International Outdoor, Inc. v. City of Troy, Mich.

CourtCourt of Appeals for the Sixth Circuit
DecidedSeptember 4, 2020
Docket19-1399
StatusPublished

This text of International Outdoor, Inc. v. City of Troy, Mich. (International Outdoor, Inc. v. City of Troy, Mich.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
International Outdoor, Inc. v. City of Troy, Mich., (6th Cir. 2020).

Opinion

RECOMMENDED FOR PUBLICATION Pursuant to Sixth Circuit I.O.P. 32.1(b) File Name: 20a0294p.06

UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT

INTERNATIONAL OUTDOOR, INC., ┐ Plaintiff-Appellant, │ │ > Nos. 19-1151/1399 v. │ │ │ CITY OF TROY, MICHIGAN, │ Defendant-Appellee. │ ┘

Appeal from the United States District Court for the Eastern District of Michigan at Detroit. No. 2:17-cv-10335—George Caram Steeh III, District Judge.

Argued: October 16, 2019

Decided and Filed: September 4, 2020

Before: BOGGS, SUHRHEINRICH, and WHITE, Circuit Judges.

_________________

COUNSEL

ARGUED: J. Adam Behrendt, BODMAN PLC, Troy, Michigan, for Appellant. Allan T. Motzny, CITY ATTORNEY’S OFFICE, Troy, Michigan, for Appellee. ON BRIEF: J. Adam Behrendt, Serena G. Rabie, BODMAN PLC, Troy, Michigan, for Appellant. Allan T. Motzny, Lori Grigg Bluhm, CITY ATTORNEY’S OFFICE, Troy, Michigan, for Appellee.

BOGGS, J., delivered the opinion of the court in which WHITE, J., joined, and SUHRHEINRICH, J., joined in part. SUHRHEINRICH, J. (pg. 24), delivered a separate opinion concurring in part and dissenting in part. Nos. 19-1151/1399 Int’l Outdoor, Inc. v. City of Troy, Mich. Page 2

OPINION _________________

BOGGS, Circuit Judge. International Outdoor, Inc. (“International Outdoor”) sought to erect billboards in the City of Troy, Michigan. After the City of Troy denied International Outdoor’s application for a permit and then for a variance from the limitations imposed by the City’s sign ordinance, International Outdoor brought suit challenging the constitutionality of the City’s ordinance under 42 U.S.C. § 1983 and alleging that the sign ordinance violated International Outdoor’s First Amendment rights.

For the reasons stated below, we affirm the district court’s grant of the City of Troy’s motion for summary judgment on International Outdoor’s claim that the City’s sign ordinance constitutes an unconstitutional prior restraint. However, we vacate the district court’s grant of the City of Troy’s motion to dismiss International Outdoor’s claim that the City’s sign ordinance imposes content-based restrictions without a compelling government interest, and we remand for reconsideration under the Reed standard. We also vacate and remand the district court’s denial of International Outdoor’s motion for attorney’s fees, pending reconsideration of the City of Troy’s motion to dismiss.

I International Outdoor is an outdoor advertising company that erects billboards throughout Southeast Michigan on properties it either leases or owns. It earns revenue by charging advertisers for displaying their messages on its billboards. In September 2015, International Outdoor sought to erect two digital billboards in two separate locations within the City of Troy. The billboards came under the definition of a “ground sign” pursuant to Section 85.01.03 of the City of Troy Sign Ordinance.

Under Section 85.02.05.C.5 of the Sign Ordinance, each property was allowed one ground sign not exceeding 12 feet in height with a maximum area of 100 square feet, if set back at least 10 feet from the right of way, and one additional ground sign subject to the following requirements: Nos. 19-1151/1399 Int’l Outdoor, Inc. v. City of Troy, Mich. Page 3

1. The sign is set back a minimum of 200 feet from any street right of way. 2. The sign is located at least 1,000 feet from any sign exceeding 100 square feet. 3. The sign does not exceed 300 square feet. 4. The sign does not exceed 25 feet in height.

International Outdoor sought to erect in two locations a two-sided billboard that would be 14 feet by 48 feet (672 square feet per side for a total of 1,344 square feet area) and 70 feet in height when mounted. Both locations were less than 200 feet from a right of way and less than 1,000 feet from other signs exceeding 100 square feet. Because the proposed billboards exceeded the Sign Ordinance’s size and height limitations as well as its setback requirements based on the zoning classification of the properties, the City denied International Outdoor’s application for a permit. International Outdoor applied for variances. The variance application was presented to the City’s Building Code Board of Appeals on November 4, 2015 and was considered at a special meeting and public hearing on November 18, 2015. The Board denied the application on November 20, 2015 for failure to meet the criteria set forth in Section 85.01.08.B.1 of the Sign Ordinance, which were a necessary but not a sufficient condition for grant of a variance:

a. The variance would not be contrary to the public interest or general purpose and intent of this Chapter; and b. The variance does not adversely affect properties in the immediate vicinity of the proposed sign; and c. The petitioner has a hardship or practical difficulty resulting from the unusual characteristics of the property that precludes reasonable use of the property.

International Outdoor filed an appeal of the Board’s decision in the Oakland County Circuit Court, but on July 11, 2016 the appeal was dismissed as abandoned due to appellant’s failure to file a brief. On February 2, 2017 International Outdoor filed a complaint in the Eastern District of Michigan under 42 U.S.C. § 1983, seeking declaratory and injunctive relief as well as damages and alleging that the City of Troy Sign Ordinance violated its First Amendment rights. Count I alleged that the Ordinance constituted an unconstitutional prior restraint because it lacked narrow, objective, and definite standards to guide the decision of the City of Troy’s Building Code Board of Appeals in issuing variances and thus granted the Board unfettered discretion. Count II alleged that the Ordinance contained unconstitutional content-based Nos. 19-1151/1399 Int’l Outdoor, Inc. v. City of Troy, Mich. Page 4

restrictions as it exempted from permit requirements certain categories of signs, such as flags and “temporary signs,” which “include but are not limited to” various real estate signs, “garage, estate or yard sale” signs, “non-commercial signs[,]” “[p]olitical signs[,]” “holiday or other seasonal signs[,]” and “construction[s] signs . . . .” The City of Troy moved to dismiss the complaint under Federal Rules of Civil Procedure 12(b)(1) and 12(b)(6).

The district court denied the City of Troy’s motion as to Count I, holding that International Outdoor had stated a cognizable claim that the City’s variance process was an unconstitutional prior restraint. The district court also rejected the City’s argument of severability because the Sign Ordinance on the record did not contain a severability clause and the district court found that the variance procedure could not be severed under state law. The district court dismissed Count II because it determined that the speech at issue was commercial speech and therefore its regulation was not subject to strict scrutiny. Applying Central Hudson Gas & Electric Corp. v. Public Service Commission, 447 U.S. 557, 563 (1980), the district court found that the ordinance provisions satisfied an intermediate level of scrutiny.

The City of Troy moved for reconsideration of the district court’s order denying its motion to dismiss as to Count I. That motion was denied.

At the conclusion of discovery, on September 20, 2018, International Outdoor moved for summary judgment.

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International Outdoor, Inc. v. City of Troy, Mich., Counsel Stack Legal Research, https://law.counselstack.com/opinion/international-outdoor-inc-v-city-of-troy-mich-ca6-2020.