commence when the ordinance was adopted.

Thereafter, Minneapolis Cablesystems, Northern Cablevision, and two other companies submitted applications for the Minneapolis franchise. On September 28, 1979, the Minneapolis City Council adopted a resolution providing in part:

That a fifteen year non-exclusive franchise to operate a cable television communications system is hereby awarded to Minneapolis Cablesystems and that the proper City officers be authorized to negotiate a final agreement with Minneapolis Cablesystems leading to the enactment of the franchise ordinance, subject to final approval by Minneapolis Cablesystems and the City Council.

Minneapolis City Council Resolution 79R-396 (emphasis added).

On October 4, the city attorney informed Minneapolis Cablesystems by letter that city officials were authorized to complete negotiations leading to a binding contract between Minneapolis Cablesystems and the city. The letter also said that state regulations require franchises to be granted by ordinance. During a meeting on October 11, the city attorney requested Minneapolis Cablesystems not to make any financial commitment until the franchise was signed.

Subsequent negotiations between city officials and Minneapolis Cablesystems produced agreement concerning the terms of the proposed ordinance. The proposed ordinance incorporated many terms that differed from the draft ordinance of June 8, 1979.

On November 21, 1979, the city council approved a motion to substitute...