Lauder, Inc. v. City of Houston, Texas

751 F. Supp. 2d 920, 2010 U.S. Dist. LEXIS 117537, 2010 WL 4604387
District Court, S.D. Texas·Decided November 4, 2010·No. Civil Action H-08-3223·Published·Cited by 5 cases

Opinion

MEMORANDUM AND OPINION ENTERING FINDINGS OF FACT AND CONCLUSIONS OF LAW

LEE H. ROSENTHAL, District Judge.

This is a First Amendment challenge to a newsrack ordinance enacted by the City of Houston in 2007. The ordinance requires newsracks on the City’s rights-of-way to meet certain material, size, and placement standards and requires publishers using newsracks to pay a permit fee. *923 Lauder, Inc., the plaintiff, publishes a free monthly newspaper funded almost entirely by advertisements. Lauder uses news-racks to distribute the paper. Lauder alleges that the ordinance violates the First Amendment because, among other reasons, it was not based on an established record of specific problems, it imposed detailed requirements without allowing City officials discretion to deviate from them, and it was not sufficiently tailored to the problems it was intended to address. The City asserts that the ordinance was carefully drawn; was adopted after hearing from many of those affected, who were given opportunities to express their concerns; and was modeled after similar ordinances enacted in other municipalities.

This court held an evidentiary hearing in 2008 and denied Lauder’s application for a temporary restraining order. The parties conducted discovery and this court held a two-day bench trial. As explained in detail below, this court finds and concludes, based on the pleadings, the evidence, and the applicable authorities, that Lauder’s First Amendment challenge to the City’s newsrack ordinance fails as a matter of law.

I. FINDINGS OF FACT

A. Background

On February 14, 2007, the Houston City Council passed, and the Mayor signed, ordinance number 2007-225. (Docket Entry No. 44, Ex. A at 15). Before that date, the City’s ordinance regulating newsracks, which was enacted in 1976, stated as follows:

A person may sell and/or install any nonelectrical apparatuses for the sale of daily or weekly newspapers on sidewalks, or other public property or property dedicated to public use provided, it shall be unlawful for any person to install any apparatus used for the sale of newspapers where such apparatus will impede or interfere with the free passage of persons on sidewalks or other public property. The permission granted by this section shall apply to the extent of the city’s right, title and interest only.

(Def.’s Ex. 4).

The 2007 ordinance was more specific and detailed. It began by stating the reasons for the new regulation:

WHEREAS, the uncontrolled placement and maintenance of newsracks in public rights-of-way presents a danger to the safety and welfare of persons using such rights-of-way, including pedestrians, persons entering or exiting vehicles and buildings, and persons performing essential utility, traffic control, and emergency services; and
WHEREAS, newsracks located so as to cause a danger to persons using public rights-of-way, and unsightly news-racks located therein, such as newsracks that are poorly maintained or that have been defaced with graffiti, constitute public nuisances; and
WHEREAS, the City Council finds and declares that regulating the placement, appearance, size and servicing of newsracks on public rights-of-way is necessary to promote the public health, general welfare, and safety of persons using public rights-of-way, and to foster the aesthetics of the City ....

{Id. at 1).

The 2007 ordinance requires a publisher who wants to distribute publications in a newsrack on a public right-of-way to obtain a permit and decal from the City. {Id. § 7, § 40-452). To obtain a permit, each publisher must submit an application setting out contact information; the number of newsracks and a description of the location for each one; a description of each newsrack, including dimensions, signage, and whether it has a coin-operated mecha *924 nism; and the name and frequency of the publication to be placed in the newsrack. (Id. § 40-453(a)). The City’s parking management division “shall” issue, within ten business days after the application is filed, a single permit that covers all that publication’s newsracks meeting the ordinance standards. (Id. § 40-453(e)). The permits are valid for three years. (Id. § 40-453(d)). The publisher must also obtain a decal for each newsrack. The permit application fee is $300 per publication and the decal fee is $5 per newsrack. (Id. § 40-453(e)). The publisher can renew a permit before expiration for a fee of $5 per newsrack. (Id. § 40— 453(g)). The City can require a publisher to replace decals that have become worn, faded, defaced, or missing, at a cost of $1 per replacement decal. (Id. § 40-463(0).

If a permit application is denied in whole or in part, the applicant must be notified within ten business days by certified mail or e-mail and the City must explain the reasons for the denial. (Id. § 40-453(i). The applicant has ten business days after receiving the denial to revise and resubmit the application or submit a written request for an appeal. (Id.). If an appeal is requested, a hearing examiner must conduct a hearing within thirty days. (Id. § 40-453(k)). Written notice of the time and place of the hearing must be provided no less than ten business days before the hearing. (Id.). The hearing examiner must issue a written decision within fifteen business days after the hearing. (Id.). The hearing examiner’s decision on the appeal is final. (Id.).

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Lauder, Inc. v. City of Houston, Texas, 751 F. Supp. 2d 920, 2010 U.S. Dist. LEXIS 117537, 2010 WL 4604387 (S.D. Tex. 2010).

751 F. Supp. 2d 920 (Lauder, Inc. v. City of Houston, Texas) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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