Outdoor One Comm'ns LLC v. Charter Twp. of Canton, Mich.

Court of Appeals for the Sixth Circuit·Decided December 16, 2021·No. 21-1323·Unpublished

Opinion

NOT RECOMMENDED FOR PUBLICATION File Name: 21a0585n.06

No. 21-1323

UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT

)

FILED

OUTDOOR ONE COMMUNICATIONS, LLC Dec 16, 2021 )

) DEBORAH S. HUNT, Clerk Plaintiffs-Appellants, )

) ON APPEAL FROM THE v.

) UNITED STATES DISTRICT ) COURT FOR THE EASTERN CHARTER TOWNSHIP OF CANTON, ) DISTRICT OF MICHIGAN MICHIGAN )

)

Defendant-Appellee.

)

Before: DONALD, THAPAR, and LARSEN, Circuit Judges.

LARSEN, Circuit Judge. The plaintiff in this case, a billboard company, believes that a local sign ordinance imposes unconstitutional content-based restrictions on speech. There’s just one problem: the sign it wants to erect is too big, and that’s why it wasn’t allowed to build it. Even if the company were able to prove that most of the ordinance is unconstitutional, its sign would still be barred by size restrictions it doesn’t challenge. In like cases, we have repeatedly held that the plaintiff lacks standing. See Prime Media, Inc. v. City of Brentwood, 485 F.3d 343, 353 (6th Cir. 2007); Midwest Media Prop., LLC v. Symmes Township, 503 F.3d 456, 461 (6th Cir. 2007). Therefore, we AFFIRM the judgment of the district court.

I.

Outdoor One Communications LLC (Outdoor) is a billboard company in Michigan.

Outdoor’s billboards carry all sorts of content, from commercial advertisements to political and religious messages. On March 13, 2020, Outdoor applied for a sign permit in Canton Township,

Michigan for the construction of a permanent digital billboard, mounted in the ground, that would cover 360 square feet and reach 30 feet high. Ten days later, Canton’s Department of Building and Inspection Services denied the application under § 6A.24 of the local sign ordinance because the sign “[e]xceed[ed the] size and height allowed.” The ordinance limits the height of billboards to 12 feet and their area to 160 square feet. CANTON CHARTER TOWNSHIP, MICH., CODE OF ORDINANCES § 6A.24.

Outdoor didn’t appeal the denial of the permit or ask for a variance. Instead, it sued, challenging the Canton sign ordinance under the First Amendment. First, it claimed that the ordinance contained multiple content-based restrictions. It pointed to the billboard classification in § 6A.24, which created an on-premises/off-premises distinction. And it said that some signs, like political signs, were exempted from the permit requirement entirely. Second, it claimed that the ordinance was an unconstitutional prior restraint because some signs required government approval through the permit process. Finally, it claimed that the ordinance was unconstitutionally vague.

Canton moved to dismiss the complaint for failure to state a claim and lack of subject matter jurisdiction, arguing that Outdoor hadn’t challenged the size restrictions and lacked an injury as to the other ordinance provisions. The district court responded by giving Outdoor a chance to amend its complaint. However, Outdoor declined to amend and instead relied on its pleadings to respond to the motion to dismiss. Outdoor also moved separately for summary judgment based on its unamended complaint and accompanying brief.

Ultimately, the district court denied the motion to dismiss, finding that Canton had improperly relied “almost exclusively on cases decided at summary judgment.” But the same day, the court also denied Outdoor’s summary judgment motion and gave notice under Rule 56(f) of

the Federal Rules of Civil Procedure that it would grant summary judgment to Canton on standing grounds unless Outdoor objected. Outdoor objected, but only with the cursory statement that it rested on its complaint and previous briefing. The district court initially struck the objection for being deficient but reinstated it after Outdoor filed a motion for relief. Outdoor appealed the district court’s order granting summary judgment to Canton.

II.

A.

Outdoor brings a variety of as-applied and facial challenges to Canton’s sign ordinance.

But first it must show constitutional standing. Though we often give broad latitude to facial challenges under the First Amendment, a plaintiff still “must establish that he has standing to challenge each provision of an ordinance by showing that he was injured by application of those provisions.” Midwest Media, 503 F.3d at 464 (quoting Covenant Media of S.C., L.L.C. v. City of North Charleston, 493 F.3d 421, 429–30 (4th Cir. 2007)).

At the summary judgment stage, Outdoor must demonstrate Article III standing by “a factual showing of perceptible harm.” Lujan v. Defs. of Wildlife, 504 U.S. 555, 566 (1992). The plaintiff cannot rest on “mere allegations,” but must “set forth” by affidavit or other evidence “specific facts” demonstrating standing. Id. at 561. Standing has three elements. “The plaintiff ‘must have (1) suffered an injury in fact, (2) that is fairly traceable to the challenged conduct of the defendant, and (3) that is likely to be redressed by a favorable judicial decision.’” Buchholz v. Meyer Njus Tanick, PA, 946 F.3d 855, 861 (6th Cir. 2020) (quoting Spokeo, Inc. v. Robins, 136 S. Ct. 1540, 1547 (2016)).

Outdoor is clear about what it sees as its injury. It wants to “display[] its unique type of sign;” but it can’t do so because it lacks a permit. The denial of the sign permit, with the

accompanying loss of advertising revenue, is a concrete and particularized injury that clearly meets the requirements of constitutional standing. Canton doesn’t contest that Outdoor has demonstrated an injury.

But Outdoor runs into trouble with the next two standing elements. It hasn’t demonstrated that its injury—the inability to erect its sign—is “fairly traceable” to the challenged provisions or that it could be redressed. Outdoor challenges § 6A.24 as a general matter, but it doesn’t attack the size and height restrictions of that section, the basis for the rejection of the permit; the sign was taller than 12 feet and larger than 160 square feet. (Perhaps Outdoor doesn’t challenge the size restrictions because we have rejected such challenges before. See Prime Media, Inc. v. City of Brentwood, 398 F.3d 814, 818–21 (6th Cir. 2005).) Instead, Outdoor claims that § 6A.24 creates an unconstitutional content-based restriction on speech. Section 6A.24 applies only to “billboards,” which are defined as “ground sign[s] erected for the purpose of advertising a . . . subject not related to the premises on which the sign is located.” ORDINANCES § 6A.01(7). Whether this kind of on-premises/off-premises distinction warrants strict scrutiny is an issue currently pending at the Supreme Court. See City of Austin v. Reagan Nat’l Advert. of Tex., Inc., 141 S. Ct. 2849 (2021) (granting certiorari).

The problem for Outdoor is that § 6A.24’s allegedly content-based distinction didn’t cause its injury. The size restrictions in § 6A.24 are more generous than those for all other ground signs, which are limited to an area of 50 square feet and a height of 6 feet. See ORDINANCES §§ 6A.12– 16. So even if Outdoor’s sign had not been classified as a billboard, it still would have been denied. Its sign is too big to be a billboard (subject to the premises distinction) and also too big to be any other kind of ground sign. Outdoor’s injury is not “fairly traceable” to the on-premises/off-

premises distinction. Absent that allegedly unconstitutional provision, Outdoor still could not build its sign.

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Outdoor One Comm'ns LLC v. Charter Twp. of Canton, Mich., (6th Cir. 2021).

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