Commonwealth, Transportation Cabinet, Department of Highways v. G.L.G., Inc.

937 S.W.2d 709, 1997 Ky. LEXIS 10, 1997 WL 36887
CourtKentucky Supreme Court
DecidedJanuary 30, 1997
DocketNo. 95-SC-1052-DG
StatusPublished
Cited by2 cases

This text of 937 S.W.2d 709 (Commonwealth, Transportation Cabinet, Department of Highways v. G.L.G., Inc.) is published on Counsel Stack Legal Research, covering Kentucky Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Commonwealth, Transportation Cabinet, Department of Highways v. G.L.G., Inc., 937 S.W.2d 709, 1997 Ky. LEXIS 10, 1997 WL 36887 (Ky. 1997).

Opinion

WINTERSHEIMER, Justice.

This appeal is from a decision of the Court of Appeals which reversed a summary judgment entered by the circuit court in favor of the Transportation Cabinet in an action enforcing the removal of a billboard erected by G.L.G., Inc., adjacent to Interstate 75 in Laurel County. The Court of Appeals reversed on the basis that material questions of fact exist which make summary judgment inappropriate.

The principal issue in this case is whether the billboard in question falls within the exception found in KRS 177.860(4), which provides:

The commissioner of highways shall prescribe by regulations reasonable standards for the advertising devices hereinafter enumerated, designed to protect the safety of and to guide the users of the highways and otherwise to achieve the objectives set forth in KRS 177.850, and the erection and maintenance of any of the following advertising devices, if they comply with such regulations, shall not be deemed a violation of KRS 177.830 to 177.890:
⅜ * * ⅜ ⅝ *
(4) Advertising devices which otherwise comply with the applicable zoning ordinances and regulations of any county or city, and which are to be located in a commercially or industrially developed area, in which the commissioner of highways determines, in exercise of his sound discretion, that the location of such advertising devices is compatible with the safety and convenience of the traveling public.

[711]*711It is undisputed that the billboard, located within 660 feet of the interstate highway, is illegal and prohibited by KRS 177.841, unless the sign comes within one of the exceptions provided in KRS 177.860. It is also undisputed that the sign is located in an unzoned area which has some industrial and commercial development. The Transportation Cabinet regulations in effect when the sign application was filed require that unless a sign was an “on premises” sign relating to a business being conducted on the same property, the sign must be in an area which was zoned commercial or industrial. Consequently, the Transportation Cabinet denied the permit application.

Earl Hodge, now deceased, leased some of his land adjacent to the right-of-way at mile-marker 42.05 of 1-75 North to G.L.G. for the purpose of erecting an outdoor advertising billboard as defined by KRS 177.830(5). On December 17, 1991, G.L.G. applied for, but was denied, a permit for the billboard because it did not meet the standard for an “on premises” advertising device. G.L.G. took the position that the application was based on the sign being in a “commercially and industrially developed area” pursuant to KRS 177.860(4) and not on the location of the sign as an “on premises” device. The circuit court entered a summary judgment in favor of the Cabinet in an enforcement action brought by the Cabinet for the removal of the billboard and injunctive relief.

When G.L.G. failed to remove the billboard within 30 days as directed by the Cabinet, the Cabinet claimed that the billboard was a public nuisance in violation of KRS 177.870 and sought fines and an injunction for its removal. The Cabinet filed two motions for summary judgment, the second with an affidavit from a permit engineer, stating that the billboard was within 660 feet of the right-of-way and is visible and legible from the interstate. The circuit court denied the first motion. Thereafter, upon the death of Earl Hodge, Mary L. Taylor and Gilbert Wesley Hodge were substituted as the parties defendant, and the Cabinet again moved for summary judgment accompanied by an affidavit and memorandum in support thereof. The circuit court granted summary judgment to the Cabinet on the basis that the billboard was in violation of KRS 177.841, that it did not fit within the exception to KRS 177.860(4) because there was no proof that the location was in a commercially or industrially developed area, and that even if there were such proof, there was no evidence that the denial of the permit was inappropriate. A fine of $100 per day from the date of the construction of the sign was also imposed.

The Court of Appeals reversed the decision of the circuit court stating that there was a genuine issue of material fact as to whether the land use on September 21, 1959 was industrial or commercial. The court stated that an affirmative answer to this question on remand would require a further determination as to whether the Commissioner of Highways acted arbitrarily in concluding that the billboard was not compatible with the safety and convenience of the traveling public. This Court accepted discretionary review.

On appeal, the Cabinet argues that to overturn an agency decision, the court must determine that the factual findings were not supported by the evidence or that the Cabinet applied the wrong rule of law. Furthermore, they contend that the Cabinet applied the correct rule of law to the facts in this case. The Cabinet also claims that their interpretation of KRS 177.860 is based on the proper legislative intent and that the regulations in question are consistent with Kentucky statutes and Federal requirements. In addition, they maintain that the legislature gave the Cabinet broad discretion in billboard enforcement and that the Cabinet is required to comply with Federal guidelines.

The Cabinet asserts that its policies and programs relative to billboard advertising have been developed over time in conjunction with Federal regulation and policy. They believe that the decision of the court in this matter will have a direct effect on future billboard enforcement and will otherwise affect the relationship between the Cabinet and the Federal Highway Administration. If the Cabinet were to change its policies and the Federal government disagrees with what this Court interprets to be the proper provisions, then the Cabinet may be denied funds under [712]*712the so-called Bonus Agreement, sometimes known as the Kerr Amendment. These funds are of great concern and the Cabinet will be responsible for coming to some resolution of the potential contractual dispute with the Federal government.

In addition, they contend that Kentucky will be at risk for losing other than the Bonus Amendment money and may even be forced to refund Federal aid funds previously received. The Federal regulations indicate what federal law requires and failure to comply may render Kentucky ineligible for these desperately needed moneys.

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Related

United Sign, Ltd. v. Commonwealth
44 S.W.3d 794 (Court of Appeals of Kentucky, 2000)
Unisign, Inc. v. Commonwealth
19 S.W.3d 652 (Kentucky Supreme Court, 2000)

Cite This Page — Counsel Stack

Bluebook (online)
937 S.W.2d 709, 1997 Ky. LEXIS 10, 1997 WL 36887, Counsel Stack Legal Research, https://law.counselstack.com/opinion/commonwealth-transportation-cabinet-department-of-highways-v-glg-ky-1997.