KING, J.—
Defendants and appellants, AMG Outdoor Advertising, Inc. (AMG), and others, appeal from a January 23, 2015, order granting a preliminary injunction in favor of plaintiff and respondent, City of Corona (the City), requiring defendants to cease using and immediately remove a billboard, or outdoor advertising sign, that AMG erected in the City without a city or state permit.
On September 1, the City adopted the 2004 ordinance, which amended the Corona Municipal Code (CMC)
The 2004 ordinance allows any any off-site billboard erected in the City before the 2004 ordinance went into effect, that is, a "grandfathered" billboard, to be relocated in the City pursuant to a relocation agreement with the City. Section 17.74.070(H) of the CMC states, in part: "[C]onsistent with the California Business & Professions Code Outdoor Advertising provisions, new off-premises advertising displays . . . may be considered and constructed as part of a relocation agreement . . . entered into between the [C]ity . . . and a billboard and/or property owner. Such agreements may be approved by the City Council upon terms that are agreeable to the [C]ity . . . in [its] sole and absolute discretion."
The exception to the 2004 ordinance, which allows "grandfathered" billboards to be relocated pursuant to a relocation agreement with the City, is consistent with Business and Professions Code section 5412, part of the Outdoor Advertising Act (the OAA). (Bus. & Prof. Code, § 5200 et seq.) It provides: "[N]o advertising display which was lawfully erected anywhere within this state shall be compelled to be removed, nor shall its customary maintenance or use be limited . . . without payment of compensation, as
The CMC also prohibits any billboard to be erected in the City without a building permit. Section 15.02.070 of the CMC provides: "`No person, firm or corporation shall erect, re-erect, construct, enlarge, alter, repair, move, improve, remove, convert or demolish any building or other structure in the city, without obtaining a valid building permit prior to commencement of any work.'"
AMG owns and operates off-site billboards in Southern California. In November 2014, an AMG agent, Jeanelle Heaston, went to the City planning department and asked for an application for a permit to erect an off-site billboard at 3035 Palisades, just south of State Route 91 in the City. A planning technician refused to provide Ms. Heaston with a permit application, explaining that billboards were not allowed in the City and all billboards then under construction in the City were being built pursuant to a relocation agreement with the City.
Over the weekend of December 6 and 7, 2014, AMG erected a monopole V-shaped billboard with two 14-foot by 48-foot static displays on the property at 3035 Palisades, just south of State Route 91 between Green River Road and Serfas Club Drive. Curlan, Ltd., owns the property on which the billboard was erected and leases the property to Sid's Carpet Barn. An advertisement for Rockefellas, a bar located in Corona and owned by Alex Garcia, the owner of AMG, was placed on one side of the billboard, and an advertisement for Pala Casino Resort and Spa, located near Fallbrook, was placed on the other side.
On December 10 and 19, 2014, the City sent cease and desist letters to defendants and their counsel, advising them that the billboard violated the CMC and demanding its prompt removal. On December 23, counsel for AMG advised the City by letter that the 2004 ordinance banning all off-site billboards violated AMG's free speech rights, and was also unconstitutional as applied because the City was allowing another billboard operator, Lamar, to erect multiple billboards in the City despite the 2004 ban. AMG advised the City that it was "prepared to construct multiple" billboards in the City unless AMG and the City reached an agreement. Also on December 23, AMG submitted an application to the City to erect the billboard.
On December 30, 2014, the City filed a verified complaint against defendants seeking temporary, preliminary, and permanent injunctive relief, and other remedies, based on defendants' unauthorized erection and use of the billboard. On January 16, defendants answered the complaint, and AMG and Rockefellas cross-complained against the City for declaratory relief, an injunction prohibiting the City from enforcing the 2004 ordinance, and a writ of mandate ordering the City to issue a building permit for the billboard.
On January 7, 2015, the trial court issued a temporary restraining order directing defendants to stop using the billboard and remove the advertising on it, but not requiring the removal of the billboard.
In issuing the preliminary injunction, the court rejected defendants' claim that the City was violating defendants' equal protection rights by allowing Lamar to erect new billboards in the City in violation of the 2004 ordinance.
In reviewing an order granting a preliminary injunction, we do not reweigh conflicting evidence or assess witness credibility, we defer to the trial court's
The crux of defendants' claim, in the trial court and in this appeal, is that the City is applying the 2004 ordinance against them in an unlawfully discriminatory manner. Defendants claim the City has entered into relocation agreements with Lamar that have allowed Lamar to erect new billboards in the City, after the 2004 ordinance went into effect, which are not grandfathered billboards because they were not erected in the City before September 1, 2004. (CMC, § 17.74.070(H).)
In support of its application for the temporary restraining order and preliminary injunction, the City adduced original and supplemental declarations of its community development director, Joanne Coletta. Ms. Coletta had served as the City's community development director since 2008 and had worked in the community development department for 20 years.
According to Ms. Coletta, the City had not allowed any new billboards to be erected since September 1, 2004, when the 2004 ordinance went into effect, except in connection with an approved relocation agreement. Likewise, no permits to construct new billboards had been issued except in connection with an approved relocation agreement. A relocation agreement was required when any billboard had to be moved, such as when a freeway was being widened. As of January 2015, several billboards had either been relocated, or were in the process of being relocated, in connection with Caltrans's widening of State Route 91 through the City.
Lamar had nine billboards in the City, and each was either a "grandfathered" billboard that was in place before the 2004 ordinance went into effect, or was traceable to a grandfathered billboard. For example, the Lamar billboard on Delilah Street had been relocated from East Third Street due to the State Route 91 widening project, pursuant to a relocation agreement. The billboard was originally erected along Interstate 15 at Magnolia Avenue, before the 2004 ordinance went into effect, and was relocated to Third Street pursuant to an original relocation agreement. Due to the State Route 91 widening project, the board had to be relocated again.
Lamar purchased one of its nine billboards from Empire Outdoor Advertising, and assumed Empire Outdoor Advertising's relocation agreement with the City. Some of Lamar's billboards also had been "converted from static
Another billboard operator, General Outdoor Advertising, had two doublesided billboards in the City, bringing the total number of off-site billboards in the City to 11. General Outdoor Advertising had a relocation agreement with the City that allowed it to change its two double-sided billboards from static to "changeable message board" in the same locations, and the City and General Outdoor Advertising were in the process of negotiating a relocation agreement for both billboards. The 11 grandfathered off-site billboards in the City were the only off-site billboards in the City.
Pursuant to its relocation agreements with Lamar and General Outdoor Advertising, the City was entitled to place public service announcements on the digital billboards, or waive that right and receive the greater of a guaranteed minimum amount of revenue from each billboard face, or a percentage of the actual amount of revenue from each billboard face. "The vast majority of the time, the City receive[d] the guaranteed minimum. Occasionally, the percentage ha[d] exceeded the minimum, but never by a substantial amount."
In support of their unlawful discrimination claim, defendants principally rely on Summit Media LLC v. City of Los Angeles (2012) 211 Cal.App.4th 921 [150 Cal.Rptr.3d 574]. There, the City of Los Angeles entered into settlement agreements with certain billboard operators, allowing the operators to digitize their existing billboards despite a municipal ordinance banning "`alterations or enlargements of legally existing off-site signs.'" (Id. at p. 924.) The settlement agreements thus permitted the city and the settling billboard operators to "circumvent the general ban in the municipal code on alterations to existing offsite signs." (Id. at p. 934.) The agreements were therefore void, or ultra vires, because the city acted beyond its authority in entering into them.
Contrary to defendants' claim, the City's relocation agreements with Lamar do not circumvent the 2004 ordinance ban on new off-site billboards. To the contrary, the relocation agreements merely provide for orderly relocation, in the City, of grandfathered off-site billboards—those erected in the City before the 2004 ordinance went into effect. Thus, defendants' assertion that the City has unfettered discretion to approve or deny new billboard applications, and unlawfully discriminate among new billboard applicants, is unsupported by any evidence in the record.
Valley Outdoor, Inc. v. City of Riverside (9th Cir. 2006) 446 F.3d 948 is also distinguishable. The problem in Valley Outdoor, as the court put it, was that "the City assert[ed] unbridled discretion under its municipal code to decide which late-filed applicants get to erect billboards and which do not." (Id. at p. 954.) Here, the City had no authority to discriminate and did not in fact discriminate among any new off-site billboard applicants. The 2004 ordinance banned all new off-site billboards, and the record shows the City has uniformly enforced that ban. Since the 2004 ordinance went into effect, the City has only allowed off-site billboards to be erected in the City if the billboard was erected in the City before the 2004 ordinance went into effect, or the billboard was traceable to such a grandfathered billboard. (CMC, § 17.74.070(H).)
Defendants claim the City's relocation agreements with Lamar violate their equal protection rights. Not so. A substantially similar claim was squarely rejected in Maldonado v. Morales (9th Cir. 2009) 556 F.3d 1037, 1048, where the court found that the grandfathering clause of the OAA, exempting its application to billboards in place before November 7, 1967, did not violate the equal protection rights of new off-site billboard operators, because "banning new offsite billboards but allowing legal nonconforming billboards to remain `furthers the State's significant interest in reducing blight and increasing traffic safety,' even if all billboards are not eliminated." And, unlike Lamar and General Outdoor Advertising, defendants do not own any
The 2004 ordinance bans all new off-site billboards, and the preliminary injunction requires defendants to cease operating and remove their new off-site billboard. Neither burdens more speech than necessary to accomplish the City's interest in increased traffic safety and aesthetics (Maldonado v. Morales, supra, 556 F.3d at pp. 1046-1048) and defendants may avail themselves of other forms of communication (G.K. Ltd. Travel v. City of Lake Oswego (9th Cir. 2006) 436 F.3d 1064, 1074).
Notwithstanding Metromedia, defendants claim that the City's 2004 ban on all new off-site commercial billboards violates the free speech clause of the California Constitution, which states: "Every person may freely speak, write and publish his or her sentiments on all subjects, being responsible for the abuse of this right. A law may not restrain or abridge liberty of speech or press." (Cal. Const., art. I, § 2, subd. (a).)
Defendants argue that "[t]he State Constitution has always protected commercial speech[,] and state free speech jurisprudence does not recognize the federal `commercial speech/noncommercial speech' dichotomy with its limited protection for commercial speech . . . ." In support of their state constitutional claim, defendants rely solely on Gerawan Farming, Inc. v. Lyons (2000) 24 Cal.4th 468 [101 Cal.Rptr.2d 470, 12 P.3d 720] (Gerawan I) where the court concluded that a marketing program and order issued by the California Secretary of Food and Agriculture, namely, the California Plum Marketing Program and Marketing Order No. 917, compelling California plum producers, including Gerawan, to fund generic advertising for California-produced plums, "implicate[d]" Gerawan's free speech rights under article I, section 2 of the California Constitution. (Gerawan I, supra, at pp. 509-515.) In making this determination, the court observed that, as a general rule, "article I's free speech clause and its right to freedom of speech are not only as broad and as great as the First Amendment's, they are even `broader' and `greater.' [Citations.]" (Id. at p. 491.) Defendants' state constitutional claim rests solely on this general proposition.
Gerawan I did not hold that the marketing program violated Gerawan's free speech rights under the California Constitution; it left that issue for the Court of Appeal to determine on remand, and directed the Court of Appeal to decide the proper test to be employed in determining whether the marketing program violated Gerawan's free speech rights under the state Constitution. (Gerawan I, supra, 24 Cal.4th at pp. 515-517.) On remand, the Court of
The case returned to the state Supreme Court in Gerawan II. There, the court concluded, in light of intervening Untied Stated Supreme Court precedent, that it would be inappropriate to subject the marketing program "to only minimal scrutiny," and determined that the Central Hudson test was the proper test to apply in determining whether the marketing program violated Gerawan's free speech rights under the state Constitution. (Gerawan II, supra, 33 Cal.4th at pp. 20-24.) Applying that test, the court concluded the matter could not be resolved on the pleadings and had to be remanded to the trial court "for further factfinding" to determine whether the marketing program satisfied the four-prong Central Hudson test. (Id. at p. 24.)
Based on the "broader" and "greater" free speech protections afforded by article I of the California Constitution noted in Gerawan I, defendants maintain that "a city may not discriminate against lawful commercial speech, or between different types of lawful commercial speech simply because it is commercial." As noted, however, under Metromedia a governing entity may, consistent with the Central Hudson test, allow or discriminate in favor of on-site commercial signs, while banning or discriminating against off-site commercial signs, without violating the free speech clause of the First Amendment. (Metromedia, supra, 453 U.S. at pp. 507-512.) In light of Gerawan II, the analysis and result are the same under the California Constitution.
Lastly, defendants argue that the City's ban on all new off-site billboards "is exactly the same ban already found unconstitutional" in Metromedia. Not so. As noted, the 2004 ordinance prohibits all new off-site billboards, regardless of their content (CMC, §§ 17.74.160, 17.74.070(H)) and thus does not treat noncommercial speech less favorably than commercial speech—the element of the City of San Diego ordinance found facially invalid in Metromedia on First Amendment grounds (Metromedia, supra, 453 U.S. at p. 513; see also Kasky v. Nike, Inc. (2002) 27 Cal.4th 939, 959 [119 Cal.Rptr.2d 296, 45 P.3d 243] ["This court has never suggested that the state and federal Constitutions impose different boundaries between the categories of commercial and noncommercial speech."]; Vanguard Outdoor, LLC v. City of Los Angeles (9th Cir. 2011) 648 F.3d 737, 739 ["claim that the California
The January 25, 2013, order granting the preliminary injunction is affirmed. The City shall recover its costs on appeal. (Cal. Rules of Court, rule 8.278.)
McKinster, Acting P. J., and Miller, J., concurred.