StreetMediaGroup v. DOT

Colorado Court of Appeals·Decided April 16, 2026·No. 25CA0901·Unpublished

Opinion

25CA0901 StreetMediaGroup v DOT 04-16-2026 COLORADO COURT OF APPEALS

Court of Appeals No. 25CA0901 City and County of Denver District Court No. 23CV33712 Honorable Jon J. Olafson, Judge

StreetMediaGroup, LLC, Plaintiff-Appellant, v.

Department of Transportation, State of Colorado, and Shoshana Lew, in her official capacity as Executive Director of the Department of Transportation, State of Colorado,

Defendants-Appellees.

JUDGMENT REVERSED AND CASE REMANDED WITH DIRECTIONS

Division II

Opinion by JUDGE KUHN

Fox and Sullivan, JJ., concur

NOT PUBLISHED PURSUANT TO C.A.R. 35(e)

Announced April 16, 2026

Richards Carrington, LLC, Christopher P. Carrington, Todd E. Mair, Denver, Colorado, for Plaintiff-Appellant

Philip J. Weiser, Attorney General, Barbara J. Stauch, Senior Assistant Attorney General, Denver, Colorado, for Defendants-Appellees

¶1 Plaintiff, StreetMediaGroup, LLC (StreetMedia), appeals the district court’s dismissal of its judicial review action brought against defendants, the Colorado Department of Transportation and Shoshana Lew, in her official capacity as its executive director (collectively, CDOT). We reverse and remand with directions.

I. Background

¶2 This case arises from a highway advertising regulatory framework. To briefly summarize, the Outdoor Advertising Act regulates “advertising devices” next to state highways “in order to protect and promote the health, safety, and welfare of the traveling public.” § 43-1-402(1)(a), C.R.S. 2025; see §§ 43-1-401 to -420, C.R.S. 2025; Dep’t of Transp., Statement of Basis and Purpose and Statutory Authority, 2 Code Colo. Regs. 601-3. The act empowers CDOT to regulate outdoor advertising, including by issuing and renewing permits for advertising devices next to highways. See §§ 43-1-415, -407, C.R.S. 2025. The act further prohibits new advertising devices that are “visible from” highways “designated as scenic byways by [CDOT’s] [T]ransportation [C]ommission.” § 43-1-419(1)(a), C.R.S. 2025.

¶3 According to the complaint, CDOT approved a permit application for StreetMedia to erect a new electronic advertising sign near a highway. It allegedly cost StreetMedia $90,679 to erect the sign, and it displayed noncommercial and commercial content for nearly a year. StreetMedia claims that CDOT then provided notice that it had erred by approving the permit. CDOT’s notice said that it had previously overlooked that the sign was adjacent to the “Cache la Poudre-North Park Scenic and Historic Byway” (the scenic byway). CDOT thus informed StreetMedia that it intended to “(1) revoke the [p]ermit for the [sign]; (2) deny any subsequent renewals of the [permit]; and (3) demand that StreetMedia remove the sign.”

¶4 StreetMedia was unable to resolve the permit revocation with CDOT staff, and consequently, StreetMedia filed an administrative appeal with the Office of Administrative Courts. See § 43-1-412(2)(c), (3), C.R.S. 2025; Dep’t of Transp. Rule 5.00, 2 Code Colo. Regs. 601-3. Ultimately, an Administrative Law Judge (ALJ) found that the sign was located along the scenic byway and was not lawfully erected. The ALJ subsequently granted summary judgment to CDOT, concluding that the sign violated scenic byway

prohibitions on advertising under the Outdoor Advertising Act. After StreetMedia filed exceptions, CDOT issued a final agency order affirming the ALJ’s decision and revoking the permit.

¶5 StreetMedia then filed a complaint with the district court. The complaint sought the following relief: (1) judicial review of CDOT’s revocation of the permit under section 24-4-106, C.R.S. 2025; (2) a declaration under C.R.C.P. 57 that the designation of the scenic byway was unconstitutional; (3) a finding that a class-of-one violation of the Equal Protection Clause occurred; and (4) an injunction under C.R.C.P. 65 and section 24-4-106(7)(b).

¶6 CDOT moved to dismiss the claims for both lack of subject matter jurisdiction under C.R.C.P. 12(b)(1) and failure to state a claim under C.R.C.P. 12(b)(5). CDOT’s Rule 12(b)(1) jurisdictional challenges contested the district court’s authority in regard to each of StreetMedia’s four claims.

¶7 However, rather than examining the claims individually, the district court addressed the motion to dismiss by sua sponte generally scrutinizing StreetMedia’s standing to bring suit. See People in Interest of J.C.S., 169 P.3d 240, 244 (Colo. App. 2007) (holding that the issue of standing can be raised sua sponte). The

district court summarily found that the sign was illegal, and therefore, the court ruled that StreetMedia lacked standing because it had no legally protected interest in an illegal sign. As a result, the district court granted the motion, dismissed the complaint in its entirety, and declined to rule on CDOT’s Rule 12(b)(1) and 12(b)(5) assertions.

II. Analysis

¶8 On appeal, StreetMedia claims that the district court erred by dismissing the complaint for lack of standing because StreetMedia sufficiently alleged that it had suffered injury in fact to legally protected property and constitutional interests. We agree.

A. Standard of Review

¶9 We review standing de novo. Weld Cnty. Colo. Bd. of Cnty. Comm’rs v. Ryan, 2023 CO 54, ¶ 8.

¶ 10 “Standing is a jurisdictional prerequisite that may be raised at any stage of the proceeding.” C.W.B. v. A.S., 2018 CO 8, ¶ 16. The plaintiff bears the burden of proving jurisdiction. City of Boulder v. Pub. Serv. Co. of Colo., 2018 CO 59, ¶ 14. As a jurisdictional issue, “the question of standing must be determined prior to a decision on

the merits.” Hickenlooper v. Freedom from Religion Found., Inc., 2014 CO 77, ¶ 7.

¶ 11 We determine standing within “the context of [the plaintiff’s] claims for relief.” Colo. Manufactured Hous. Ass’n v. Pueblo County, 857 P.2d 507, 511 (Colo. App. 1993). In doing so, we accept all the allegations in the complaint as true.1 Ryan, ¶ 8. “If a court determines that standing does not exist, then it must dismiss” the party’s claims. Hickenlooper, ¶ 7. Yet “the test in Colorado has

1 This rule is subject to an important caveat. When a party makes a factual attack on the court’s subject matter jurisdiction under C.R.C.P. 12(b)(1), the court need not treat the nonmoving party’s factual allegations as true but rather may weigh the evidence and satisfy itself as to its power to hear the case. Medina v. State, 35 P.3d 443, 452 (Colo. 2001). Here, however, CDOT’s motion to dismiss didn’t assert a factual attack on standing; that issue was raised sua sponte by the district court. In addition, the district court didn’t admit any evidence at the hearing on CDOT’s motion — supportive of standing or otherwise. Indeed, the court’s core finding (that the sign could not be “lawfully erected”) relied on only the ALJ’s summary judgment order, not on the exhibits attached to the motion to dismiss. Cf. Colo. Gen. Assembly v. Lamm, 700 P.2d 508, 516 (Colo. 1985) (“In determining whether a plaintiff has asserted a sufficient injury to satisfy the test of standing, the court must accept the averments of the complaint as true and may consider other evidence supportive of standing.”); Perttu v. Richards, 605 U.S. 460, 472 (2025) (cautioning that trial courts may not resolve factual disputes when assessing subject matter jurisdiction if “the factual disputes are intertwined with the merits”).

traditionally been relatively easy to satisfy.” Ainscough v. Owens, 90 P.3d 851, 856 (Colo. 2004).

B. Applicable Law

¶ 12 “[S]tanding involves a consideration of whether a plaintiff has asserted a legal basis on which a claim for relief can be predicated.” Bd. of Cnty. Comm’rs v. Bowen/Edwards Assocs., Inc., 830 P.2d 1045, 1052 (Colo. 1992). A plaintiff establishes standing by showing they “suffered (1) an injury in fact (2) to a legally protected interest.” Ryan, ¶ 9 (citing Wimberly v. Ettenberg, 570 P.2d 535, 539 (Colo. 1977)).

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