Outfront Media LLC v. The City of San Diego
3:19-cv-02236
S.D. Cal.Jun 2, 2021Background
- Outfront (formerly Gannett/Viacom/CBS Outdoor) held a long‑running lease for a billboard on 1473 F Street; a 2005 addendum converted the lease to month‑to‑month with a 30‑day termination right for the lessor.
- In Feb. 2010, the redevelopment agency (CCDC/Agency) notified the property owner and Outfront that it proposed acquiring the parcel for East Village Green Park and offered $12,160 to purchase the billboard; Outfront/CBS rejected that offer and negotiations about relocation followed.
- The Agency purchased the parcel in 2010 by negotiated sale; City was later designated successor agency and Civic San Diego (formerly CCDC) acted as City’s agent/consultant in winding down redevelopment projects.
- City/Civic provided written notice in April–May 2019 terminating Outfront’s month‑to‑month tenancy consistent with the 2005 addendum; Outfront removed the billboard by May 28, 2019.
- Outfront sued (Nov. 2019) for inverse condemnation (Fifth Amendment), §1983 due‑process/takings, and various state claims; parties filed cross motions for summary judgment.
- The court held no taking occurred, granted summary judgment to City and Civic on the federal inverse‑condemnation and §1983 claims, denied Outfront’s partial summary judgment, and declined supplemental jurisdiction over remaining state claims.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether termination/removal was a compensable taking (inverse condemnation) | Termination/notice and removal were the "substantial equivalent" of eminent domain and caused compensable loss (lost goodwill/improvements) | Lease was month‑to‑month and terminable by contract; no unequivocal threat or exercise of eminent domain as to the billboard | No taking: termination enforced contractual month‑to‑month right; Outfront failed to show governmental action that amounted to eminent domain |
| Whether Outfront suffered compensable "damage" from the government project | Outfront claimed loss from being forced to remove the billboard and attendant business losses | Defendants: Outfront suffered only ordinary contractual consequences of a terminable lease, not cognizable eminent‑domain damages | No triable issue on damages; contractual termination, not compensable taking |
| Whether Civic can be held liable for eminent domain/inverse condemnation | Civic acted and communicated about acquisition and therefore is liable | Civic lacked eminent‑domain power; it served as City/Agency agent/consultant and never purchased property or exercised condemnation | Civic not liable: acted as agent/consultant, had no condemnation power; claims against Civic fail |
| Whether §1983 due‑process/takings claim survives absent a taking | Outfront sought federal relief under §1983 for unconstitutional taking without compensation | Defendants: no taking, so no §1983 violation; any contract breach is not a federal takings claim | §1983 claim fails because no taking occurred; Outfront abandoned contract theory for §1983 |
Key Cases Cited
- Knick v. Township of Scott, 139 S. Ct. 2162 (2019) (landowner may bring a federal §1983 takings claim once property is taken without requiring prior state litigation)
- Chicago, Burlington & Quincy Railroad Co. v. City of Chicago, 166 U.S. 226 (1897) (Fifth Amendment takings protection applied to the states via Fourteenth Amendment)
- Celotex Corp. v. Catrett, 477 U.S. 317 (1986) (summary judgment standards and burden on movant/nonmovant)
- Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (1986) (genuine dispute of material fact standard for summary judgment)
- Pacific Outdoor Advertising Co. v. City of Burbank, 86 Cal. App. 3d 5 (1978) (termination equates to eminent domain only if there is a definite and unequivocal manifestation to condemn)
- County of Ventura v. Channel Islands Marina, Inc., 159 Cal. App. 4th 615 (2008) (rights created by lease are contractual; breach by a government entity does not automatically create extracontractual takings liability)