Arkansas State Highway & Transportation Department v. Lamar Advantage Holding Co.

2011 Ark. 195, 381 S.W.3d 787, 2011 Ark. LEXIS 183
CourtSupreme Court of Arkansas
DecidedMay 5, 2011
DocketNo. 10-932
StatusPublished
Cited by7 cases

This text of 2011 Ark. 195 (Arkansas State Highway & Transportation Department v. Lamar Advantage Holding Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arkansas State Highway & Transportation Department v. Lamar Advantage Holding Co., 2011 Ark. 195, 381 S.W.3d 787, 2011 Ark. LEXIS 183 (Ark. 2011).

Opinion

PAUL E. DANIELSON, Justice.

| Appellant Arkansas State Highway and Transportation Department (ASHTD) appeals from the order of the circuit court reversing its denial of appellee Lamar Advantage Holding Company’s application for a permit to erect an electronic billboard. ASHTD asserts that the circuit court erred in reversing its denial and finding its decision contrary to law and not supported by substantial evidence. We affirm the denial of Lamar’s permit, and we reverse the circuit court’s order and remand.

The record reveals that on June 6, 2005, the Environmental Division of ASHTD received a letter from Lamar, inquiring whether an outdoor advertising permit was required from ASHTD. Specifically, the letter stated that Lamar currently had in place an outdoor advertising structure consisting of two poster panels located on the rooftop of the Innerplan building in’downtown Little Rock. The letter noted the possibility that the structure might |2be demolished within the next year for a new project and that Lamar had reached an agreement with the City of Little Rock to reduce the number of panels from two to one and to install the structure on the north side of the new building. Lamar stated that the new panel would not be visible to traffic on LaHarpe Boulevard, but would instead directly face the areas of Riverfront Park and the River Market District. Lamar sought guidance as to whether a permit from ASHTD was required “since the road it will be visible to is not a state highway or controlled route.”

On June 21, 2005, ASHTD responded, informing Lamar that a “state billboard sign permit will be required ... because the sign will be visible from State Highway 10 and within 660 feet of the Highway 10 right-of-way.” Notwithstanding ASHTD’s response, Lamar erected its electronic billboard in March 2007 and did not file a billboard-sign-permit application until July 6, 2007. On September 17, 2007, ASHTD denied Lamar’s permit application for the following reasons:

Lamar failed to provide a completed application, including zoning information.
Lamar erected the billboard without first securing a state permit, which is in violation of Section 7, Paragraph B, page 28, of the Regulations for Control of Outdoor Advertising.
The billboard is located on a residential building which does not comply with Paragraph F.6, page 5, of the Regulations for Control of Outdoor Advertising.
The property is zoned “Planned Residential Development” (PRD) for Residential use. State billboard permits require a “Commercial” or “Industrial” zoning classification.
The billboard was erected adjacent to and visible from a scenic corridor where new billboard construction is prohibited by city code. The property was issued a variance | ¡¡for the purpose of circumventing billboard laws.

On October 16, 2007, Lamar requested a hearing to contest the denial of its application, contending that

the reasons stated [for denial] ... are contrary to Arkansas Highway & Transportation Department (“AHTD”) regulations. The relevant AHTD regulation states that permits are not required for signs or devices within areas of comprehensive zoning. Regulations for Control of Outdoor Advertising, Section 6.A (Page 25). “Comprehensive Zoning” is specifically defined in the AHTD regulation. The sign’s location is in [an] area that is comprehensively zoned by the City of Little Rock. Therefore, no permit is required.

A hearing was held before a hearing officer, and on October 27, 2009, ASHTD’s denial of Lamar’s permit application was affirmed.

On November 25, 2009, Lamar filed a petition for review of the Commission’s decision in the Pulaski County Circuit Court, and on April 19, 2010, a hearing was held on the petition. After considering the pleadings filed, the transcript of the administrative hearing, and the arguments of counsel, the circuit court entered its order, reversing ASHTD’s denial and finding that ASHTD’s decision was contrary to law and was not supported by substantial evidence. ASHTD now appeals.

ASHTD argues that its decision was based on the Federal Beautification Act, the Arkansas Highway Beautification Act, and the Regulations of the Arkansas State Highway Commission for the Control of Outdoor Advertising on Arkansas Highways and was not contrary to law. It asserts that the Arkansas Highway Beautification Act is to be broadly construed, and accordingly, its interpretation of its regulations should not be overturned unless | clearly wrong. It maintains that there was substantial evidence to support each of its bases for denying Lamar’s permit application.

Lamar responds that ASHTD’s decision ignored section 6(A) of ASHTD’s regulations, which it asserts exempted it from the required permit due to the fact that the area in which its sign was located was comprehensively zoned by the City of Little Rock. It further contends that the administrative decision was not supported by substantial evidence.

Review of administrative agency decisions, by both the circuit court and the appellate courts, is limited in scope. See Seiz Co. v. Arkansas State Highway & Transp. Dep’t, 2009 Ark. 361, 324 S.W.3d 336. The standard of review to be used by both the circuit court and the appellate court is whether there is substantial evidence to support the agency’s findings. See id. The appellate court’s review is directed, not toward the circuit court, but toward the decision of the agency, because administrative agencies are better equipped by specialization, insight through experience, and more flexible procedures than courts, to determine and analyze legal issues affecting their agencies. See id. When reviewing such decisions, we uphold them if they are supported by substantial evidence and are not arbitrary, capricious, or characterized by an abuse of discretion. See id. We review issues of statutory interpretation de novo; however, the interpretation placed on a statute or regulation by an agency or department charged with its administration is entitled to great deference and should not be overturned unless clearly wrong. See id.

As a threshold matter, we must determine whether a permit was in fact required under | athe regulations of ASHTD. Based on our review of the regulations at issue, we agree that a permit was required.

As this court has previously observed, the Arkansas Highway Beautification Act, currently codified at Arkansas Code Annotated §§ 27-74-101 to -502 (Repl.2010), was adopted pursuant to a congressional directive, and its purpose is to promote the reasonable, orderly, and effective display of outdoor advertising, to promote the safety and recreational value of public travel, and to preserve natural beauty. See Ark.Code Ann. § 27-74-201(a) (Repl.2010); Files v. Arkansas State Highway & Transp. Dep’t, 325 Ark. 291, 925 S.W.2d 404 (1996). We have held that the Arkansas Highway Beautification Act is remedial in nature and must be liberally construed so to effectuate the purpose sought to be accomplished by its enactment. See Arkansas State Highway Comm’n v. Roark, 309 Ark. 265, 828 S.W.2d 843 (1992).

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2011 Ark. 195, 381 S.W.3d 787, 2011 Ark. LEXIS 183, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arkansas-state-highway-transportation-department-v-lamar-advantage-ark-2011.