. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . .
. . . . . . . . . . . .In reply refer to:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . .
1800B3-BSH
John F. Garziglia, Esq.
Pepper & Corazzini L.L.P.
1776 K Street, N.W., Suite 200
Washington, DC 20006
Ernest T. Sanchez, Esq.
2000 L Street N.W., Suite 200
Washington, D.C. 20036
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .In
re:
KNMX(AM), Las Vegas, NM
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.
Assignment of License
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BAL-960611EA
Dear Counsel:
We have on file an application to assign the above-captioned station from
Yvette Gonzales, Trustee ("Trustee") to Sangre de Cristo Broadcasting
Company,
Inc. ("Sangre de Cristo"). On July 26, 1996, Rosario Trujillo and Grupo
Adelante, Inc. ("Petitioners") filed a Joint Petition to Deny the
application.See footnote 1 Despite the
captioning of their pleading, Petitioners do not
seek denial of the application, but request instead that the Commission
condition its grant of the application upon resolution of the civil action
they have instituted against Sangre de Cristo in the Fourth Judicial District
Court for San Miguel County, New Mexico.
Sangre de Cristo is wholly owned by Matias Martinez, Jr. and his wife, Connie
Martinez. Petitioners allege, both in their instant petition and in their
civil suit, that Mr. Martinez was an officer of the pre-incorporated Grupo
Adelante who was principally responsible for obtaining bank financing to
supplement the funds already collected by the group in order to tender a bid
in the bankruptcy court for the assets of KNMX(AM). Petitioners allege that
Mr. Martinez breached his duty to act on behalf of Grupo Adelante by obtaining
financing in his own name and by bidding on the station assets on behalf of
Sangre de Cristo, rather than Grupo Adelante. Petitioners' civil suit alleges
counts of breach of fiduciary duty, constructive fraud and conversion.
Petitioners have not provided evidence of a stay or injunction by a local
court against the proposed sale. In the absence of such an order from the
local court, the Commission has routinely acted favorably on license
assignment applications pending resolution of private disputes such as those
at issue here. We note, however, that Commission grant of an assignment
application merely finds that the parties are qualified under, and the
proposed transaction does not violate, the Communications Act of 1934, as
amended, and the Commission's rules and policies. As such, it is permissive
only and does not prejudice any relief that the parties may ultimately be
entitled to under civil suit. Therefore, a grant made without an express
condition pertaining to litigation does not afford applicants any greater
rights than they would otherwise be entitled to and does not limit the
Commission from taking any appropriate future action based on the final
outcome of the civil suit.
Accordingly, finding the applicants qualified and that grant of the assignment
application would serve the public interest, convenience and necessity,
Petitioners' Joint Petition to Deny IS DENIED and the above-captioned
application IS GRANTED. We emphasize that our grant of the assignment
application is not intended to prejudice any relief to which a court of
competent jurisdiction may ultimately determine that any party is entitled.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sincerely,
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Linda
Blair, Chief
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Audio Services Division
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Mass Media
Bureau
Footnote 1:
An opposition was filed by Sangre de Cristo on Auguust 6, 1996 and a joint reply to the
opposition was filed by Petitioners on August 20, 1996.