Lamar Advertising, Inc. v. View Outdoor Advertising, LLC

920 N.E.2d 819, 2010 Ind. App. LEXIS 144, 2010 WL 334832
CourtIndiana Court of Appeals
DecidedJanuary 29, 2010
Docket49A05-0904-CV-217
StatusPublished
Cited by1 cases

This text of 920 N.E.2d 819 (Lamar Advertising, Inc. v. View Outdoor Advertising, LLC) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lamar Advertising, Inc. v. View Outdoor Advertising, LLC, 920 N.E.2d 819, 2010 Ind. App. LEXIS 144, 2010 WL 334832 (Ind. Ct. App. 2010).

Opinion

LAMAR ADVERTISING, INC., Appellant-Defendant,
v.
VIEW OUTDOOR ADVERTISING, LLC, Appellee-Plaintiff, and
STATE OF INDIANA, DEPARTMENT OF TRANPORTATION, Respondent.

No. 49A05-0904-CV-217.

Court of Appeals of Indiana.

January 29, 2010.

MICHAEL RABINOWITCH, MAUREEN E. WARD, Wooden & McLaughlin LLP, Indianapolis, Indiana, ATTORNEY FOR APPELLANT.

ZEFF A WEISS, ABIGAIL B. CELLA, Ice Miller LLP, Indianapolis, Indiana, ATTORNEY FOR APPELLEE.

NOT FOR PUBLICATION

MEMORANDUM DECISION

BARNES, Judge.

Case Summary

Lamar Advertising, Inc., ("Lamar") appeals the trial court's granting of a petition for judicial review filed by View Outdoor Advertising, LLC, ("View"). View also challenges some aspects of the trial court's order. We affirm in part, reverse in part, and remand.

Issues

Lamar raises three issues, and View raises an additional four issues. We address five issues, which we restate as:

I. whether the Indiana Department of Transportation ("INDOT") properly denied View's application for a permit to construct a billboard;
II. whether INDOT properly granted Lamar's application for a permit to construct a billboard;
III. whether INDOT is estopped from revoking Lamar's permit;
IV. whether Lamar's permit should be revoked because of alleged misrepresentations; and
V. whether the trial court ordered the proper remedy.

Facts

Prior to 2006, Lamar, an outdoor advertising company, leased property near U.S. 30 in Hobart from Thomas O'Connor. A properly permitted billboard was located on this property. Lamar's lease with O'Connor was scheduled to end on November 30, 2006. Lamar had a "reasonable time after expiration" of the lease to remove the billboard. Lamar's Appendix p. 267. Lamar and O'Connor were unable to successfully renegotiate the lease. In the fall of 2006, O'Connor entered into lease negotiations with View, another outdoor advertising company, and Lamar began negotiating with a neighboring property owner, Lake County Trust ("Trust"), to lease Trust's property.

On October 31, 2006, View filed an electronic application with INDOT for the construction of a billboard on the O'Connor property where the Lamar billboard was located. In a message submitted with the application, View stated, "There is a current sign on the property and the lease is expired. We are leasing the property and putting up our sign in the place of the current sign." Id. at 253. On November 3, 2006, an investigator for the LaPorte District of INDOT examined the site where View wanted to construct the billboard and noted, "There is an existing sign in location Lamar plate # L03104." Id. at 254. An INDOT official later explained that the construction of a billboard by View in the same location as the Lamar billboard would violate 105 IAC § 7-3-10(a)(1)(A), which prohibits the erection of a sign structure within 500 feet of another structure on the same side of the highway. See id. at 223.

Also on November 3, 2006, Lamar filed an application with INDOT seeking to relocate its billboard 130 feet from the O'Connor property to the Trust property. On November 8, 2006, an investigator for the LaPorte District of INDOT reviewed Lamar's application. On November 30, 2006, INDOT informed Lamar that its application was approved. On December 4, 2006, INDOT issued Lamar a billboard permit. On January 9, 2007, INDOT informed View of its decision to deny View's application.

While the INDOT applications were being processed, both parties sought variances from the City of Hobart Board of Zoning Appeals ("BZA") to construct billboards that were inconsistent with the City of Hobart Zoning Ordinance ("Zoning Ordinance"). On January 11, 2007, the BZA conducted a hearing at which the parties' petitions were addressed. At the hearing, View indicated its intention to appeal INDOT's denial of its application. View's petition for a conditional use variance was tabled pending the outcome of its appeal.[1] Lamar's petition for a conditional use variance for the relocated billboard was approved, and its petition for a developmental standards variance was approved to permit Lamar to construct a sixty-foot high billboard, but the BZA limited the square footage of the billboard to 600 square feet.

On January 11, 2007, the same day as the BZA hearing, View sought administrative review of INDOT's denial of its application. On January 26, 2007, Lamar removed its old billboard from O'Connor's property. On February 21, 2007, Lamar reused some of the parts from the old billboard and constructed a new billboard on the Trust property. On April 13, 2007, Lamar sought to intervene in View's petition for judicial review. On April 17, 2007, the Administrative Law Judge ("ALJ") allowed Lamar to intervene. On May 18, 2007, the ALJ held a hearing on View's petition for administrative review. On October 16, 2007, the ALJ issued a non-binding recommendation to INDOT. The ALJ recommended that INDOT:

a. "Revoke Lamar's permit No. L06026 and allow the parties to apply for a permit on the old location following the removal of Lamar's sign from the new location," or
b. "Revoke Lamar's permit No. L06026 and reverse the denial of View's application that is the subject of its appeal."

Lamar's App. p. 38.

Both parties objected to the ALJ's decision and the INDOT Commissioner ("Commissioner") ordered the parties to fully brief the issues. On April 18, 2008, the Commissioner issued his decision. In his decision, the Commissioner noted:

View alleges that it submitted the application based on the fact that the lease Lamar had with the underlying landowner was due to expire. Although View would like INDOT to consider such leases as part of its application procedure, INDOT's procedures have never required this and INDOT's permit section is ill-equipped to engage in a legal analysis of the terms of leases to which the State of Indiana is not a party. INDOT, therefore, declines such review.

Id. at 37. The Commissioner concluded that INDOT correctly denied View's application because, upon investigation, INDOT confirmed that Lamar's old billboard was still in place and that the granting of View's application would violate the 500-foot rule. See 105 IAC § 7-3-10(a)(1)(A). The Commissioner also concluded that INDOT incorrectly granted Lamar's application. The Commissioner reasoned that the same distance limitation that prevented View from receiving a permit also should have prevented Lamar from receiving a permit.[2] The Commissioner, however, did not require Lamar to remove its new billboard because Lamar detrimentally relied on the permit. The Commissioner also explained that View was not entitled to a permit because of an August 2007 change in the Zoning Ordinance.

On May 15, 2008, View petitioned for judicial review of the Commissioner's decision. After hearing arguments, the trial court determined that INDOT gave priority to View's application when it considered View's application first. See 105 IAC § 7-3-2(e) ("When multiple permit applications are received for proposed sign structures, priority shall be given in the order received."). The trial court then concluded that INDOT correctly denied View's application based on the 500-foot rule. The trial court also acknowledged that INDOT had created an "unwritten relocation policy" in which INDOT issues a permit to an applicant who has an existing sign within 500 feet of the proposed location with the understanding that the existing sign will be removed before the new sign is constructed. Lamar's App. p. 23.

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Related

Lamar Advertising, Inc. v. View Outdoor Advertising, LLC
932 N.E.2d 677 (Indiana Supreme Court, 2010)

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Bluebook (online)
920 N.E.2d 819, 2010 Ind. App. LEXIS 144, 2010 WL 334832, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lamar-advertising-inc-v-view-outdoor-advertising-l-indctapp-2010.