Lamar Advertising Co. v. Charter Township of Clinton

241 F. Supp. 2d 793, 2003 U.S. Dist. LEXIS 981, 2003 WL 179791
CourtDistrict Court, E.D. Michigan
DecidedJanuary 22, 2003
DocketCIV. 01-40215
StatusPublished
Cited by1 cases

This text of 241 F. Supp. 2d 793 (Lamar Advertising Co. v. Charter Township of Clinton) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lamar Advertising Co. v. Charter Township of Clinton, 241 F. Supp. 2d 793, 2003 U.S. Dist. LEXIS 981, 2003 WL 179791 (E.D. Mich. 2003).

Opinion

ORDER

GADOLA, District Judge.

Before the Court is Plaintiffs Motion for Summary Judgment. Also before the Court is Defendant’s “Motion to Dismiss or for Summary Judgment.” Both parties filed timely responses to the motions and timely reply briefs. The Court elects to proceed without a hearing. See E.D. Mich. LR 7.1(e)(2). For the reasons set forth below, the Court will grant Plaintiffs Motion and deny Defendant’s Motion.

I. BACKGROUND

Plaintiff builds and maintains outdoor advertising displays, commonly known as billboards. One of its billboards is located approximately 25 to 75 feet from the boundary of Interstate 94, within the territory of Defendant. Defendant is a charter township in Macomb County, Michigan.

Plaintiff does not own the land on which its billboard stands; rather, the land is leased from the real property owner, Paul Turkal. The billboard itself is a trade fixture owned by Plaintiff; i.e., it is the personal property of the lessee (Plaintiff) and not the lessor (Dr. Turkal).

The billboard was lawfully built in 1980 after a building permit was obtained from Defendant. In 1993, Defendant enacted a new sign ordinance, which changed the status of this billboard from conforming use to nonconforming use. Nonetheless, Michigan zoning law mandates that Defendant allow such a previously-conforming billboard to remain in place. 1 However, according to depositions of Defendant’s employees, Defendant has an informal policy of trying to remove nonconforming billboards. See PI. Mot. Ex. J at 27; Def. Mot. Ex. E at 6, 8; Def. Mot. Ex. F at 37, 41.

In 1994, Dr. Turkal sought Defendant’s approval to construct a new building and parking lot in connection with his existing veterinary clinic and kennel on the property. Defendant rejected Dr. Turkal’s request because the proposed parking lot violated Defendant’s zoning ordinance requiring a twenty-five-foot setback from undeveloped roads. An undeveloped road, Stevenson Road, runs along the entire *796 eastern boundary of the property, and Dr. Turkal’s plans called for a new parking lot in the southeast corner of the property.

After the rejection, Dr. Turkal petitioned Defendant for a variance that would allow him to construct the parking lot seventeen feet closer to Stevenson Road than the ordinance permitted. Defendant granted the variance in 1994, but Defendant imposed an unrelated condition as a part of the variance: the billboard, which is located on the opposite (western) side of the property from Stevenson Road and on the opposite (northwest) corner of the property some 200 feet away from the new parking lot, be removed when the existing lease expired. Under the variance, Dr. Turkal obtained a building permit in 1995.

At the time the variance was granted, the billboard at issue in this case was owned by Plaintiffs predecessor-in-interest, the National Advertising Company (“National”). Despite Defendant’s unrelated variance condition calling for the billboard to be removed when the existing lease expired, Dr. Turkal renewed his lease with National in 1996 for a principal term of five years. Plaintiff acquired the billboard and National’s rights under the lease in 1997. In that same year, Defendant informed Dr. Turkal of the inconsistency between his renewal of the lease and the variance condition, and, in April 1998, Defendant revoked Dr. Turkal’s building permit. In response, Dr. Turkal sued Defendant in state court in order to resume construction on his property and to invalidate the unrelated condition in the variance. Neither National nor Plaintiff were parties in Dr. Turkal’s suit. In July 1998, Dr. Turkal and Defendant settled that suit. The settlement resulted in a consent judgment that allowed construction to continue but required Dr. Turkal to remove the billboard within sixty days of April 4, 2001, which was the date the principal term of the 1996 lease with National (and then Plaintiff) ended. The enforceability of certain aspects of this consent judgment concerning the billboard is in doubt, however, because the consent judgment erroneously stated that Dr. Turkal owned the billboard. As stated supra and as the 1996 lease and all prior leases in this case make clear, the billboard is a trade fixture owned by the lessee (first National and now Plaintiff) and not Dr. Turkal. See also infra..

Nevertheless, Defendant sought to enforce its sign ordinance and the variance against Plaintiff after the principal term of Plaintiffs lease with Dr. Turkal expired on April 4, 2001. Although the principal term of lease expired, the lease includes a provision for a year-to-year term after the principal term ends; further, Dr. Turkal desires to continue the tenancy. See PI. Mot. Ex. H at ¶ 4 (“I [ (Dr. Turkal) ] earn substantial income by leasing a portion of the premises to [Plaintiff]. I wish to continue leasing to [Plaintiff] that portion of my property where the billboard stands so that [Plaintiff] can continue to use the billboard for advertising purposes.”). Still, Defendant is attempting to force the removal of Plaintiffs billboard through Dr. Turkal or to remove the billboard itself. In fact, Defendant sent a blunt letter to Dr. Turkal on June 28, 2001, threatening to “remove the sign itself’ within thirty days of the letter if Dr. Turkal did not remove Plaintiffs billboard. PI. Mot. Ex. L. Further, Defendant has not paid or offered any compensation to Plaintiff for the removal of its billboard.

In the face of this threat to its property, Plaintiff filed the Complaint on August 2, 2001, alleging that the removal condition in the variance, if enforced, would violate Plaintiffs First Amendment rights. The Complaint also alleges that, without just compensation, the forced removal of Plaintiffs billboard would violate Michigan stat *797 utory provisions including . the Highway Advertising Act, Mich. Comp. Laws § 252.301 et seq. Plaintiffs state law claims are properly before this Court because all of the requirements of diversity jurisdiction, 28 U.S.C. § 1332, have been met.

On September 12, 2001, Defendant filed a “Motion to Dismiss, or in the Alternative, for Summary Judgment.” In that motion, Defendant argued that Plaintiff lacked standing because it was not the owner of the billboard. On November 7, 2001, this Court denied the motion because the Court found “ample and credible evidence” that Plaintiff did own the billboard.

Plaintiffs present Motion for Summary Judgment and Defendant’s present “Motion to Dismiss or for Summary Judgment” were both filed on August 21, 2002. In its present Motion, Defendant’s primary attack on the Complaint is, again, that Plaintiff lacks standing, but in this Motion, it argues that Plaintiff lacks standing because Plaintiff lacks a protectable interest. Defendant’s Motion alternatively argues that Plaintiffs constitutional and statutory claims are without merit. On the other hand, Plaintiffs Motion focuses exclusively on its Highway Advertising Act claim for just compensation.

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Bluebook (online)
241 F. Supp. 2d 793, 2003 U.S. Dist. LEXIS 981, 2003 WL 179791, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lamar-advertising-co-v-charter-township-of-clinton-mied-2003.