Paramount Contractors & Developers, Inc. v. City of Los Angeles

805 F. Supp. 2d 977, 2011 U.S. Dist. LEXIS 85276, 2011 WL 3357785
CourtDistrict Court, C.D. California
DecidedAugust 2, 2011
DocketCase CV 08-5653 ABC (PLAx)
StatusPublished
Cited by3 cases

This text of 805 F. Supp. 2d 977 (Paramount Contractors & Developers, Inc. 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
Paramount Contractors & Developers, Inc. v. City of Los Angeles, 805 F. Supp. 2d 977, 2011 U.S. Dist. LEXIS 85276, 2011 WL 3357785 (C.D. Cal. 2011).

Opinion

ORDER RE: DEFENDANT CITY OF LOS ANGELES’S MOTION TO DISMISS SECOND AMENDED COMPLAINT

AUDREY B. COLLINS, Chief Judge.

Pending before the Court is the City of Los Angeles’s (the “City’s”) Motion to Dismiss Second Amended Complaint (“SAC”), filed on February 28, 2011. (Docket No. 72.) Plaintiffs Paramount Contractors and Developers, Inc., et al. (collectively “Paramount”) opposed on March 14, 2011 and the City replied on March 21, 2011. The Court heard oral argument on April 18, 2011. Following argument, the Court stayed this case while an appeal in a related case was pending. (Docket No. 85.) That appeal was dismissed as moot on May 25, 2011, and the parties stipulated to a schedule for supplemental briefing and submitted additional briefs on the impact of that ruling. (Docket Nos. 88, 89, 91, 94.) Notwithstanding that schedule, Paramount filed an unauthorized sur-reply brief on July 27, 2011, which was stricken as improper. (Docket No. 99.) With the extensive briefing from the parties, the Court found that no further oral argument was necessary and vacated the August 1, 2011 hearing date. (Docket No. 95.) For the reasons below, the Court GRANTS the City’s motion in its entirety and DISMISSES this case WITH PREJUDICE.

BACKGROUND

I. Procedural Background

Like many similar companies, Paramount is a “supergraphic” sign company “attempting to salvage litigation to maintain [two] signs in the City, even after the Ninth Circuit has twice in the last two years rebuffed First Amendment challenges to the City’s attempts to control sign proliferation throughout the City of Los Angeles.” Vanguard Outdoor, LLC v. City of Los Angeles, 648 F.3d 737, 738 (9th Cir.2011) (citing World Wide Rush, LLC v. City of Los Angeles, 606 F.3d 676 (9th Cir.2010) and Metro Lights, LLC v. City of Los Angeles, 551 F.3d 898 (9th Cir.2009)). Paramount would like to erect and maintain “supergraphic” signs at two locations in Los Angeles: 6464 and 6565 West Sunset Boulevard (the “Sunset Properties”). It has brought two lawsuits to compel the City to allow it to do so, based largely on claimed First Amendment violations. The first suit, Paramount Contractors & Developers, Inc. v. City of Los Angeles, No. CV 07-159 ABC (JWJx) (C.D.Cal. filed on Jan. 1, 2007) (“Paramount I”), was resolved by summary judgment in the City’s favor on June 6, 2008. Paramount appealed that ruling on June 20, 2008.

The instant case was filed on August 28, 2008, alleging essentially the same facts and claims as in Paramount I, and alleging that, around June 23, 2008, Paramount “submitted applications to the City for the right to maintain supergraphics on the Sunset Properties,” but the City “refused to accept the applications or to process *982 them.” (Docket No. 1, Compl. ¶ 11.) Paramount filed its FAC on October 26, 2010, attacking almost every aspect of the City’s current and former sign regulations. In a lengthy Order, the Court granted in part and denied in part the City’s motion to dismiss the FAC, and Paramount filed a Second Amended Complaint (“SAC”) to address the infirmities identified by the Court.

In the meantime, the City moved to dismiss the appeal in Paramount I as moot because the original sign regulation challenged in that case had been amended in September 2010 to prohibit all super-graphic signs with limited exceptions, none of which applied to Paramount. The Ninth Circuit agreed and dismissed the appeal as moot.

In the unpublished memorandum disposition, the court explained that any claims for declaratory and injunctive relief were moot because a September 2010 amendment to the Hollywood Signage Supplemental Use District (the “Hollywood SUD”) prohibited new supergraphic signs and eliminated both the sign reduction program in the Hollywood SUD and the City’s delegation of authority to the Community Redevelopment Agency (“CRA”) to negotiate exceptions to that program in exchange for certain fees. The court also rejected Paramount’s argument that it had live claims for damages “because Paramount, for strategic reasons, disavowed damages before the district court.” While Paramount had argued that the disavowal was only intended to cover “past damages” and that it could still pursue damages arising between this Court’s June 2008 summary judgment and the September 2010 amendment to the Hollywood SUD, the court disagreed in light of Paramount’s admission that it “has acknowledged that it is not seeking damages in this action.” Importantly, the court reasoned that, “[i]n any event, Paramount is not able to demonstrate that any alleged damages it incurred after the district court’s order resulted from application of the provisions of the Hollywood SUD challenged in the complaint.” The court also rejected the possibility that attorney’s fees created a live controversy where none otherwise existed.

After this disposition, the parties briefed its impact in this case, as well as the impact of Vanguard, a third published decision in a similar case rejecting challenges to the City’s regulations of supergraphic signs.

II. Allegations in the SAC 1

In dismissing most of the FAC, the Court ruled that only the following claims remained live: (1) claims for damages directed at the Original Hollywood SUD; (2) as-applied claims that the City allowed some signs as exceptions to the Amended Hollywood SUD; (8) as-applied claims directed at the City’s general Sign Ordinance; (4) equal protection claims of discriminatory treatment; and (5) takings claims. (Docket No. 67.) In the SAC, Paramount retreads much of the same ground as in the FAC, albeit with some clearer explanation of the nature of its remaining claims.

A. Sign Locations

As relevant here, Paramount has provided more information for its allegations that some companies have been approved to erect supergraphic and other signs in the Hollywood SUD and elsewhere, even though those signs should have been subject to the same conditions as Paramount’s signs, which were prohibited:

*983 1. The City issued permits in January 2011 for supergraphic signs on the Hollywood Metropolitan Hotel at 5825-5827 Sunset Blvd. in the Hollywood SUD without requiring the developers of the site to comply with the sign take-down or reduction program in the Original Hollywood SUD. (SAC ¶ 49(a)(1).) Paramount claims that the developers were allowed a l-to-35 take-down ratio, were permitted to use non-standard materials, and were given a twenty-year permit, which doubled the length of a standard permit. (Id.) Paramount claims that these allowances were more lenient than those the City required of it and that the City found these super-graphic signs, which were similar to Paramount’s signs, would have no negative impact on the visual environment. (Id.)

2. In July 2010, the City permitted supergraphic signs on the “W” Hotel at 6250 W. Hollywood Blvd. and the Legacy Apartments at 1600 N. Vine St.

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805 F. Supp. 2d 977, 2011 U.S. Dist. LEXIS 85276, 2011 WL 3357785, Counsel Stack Legal Research, https://law.counselstack.com/opinion/paramount-contractors-developers-inc-v-city-of-los-angeles-cacd-2011.