Center for Investigative Repor v. SEPTA

975 F.3d 300
CourtCourt of Appeals for the Third Circuit
DecidedSeptember 14, 2020
Docket19-1170
StatusPublished
Cited by21 cases

This text of 975 F.3d 300 (Center for Investigative Repor v. SEPTA) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Center for Investigative Repor v. SEPTA, 975 F.3d 300 (3d Cir. 2020).

Opinion

PRECEDENTIAL

UNITED STATES COURT OF APPEALS FOR THE THIRD CIRCUIT

_______________

No. 19-1170 _______________

THE CENTER FOR INVESTIGATIVE REPORTING,

Appellant

v.

SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY ______________

On Appeal from the United States District Court for the Eastern District of Pennsylvania (D.C. Civ. Action No. 2-18-cv-01839) District Judge: Hon. Michael M. Baylson ______________

Argued October 23, 2019 ______________

Before: GREENAWAY, JR., PORTER, and GREENBERG, Circuit Judges.

(Filed: September 14, 2020)

1 Molly M. Tack-Hooper [ARGUED] American Civil Liberties Union of Washington Foundation 901 Fifth Avenue Suite 630 Seattle, WA 19102

Brian M. Hauss American Civil Liberties Union Speech, Privacy & Technology Project 125 Broad Street 18th Floor New York, NY 10004

John S. Stapleton LeVan Muhic Stapleton 601 Route 73 North Four Greentree Centre Suite 303 Marlton, NJ 08053

Rebecca S. Melley Robert A. Wiygul Hangley Aronchick Segal Pudlin & Schiller One Logan Square 18th & Cherry Streets, 27th Floor Philadelphia, PA 19103 Attorneys for Appellant

Stephen G. Harvey Steve Harvey Law 1880 John F. Kennedy Boulevard Suite 1715 Philadelphia, PA 19103

2 James P. Davy 2362 East Harold Street Philadelphia, PA 19125

Bruce D. Brown The Reporters Committee for Freedom of the Press 1156 15th Street, N.W. Suite 1020 Washington, DC 20005 Attorneys for Amicus Appellants

Kendra L. Baisinger Robert E. Day, III Maryellen Madden [ARGUED] John J. Powell Montgomery McCracken Walker & Rhoads 1735 Market Street 21st Floor Philadelphia, PA 19103 Attorneys for Appellee

Gregory J. Krock McGuireWoods LLP Tower Two-Sixty 260 Forbes Avenue, 18th Floor Pittsburgh, PA 15222 Attorney for Amicus Appellee _______________

OPINION OF THE COURT _______________

3 GREENAWAY, JR., Circuit Judge.

Appellant Center for Investigative Reporting (“CIR”) seeks a permanent injunction that would require the Southeastern Pennsylvania Transportation Authority (“SEPTA”) to run an advertisement on the inside of SEPTA buses. The advertisement promotes CIR’s research on racial disparities in the home mortgage lending market. SEPTA rejected the advertisement under two provisions of its 2015 Advertising Standards, which prohibit advertisements that are political in nature or discuss matters of public debate (the “Challenged Provisions”). The question presented is whether the Challenged Provisions violate the First Amendment. Because the Challenged Provisions are incapable of reasoned application, we answer that question yes. Accordingly, we will reverse and instruct the District Court to grant declaratory relief and issue a permanent injunction preventing SEPTA from enforcing the Challenged Provisions to exclude CIR’s advertisement.

I. BACKGROUND

The Parties

SEPTA has operated Philadelphia’s mass transit system, including buses, subways, commuter rail, light rail, and trolley service, since 1964.1 Like many other public

1 This Court has found, and the parties do not dispute, that SEPTA is a government actor “constrained by the First . . . Amendment[.]” Christ’s Bride Ministries, Inc. v. SEPTA, 148 F.3d 242, 247 (3d Cir. 1998).

4 transportation authorities, SEPTA generates revenue by accepting advertisements that it displays in its facilities and on its vehicles. The advertising agency Intersection (formerly Titan Outdoor, LLC) manages SEPTA’s advertising program, including selling advertising space and reviewing proposed advertisements. SEPTA’s contract with Intersection includes the Advertising Standards, which apply to all the advertising space in or on SEPTA vehicles and facilities. When Intersection determines that a proposed advertisement may violate the Advertising Standards, it sends the advertisement to Gino Benedetti, SEPTA’s General Counsel, who makes the final decision whether to accept the advertisement.

CIR is a California-based, nonprofit, investigative news organization. Its mission is to advance social justice through the dissemination of verifiable, nonpartisan facts about public issues. CIR publishes its reporting on various platforms, such as its news website Reveal (www.revealnews.org), national radio show, and podcast.

SEPTA’s Rejection of the Proposed Advertisement

In January 2018, CIR submitted a proposed advertisement for display on the interior of SEPTA buses. The proposed advertisement consisted of a comic strip entitled “A Stacked Deck,” which summarized the findings of a then- forthcoming CIR report detailing the results of its year-long investigation into mortgage lending trends throughout the United States. The report, which CIR published on February 18, 2019, indicated that in 61 metropolitan areas, applicants of color were more likely to be denied conventional home purchase mortgages.

5 The proposed advertisement consists of the following comic strip:

6 7 8 9 10 11 On February 22, 2018, SEPTA rejected CIR’s proposed advertisement because “[d]isparate lending is a matter of public debate and litigation.” App. 576. SEPTA included in its rejection email a copy of the 2015 Advertising Standards, which were operative at the time. Id. SEPTA later clarified that it rejected the proposed advertisement “under Standards 9(b)(iv)(a) and (b)” of the 2015 Advertising Standards. App. 613. These provisions, both of which CIR challenges, read:

Prohibited Advertising Content. Advertising is prohibited on transit facilities, products and vehicles if it or its content falls into one or more of the following categories –

(a) Advertisements promoting or opposing a political party, or promoting or opposing the election of any candidate or group of candidates for federal, state, judicial or local government offices are prohibited. In addition, advertisements that are political in nature or contain political messages, including advertisements involving political or judicial figures and/or advertisements involving an issue that is political in nature in that it directly or indirectly implicates the action, inaction, prospective action or policies of a government entity.

(b) Advertisements expressing or advocating an opinion, position or viewpoint on matters of public debate about economic, political, religious, historical or social issues.

12 App. 616–17.

On August 6, 2018, months after commencing the instant action, CIR submitted a second proposed advertisement to SEPTA. As the District Court explained, the revised advertisement removed two panels from the original—one showing “a white hand handing keys and stick of dynamite to a black hand,” and another showing “African-Americans holding signs protesting . . . and a white guy not part of the protest.” Ctr. for Investigative Reporting v. SEPTA, 337 F. Supp. 3d 562, 574 (E.D. Pa. 2018) (alteration in original). In the letter accompanying this proposed advertisement, CIR explained that it removed the two panels because they were ones that SEPTA identified as particularly concerning.

By letter dated September 21, 2018, SEPTA rejected this second advertisement, explaining that it violated the same provisions as the first. SEPTA explained that the comic “as a whole,” as opposed to isolated elements, violated the Advertising Standards. Dist. Ct. Dkt. 2:18-cv-01839, ECF No. 32-1 at 2. Despite its contention that the entire comic was problematic, SEPTA highlighted various unchanged, individual elements of the comic that continued to concern SEPTA.

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975 F.3d 300, Counsel Stack Legal Research, https://law.counselstack.com/opinion/center-for-investigative-repor-v-septa-ca3-2020.