Filed: Oct. 01, 2014
Latest Update: Mar. 02, 2020
Summary: Case: 13-14663 Date Filed: 10/01/2014 Page: 1 of 22 [DO NOT PUBLISH] IN THE UNITED STATES COURT OF APPEALS FOR THE ELEVENTH CIRCUIT _ No. 13-14663 _ D.C. Docket No. 1:03-cv-01855-SCJ KH OUTDOOR, L.L.C., Plaintiff-Appellee, GRANITE STATE OUTDOOR ADVERTISING, INC., Plaintiff, versus FULTON COUNTY, GEORGIA, Defendant-Appellant. _ Appeal from the United States District Court for the Northern District of Georgia _ (October 1, 2014) Before MARTIN, Circuit Judge, and EATON, * Judge, and HINKLE,** Distr
Summary: Case: 13-14663 Date Filed: 10/01/2014 Page: 1 of 22 [DO NOT PUBLISH] IN THE UNITED STATES COURT OF APPEALS FOR THE ELEVENTH CIRCUIT _ No. 13-14663 _ D.C. Docket No. 1:03-cv-01855-SCJ KH OUTDOOR, L.L.C., Plaintiff-Appellee, GRANITE STATE OUTDOOR ADVERTISING, INC., Plaintiff, versus FULTON COUNTY, GEORGIA, Defendant-Appellant. _ Appeal from the United States District Court for the Northern District of Georgia _ (October 1, 2014) Before MARTIN, Circuit Judge, and EATON, * Judge, and HINKLE,** Distri..
More
Case: 13-14663 Date Filed: 10/01/2014 Page: 1 of 22
[DO NOT PUBLISH]
IN THE UNITED STATES COURT OF APPEALS
FOR THE ELEVENTH CIRCUIT
________________________
No. 13-14663
________________________
D.C. Docket No. 1:03-cv-01855-SCJ
KH OUTDOOR, L.L.C.,
Plaintiff-Appellee,
GRANITE STATE OUTDOOR ADVERTISING, INC.,
Plaintiff,
versus
FULTON COUNTY, GEORGIA,
Defendant-Appellant.
________________________
Appeal from the United States District Court
for the Northern District of Georgia
________________________
(October 1, 2014)
Before MARTIN, Circuit Judge, and EATON, * Judge, and HINKLE,** District
Judge.
*
Honorable Richard K. Eaton, United States Court of International Trade Judge, sitting by
designation.
**
Honorable Robert L. Hinkle, United States District Judge for the Northern District of Florida,
sitting by designation.
Case: 13-14663 Date Filed: 10/01/2014 Page: 2 of 22
MARTIN, Circuit Judge:
In 2003, Plaintiff KH Outdoor, L.L.C. filed a number of applications to erect
billboards, all of which were either ignored or rejected by Defendant Fulton
County. KH Outdoor sued Fulton County in federal district court, and a jury
awarded the company nearly $4 million in damages. Fulton County now appeals
the district court’s denial of its post-trial motion for judgment as a matter of law, or
in the alternative, a new trial or remittitur. After careful review, we vacate in part
and remand for the district court to conduct factfinding and reconsider whether KH
Outdoor has standing to bring its claims.
I.
KH Outdoor is a Georgia company that constructs and sells billboard space
to advertisers. The company filed this lawsuit in 2003 after its applications to erect
billboards in Fulton County were rejected or ignored. In its complaint, KH
Outdoor alleged that Fulton County’s sign ordinance—the basis for the County’s
rejection of the applications—was unconstitutional under the First Amendment.
After several years of litigation and failed attempts to settle this dispute, the
district court granted summary judgment to Fulton County in 2009, finding that
KH Outdoor lacked standing. The district court recognized that relevant portions
of the Fulton County sign ordinance had been ruled unconstitutional by the
Georgia Supreme Court in Fulton County v. Galberaith,
647 S.E.2d 24 (Ga. 2007).
2
Case: 13-14663 Date Filed: 10/01/2014 Page: 3 of 22
But it found that KH Outdoor lacked a redressable injury because the billboards it
applied to erect would have been prohibited in any event by other regulations in
Fulton County’s sign ordinance which remained in effect after Galberaith. On this
basis, the district court dismissed KH Outdoor’s claims for lack of Article III
standing.
KH Outdoor appealed, and this Court vacated the district court holding on
standing and remanded for reconsideration in light of the Georgia Supreme Court’s
intervening decision in Fulton County v. Action Outdoor Advertising, JV, LLC,
711 S.E.2d 682 (Ga. 2011). KH Outdoor, L.L.C. v. Fulton Cnty., 433 F. App’x
775, 776 (11th Cir. 2011). In Action Outdoor, the Georgia Supreme Court
clarified that its prior decision in Galberaith struck down the Fulton County sign
ordinance in its
entirety. 711 S.E.2d at 685. The Action Outdoor ruling also
addressed Fulton County’s separate argument that the billboards at issue were
located in overlay districts in Fulton County, which have more stringent zoning
regulations for billboards.
Id. at 685–86. But the Justices found that Fulton
County had not met its burden to demonstrate that these overlay district regulations
would have otherwise barred the proposed billboards.
Id. Because Action
Outdoor made clear that the district court’s standing determination was based on
an incorrect interpretation of Galberaith, this Court vacated the district court’s
dismissal and remanded for reconsideration. KH Outdoor, 433 F. App’x at 776.
3
Case: 13-14663 Date Filed: 10/01/2014 Page: 4 of 22
On remand, the district court set a trial date to decide only the remaining
issue of damages. Fulton County, however, filed a motion to amend its answer and
for leave to file a motion for summary judgment. As it turns out, KH Outdoor and
Fulton County had been involved in an entirely separate litigation in the state
courts of Georgia. The state court litigation began in 2006 when KH Outdoor
refiled many of its applications to build billboards in Fulton County. The 2006
applications were again denied. In fact, KH Outdoor’s 2006 state court litigation
was consolidated with Action Outdoor’s case in the Georgia Supreme Court’s 2011
decision in Action
Outdoor. 711 S.E.2d at 684. Because the state trial court issued
a final judgment in KH Outdoor’s favor after the case was remanded from the
Georgia Supreme Court, Fulton County alleged that the company’s claims were
now barred by the doctrine of res judicata. The district court denied Fulton
County’s motions and allowed the case to proceed to trial.
Relevant here, KH Outdoor filed a pre-trial motion to exclude any evidence
or argument relating to standing, including evidence of Fulton County’s overlay
district regulations. In its motion, KH Outdoor argued that this issue had already
been raised by Fulton County and rejected by the Georgia Supreme Court in
Action Outdoor. Fulton County responded that the standing question at issue in
Action Outdoor was completely different from that faced by the federal court,
because it related to overlay district regulations in effect in 2006, not the
4
Case: 13-14663 Date Filed: 10/01/2014 Page: 5 of 22
regulations in effect in 2003. Nevertheless, the district court granted KH
Outdoor’s motion to exclude any evidence relating to standing, and it also denied
Fulton County’s post-trial motion for judgment as a matter of law or a new trial on
this basis.
II.
We consider Fulton County’s argument relating to KH Outdoor’s standing at
the outset because it is a “threshold jurisdictional question which must be
addressed prior to and independent of the merits of a party’s claims.” Dillard v.
Baldwin Cnty. Comm’rs,
225 F.3d 1271, 1275 (11th Cir. 2000) abrogated on other
grounds by Dillard v. Chilton Cnty. Comm’n,
495 F.3d 1324 (11th Cir. 2007).
Standing is a doctrine that “stems directly from Article III’s ‘case or controversy’
requirement,” and thus “it implicates our subject matter jurisdiction.” Nat’l Parks
Conservation Ass’n v. Norton,
324 F.3d 1229, 1242 (11th Cir. 2003). The
Supreme Court has said that “standing is perhaps the most important” jurisdictional
doctrine, FW/PBS, Inc. v. Dallas,
493 U.S. 215, 231,
110 S. Ct. 596, 607 (1990)
(citation omitted) (quotation marks omitted), and as with any jurisdictional
requirement, we are powerless to consider the merits of the case when it is lacking.
Univ. of S. Ala. v. Am. Tobacco Co.,
168 F.3d 405, 410 (11th Cir. 1999); see also
Ex parte McCardle, 74 U.S. (7 Wall.) 506, 514 (1868) (“Jurisdiction is power to
5
Case: 13-14663 Date Filed: 10/01/2014 Page: 6 of 22
declare the law, and when it ceases to exist, the only function remaining to the
court is that of announcing the fact and dismissing the cause.”).
Importantly, standing cannot be waived or conferred upon the court by the
parties. Bochese v. Town of Ponce Inlet,
405 F.3d 964, 975 (11th Cir. 2005). The
Supreme Court has said that subject matter jurisdiction is an area of the law in
which “principles of estoppel do not apply, and a party does not waive the
requirement by failing to challenge jurisdiction early in the proceedings.” Ins.
Corp. of Ireland, Ltd. v. Compagnie des Bauxites de Guinee,
456 U.S. 694, 702,
102 S. Ct. 2099, 2104 (1982) (citation omitted). A federal court is obligated to
inquire into subject matter jurisdiction on its own motion whenever it may be
lacking. Fitzgerald v. Seaboard Sys. R.R.,
760 F.2d 1249, 1251 (11th Cir. 1985).
Significant for our purposes, “[a]n appellate federal court must satisfy itself not
only of its own jurisdiction, but also that of the lower courts in a cause under
review.” Univ. of S.
Ala., 168 F.3d at 410 (quoting Mitchell v. Maurer,
293 U.S.
237, 244,
55 S. Ct. 162, 165 (1934)). Thus, we cannot proceed to the merits of
Fulton County’s appeal until we have satisfied ourselves that the district court had
subject matter jurisdiction to issue a judgment in favor of KH Outdoor.
A.
Fulton County argues, among other things, that KH Outdoor lacks standing
because its injuries are not redressable. According to the County, the district court
6
Case: 13-14663 Date Filed: 10/01/2014 Page: 7 of 22
was mistaken when it assumed that the redressability issues in Action Outdoor and
this case were the same. Action Outdoor dealt with overlay district regulations in
place in 2006, the County explains, while this case involves the regulations that
were in effect in 2003. As a result, the County argues that the district court should
have conducted a de novo review of whether KH Outdoor’s alleged injuries
stemming from its 2003 billboard applications were redressable. We agree.
To establish standing, a plaintiff must show “(1) an injury in fact, meaning
an injury that is concrete and particularized, and actual or imminent, (2) a causal
connection between the injury and the causal conduct, and (3) a likelihood that the
injury will be redressed by a favorable decision.” Granite State Outdoor Adver.,
Inc. v. City of Clearwater, Fla.,
351 F.3d 1112, 1116 (11th Cir. 2003) (emphasis
omitted). Each element is “an indispensable part of the plaintiff’s case” and “must
be supported in the same way as any other matter on which the plaintiff bears the
burden of proof, i.e., with the manner and degree of evidence required at the
successive stages of the litigation.” Lujan v. Defenders of Wildlife,
504 U.S. 555,
561,
112 S. Ct. 2130, 2136 (1992). As a result, a plaintiff “must ultimately support
any contested facts with evidence adduced at trial” to establish Article III standing.
See Bennett v. Spear,
520 U.S. 154, 168,
117 S. Ct. 1154, 1164 (1997).
For an injury to be redressable, “it must be ‘likely,’ as opposed to merely
‘speculative,’ that the injury will be ‘redressed by a favorable decision.’” Lujan,
7
Case: 13-14663 Date Filed: 10/01/2014 Page: 8 of
22
504 U.S. at 561, 112 S. Ct. at 2136. Two recent cases from this Court have
addressed whether plaintiffs who seek to erect billboards have satisfied the
redressability requirement. In KH Outdoor, L.L.C. v. Clay County, Fla.,
482 F.3d
1299 (11th Cir. 2007), we found that KH Outdoor had not satisfied the
redressability requirement because the billboard applications at issue failed to meet
the requirements of other statutes and regulations not challenged.
Id. at 1303.
Because the plaintiff lacked standing, “we [could] not reach the merits of its
challenges . . . to [the] sign ordinance.”
Id. at 1305. Similarly, in Maverick Media
Group, Inc. v. Hillsborough County,
528 F.3d 817 (11th Cir. 2008), we concluded
that a billboard company could not establish redressability because “the County
could have denied Maverick’s applications under an alternative, unchallenged
provision of its sign ordinance.”
Id. at 821.
These decisions mirror similar outcomes in our sister circuits, all in cases
concerning restrictions on the placement of billboards. See, e.g., Coastal Outdoor
Advertising Group, LLC v. Township of East Hanover, 397 Fed. App’x 794, 795–
96 (3d Cir. 2010) (finding no standing where a billboard permit applicant “would
not be ‘substantially likely’ to erect the billboard because the unchallenged
setback, use, and height restrictions would still prevent [the plaintiff] from erecting
its billboards”); Covenant Media of South Carolina, LLC v. City of North
Charleston,
493 F.3d 421, 430 (4th Cir. 2007) (finding no standing because a
8
Case: 13-14663 Date Filed: 10/01/2014 Page: 9 of 22
billboard permit application violated a spacing requirement and therefore “could
not have been approved regardless of whether other substantive provisions of the
Sign Regulation [were] held to be unconstitutional”); Midwest Media Property,
LLC v. Symmes,
503 F.3d 456, 461 (6th Cir. 2007) (finding no standing because,
“having filed nine applications to post a sign in the township that would violate
[unchallenged height and size] regulations, plaintiffs cannot tenably show that
success in challenging other regulations of the sign ordinance will redress any
injury caused by these regulations”); Harp Advertising Illinois, Inc. v. Village of
Chicago Ridge,
9 F.3d 1290, 1291 (7th Cir. 1993) (finding no standing “to
challenge either the sign code or the zoning code, because [the plaintiff] could not
put up its sign even if it achieved total victory in this litigation”); Advantage
Media, LLC v. City of Eden Prairie,
456 F.3d 793, 801 (8th Cir. 2006) (finding no
standing because “a favorable decision for [plaintiff] . . . would not allow it to
build its proposed signs, for these would still violate other unchallenged provisions
of the sign code like the restrictions on size, height, location, and setback”).
B.
With these principles and precedent in mind, the district court erred by
barring evidence of Fulton County’s overlay district regulations and entering
judgment in KH Outdoor’s favor without ensuring that the company’s injuries
were redressable. We recognize that the Georgia Supreme Court considered and
9
Case: 13-14663 Date Filed: 10/01/2014 Page: 10 of 22
rejected similar arguments regarding redressability in Action Outdoor.
See 711
S.E.2d at 685 (“Fulton County and the cities failed to satisfy their burden of
proving that overlay district regulations otherwise prohibited the sign companies
from constructing the signs.”). But crucially, Action Outdoor dealt with billboard
applications filed with Fulton County in 2006, while the case before the district
court involved applications filed in 2003. For this reason, the standing inquiries in
the two cases are not identical, especially given that different regulations may have
been in effect in 2003, as opposed to 2006.
Beyond that, Fulton County was prepared to submit evidence at trial
demonstrating that KH Outdoor’s applications would have been barred by valid
county and state regulations in effect in 2003. For example, the County proffered
an affidavit written by Randy Beck, a former employee in the Fulton County
Department of Environment and Community Development. Beck would have
testified that 30 of the 32 billboard applications filed by KH Outdoor and its
predecessors were located in overlay districts containing regulations prohibiting
the construction of the requested billboards. In the same way, at trial Fulton
County presented the testimony of James Brown, the Outdoor Advertising
Manager for the Georgia Department of Transportation. Brown testified that
approximately 11 of KH Outdoor’s billboard applications, at least as those
applications existed at the time of trial in U.S. District Court, would have been
10
Case: 13-14663 Date Filed: 10/01/2014 Page: 11 of 22
rejected as incomplete by the Georgia Department of Transportation. He testified
that the applications, in the form presented to him as he testified, would have been
rejected even if they had been approved by Fulton County. Brown also testified
that two of the applications for sign permits which were the subject of the damages
trial, had actually been recently denied by the Department of Transportation.
Meanwhile, KH Outdoor did not present any evidence to the district court rebutting
Fulton County’s allegations regarding standing. The District Court should have
developed this one-sided record—perhaps in an evidentiary hearing—to resolve
whether “the County could have denied [the plaintiff’s] applications under an
alternative, unchallenged provision of its sign ordinance.” Maverick Media Group,
Inc., 528 F.3d at 821.
The dissent would have us discount our own binding precedent as well as
that of other circuits, and instead rely on Mt. Healthy City School District Board of
Education v. Doyle,
429 U.S. 274,
97 S. Ct. 568 (1977), and its progeny to come to
the opposite result. See Dissenting Op. at 14 & 18. But the Mt. Healthy burden-
shifting test only enters the analysis once a plaintiff is shown to have standing. Of
course, if the plaintiff can show it is “likely” to obtain redress from a favorable
decision, Lujan, 504 U.S. at
561, 112 S. Ct. at 2136, the plaintiff would have
standing and the case should proceed to the merits. At that point, a fact-finder
would make a final determination one way or another whether the government
11
Case: 13-14663 Date Filed: 10/01/2014 Page: 12 of 22
“would have reached the same decision . . . even in the absence of the protected
conduct.” Mt.
Healthy, 429 U.S. at 287, 97 S. Ct. at 576. But a District Court
must always assure itself that the plaintiff is at least likely to obtain redress before
reaching the merits. 1 Because the court below failed to do so here, it was in error.
III.
For these reasons, we VACATE IN PART the district court’s order denying
Fulton County’s motion for judgment as a matter of law or, in the alternative,
motion for new trial or remittitur. We REMAND for the district court to entertain
and review evidence about KH Outdoor’s standing to pursue its claims. 2
1
Though we believe the case law can be reconciled in this fashion, even if Mt. Healthy is
“irreconcilable” with cases like Maverick and KH Outdoor at their logical extremes, (Dissenting
Op. at 16–18) this case is not the appropriate vehicle to resolve any alleged conflict. Given the
plethora of decisions in this circuit and others engaging in a standing analysis as we have today
on almost identical facts, it is enough to rely on that precedent to reach our result.
2
Because we remand this case for additional proceedings relating to standing, we refrain
from addressing the merits of Fulton County’s appeal. These issues will be addressed if the
district court finds that KH Outdoor has standing to pursue these claims. See Bischoff v.
Osceola Cnty., Fla.,
222 F.3d 874, 886 (11th Cir. 2000) (refraining from reviewing the district
court’s ruling on the merits until after the district court held an evidentiary hearing on the
question of standing).
Our opinion should not be misunderstood, however, as an agreement with the district
court’s denial of Fulton County’s motion for judgment as a matter of law. Quite to the contrary,
many of the issues raised by Fulton County give us pause. For example, we have serious doubts
regarding the district court’s finding that res judicata does not apply here. The state court action
and the federal court action both involve the identical claim that Fulton County was violating KH
Outdoor’s First Amendment rights by refusing to allow KH Outdoor to build billboards on the
same parcels of land. Beyond that, KH Outdoor conceded to the district court that there was at
least a risk of double recovery between the state court action and the federal court action. These
facts weigh heavily in favor of a finding that the two cases involve identical causes of action
such that res judicata should apply under Georgia law.
12
Case: 13-14663 Date Filed: 10/01/2014 Page: 13 of 22
HINKLE, District Judge, concurring in part:
This is an appeal from a nearly $3 million judgment on a jury verdict for the
plaintiff sign company against the defendant county. The plaintiff says the
defendant unconstitutionally denied the plaintiff’s 2003 applications to erect 32
specific signs. The case is 11 years old and counting.
The defendant raises substantial issues. The majority addresses only one of
them. The majority concludes it must take this approach because the issue it
addresses is one of standing. I believe the issue is not standing and that we should
address the other issues properly before us—that we should move this case as far
as possible toward a too-long-delayed resolution.
To illustrate that the issue is not standing, I start with this indented statement
of the case:
The plaintiff asserts that on a specific occasion in the past, the
defendant—a political subdivision of the state—made a
decision that violated the plaintiff’s First Amendment rights.
The plaintiff sued the defendant, seeking a damages award and
injunctive relief. The defendant denied that it violated the First
Amendment. Alternatively, the defendant asserted that, even if
it did violate the First Amendment, the plaintiff was not entitled
to relief, because the defendant would have made the same
decision anyway, for legitimate, unrelated reasons. The
plaintiff denied that the defendant would have made the same
decision anyway.
13
Case: 13-14663 Date Filed: 10/01/2014 Page: 14 of 22
The indented statement is a scrupulously accurate description of this case. It
is also a scrupulously accurate description of Mt. Healthy City School
District Board of Education v. Doyle,
429 U.S. 274 (1977).
Mt. Healthy is the landmark Supreme Court decision that governs cases just
like this one: cases in which a defendant is accused of a past constitutional
violation and asserts, as one of its defenses, that it would have made the same
decision anyway. When there is a genuine factual dispute about this, it is an issue
for trial, typically before a jury. The burden is on the plaintiff to prove the
constitutional violation, but the burden is on the defendant to prove the same-
decision defense. If the defendant wins on this issue—the jury finds that the
defendant would have made the same decision anyway—the court properly enters
a judgment for the defendant on the merits. The court does not dismiss the case for
lack of standing.
The circuit’s pattern jury instructions include a Mt. Healthy instruction.
Hundreds of cases have been tried in this circuit under Mt. Healthy, always treating
the same-decision defense as a merits issue. The circuit has repeatedly applied Mt.
Healthy as a merits case.
A cursory search turns up the following examples, all First Amendment
cases involving the same general pattern as Mt. Healthy and the case at bar: the
plaintiff claimed that the defendant took action that violated the plaintiff’s First
14
Case: 13-14663 Date Filed: 10/01/2014 Page: 15 of 22
Amendment rights, the defendant denied it, and alternatively the defendant
asserted it would have made the same decision anyway, even in the absence of the
First Amendment violation.
In Stanley v. City of Dalton, Georgia,
219 F.3d 1280 (11th Cir. 2000), the
district court granted summary judgment for the defendant. The Eleventh Circuit
held there were disputed issues of fact on the merits—specifically including the
same-decision defense—that precluded summary judgment. But the court held the
defendant had qualified immunity. So the Eleventh Circuit affirmed the judgment
for the defendant on the merits, without deciding whether the defendant would
have made the same decision anyway. The Eleventh Circuit did not send the case
back for an evidentiary hearing on standing, as would have been required under the
majority’s analysis here.
In Smith v. Mosley,
532 F.3d 1270 (11th Cir. 2008), the court upheld a
summary judgment on the merits for the defendant, on the ground that no
reasonable jury could have found that the defendant would not have made the same
decision anyway. The court did not question the district court’s standing to enter
the judgment on the merits.
In Allen v. Autauga County Board of Education,
685 F.2d 1302 (11th Cir.
1982), the court upheld a judgment for the plaintiffs on the ground that the district
court’s findings of fact after a bench trial properly resolved the same-decision issue
15
Case: 13-14663 Date Filed: 10/01/2014 Page: 16 of 22
in the plaintiffs’ favor. The court did not say this was a standing issue or should
have been addressed other than as part of the trial on the merits.
In Paschal v. Florida Public Employees Relations Commission,
666 F.2d
1381 (11th Cir. 1982), the jury held that the protected speech was not a motivating
factor in the challenged decision, thus resolving the claim for the defendant
without reaching the disputed same-decision issue. The Eleventh Circuit upheld
the resulting judgment for the defendant on the merits. The court did not send the
case back for resolution of the same-decision issue, as would have been proper if
the issue was standing.
Many more cases like this could be cited. The bottom line is this: in our
case the majority is correct that the defendant should have been allowed to present
its same-decision evidence. But properly analyzed, this is a merits issue.
In taking a different approach—in treating the same-decision issue as
standing—the majority relies on two recent Eleventh Circuit decisions that are
different from our case. They are different because in each there was no real
dispute about whether the defendant would have made the same decision anyway.
In KH Outdoor, L.L.C. v. Clay County, Fla.,
482 F.3d 1299 (11th Cir. 2007), the
“uncontroverted evidence” showed that the plaintiff sign company’s proposed
signs failed to comply with the Florida Building Code and Florida statutes that the
plaintiff did not
challenge. 482 F.3d at 1304. In Maverick Media Group, Inc. v.
16
Case: 13-14663 Date Filed: 10/01/2014 Page: 17 of 22
Hillsborough County,
528 F.3d 817 (11th Cir. 2008), the sign company applied to
erect signs that “clearly” were impermissible under other, unchallenged
provisions.
528 F.3d at 821.
When it is clear that the defendant would have made the same decision
anyway, it is of course clear that the plaintiff will be unable to obtain redress. And
so it is not surprising that a court could view this as lack of standing. But when
there is a genuine dispute about this—when, as the majority suggests here, the
district court may need to conduct an evidentiary hearing—then the issue is not
standing, but the merits. The genuine dispute is a case or controversy, and the
plaintiff’s stake in that dispute provides standing. The ability to award damages or
injunctive relief if the plaintiff wins establishes redressability. And the appropriate
evidentiary hearing is a jury trial. To hold otherwise violates the Seventh
Amendment.
To be sure, KH v. Clay County and Maverick did not explicitly say this was
a standing issue only because it was clear that the defendant would have made the
same decision anyway. Somehow courts have treated sign cases differently,
perhaps because in the past sign cases often involved only injunctive relief, or
perhaps because other statutes or ordinances often clearly prohibit the signs, with
no need for an evidentiary hearing to confirm that result. Indeed, KH v. Clay
County relied on Harp Advertising Illinois, Inc. v. Village of Chicago Ridge, Ill., 9
17
Case: 13-14663 Date Filed: 10/01/2014 Page: 18 of
22
F.3d 1290 (7th Cir. 1993), a case in which a sign company sought only injunctive
relief and in which other, unchallenged provisions plainly would have prohibited
the signs at issue. Harp Advertising in turn relied on Renne v. Geary,
501 U.S. 312
(1991), again a case seeking only prospective relief, and a case in which the Court
said the requested relief would make no practical difference. The requested relief
in the case at bar, in contrast, would make a practical difference: the plaintiff
would get a lot of money.
Standing principles are, or at least should be, the same in sign cases as in
other cases. We should not allow sign cases that are different—because the
validity of the same-decision defense is clear at the outset—to dictate the result in
sign cases like this one in which there is a disputed same-decision defense. But if
this view is rejected—if KH v. Clay County and Maverick are read as applying to
sign cases in which there is a genuine dispute over the same-decision defense—
then KH v. Clay County and Maverick cannot be squared with the many earlier
same-decision cases, including Mt. Healthy, Stanley, the many cases cited in
Stanley, and the other cases cited above.
We of course must follow a prior panel. But when prior panel decisions are
in irreconcilable conflict, the controlling decision is the oldest, not the most recent.
As between the many older cases treating the same-decision defense as a merits
issue, and the two more recent sign-ordinance cases treating this as a standing
18
Case: 13-14663 Date Filed: 10/01/2014 Page: 19 of 22
issue, our obligation is to follow the older cases. See, e.g., Walker v. Mortham,
158 F.3d 1177, 1188-89 (11th Cir. 1998). And here, following the older cases has
the added advantage that they are doctrinally sound and agree with the law as set
out by the Supreme Court.
Three more points should be mentioned on this issue.
First, it may seem odd that the same-decision defense in this case could turn
on a genuine factual dispute. The defendant claims that its “overlay” restrictions
would have prohibited the plaintiff from erecting at least some of the signs at issue,
even if the challenged sign ordinance had not existed. One might think this could
be resolved simply be consulting the overlay restrictions and examining the
plaintiff’s applications to erect the signs. But it apparently is not that easy. Even
determining which overlay restrictions were actually in effect apparently has
proven difficult. And there of course could be disputes about the precise location
or other attributes of a proposed sign or about how county officials actually applied
the overlay restrictions. So while the same-decision defense here may implicate
legal issues, it also implicates factual issues that should have been resolved only by
summary judgment or trial.
Second, the majority cites proffered testimony that 30 of the plaintiff’s 32
proposed signs violated the overlay restrictions and that 11 would have been
denied by the Georgia Department of Transportation. But if even 1 proposed sign
19
Case: 13-14663 Date Filed: 10/01/2014 Page: 20 of 22
would have survived overlay and state review, the same-decision defense fails for
that sign, and so, even on the majority’s view of standing law, the plaintiff has
standing. The likelihood is high that what the majority labels a standing issue will
not end the case. If that is so, then sooner or later a decision will be needed on the
other issues now before us.
Third, when one gets mired in doctrinal intricacies, it sometimes helps to
take a step back, to consider the bigger picture. This is a case in which the plaintiff
claims that the defendant violated the plaintiff’s own constitutional rights. The
plaintiff says the violation caused millions of dollars in actual damage to the
plaintiff. A jury agreed. The plaintiff is the party claiming the millions and
holding a judgment; if the plaintiff wins, it gets the money. The plaintiff may or
may not be correct on the merits. But it is odd to say the plaintiff lacks standing.
In any event, the case is going back to the district court. If, as seems
possible, the district court decides that the overlay restrictions or state law would
not have precluded the plaintiff from erecting these signs, the defendant’s other
challenges to the verdict will again be front and center. I would decide those
issues now.
I would sustain the defendant’s position in at least two respects.
First, the plaintiff sought damages from 2003 forward, even for a period
after some of the sign locations became part of new or expanding municipalities,
20
Case: 13-14663 Date Filed: 10/01/2014 Page: 21 of 22
ending the defendant county’s control over signs in those locations. The defendant
asserted the plaintiff failed to mitigate its damages by applying to the
municipalities; a successful application would have cut off damages going forward.
The court barred the defendant from presenting evidence on this. At oral argument
before us, the plaintiff said everybody knows the municipalities would not have
permitted the signs. But the defendant should not have been foreclosed from
pursuing its mitigation defense based on what everybody supposedly knows.
Second, the plaintiff presented damages experts who testified to the lost cash
flow a typical sign company would suffer from the loss of these locations. But the
recoverable element of damages is lost profits, not lost cash flow. And that is so
even if, as these experts testified, companies decide whether to erect signs based on
projected cash flow. Moreover, the issue is not what a typical company would
have lost, but what this plaintiff lost. None of this necessarily means these experts
should have been excluded. But it does mean that, to get the testimony in and lost
profits to the jury, the plaintiff was obligated to fill in the gaps.
That the jury did not fully accept the experts’ testimony does not render this
error harmless. It is true that the jury awarded only “general” damages, not lost
profits, but if not based on lost profits, it is not clear what the general damages
could properly have consisted of. And even though the jury awarded only a
21
Case: 13-14663 Date Filed: 10/01/2014 Page: 22 of 22
fraction of the lost cash flow calculated by the experts, the experts’ testimony
might well have affected the verdict.
For these reasons, I would vacate the judgment and remand the case for a
new trial.
22