The Lamar Company, LLC v. City of Columbia, Missouri

512 S.W.3d 774, 2016 WL 7094040, 2016 Mo. App. LEXIS 1253
CourtMissouri Court of Appeals
DecidedDecember 6, 2016
DocketWD79267
StatusPublished
Cited by9 cases

This text of 512 S.W.3d 774 (The Lamar Company, LLC v. City of Columbia, Missouri) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The Lamar Company, LLC v. City of Columbia, Missouri, 512 S.W.3d 774, 2016 WL 7094040, 2016 Mo. App. LEXIS 1253 (Mo. Ct. App. 2016).

Opinion

Cynthia L. Martin, Judge

The Lamar Company,. LLC (“Lamar”) appeals from the entry of summary judgment in favor of the City of Columbia (“City”) and individual defendants Timothy Teddy (“Teddy”) and Shane Creech (“Creech”) in Lamar’s lawsuit for declaratory judgment, breach of contract, and mandamus, premised on the enforceability of a 1998 settlement agreement. Because the 1998 settlement agreement was void ab initio, 1 we affirm.

Factual and Procedural Background 2

Lamar is an outdoor advertising company. Lamar acquired Whiteco Metro- *778 com, Inc. (“Whiteco”), another outdoor advertising company, in 1999. As Whiteco’s successor, Lamar assumed Whiteco’s rights and obligations described in a May 1998 Stipulation for Settlement Agreement (“Agreement”) between Whiteco and City.

The Agreement resolved a 1994 lawsuit filed by Whiteco 3 after City denied four applications for permits to erect new billboards. Whiteco claimed that denial of the applications was arbitrary and capricious, and that City’s billboard ordinances 4 were unlawful in light of the Missouri Billboard Act, 5 which describes authorized restrictions on outdoor signs erected within 660 feet of the nearest edge of the right-of-way of any highway. Following the entry of partial summary judgment in favor of Whi-teco on the issue of liability, Whiteco and City entered into the Agreement. Pursuant to the Agreement:

• Whiteco agreed to dismiss its lawsuit with prejudice, and agreed not to challenge the validity or constitutionality of current City billboard regulations, or future regulations so long as they are less restrictive.
• Whiteco agreed to waive its claim for damages.
• City agreed to issue permits for three new billboards subject only to compliance with City’s electrical and wind load requirements and state statutes.
• Whiteco and City agreed that forty-two of Whiteco’s billboards (thirty-nine existing billboards and the three new billboards promised by the Agreement) would be subject to a “cap and replace” agreement. Whiteco would be permitted to rebuild in the same location, or remove and relocate to a new location, any of the forty-two billboards identified in the Agreement, subject only to compliance with state statutes and City wind load and electrical requirements. Whi-teco could apply to build additional billboards beyond the forty-two described in the Agreement, but those applications would be subject to compliance with City’s then existing billboard ordinance.

*779 In July 1998, shortly after the Agreement was executed, Whiteco’s applications for three new billboards were approved by City. In February 2005, after Lamar acquired Whiteco, City approved Lamar’s application to remove and relocate one of the forty-two billboards described in the Agreement.

On May 6, 2014, Lamar applied for permits to either rebuild in the same location, or to remove and relocate to new locations, eight of the forty-two billboards described in the Agreement. On May 27, 2014, and June 2, 2014, City denied the applications in writing, because the proposed billboards did not meet the requirements of City’s billboard ordinance. 6 On June 17, 2014, Lamar requested an appeal to City’s Board of Adjustment. Lamar’s request was “based on a settlement agreement executed by [City] in 1998 which exempts permits to replace 42 signs owned by Whiteco [] from all city ordinances but windload [sic] and electrical requirements.” In other words, Lamar argued that the Agreement required City to approve its applications. Lamar’s request for an appeal did not challenge the determination that Lamar’s applications failed to meet the requirements of City’s billboard ordinance. City denied Lamar’s request for an appeal because determining the enforceability of the Agreement exceeded the scope of matters that could be heard by City’s Board of Adjustment.

On June 24, 2014, Lamar filed suit against City, Teddy, and Creech. An amended petition was filed on November 24, 2014 (hereinafter “Petition”). The Petition sought a declaratory judgment that the Agreement is valid and enforceable, and entitled Lamar to the permits for which it had applied; a judgment for breach of contract (the Agreement) with a remedy of specific enforcement; a judgment for breach of contract (the Agreement) with a remedy of monetary damages; and a writ of mandamus compelling Teddy (City’s Community Development Director) and Creech (City’s Building and Development Manager) to issue the applied for permits should the Agreement be declared valid and enforceable. The Petition did not challenge City’s determination that Lamar’s permit applications did not meet the requirements of City’s billboard ordinance.

City and the individual defendants asserted an affirmative defense that the Agreement was void ab initio because it impermissibly contracted away City’s police powers. Lamar filed an avoidance to this affirmative defense, alleging that City was equitably estopped from denying the validity and enforceability of the Agreement. 7

City 8 filed a motion for summary judgment as to all counts in the Petition which argued that the Agreement was ultra vires and void ab initio because it impermissibly contracted away City’s police powers. City’s motion also argued that the doctrine of equitable estoppel could not be relied on *780 to enforce a void municipal contract. Lamar filed a motion for partial summary-judgment on the issue of liability which argued that City was equitably estopped to deny the validity and enforceability of the Agreement, and that City’s denial of Lamar’s permit applications was a breach of the Agreement that entitled Lamar to a writ of mandamus compelling issuance of the permits.

Following argument on the competing summary judgment motions, the trial court entered its judgment (“Judgment”) concluding that the Agreement violated section 432.070 9 because it exceeded the scope of City’s powers by contracting away police powers. The Judgment concluded that the Agreement was therefore void ab initio. The Judgment further concluded that the doctrine of equitable estop-pel could not be relied on to enforce a void municipal contract. Finally, the Judgment found that mandamus could not lie against the individual defendants because the Agreement was void. 10 The trial court granted City’s motion for summary judgment, denied Lamar’s motion for partial summary judgment, and entered judgment in favor of City and against Lamar on all of Lamar’s claims.

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Bluebook (online)
512 S.W.3d 774, 2016 WL 7094040, 2016 Mo. App. LEXIS 1253, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-lamar-company-llc-v-city-of-columbia-missouri-moctapp-2016.