Latest 3 Cases This Week: Straser v. City of Athens (6th Cir.), West v. Charter Communications, Inc. (7th Cir.), Environmental Council of ...

Which Laws Apply to Broker-Dealers? Federal Laws? State Laws? Both? General Principles Leading to an Answer

TAMAR FRANKEL

BU Law emerita professor Tamar Frankel explains the law of preemption as it pertains to broker-dealers and their investor clients. She predicts, among other things, that either the clients will demand that broker-dealers adhere to a fiduciary duty, or else that states will impose that duty on them.

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Straser v. City of Athens

Court: US Court of Appeals for the Sixth Circuit

Docket: 19-5689

Opinion Date: February 28, 2020

Judge: Jeffrey S. Sutton

Areas of Law: Civil Rights, Constitutional Law, Real Estate & Property Law, Zoning, Planning & Land Use

Straser built a carport in 2009, about 17 feet from the road. The zoning ordinance requires carports to be 30 feet from the road. The city notified Straser four times that his carport violated the rule. In 2016, the city cited Straser’s neighbor for violating the setback rule. The neighbor accused the city of targeting him for enforcement based on his race and Muslim religion. In 2017, the city cited Straser for his carport. City Attorney Trew stated that the city would enforce the rule, having “had trouble with a Muslim” who complained about a similar violation. Straser claimed he was fined because he is a Christian and the city did not want to favor him over his Muslim neighbor. The district court granted the defendants summary judgment. The Sixth Circuit affirmed. A government that enforces its laws equally against those of different faiths honors the neutrality imperative of the Fourteenth Amendment. Straser did not identify any cases in which the city refused to enforce the 30-foot rule against non-Christians nor did he show discriminatory purpose and effect. Straser’s own account of the conversation showed that Trew was committed to even-handed enforcement. Straser has no evidence that Trew knew of Straser’s religious beliefs.

West v. Charter Communications, Inc.

Court: US Court of Appeals for the Seventh Circuit

Docket: 19-2442

Opinion Date: March 2, 2020

Judge: Frank Hoover Easterbrook

Areas of Law: Communications Law, Energy, Oil & Gas Law, Internet Law, Real Estate & Property Law, Zoning, Planning & Land Use

In 1938, West’s predecessor granted Louisville Gas & Electric’s predecessor a perpetual easement permitting a 248-foot-tall tower carrying high-voltage electric lines. In 1990, Louisville sought permission to allow Charter Communication install on the towers a fiber-optic cable that carries communications (telephone service, cable TV service, and internet data); West refused. In 2000 Louisville concluded that the existing easement allows the installation of wires that carry photons (fiber-optic cables) along with the wires that carry electrons. West disagreed and filed suit, seeking compensation. The Seventh Circuit affirmed that the use that Louisville and Charter have jointly made of the easement is permissible under Indiana law. The court cited 47 U.S.C. 541(a)(2), part of the Cable Communications Policy Act of 1984, which provides: Any franchise shall be construed to authorize the construction of a cable system over public rights-of-way, and through easements, which is within the area to be served by the cable system and which have been dedicated for compatible uses, except that in using such easements the cable operator shall ensure…. The court examined the language of the easement and stated: “At least the air rights have been “dedicated” to transmission, and a telecom cable is “compatible” with electric transmission. Both photons and electrons are in the electromagnetic spectrum.”

Environmental Council of Sacramento v. County of Sacramento

Court: California Courts of Appeal

Docket: C076888(Third Appellate District)

Opinion Date: March 2, 2020

Judge: Vance W. Raye

Areas of Law: Environmental Law, Government & Administrative Law, Zoning, Planning & Land Use

Defendants County of Sacramento and the County Board of Supervisors (the County) approved Cordova Hills, a large master planned community comprised of residential and commercial uses and including a university (the Project). Plaintiffs Environmental Council of Sacramento and the Sierra Club (Environmental Council) filed a petition for writ of mandate challenging the Project, which the trial court denied. Environmental Council appealed, contending the Environmental Impact Report (EIR) contained a legally inadequate project description, an inadequate environmental impact analysis, failed to analyze impacts to land use, and the County failed to adopt feasible mitigation measures. Central to the Environmental Council’s appeal was the contention that the university was not likely to be built, and since the EIR assumed the buildout of a university, it was deficient in failing to analyze the Project without a university. We shall affirm the judgment. The Court of Appeal agreed with the trial court’s assessment, that the County, in drafting the EIR, was required to assume all phases of the Project, including the university, would be built. The Court affirmed the trial court in all respects.