Saginaw Broadcasting Company (Saginaw) (plaintiff) applied to the Federal Communications Commission (commission) (defendant) for a permit to build a radio station in Saginaw, Michigan. Harold Gross and Edmund Shields also applied for a permit to build a radio station in Saginaw. One of the issues at the administrative hearing concerning the permits was the extent to which each of the applicants’ proposed radio stations would cause electrical interference with a radio station operating in a nearby city. The trial examiner recommended that Saginaw’s application be granted. The full commission rejected this recommendation and awarded the permit to Gross and Shields instead. The findings of fact relied upon by the commission in reaching this decision were incomplete and partially inaccurate. Saginaw appealed the commission’s decision.