PALLCO ENTERPRISES, INC. v. Beam

34 Cal. Rptr. 3d 490, 132 Cal. App. 4th 1482, 2005 Cal. Daily Op. Serv. 8685, 2005 Daily Journal DAR 11810, 2005 Cal. App. LEXIS 1527
CourtCalifornia Court of Appeal
DecidedSeptember 29, 2005
DocketC047314
StatusPublished
Cited by5 cases

This text of 34 Cal. Rptr. 3d 490 (PALLCO ENTERPRISES, INC. v. Beam) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
PALLCO ENTERPRISES, INC. v. Beam, 34 Cal. Rptr. 3d 490, 132 Cal. App. 4th 1482, 2005 Cal. Daily Op. Serv. 8685, 2005 Daily Journal DAR 11810, 2005 Cal. App. LEXIS 1527 (Cal. Ct. App. 2005).

Opinion

Opinion

HULL, J.

Cross-complainant Pallco Enterprises, Inc. (Pallco), appeals from a judgment of the trial court finding that advertising displays erected on the property of cross-defendants Denton and Carolyn Beam (the Beams) are not a public nuisance. Pallco contends the court erred in deferring to the California Department of Transportation (CalTrans) on the nuisance issue and otherwise misapplied the provisions of the state Outdoor Advertising Act (hereafter the Outdoor Advertising Act or the Act) (Bus. & Prof. Code, § 5200 et seq.) and its associated regulations. We affirm the judgment.

Facts and Proceedings

The Beams are the owners of a parcel of real property (the property) along State Highway 50 in the City of Rancho Cordova. In 1958, the Beams’ predecessor obtained a permit to maintain an advertising display on the property facing east, with dimensions six feet by 10 feet and the bottom four feet above the ground (permit No. 22473). In 1962, a permit was issued to maintain a display on the same structure facing west (permit No. 22474). The dimensions of this display were seven feet by 20 feet and five feet above the ground. At the time, there were no regulations on the size of advertising displays. Neither permit authorized illumination.

In 1965, the federal government enacted the Highway Beautification Act of 1965 (23 U.S.C. § 131 et seq.). In response, the state amended the Outdoor Advertising Act in 1967 to provide, among other things, that no advertising display may be placed within 500 feet of another display on the same side of the highway. (Bus. & Prof. Code, § 5408, subd. (d).) At the time of this amendment, another advertising display existed within 500 feet of the Beams’ displays, mating the Beams’ displays “nonconforming.” As defined by the Outdoor Advertising Act, a nonconforming display is one “that was lawfully placed, but that does not conform to the provisions of [the Act], or the administrative regulations adopted pursuant to [the Act], that were enacted subsequent to the date of placing.” (Bus. & Prof. Code, § 5216.5.)

The Beams purchased the property in 1998. At the time, the west-facing display was seven feet by 20 feet in size and both east and west displays were illuminated.

*1487 Pallco, doing business as Orion Outdoor Media, controls approximately 100 advertising displays. Pallco sought to construct a new advertising display on property owned by Tom Tuohy west of the Beams’ property. However, because the Beams’ displays were within 500 feet of the proposed location for the Pallco display, Pallco’s plans required removal of the Beams’ displays.

Pallco initially offered to purchase the Beams’ displays, but this was rejected by the Beams. Pallco offered to pay the Beams $1,000 per month for 20 years. During its discussions with the Beams, Pallco informed them their displays were illegal and subject to removal. The Beams investigated Pallco’s claim in January 2000 and determined the displays were legal but nonconforming. At one point, Tuohy met with the Beams and offered them $100,000 in a “little brown paper sack” to eliminate their displays. The Beams were told if they did not agree, their displays might become blocked by trees or a trailer. Two months later, trees and a trailer appeared in front of the Beams’ displays.

Viacom Outdoor Advertising (Viacom), the lessee of the Beams’ displays, initiated this lawsuit against Pallco. Pallco filed a cross-complaint against Viacom and the Beams. The dispute between Viacom and Pallco was later settled. The amended cross-complaint against the Beams alleged both a public and a private nuisance based on violations of the Outdoor Advertising Act. In particular, Pallco alleged the Beams’ displays had been illuminated and raised higher than the original permits allowed. Pallco sought removal of the Beams’ displays.

The Beams met with CalTrans in the summer of 2002, six to eight months after being sued, to discuss the legality of their signs. At the meeting, the Beams informed CalTrans of the dimensions of their displays and presented a copy of the cross-complaint.

On September 25, 2002, the Beams moved for a stay of the proceedings based on the primary jurisdiction of CalTrans over Pallco’s claims. That motion was apparently denied, as the matter proceeded to trial.

In April 2003, the Beams received a citation from CalTrans regarding the raising and illumination of their displays. The Beams met with CalTrans and agreed to stop illuminating their displays. On May 21, 2003, CalTrans sent the Beams a letter indicating the physical configuration of their displays is *1488 legal and the Beams have agreed not to illuminate their displays. The letter continued: “Therefore, the violation issued on April 7, 2003, (violation number V03-004) has been corrected, and the subject displays are in compliance with the Outdoor Advertising Act and its regulations. The displays may remain as configured and the applicable outdoor advertising permits may remain in force.”

Pallco’s cross-complaint was tried to the court, which issued a tentative decision. Pallco requested a statement of decision. The court issued a proposed statement of decision finding the Beams’ displays not to be a nuisance. In its statement, the court relied heavily on the prior determination by CalTrans that the displays are in compliance with the Outdoor Advertising Act. Judgment was entered for the Beams, including an award of costs as the prevailing party.

Discussion

Pallco challenges the trial court’s conclusion the Beams’ displays do not constitute a nuisance. In a more or less scattershot and redundant fashion, Pallco argues the court improperly deferred to CalTrans, misread the statutes and regulations applicable to outdoor advertising displays, ignored other applicable laws, incorrectly concluded Pallco has no property interest worthy of protection and failed to make adequate findings in its statement of decision. We shall attempt to rearrange and synthesize Pallco’s arguments so that they may be addressed in a coherent fashion.

I

Regulation of Outdoor Advertising

In 1933, the Legislature first regulated the use of off-premises advertising structures. However, this initial regulation was concerned only with matters of safety, structural integrity and decency. (Traverso v. People ex rel. Dept. of Transportation (1993) 6 Cal.4th 1152, 1156 [26 Cal.Rptr.2d 217, 864 P.2d 488] (Traverso).) Three decades later, in an attempt to spearhead state legislation to beautify American cities, the federal government enacted the Highway Beautification Act of 1965 (23 U.S.C. § 131). (Traverso, supra, at pp. 1156-1157.) In response, the California Legislature amended the Outdoor Advertising Act, “greatly expanding the state’s regulatory authority over outdoor advertising by creating stricter standards for the erection and maintenance of billboards.

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34 Cal. Rptr. 3d 490, 132 Cal. App. 4th 1482, 2005 Cal. Daily Op. Serv. 8685, 2005 Daily Journal DAR 11810, 2005 Cal. App. LEXIS 1527, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pallco-enterprises-inc-v-beam-calctapp-2005.