California Outdoor Equity Partners, LLC v. City of Los Angeles

145 F. Supp. 3d 921, 2015 U.S. Dist. LEXIS 155434, 2015 WL 7259731
CourtDistrict Court, C.D. California
DecidedNovember 16, 2015
DocketCase No. 2:15-cv-04374-CAS-MRW
StatusPublished
Cited by1 cases

This text of 145 F. Supp. 3d 921 (California Outdoor Equity Partners, LLC v. City of Los Angeles) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
California Outdoor Equity Partners, LLC v. City of Los Angeles, 145 F. Supp. 3d 921, 2015 U.S. Dist. LEXIS 155434, 2015 WL 7259731 (C.D. Cal. 2015).

Opinion

Proceedings: DEFENDANT’S MOTION TO DISMISS COMPLAINT (Dkt. 14, filed August 31, 2015)

The Honorable CHRISTINA A. ■ SNYDER

I. INTRODUCTION

On June 10, 2015, plaintiffs California Outdoor Equity Partners, LLC, AMG Outdoor Advertising, and J. Keith Stephens (collectively, “plaintiffs”) filed suit against defendant City of Los Angeles (“the City”) alleging that the City’s restrictions on off-site commercial billboards (1) violate plaintiffs’ free speech rights under Article I, Section 2(a) of the California Constitution and the First Amendment of the United States Constitution, and (2) violate plaintiffs’ equal protection rights under Article I, Section 7(a) of California Constitution and the Fourteenth Amendment of the United States Constitution. See Compl.

On August 31, 2015, defendant City of Los Angeles filed a motion to dismiss plaintiffs’ complaint pursuant to Federal Rule of Civil Procedure 12(b)(6). Dkt. 14. Plaintiffs filed an opposition to defendant’s motion on September 30, 2015, and defendant replied on October 5, 2015. Dkts. 16, 19. Having carefully considered the parties’ arguments, the Court finds' and concludes as follows.

II. BACKGROUND

Plaintiffs allege that they are licensed by the State of California to lease to the public “off-premises” or “offsite” outdoor advertising signs — that is, signs which advertise goods or services not available at the site where they are advertised. See Compl. ¶¶ 6, 7. Plaintiffs further allege that Section 14.4.4.B.11 of the Los Angeles Municipal Code (“LAMC”), which imposes a ban on permits for offsite commercial billboards (the “ban” or the “ordinance”), violates their, free speech rights and has been applied selectively by the City -to certain speakers on an “expressly” discriminatory basis. Id. ¶¶ 10, 11. More specifically, plaintiffs allege that LAMC section 14.4.4.B.11 is “unconstitutional on its face and as applied” to plaintiffs in that it violates both the First Amendment and Section 2(a) of the California Constitution because the law:

1. Prohibits “the issuance of permits for offsite commercial signs[,] but does not prohibit the issuance of permits for -signs that bear different content, including onsite commercial. and noncommercial content,” Compl. ¶ 16(a) (emphasis added);
2. Prefers “certain speakers over [plaintiffs], including CBS [Outdoor] [ (“CBS”) ] and [Clear Channel Outdoor (“CCO”) ], the operators of onsite signs and the operators of noncommercial signs, and street banners,” id. ¶ 16(b) (emphasis added); and
3. Is “subject to exceptions that, taken as a whole, (i) bear no logical relationship to the interests in safety and aesthetics the ban purports to advance; and (ii) counteract the ban to the extent that it is reasonable to assume that the Ban does not directly advance a substantial government interest and allow the City unfettered discretion to grant permits in its ‘sole and. absolute discretion’ without restriction or any objective standard to prevent discrimination against potential speakers or speech.” Id. ¶ 16(c) (emphasis added).

Collectively, therefore, plaintiffs are challenging the law’s (1) distinction between offsite and onsite content; (2) its distinctions between “certain speakers” (e.g., those who have “grandfathered” rights and those who do not) and its distinctions be[924]*924tween certain types of signs (e.g., street banners); as well as (3) its allowance for many exceptions to the law’s ban.

Plaintiffs also assert that in 2006, pursuant to an agreement with' the City, CBS and CCO were permitted to convert up to 1,680 billboards to digital displays without regard to local zoning ordinances. Id. ¶ 11. According to plaintiffs, the City- continues to allow these signs even though the agreement by which the CBS and CCO signs were approved has been declared null and void. -In contrast, -plaintiff AMG asserts that it sought to file an -application for a permit to construct a billboard at 1312-1314 East 16th Street in Los Angeles but was turned away on account of the City ordinance. Id, ¶ 13. Accordingly, plaintiffs allege that the City “has selectively granted CBS and CCO the right to operate offsite commercial ■ billboards, while denying that right to Plaintiffs.” Compl. ¶ 23. In addition, plaintiffs allege that the City “has also permitted other entities to operate offsite ... commercial and noncommerical signs, while denying Plaintiffs’ permit applications and requests for relocation agreements .... ” Id. According to plaintiffs, this “intentional disparate treatment ... is irrational and arbitrary,” and further “does not serve any substantial or even legitimate governmental interest.” Id. ¶ 25.

Based upon these allegations, plaintiffs assert that the ordinance violates their free speech rights under the First Amendment to. the United States Constitution and California Constitution. Plaintiffs also assert that the City’s preferential treatment of others with respect to the granting of permits violates plaintiffs’ right -to equal .protection of the laws under the United States- Constitution and the California Constitution. In light of their allegations, plaintiffs seek declaratory and in-junctive relief.

III. LEGAL STANDARD

A. Motion to Dismiss Pursuant to Federal Rule of Civil Procedure 12(b)(6)

A motion pursuant to Federal Rule of Civil Procedure 12(b)(6) tests the legal sufficiency of the claims asserted in a complaint. Under this Rule, a district court properly dismisses a claim if “there is a ‘lack of a cognizable legal theory or the absence of sufficient facts alleged under a cognizable - legal theory.’” Conservation Force v. Salazar, 646 F.3d 1240, 1242 (9th Cir.2011) (quoting Balisteri v. Pacifica Police Dep’t, 901 F.2d 696, 699 (9th Cir.1988)). “While a éomplaint attacked by a Rule 12(b)(6) motion to dismiss does not need detailed factual allegations, a plaintiffs obligation to provide the ‘grounds’ of his ‘entitlement to relief requires more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do.” Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007) (internal citations omitted). “Factual allegations must be enough to raise a right to relief above the speculative level.” Id. (internal citations omitted). '

In considering a motion pursuant to Rule 12(b)(6), a court must accept as true all material allegations in the complaint, as well as all reasonable inferences to be drawn from them. Pareto v. FDIC, 139 F.3d 696, 699 (9th Cir.1998). The complaint must be read in the light most favorable to the nonmoving party. Sprewell v. Golden State Warriors, 266 F.3d 979, 988 (9th Cir.2001).

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Bluebook (online)
145 F. Supp. 3d 921, 2015 U.S. Dist. LEXIS 155434, 2015 WL 7259731, Counsel Stack Legal Research, https://law.counselstack.com/opinion/california-outdoor-equity-partners-llc-v-city-of-los-angeles-cacd-2015.