Vernon v. Warner Amex Cable Communications, Inc

In Vernon v. Warner Amex Cable Communications, Inc. (1986), 25 Ohio St.3d 117, 25 Ohio B. 164, 495 N.E.2d 374, the supreme court addressed whether the City of Akron exceeded its home rule authority when it declared community antenna television ("CATV"), more commonly referred to as cable television, to be a public utility. In that case, Akron enacted two ordinances governing CATV. The first ordinance declared CATV to be a public utility when operated within the city; the second ordinance required those wishing to operate a CATV system within the city to obtain a franchise pursuant to the City Charter provisions as they related to public utility franchises. Warner Amex obtained a franchise and placed a grey metal box in the right of way on properties within the city. The Vernons challenged the placement of that box on their property, claiming that the city exceeded its power in declaring CATVs to be a public utility. The Supreme Court noted that the issue was not whether CATV is a public utility in the traditional or statutory sense. Id. at 119. Rather, the question was "whether a municipality may authorize and characterize a CATV as a public utility within its environs, in a manner consistent with its home rule and police powers." The court concluded that "the city possess the ability to designate CATVs as a public utility, since such designation does not run afoul of the city's charter or the general laws of the state." Id. In reaching this conclusion, the supreme court initially noted that "public utility" was not defined by the Akron City Charter or ordinances, and that the definition was not limited to those set forth in the revised code. The Court further declined to follow its common law definition of "public utility" set forth in Southern Ohio Power Co. v. Pub. Util. Comm. (1924), 110 Ohio St. 246, 2 Ohio Law Abs. 308, 143 N.E. 700, acknowledging that CATVs are not public utilities but "could be reasonably classified as something analogous to traditional public utilities." Id. at 120.