Metro Display Advertising, Inc. v. City of Victorville

143 F.3d 1191, 98 Daily Journal DAR 4703, 97 Cal. Daily Op. Serv. 3404, 1998 U.S. App. LEXIS 8832, 1998 WL 220252
CourtCourt of Appeals for the Ninth Circuit
DecidedMay 6, 1998
DocketNo. 96-55317
StatusPublished
Cited by3 cases

This text of 143 F.3d 1191 (Metro Display Advertising, Inc. v. City of Victorville) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Metro Display Advertising, Inc. v. City of Victorville, 143 F.3d 1191, 98 Daily Journal DAR 4703, 97 Cal. Daily Op. Serv. 3404, 1998 U.S. App. LEXIS 8832, 1998 WL 220252 (9th Cir. 1998).

Opinion

KLEINFELD, Circuit Judge:

This is a qualified immunity claim by municipal officials relating to censorship of posters in bus shelters. The district judge wrote a sound and well articulated decision with which we agree.

Facts.

This is an appeal from denial of a motion to dismiss for failure to state a claim, under Federal Rule of Civil Procedure 12(b)(6), so we assume for purposes of decision that the facts are as stated in the complaint. The facts below are as alleged, and have not been proved. The reason that we have jurisdiction, despite the interlocutory nature of the decision, is that the motion was by public officials to obtain the benefit of qualified immunity from suit, and they have appealed under Mitchell v. Forsyth, 472 U.S. 511, 105 S.Ct. 2806, 86 L.Ed.2d 411 (1985).

Metro Display is in the business of leasing bus shelter advertising space. It spent hundreds of thousands of dollars building bus shelters for the City of Victorville, with 76 sign spaces in 38 shelters. In exchange, its contract with the City of Victorville entitled Metro to use the shelters it built for advertisements.

Metro Display’s standard policy is to sell advertising space throughout southern California to “all comers.” Space is regularly used by local and national advertisers for commercial, noncommercial, religious, charitable and public service communications, which change regularly.

Metro’s contract with the ■ City of Victor-ville contained limitations on indecent and vulgar advertisements, and on advertisements for the competition within one block of a business. Also, Metro could not display anything likely to mislead traffic, and it had to give the municipality one free panel for every ten shelters. None of these contractual restrictions are in dispute. The city does not claim that it had any contractual right to impose the restrictions it did. Though the contract was terminable at will, the custom in the industry is that such contracts are renewed automatically. And so this contract was, for the first few years.

Then an agency hired Metro to place five advertisements on behalf of a union protesting labor practices of a Victorville supermarket chain. Some representatives of the grocery chain complained to the municipality about the hostile ads in the bus shelters. Mayor Caldwell and Councilman Diaz said in city council meetings that they could not control content of advertising directly because of “First Amendment problems,” but they would do it indirectly.

The mayor and councilman said that if Metro did not get rid of the ads, they would make sure Metro’s contract was not renewed. Then the third named defendant, Director of Public Works Patterson, told Metro that if Metro did not remove the union ads, the city would find a pretext to cancel the contract.

Metro responded by asking the union for permission to remove the ads. The union stood on its contractual right to have at least some of the ads displayed and threatened suit if Metro breached. But Director of Public Works Patterson told Metro that all the union ads would have to be removed immediately, or the city would find a pretext to cancel the contract. Then Metro began receiving a vast increase in maintenance complaints from the city, with threats of immediate cancellation if the maintenance was not taken care of immediately. Metro could not satisfy the city, which indicated intent to nonrenew.

[1194]*1194Metro sued for declaratory judgment, injunction, and damages. Mayor Caldwell, Councilman Diaz and Director of Public Works Patterson moved for dismissal for failure to state a claim, based on qualified immunity. The district court denied their motion, and they have appealed.

ANALYSIS

“[Gjovernment officials performing discretionary functions .generally are shielded from liability for civil damages insofar as their conduct does not violate clearly established statutory or constitutional rights of which a reasonable person would have known.” Harlow v. Fitzgerald, 457 U.S. 800, 818, 102 S.Ct. 2727, 2738, 73 L.Ed.2d 396 (1982). Thus we examine whether it was clearly established that the law prohibited the official’s conduct, and whether a reasonable person in the official’s position could have believed that the conduct was lawful. Act Up!/Portland v. Bagley, 988 F.2d 868, 871 (9th Cir.1992); Grossman v. City of Portland, 33 F.3d 1200, 1208 (9th Cir.1994).

The city officials argue that under Lehman v. City of Shaker Heights, 418 U.S. 298, 94 S.Ct. 2714, 41 L.Ed.2d 770 (1974), their conduct “was entirely reasonable.” Their theory is that Lehman allows a municipality the same discretion as an editor of a newspaper to make choices about the advertising that may appear in buses, and bus shelters are like buses for this purpose. They argue that, under International Society for Krishna Consciousness v. Lee, 505 U.S. 672, 112 S.Ct. 2701, 120 L.Ed.2d 541 (1992), they are not subjected to the heightened scrutiny for restraints on speech in public forums, because the' speech was in a transportation facility. Even if their position is mistaken, argue the city officials, the facts are close enough to Lehman that they cannot be held to have violated “clearly established” law.

In Lehman v. City of Shaker Heights, 418 U.S. 298, 94 S.Ct. 2714, 41 L.Ed.2d 770 (1974), the municipality had a contract with the company that placed ads in buses or trolleys specifying that no political advertisements could be placed, and had not accepted any political or public issue advertising for 26 years. The Court held that .the First Amendment did not require it to accept a political advertisement, because the car card space was “[n]o First Amendment forum.” Id. at 304, 94 S.Ct. at 2718. International Society for Krishna Consciousness v. Lee, 505 U.S. 672, 112 S.Ct. 2701, 120 L.Ed.2d 541 (1992), holds that solicitation of funds may be prohibited in a government-operated air terminal, but not leafletting.

These cases offer no shelter to the City of Victorville officials in the case at bar. Among the reasons are that Lehman says the government restrictions on advertising “must not be arbitrary, capricious, or invidious.” Id. at 303, 94 S.Ct. at 2717. “Invidious” means, in this context, unjustly or offensively discriminatory. See Webster’s new International Dictionary Unabridged (2d. ed.1943); Compact Oxford English Dictionary (2d ed.1991). That means about the same thing, in context, as the qualification in Krishna Consciousness that regulation in public property, which is neither traditionally a forum nor designated as such, cannot be “an effort to suppress the speaker’s activity due to disagreement with the speaker’s view.”

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143 F.3d 1191, 98 Daily Journal DAR 4703, 97 Cal. Daily Op. Serv. 3404, 1998 U.S. App. LEXIS 8832, 1998 WL 220252, Counsel Stack Legal Research, https://law.counselstack.com/opinion/metro-display-advertising-inc-v-city-of-victorville-ca9-1998.