Vista-Graphics, Inc. v. Virginia Department of Transportation

171 F. Supp. 3d 457, 2016 U.S. Dist. LEXIS 35485, 2016 WL 1117479
CourtDistrict Court, E.D. Virginia
DecidedMarch 18, 2016
DocketCIVIL NO. 2:15cv363
StatusPublished

This text of 171 F. Supp. 3d 457 (Vista-Graphics, Inc. v. Virginia Department of Transportation) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vista-Graphics, Inc. v. Virginia Department of Transportation, 171 F. Supp. 3d 457, 2016 U.S. Dist. LEXIS 35485, 2016 WL 1117479 (E.D. Va. 2016).

Opinion

OPINION AND ORDER

Robert G. Doumar, Senior United States District Judge

This suit was filed by Vista-Graphics, Inc. and Randal W. Thompson, its president, (“Plaintiffs”) in the Circuit Court of Accomack County, Virginia, pursuant to 42 U.S.C. § 19S3. Compl., ECF No. 1-1. Plaintiffs have challenged the State of Virginia’s management of the informational materials and advertisements displayed in the state-owned Welcome Centers and Rest Areas,1 which are located on various highways throughout the state. Plaintiffs filed suit in Accomack County because the county contains a Welcome Center, which is located on U.S. Route 13 near the Virginia/Maryland border. See ECF No, 12-1, Ex. A. The suit was then removed to the United States District Court for the Eastern District of Virginia. ECF No. 1. Plaintiffs brought this action against the Virginia Department of Transportation (‘VDOT”), the Virginia Tourism Corporation (“VTC”), Aubray L. Layne in his official capacity as Secretary of Transportation, and Charles A. Kilpa-trick in his official capacity as Commissioner of VDOT (collectively, “Defendants”). First Am. Compl., ECF No. 12. Plaintiffs also sued Highway Information Media, LLC (“HIM”) “solely as a party in interest.” Id. ¶ 6. HIM has not responded to the lawsuit.

Defendant filed a Motion to Dismiss the initial complaint, which was granted. Order. ECF No. 11. Plaintiffs were permitted, leave to file an Amended Complaint, which they have filed. First Am. Compl., ECF No. 12. Defendants have filed a Motion to Dismiss Plaintiffs’ First Amended Complaint. ECF No. 14. This Motion has been fully briefed. ECF Nos. 15-17. The Court GRANTS the motion and DISMISSES the [461]*461present action for the reasons hereinafter set forth. ECF No. 14.

I. BACKGROUND

A. Procedural History

Plaintiffs initially brought this action in the Circuit Court for Accomack County. See Compl., ECF No. 1-1. Defendants removed the case to federal court, ECF No. 1, and fded a Motion to Dismiss. ECF No. 5. After briefing was completed, the Court held a hearing on the motion on October 6, 2015. ECF No. 10. At this hearing, the parties discussed all aspects of Defendants’ Motion, including Defendants’ claims that Plaintiffs lacked standing to bring their complaint and that the Welcome Center displays constitute government speech, immune from First Amendment challenge. Id. In an Order issued on October 21, 2015, the Court granted Defendants’ Motion to Dismiss. ECF No. 11. The Court held that Plaintiffs’ complaint failed to plead an injury-in-fact and as a consequence failed to establish that Plaintiffs had standing to challenge the restrictions on what could be displayed in the Welcome Centers. Id. at 3. However, because at argument Plaintiffs’ counsel referenced several facts unmentioned in the complaint that might support their claims of standing, the Court granted leave to amend. Id. at 3-4. The Court also noted in its Order that Plaintiffs likely had standing to challenge the fees charged to display the materials and that this issue would better be addressed with Plaintiffs’ other claims in the amended complaint. Id. at 3 n.l.

Plaintiffs timely filed their First Amended Complaint on November 11, 2015. ECF No. 12. On November 24, 2015, Defendants filed a Motion to Dismiss. ECF No. 14. Plaintiffs filed their Brief in Opposition on December 12, 2015, ECF No 16, and Defendants their Rebuttable Brief on December 7, 2015. ECF No. 17. Because the issues raised in the instant Motion to Dismiss Plaintiffs’ First Amended Complaint were thoroughly argued during the October 6, 2015 hearing concerning Defendants’ first Motion to Dismiss, the Court finds that there is no need for an additional hearing.

B. Facts Alleged in the First Amended Complaint

The following factual summary is taken from the allegations contained in Plaintiffs’ First Amended Complaint, which, for purposes of ruling on the instant Motion to Dismiss, the Court accepts as true. Nemet Chevrolet, Ltd. v. Consumeraffairs.com, Inc., 591 F.3d 250, 253 (4th Cir.2009).

Plaintiff Vista-Graphics publishes guides for visitors to Virginia such as Virginia Beach Visitors Guide and Go Williamsburg Visitors Guide, First Am. Compl. ¶ 1. Co-plaintiff Randal W. Thompson is the president and owner of Vista-Graphics. Id. ¶ 2. The guides contain listings of “lodging, attractions, restaurants and other products and services” along with advertisements. Id. ¶¶ 1, 22-23. Plaintiffs have for the past eight years placed these guides in various state-run Welcome Centers and Rest Areas. Id. ¶ 22. Plaintiffs’ present suit challenges the constitutionality of a subsection of the Virginia Administrative Code, 24 VAC 30-50-10(L), and two state programs that allegedly govern the display of Plaintiffs’ guides in the State Welcome Centers and Rest Areas: the Sponsorship, Advertising, and Vending Enhancement (“SAVE”) program and the Partnership Marketing and Advertising Program (“PMAP”). Id. at 1.

Because of budget shortfalls, Virginia had been forced to close some Welcome Centers and Rest Areas beginning in 2009.2 Virginia instituted the SAVE pro[462]*462gram in 2012 in order to generate revenue and make the Welcome Centers and Rest Areas more self-sufficient. First Am. Compl. ¶¶ 8-9; see generally Advertising Opportunities At Virginia Welcome Centers, ECF No. 12-3, Ex. C (describing the SAVE program and listing different ways that businesses may advertise at the Welcome Centers). Prior to the implementation of the SAVE program, Vista-Graphics was able to place its guides free of charge in the Welcome Centers and Rest Areas, which were then run by VDOT. First Am. Compl. ¶¶ 8,10. After the institution of the program. VDOT through its contractor Highway Information Media, LLC (“HIM”), began requiring Vista-Graphics to pay fees to place materials in the Welcome Centers and Rest Areas. Id. ¶ 10.

The challenged provision of the Virginia Administrative Code, 24 VAC 30-50-10(L), regulates “waysides and rest areas” and provides in part that

No threatening, abusive, boisterous, insulting or indecent language or gesture shall be used within this area. Nor shall any oration, or other public demonstration be made, unless by special authority of the commissioner.

Id. ¶ 15. Plaintiffs argue — and Defendants do not appear to dispute — that the “waysides and rest areas” covered by this regulation are in some instances the same spaces managed under the SAVE and PMAP programs.3 See id. (alleging that the SAVE program and 24 VAC 30-50-10(L) create two different sets of rules governing Welcome Centers). They allege that the restrictions contained in 24 VAC 30-50-10(L) are unconstitutionally over-broad and vague and that vesting “final decision authority in a single public official (i.e. ‘the commissioner’) without meaningful guiding standards or procedures” or a right to appeal violates the due process guarantees in the State and Federal Constitutions. Id. ¶ 15.

Plaintiffs allege that three separate documents control the administration of the SAVE and PMAP programs and that each of these documents contains unconstitutional restrictions on what materials may be placed in the Welcome Centers.

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Bluebook (online)
171 F. Supp. 3d 457, 2016 U.S. Dist. LEXIS 35485, 2016 WL 1117479, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vista-graphics-inc-v-virginia-department-of-transportation-vaed-2016.