Clear Channel Outdoor, Inc. v. City of Portland

262 P.3d 782, 243 Or. App. 133, 2011 Ore. App. LEXIS 695
CourtCourt of Appeals of Oregon
DecidedMay 25, 2011
Docket980100125, A135896
StatusPublished
Cited by1 cases

This text of 262 P.3d 782 (Clear Channel Outdoor, Inc. v. City of Portland) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clear Channel Outdoor, Inc. v. City of Portland, 262 P.3d 782, 243 Or. App. 133, 2011 Ore. App. LEXIS 695 (Or. Ct. App. 2011).

Opinion

*135 SERCOMBE, P. J.

This case concerns the remedies available to plaintiff, a sign company that sells advertising space on billboards, after plaintiff obtained a declaration from the court that portions of the City of Portland’s sign code were unconstitutional under Article I, section 8, of the Oregon Constitution. When the city did not issue a number of sign permits sought by plaintiff, plaintiff filed suit requesting, among other things, an injunction ordering that the city issue the permits. After an initial ruling by the trial court that portions of the code were facially unconstitutional, the city adopted curative amendments to excise the declared illegality. Because of the curative code amendments as well as the nature of the constitutional deficiency in the sign code, the trial court subsequently refused to grant plaintiffs requested injunction. The court also refused to award damages and attorney fees to plaintiff.

On appeal, plaintiff contends that, in light of unconstitutional provisions in the initial and the amended sign codes, the entire code was unenforceable. Therefore, according to plaintiff, it was entitled to injunctive relief directing the city to issue its permits. Plaintiff argues further that it suffered damages because of the application of a sign code that violated the federal constitution and that the court erred in refusing to award damages and attorney fees. The city responds that the unconstitutional provisions did not result in the denial of plaintiffs permits and did not damage plaintiff. For the reasons explained below, we affirm.

I. HISTORICAL FACTUAL BACKGROUND

The disputed sign code provisions relate to the city’s past attempts to regulate billboards and painted wall signs— as opposed to painted wall murals. Other questioned provisions limited the size of signs and contained adjustment criteria — that is, the standards for adjusting the requirements of the sign code.

Plaintiff provides advertising on outdoor signs in the City of Portland and throughout Oregon. Plaintiff and its predecessors have filed a number of lawsuits over the years challenging the constitutionality of the city’s regulation of *136 billboards. As a result of that litigation, plaintiff and the city stipulated to a judgment in June 1986, which allowed for a specific number of billboards and substituted a particular permit approval process for the process otherwise required under the sign code. The stipulated judgment expired in September 1996.

Prior to the expiration of the stipulated judgment, the city amended its sign code in two ways that particularly affected the display of large signs and that are the subject of the dispute in this case. Prior to 1991, the city defined “sign,” the objects regulated by its sign code, as

“[m]aterials placed or constructed primarily to convey a message or other display and which can be viewed from a right-of-way, private roadway or another property.”

Former Portland City Code (PCC) 33.12.710(Y) (1986). 1 That code defined a “painted wall sign” as “[a] sign applied to a building wall with paint and which has no sign structure.” Former PCC 33.12.7KXQ) (1986). However, the city exempted “[p]ainted wall decorations and painted wall highlights” from the provisions of the code that regulated signs, former PCC 33.535.100(G) (1986), and defined “painted wall decorations” as “displays painted directly on a wall and * * * designed and intended as a decorative or ornamental feature,” former PCC 33.12.710(0) (1986).

In 1991, in an effort to clarify the status of painted wall murals as “painted wall decorations” and thus exempt them from regulation under the code, the city amended the definitions of “painted wall decorations” and “sign” by adding the following italicized text:

“Painted wall decorations. Displays painted directly on a wall which are designed and intended as a decorative or ornamental feature. Painted wall decorations do not contain text, numbers, registered trademarks, or registered logos.
«¡1; * * * *
*137 “Sign. Materials placed or constructed primarily to convey a message and which can be viewed from a right-of-way or another property. Signs contain text, numbers, registered trademarks, or registered logos.”

Former PCC 33.910.030 (1991) (Sign-Related Definitions). The trial court found that the primary purpose of that amendment was “to encourage ‘art’ ” and “restrict! ] commercial speech, particularly to allow and encourage such wholesome activities as children painting wall murals; the City’s secondary interests were administrative practicality and avoiding another loss in court.” (Footnote omitted.)

The second change occurred in September 1996, immediately prior to the expiration of the stipulated judgment later that month. That sign code amendment reduced the maximum allowed size of signs to 200 square feet. The amendment precluded the two standard billboard display configurations in Portland — that is, (1) a 288 square foot “poster” with dimensions of 12 feet by 24 feet and (2) a 672 square foot “bulletin” with dimensions of 14 feet by 48 feet. The 1996 sign code also retained a 25-feet height restriction for signs; plaintiffs billboards were commonly 50 feet in height.

The trial court concluded that the effects of those changes made plaintiffs existing billboards nonconforming uses, not subject to future replacement, and precluded new billboard sign permits:

“Although it is clear that by some time in the future, the City 5 s sign code and related ordinances would require plaintiff to remove all nonconforming signs absent some change in the law or other intervention, it is not at all clear from this record how quickly plaintiff would in fact lose how many of its 566 existing billboards. All that the record shows is that nonconforming uses are legal, that when the existing use ceases or is so modified to be subject to new regulation, the nonconforming use must cease, that there are some occasions that permit relocation when the use is lost by government action, and that the regulations governing nonconforming uses are ‘complicated.’ ”

(Footnote and citation omitted.)

*138 In late 1997, concerned about the constitutionality of the sign/painted wall decoration distinction in its sign code, the city began to reconsider whether to regulate painted wall decorations (murals) in the same manner as it regulated painted wall signs. On December 17,1997, the city adopted a moratorium on any new painted wall sign or wall decoration within the central portion of the city, temporarily abandoning any regulatory distinction between painted wall signs and wall decorations. City of Portland Ordinance No. 171881. That moratorium was extended to the rest of the city in August 1998. City of Portland Ordinance No. 172599.

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Bluebook (online)
262 P.3d 782, 243 Or. App. 133, 2011 Ore. App. LEXIS 695, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clear-channel-outdoor-inc-v-city-of-portland-orctapp-2011.