Lamar Advertising Co. v. Township of Elmira

328 F. Supp. 2d 725, 2004 U.S. Dist. LEXIS 15282, 2004 WL 1768243
CourtDistrict Court, E.D. Michigan
DecidedJuly 26, 2004
Docket02-10310-BC
StatusPublished
Cited by5 cases

This text of 328 F. Supp. 2d 725 (Lamar Advertising Co. v. Township of Elmira) 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. Township of Elmira, 328 F. Supp. 2d 725, 2004 U.S. Dist. LEXIS 15282, 2004 WL 1768243 (E.D. Mich. 2004).

Opinion

OPINION AND ORDER GRANTING PLAINTIFFS’ MOTION FOR SUMMARY JUDGMENT AND DENYING DEFENDANT’S MOTION FOR SUMMARY JUDGMENT

LAWSON, District Judge.

In October 2001, the plaintiff, Lamar Advertising Co., applied to Otsego County and the Michigan Department of Transportation (MDOT) for permits to erect a billboard near a storage facility along M-32 in Elmira Township in Northern Michigan. At the time, the local law required only that Lamar apply to the MDOT for permission to erect the billboard along that state highway. The MDOT eventually approved the application that Lamar had presented to it, but in the intervening months that preceded the approval Otsego County officials — apparently confused about the requirements of local law for signs located along state roads — transferred Lamar’s other (then-unnecessary) application to Elmira Township. During the period of delay, the Township changed its own ordinances so that it assumed authority for the location along the state road where Lamar proposed to erect the billboard, and then the Township denied the application that Lamar originally had submitted to Otsego County. Following the denial of the application by Elmira Township officials and the approval of a permit by the MDOT (which was contingent on compliance with local laws), Lamar demanded that Elmira Township provide it with the necessary building permits; but the Township refused and insisted that Lamar comply with the new billboard ordinance, particularly the size restrictions, before any permits would be issued.

Lamar then commenced this action for declaratory and injunctive relief and damages based on several theories grounded in federal and state law, including a violation of Lamar’s free speech rights under the *727 First Amendment via 42 U.S.C. § 1983. After a period of discovery, the parties filed a joint stipulation of facts and cross motions' for summary judgment. The Court heard argument on the motion on November 14, 2003 and the matter is now ready for decision. The Court finds that Lamar satisfied all the requirements of the laws in place at the time it applied for permission to erect the billboard in question, and the refusal of the Township to allow Lamar to go forward with its billboard construction along a state highway on the basis of later-enacted ordinances constituted an unlawful prior restraint of commercial speech. The Court, therefore, will grant Lamar’s motion for summary judgment and deny Elmira Township’s motion for summary judgment.

I.

Based on the parties’ stipulation and the other materials submitted with the motion papers, the following facts appear to be undisputed. Lamar is engaged in the standardized outdoor advertising industry and as part of its business it erects billboards on locations it leases or owns. Revenue is generated by charging advertisers a fee for displaying both commercial and noncommercial messages on Lamar’s billboards. Lamar also displays public service messages of civic and charitable organizations on its billboards without charging a fee. To maximize the exposure of it’s customers’ messages, Lamar endeavors to locate its outdoor signs along well-traveled routes, including state highways.

M-32 is a state federal-aid primary highway that runs in a general east-and-west direction across the northern portion of Michigan’s lower peninsula and passes through Elmira Township, which is located about ten miles west of the City of Gay-lord. Elmira Township is a Michigan Township governed by a five-member township board and a township supervisor who has been in office for over fifteen years. The Township consists of a small village area and several tracts of open fields and farm land in a rural setting.

Before 2001, the Township had no ordinance regulating outdoor advertising, although Otsego County had enacted a model ordinance for that purpose. In 1997, the Elmira Township Board unanimously voted to adopt the “Otsego County Signs and Billboards Ordinance.” Neither the Otsego County nor the Township ordinances regarding billboards were amended from November 13, 1997 through the date of Lamar’s application. Section 18.38.1.4 of the Ordinance regulates non-accessory signs and states:

Billboards, poster boards, and non accessory signs may be permitted in B2, B3, & I Districts provided the area of the sign does not exceed an area of 200 square feet in B2 & B3 Districts and 300 square feet in I Districts. A non accessory sign or billboard shall not measure longer than three times its width.
Signs that come under the jurisdiction of P.A. 106 of 1972 are exempt from this subsection.

Otsego County Ord. § 18.38.1.4. The statute referenced in the ordinance, Public Act 106 of 1972, is Michigan’s Highway Advertising Act of 1972 (MHAA), codified at Mich. Comp. Laws § 252.301, et seq. This legislation was enacted primarily to prohibit tobacco advertisements on billboards. See Mich. Comp. Laws § 252.303 (proclaiming that “the legislature finds it appropriate to regulate and control outdoor advertising ... as it pertains to tobacco adjacent to the interstate highway, freeway, and primary highway systems, ... secondary highways, major streets, and local roads within this state,” and acknowledging that “outdoor advertising is a legitimate accessory commercial use of private property, is an integral part of the market *728 ing function and an established segment of the economy of this state”). The Act also requires that sign owners apply to the MDOT for permits to erect new billboards on state roads. See Mich. Comp. Laws § 252.306. By its terms, Section 18.38.1.4 of the Ordinance placed exclusive control of billboard regulation along state roads with the MDOT. Therefore, those municipalities that adopted this section of the model ordinance — including Otsego County and Elmira Township — eschewed the authority to regulate billboards along state roads within their boundaries and left that function to the State.

In 2001, Lamar found a location along M-32 where it desired to erect a two-sided billboard; the location was within Elmira Township. On September 26, 2001, Lamar wrote to the Zoning Administrator of El-mira Township requesting a copy of its billboard ordinance. The Township did not respond to Lamar’s letter and the township supervisor has no recollection of receiving it. On October 9, 2001, Lamar submitted an application for a street address to the Otsego County Equalization Department for the property on M-32. Rick Scheffer, Lamar’s lease manager, testified that it was his understanding that Otsego County, not Elmira Township, had the authority to regulate billboards on M-32 and issue building permits. On October 10, 2001, Lamar submitted an application for plan examination and a building permit to the Otsego County Department of Building and Safety Inspection. On that same day, Lamar also submitted an application for a sign permit and the corresponding application fee to the Otsego County Planning and Zoning Department to obtain permission to erect a billboard at 6912 M-32 West in Elmira Township. On November 7, 2001, Lamar filed with the MDOT two commercial sign permit applications to erect and maintain a commercial sign adjacent to a state trunk line.

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Bluebook (online)
328 F. Supp. 2d 725, 2004 U.S. Dist. LEXIS 15282, 2004 WL 1768243, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lamar-advertising-co-v-township-of-elmira-mied-2004.