Zillow, Inc. v. Thomas Miller

126 F.4th 445
CourtCourt of Appeals for the Sixth Circuit
DecidedJanuary 16, 2025
Docket23-5301
StatusPublished
Cited by2 cases

This text of 126 F.4th 445 (Zillow, Inc. v. Thomas Miller) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Zillow, Inc. v. Thomas Miller, 126 F.4th 445 (6th Cir. 2025).

Opinion

RECOMMENDED FOR PUBLICATION Pursuant to Sixth Circuit I.O.P. 32.1(b) File Name: 25a0010p.06

UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT

┐ ZILLOW, INC., │ Plaintiff-Appellee/Cross-Appellant, │ │ v. │ > Nos. 23-5300/5301 │ THOMAS B. MILLER, Commissioner of the Kentucky │ Department of Revenue; BRAD MCDOWELL, Property │ Valuation Administrator for Shelby County, │ Kentucky; KELLIE LANG, Property Valuation │ Administrator for Franklin County, Kentucky; JASON │ SCRIBER, Property Valuation Administrator for Henry │ County, Kentucky; BLAKE ROBERTSON, Property │ Valuation Administrator for Owen County, Kentucky; │ JILL M. MAHONEY, Property Valuation Administrator │ for Trimble County, Kentucky; JADA BRADY, Property │ Valuation Administrator for Clark County, Kentucky, │ Defendants-Appellees (23-5300), │ │ │ KENTUCKY PRESS ASSOCIATION, INC.; AMERICAN CITY │ BUSINESS JOURNALS, INC., dba Louisville Business │ First, │ Intervenor Plaintiffs-Appellants/Cross-Appellees. │ ┘

Appeal from the United States District Court for the Eastern District of Kentucky at Frankfort. No. 3:19-cv-00049—Gregory F. Van Tatenhove, District Judge.

Argued: March 19, 2024

Decided and Filed: January 16, 2025

Before: BOGGS, MOORE, and GIBBONS, Circuit Judges. Nos. 23-5300/5301 Zillow, Inc. v. Miller, et al. Page 2

_________________

COUNSEL

ARGUED: Michael P. Abate, KAPLAN, JOHNSON ABATE & BIRD LLP, Louisville, Kentucky, for the Newspapers. Richard W. Bertelson, III, OFFICE OF LEGAL SERVICES FOR REVENUE, Frankfort, Kentucky, for the County Valuation Administrators. Darren W. Ford, FARUKI PLL, Cincinnati, Ohio, for Zillow, Inc. ON BRIEF: Michael P. Abate, Burt A. (Chuck) Stinson, KAPLAN, JOHNSON ABATE & BIRD LLP, Louisville, Kentucky, for the Newspapers. Richard W. Bertelson, III, OFFICE OF LEGAL SERVICES FOR REVENUE, Frankfort, Kentucky, for the County Valuation Administrators. Darren W. Ford, John C. Greiner, FARUKI PLL, Cincinnati, Ohio, for Zillow, Inc. Daniel J. Grabowski, OFFICE OF THE KENTUCKY ATTORNEY GENERAL, Frankfort, Kentucky, for Amicus Curiae.

MOORE, J., delivered the opinion of the court in which GIBBONS, J., concurred. BOGGS, J. (pp. 22–29), delivered a separate dissenting opinion. _________________

OPINION _________________

KAREN NELSON MOORE, Circuit Judge. Kentucky’s Open Records Act (“KORA”) provides access to public records. It distinguishes between requestors with commercial and non- commercial purposes and permits agencies to impose enhanced fees on requestors with commercial purposes. The statute provides, however, that commercial purposes do not include publication in a newspaper or periodical, use by a radio or television station in its news or informational programs, or use in litigation or claims settlement.

Zillow, Inc. (“Zillow”) is a for-profit corporation that publishes, among other things, information about properties (including their tax history and price) on its website, which is free for users to access. Zillow routinely requests information from governmental agencies regarding pricing and tax information, to keep its website current. When Zillow requested information from several Kentucky property valuation administrators (“PVAs”), including the six named in this action, the PVAs determined that Zillow’s requests had a commercial purpose and responded with quotes for thousands of dollars. Zillow sued the Kentucky Department of Revenue and the PVAs, arguing that the Kentucky statute violated the First and Fourteenth Amendments facially and as applied. Nos. 23-5300/5301 Zillow, Inc. v. Miller, et al. Page 3

Turning first to Zillow’s facial challenge, the district court held that the commercial/non- commercial purpose distinction did not violate the First or Fourteenth Amendments, but that the “newspaper exception” did. It consequently severed the newspaper exception from the rest of the Kentucky statute. The upshot of the district court’s decision was that both Zillow and newspapers (who were not at that time party to the action) became subject to enhanced fees. The Kentucky Press Association and American City Business Journals (collectively, “the Press”) intervened. The Press and Zillow appealed.

On appeal, we turn first to Zillow’s as-applied challenge. We hold that the commercial- fee statute does not violate the First Amendment as applied to Zillow and reverse the district court’s order declaring the “newspaper exception” unconstitutional because the commercial/non- commercial purpose distinction, including its three exceptions, do not impermissibly discriminate based on the content of Zillow’s speech. Accordingly, we reverse the district court’s grant of partial summary judgment to Zillow, vacate the permanent injunction entered by the district court, and remand with instructions to grant summary judgment to the PVAs.

I. BACKGROUND

A. Kentucky’s Open Records Act

KORA provides that “applicant[s] shall have the right to make abstracts of the public records and memoranda thereof, and to obtain copies of all [nonexempt] public records.” Ky. Rev. Stat. § 61.874(1). Public agencies are authorized to charge applicants a “reasonable fee.” Id. § 61.874(3)–(4). The reasonable fee is determined by whether the requestor has a “noncommercial” or “commercial” purpose. Id. A “commercial purpose” is defined as “the direct or indirect use of any part of a public record or records, in any form, for sale, resale, solicitation, rent, or lease of a service, or any use by which the user expects a profit either through commission, salary, or fee.” Id. § 61.870(4)(a) (emphasis added). However, the term commercial purpose excludes:

(1) Publication or related use of a public record by a newspaper or periodical [(“the newspaper exception”)]; (2) Use of a public record by a radio or television station in its news or other informational programs; or Nos. 23-5300/5301 Zillow, Inc. v. Miller, et al. Page 4

(3) Use of a public record in the preparation for prosecution or defense of litigation, or claims settlement by the parties to such action, or the attorneys representing the parties.

Id. § 61.870(4)(b). Noncommercial purpose is not defined by statute and, accordingly, we presume it refers to all other purposes not defined as “commercial.”

When an applicant seeks records for a “noncommercial” purpose, a Kentucky public agency “may prescribe a reasonable fee for making copies” of such records, but the fee “shall not exceed the actual cost of reproduction.” Ky. Rev. Stat. § 61.874(3). By contrast, when an applicant seeks records for a “commercial” purpose, the public agency may additionally prescribe reasonable fees reflecting the cost of “staff required to produce a copy of the public record or records” and the costs associated with the “creation, purchase, or other acquisition of the public records.” Id. § 61.874(4)(a), (c).

KORA applies, with certain exemptions and additions, to county-level PVAs and their records of property taxes, valuations, and sales. Ky. Rev. Stat. § 133.047. Under the PVA- related statute, if an individual seeks information about their own property, “or any other person, including the press, seek[s] information directly related to property tax assessment . . . or similar matters,” they can be charged the cost of reproduction. Id. § 133.047(4)(c); see id. § 61.874(3). However, if a requestor has a “commercial or business purpose,” they may be charged a reasonable fee, as defined by KORA, including fees for “personnel time.” Id.

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126 F.4th 445, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zillow-inc-v-thomas-miller-ca6-2025.