Home Builders Ass'n of Dayton & the Miami Valley v. City of Lebanon

854 N.E.2d 1097, 167 Ohio App. 3d 247, 2006 Ohio 595
CourtOhio Court of Appeals
DecidedFebruary 13, 2006
DocketNos. CA2005-01-002 and CA2005-01-005.
StatusPublished
Cited by11 cases

This text of 854 N.E.2d 1097 (Home Builders Ass'n of Dayton & the Miami Valley v. City of Lebanon) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Home Builders Ass'n of Dayton & the Miami Valley v. City of Lebanon, 854 N.E.2d 1097, 167 Ohio App. 3d 247, 2006 Ohio 595 (Ohio Ct. App. 2006).

Opinion

Powell, Presiding Judge.

{¶ 1} Defendant-appellant and cross-appellee, the city of Lebanon, appeals the decision of the Warren County Court of Common Pleas finding unconstitutional the city’s ordinance requiring that all newly constructed commercial and residential units be connected to the city’s broadband telecommunications system. We affirm the common pleas court’s decision.

{¶ 2} In 1997, the city of Lebanon decided to develop a broadband telecommunications system. The city contracted with a private company to construct the system, which included a hybrid fiber coaxial (“HFC”) network, a fiber optic *251 network through which the city could offer telecommunications services to its residents. In 1999, the city began offering cable television and high-speed internet service via the HFC network. In 2002, the city expanded its offerings to include telephone service. Residents could purchase the services individually, or they could purchase all three services “bundled” together at a discounted rate. The city also provided automatic electric meter reading to approximately 200 homes connected to the system, beginning in 2001. However, the city determined that the extension of that service to additional homes would be too costly.

{¶ 3} The HFC network was constructed in the public right-of-way. From the right-of-way, the city connected the network to residential and nonresidential units by extending copper wiring across private property to the individual unit. The wiring connected to a box that was affixed to an exterior wall of the unit served. The parties refer to the connection of the HFC network to individual units as a “telecommunications drop.”

{¶ 4} In March 2002, the city adopted an ordinance requiring that all newly constructed units be connected to the telecommunications system. The ordinance stated that connection “shall be initiated upon the granting of a new construction permit” by the city. The ordinance also required payment of a “telecommunications connection fee” for each unit connected to the system. For “residential” units, the fee was $1,250. For “industrial” units, the fee was $2,000. According to the city, it imposed the fee not to cover the cost of the telecommunications drop, but to cover the cost of expanding the HFC network in the public right-of-way to newly developed areas of the city. While connection to the system was mandatory under the ordinance, there was no obligation to purchase the services offered by the city.

{¶ 5} In May 2002, plaintiffs-appellees and cross-appellants, Home Builders Association of Dayton & the Miami Valley, Home Builders Association of Greater Cincinnati, Drees Company, Oberer Residential Construction, Ltd., M7I Schottenstein Homes, Inc., Crossman Communities, Inc., Design Homes & Development, Inc., and Design Properties VIII, Ltd. (collectively, “the homebuilders”), filed a complaint in the common pleas court against numerous parties including the city, the city council, the city manager, and the city’s director of telecommunications (collectively, “the city”). In June 2002, the homebuilders filed their first amended complaint. The homebuilders asserted nine claims in that complaint, including the following three claims at issue in this case: (1) the city’s ordinance mandating connection to the telecommunications system was unconstitutional because it amounted to a “taking” without just compensation, (2) the city’s enactment of the ordinance constituted an abuse of the city’s corporate powers under R.C. 733.56 and 733.59, and (3) the ordinance deprived the homebuilders of their constitutional rights in violation of Section 1983 et seq., Title 42, U.S.Code. The homebuilders *252 sought a declaratory judgment that the city’s ordinance was unconstitutional, a preliminary and permanent injunction prohibiting the city from enforcing the ordinance, and an award of their attorney fees incurred in the action.

{¶ 6} In June 2002, intervenor-appellee, Time Warner Cable, filed a third-party complaint against the city, alleging that the ordinance violated R.C. 1332.04(B)(1)(a) and 1332.04(B)(1)(b). Time Warner asserted that by enacting the ordinance, the city was unlawfully preferring and giving an advantage to a public cable service provider and discriminating against Time Warner, a private cable service provider. Time Warner also adopted the claims asserted in the complaint filed by the homebuilders. Like the homebuilders, Time Warner sought a declaration that the ordinance was' unconstitutional, a preliminary and permanent injunction barring the enforcement of the ordinance, and an award of its attorney fees incurred in the action.

{¶ 7} The city, the homebuilders, and Time Warner all filed motions for summary judgment. The common pleas court granted the homebuilders’ motion as to part of their first claim. The court found that the “mandatory connection” portion of the city’s ordinance was an unconstitutional taking and was therefore unenforceable. The court determined that the “telecommunications fee” portion of the ordinance was severable from the “mandatory connection” portion and enforceable, but only with respect to those who requested connection to the telecommunications system.

{¶ 8} The court granted the city’s motion with respect to the homebuilders’ fifth and seventh claims for relief. The court found that the homebuilders did not have taxpayer standing to bring an action under R.C. 733.56 and 733.59. Further, the court found that the homebuilders could not maintain their claim under Section 1983 et seq., Title 42, U.S.Code because they had not exhausted adequate state law remedies. The court denied the summary judgment motions of the city, the homebuilders, and Time Warner in all other respects. Further, based on its resolution of the homebuilders’ first, fifth, and seventh claims, the court dismissed all the parties’ remaining claims as moot.

{¶ 9} The city now appeals the common pleas court’s decision, assigning two errors. Two groups of homebuilders filed separate cross-appeals. 1

{¶ 10} The city’s Assignment of Error No. 1:

*253 {¶ 11} “The trial court erred by holding that the mandatory connection is an unlawful taking of the home builders’ property.”

{¶ 12} In this assignment of error, the city argues that the mandatory connection portion of the ordinance does not amount to an unconstitutional taking of the homebuilders’ property. The city argues that the homebuilders consented to the mandatory connection when they requested electric service from the city.

{¶ 13} Summary judgment is proper where (1) there is no genuine issue of material fact, (2) the moving party is entitled to judgment as a matter of law, and (3) reasonable minds can only come to a conclusion adverse to the party against whom the motion is made, construing the evidence most strongly in that party’s favor. Harless v. Willis Day Warehousing Co. (1978), 54 Ohio St.2d 64, 66, 8 O.O.3d 73, 375 N.E.2d 46. We review a trial court’s decision granting summary judgment under a de novo standard of review. Burgess v. Tackas (1998), 125 Ohio App.3d 294, 296, 708 N.E.2d 285.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Planned Parenthood SW Ohio Region v. Ohio Dept. of Health
2026 Ohio 639 (Ohio Court of Appeals, 2026)
Academy Ridge v. Gahanna
2024 Ohio 2699 (Ohio Court of Appeals, 2024)
Ohioans for Concealed Carry v. Columbus
2019 Ohio 3105 (Ohio Court of Appeals, 2019)
Hyde Park Circle, L.L.C. v. Cincinnati
2016 Ohio 3130 (Ohio Court of Appeals, 2016)
State ex rel. Phillips Supply Co. v. Cincinnati
2012 Ohio 6096 (Ohio Court of Appeals, 2012)
Jeffers v. Athens Cty. Commrs.
2011 Ohio 675 (Ohio Court of Appeals, 2011)
Simeone v. City of Niles, 2008-T-0059 (12-31-2008)
2008 Ohio 7000 (Ohio Court of Appeals, 2008)
City of Cincinnati Ex Rel. Zimmer v. City of Cincinnati
982 N.E.2d 987 (Ohio Court of Appeals, 2008)
State Ex Rel. Badgett v. Mullen
893 N.E.2d 870 (Ohio Court of Appeals, 2008)

Cite This Page — Counsel Stack

Bluebook (online)
854 N.E.2d 1097, 167 Ohio App. 3d 247, 2006 Ohio 595, Counsel Stack Legal Research, https://law.counselstack.com/opinion/home-builders-assn-of-dayton-the-miami-valley-v-city-of-lebanon-ohioctapp-2006.