Metro Lights, L.L.C. v. City of Los Angeles

488 F. Supp. 2d 927, 2006 U.S. Dist. LEXIS 96190, 2006 WL 4539019
CourtDistrict Court, C.D. California
DecidedAugust 11, 2006
DocketCV 04-1037 GAF (Ex)
StatusPublished
Cited by4 cases

This text of 488 F. Supp. 2d 927 (Metro Lights, L.L.C. v. City of Los Angeles) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Metro Lights, L.L.C. v. City of Los Angeles, 488 F. Supp. 2d 927, 2006 U.S. Dist. LEXIS 96190, 2006 WL 4539019 (C.D. Cal. 2006).

Opinion

AMENDED MEMORANDUM AND ORDER RE: PLAINTIFF’S AND DEFENDANT’S CROSS-MOTIONS FOR SUMMARY JUDGMENT OR SUMMARY ADJUDICATION

FEESS, District Judge.

I.

INTRODUCTION 1

Defendant City of Los Angeles (the “City”) has enacted a “Sign Ordinance” that imposes a total ban on newly constructed “off-site signs,” which are defined as commercial signs located primarily (but not necessarily) on private property, that advertise anything other than products offered for sale on the premises where the sign is erected. Expressly and conspicuously exempt from the ban are structures erected on public rights of way and those erected under contract with various City entities. L.A.M.C. §§ 91.101.4, 91.101.5. This ban dramatically impacts Plaintiff Metro Lights, L.L.C. (“Plaintiff” or “Metro Lights”), which owns numerous such sign locations throughout the City.

Metro Lights asserts that the Sign Ordinance, which allegedly furthers substantial governmental interests in traffic safety and aesthetics, exists not to serve those purposes but rather to allow the City to generate revenue by exercising a monopoly over off-site signs within the City. In support of this assertion, Metro Lights has established that, approximately six months *931 before enacting the blanket ban on off-site signs, the City entered into a contract under which a private media company, Viacom Decaux, L.L.C. (“Viacom”) undertook at its own cost to repair and replace a number of existing bus shelters, and to build several thousand new bus shelters, kiosks and amenities, in exchange for the exclusive right for a period of 20 years to sell and display advertising on this so-called “Street Furniture.” In short, the contract permitted Viacom to erect off-site signs on the Street Furniture it constructed under its agreement with the City, and the Sign Ordinance ensured that Viacom would have no competitors in the off-site marketplace.

This case comes before this Court because the City, pursuant to the Sign Ordinance, has cited Plaintiff for allegedly violating the ban on off-site signs. Metro Lights acknowledges that the City may place limits on commercial speech so long as it complies with the requirements of Central Hudson, and the City concedes that Central Hudson states the proper test for analyzing the constitutionality of its ordinance. (10/31/05 Tr. [Summary Adjudication Hearing] at 21:20-22 (“[W]hen the dust settles on this case it really does always come back to Central Hudson.”)) Metro Lights contends, however, that the City cannot satisfy that test because the policy reflected in the Sign Ordinance is substantially undermined by the City’s contract with Viacom permitting off-site signs on Street Furniture. The City defends against the suit principally by asserting that: (1) the Sign Ordinance meets the Central Hudson test because it directly advances a substantial governmental interest in a narrowly tailored fashion; and (2) the Street Furniture contract cannot be compared with, and is not an exception to, the off-site sign ban since that ban applies only to signs on private property, not signs that appear on Street Furniture in public rights of way.

The Court is now presented with cross-motions for summary judgment. Plaintiff initially moved for summary judgment, which was fully opposed by Defendant. Defendant has since filed its own motion for summary judgment, to which no opposition has yet been filed because the Court sees no need for further briefing on the issues. Defendant’s motion is simply the mirror image of Plaintiffs initial motion, and it reflects the same arguments made in opposition to the motion presented by Plaintiff. The respective positions of the parties are clearly presented, the factual record is well-developed, and the Court is in a position where it can address all of the issues raised in both motions.

The Court has little doubt that, if this case were only about the Sign Ordinance in the absence of the Street Furniture Agreement, Plaintiff could not prevail on its First Amendment challenge. The ordinance appears directed at precisely the kinds of concerns that, under Central Hudson and its progeny, justify the imposition of limits on commercial speech. The Sign Ordinance, however, does not exist in a vacuum. The question raised by the City’s conduct in this case is whether, as required by Central Hudson, the Ordinance “directly advances” a substantial governmental interest in a manner that reaches no further than necessary to attain that objective where the City’s agreement with Viacom tends to negate the very benefits — traffic safety and protection of the visual environment — that the Ordinance was designed to promote. Stated more simply, the question is this: Can the City use Central Hudson as a shield to defeat constitutional challenges to its Sign Ordinance while collecting revenue from a different media company engaged in conduct that appears, on its face, to violate the express terms and purposes of the Ordinance?

*932 The Court concludes that, however the question is stated, the answer is “no.” The United States Supreme Court, in addressing the proper scope of limitations on commercial speech, has held that governmental entities may not impose limits on commercial speech to achieve supposed ends that are undermined by other governmental policies. Greater New Orleans Broad. Ass’n v. United States, 527 U.S. 173, 188-90, 119 S.Ct. 1923, 144 L.Ed.2d 161 (1999). In the present context, the City cannot engage in conduct that is so inconsistent with, and indeed substantially undermines, the principal objectives of the Sign Ordinance and at the same time enforce that Ordinance against Metro Lights. The Court therefore concludes that Plaintiffs motion for summary adjudication on the First Amendment issue should be GRANTED and that Defendant’s cross-motion for summary judgment should be DENIED as to the First Amendment issue, but GRANTED as to Plaintiffs Equal Protection claim.

II.

STATEMENT OF FACTS

Because Metro Lights’s challenge to the Sign Ordinance focuses largely on the agreement between the City and Viacom, the Court begins its discussion of the facts with a very brief summary of the use of bus benches and associated structures, so-called Street Furniture, for advertising purposes.

A. History of Street Furniture Advertising in the City

Until relatively recently, bus benches were installed throughout Los Angeles by various companies under agreements from which the City realized no significant monetary, aesthetic, or other benefit. (Statement of Genuine Issues (“SGI”) ¶ 32; Oi-shi Decl. ¶ 12). There were virtually no patron-related amenities at bus stops because the costs associated with the capital investment, coupled with the ongoing maintenance and liability costs, were too high. (SGI ¶ 39; Oishi Decl. ¶ 19). 2

A major change occurred in 1987 when the City first sold the rights to advertise on bus benches through its Transit Shelter Contract with Shelter Media Communications, Inc.

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Bluebook (online)
488 F. Supp. 2d 927, 2006 U.S. Dist. LEXIS 96190, 2006 WL 4539019, Counsel Stack Legal Research, https://law.counselstack.com/opinion/metro-lights-llc-v-city-of-los-angeles-cacd-2006.