City in telecom dispute given financial protection

WASHINGTON — The Supreme Court limited the liability local governments face in fights over cell phone towers, ruling Tuesday that a small California town did not have to pay millions in attorneys’ fees and damages to a local businessman.

The court unanimously blocked Mark Abrams from collecting money from Rancho Palos Verdes, Calif., which was forced by a court to issue a permit for a 52.5-foot radio antenna Abrams wanted on his property.

With exploding growth in the telecommunications industry, an unfavorable Supreme Court ruling for cities was seen by many as opening the door to further proliferation of towers because local governments would be reluctant to enter into potentially expensive court fights.

The dispute with Abrams rang up $15 million in attorneys’ fees, roughly the annual budget of the seaside town 30 miles south of Los Angeles.

Justice Antonin Scalia pointed to the potential financial implications for municipalities around the country.

“Liability for attorneys’ fees would have a particularly severe impact, making local governments liable for … often substantial legal expenses of large commercial interests for the misapplication of a complex and novel statutory scheme,” he wrote.

In a concurring opinion, Justice John Paul Stevens called the awards of damages and attorneys’ fees “potentially disastrous” for municipalities.

Abrams’ lawyer had argued that although the Telecommunications Act of 1996 doesn’t specifically grant attorneys’ fees and damages, Abrams is entitled to them under a different portion of federal law. That law was intended to provide a remedy when government officials violate federally protected rights.

The court said that Abrams’ legal argument about using the other federal law to enforce the telecommunications act “would distort the scheme of expedited judicial review and limited remedies.”