Case Information
*1 Before: ROGERS and DONALD, Circuit Judges; ANDERSON, District Judge. [*]
S. THOMAS ANDERSON, District Judge.
Bench Billboard Company (BBC) appeals the
district court’s order granting further injunctive relief to the City of Covington, Kentucky
(Covington). The district court previously granted summary judgment in favor of Covington on
BBC’s First Amendment and Equal Protection challenge to a city ordinance, and we affirmed.
Bench Billboard Co. v. City of Covington, Ky. (“Bench Billboard I”)
,
I.
As the court stated in its previous opinion in this case, BBC “installs advertising benches on both public and private property in Kentucky, usually near bus stops.” Bench Billboard I , 465 F. App’x at 396. Covington Ordinance O–2–09 prohibits any encroachment on public rights-of-way such as public sidewalks or streets. Id. at 402. Among such encroachments are “benches,” which the ordinance defines as “[a] seat or seats located on public sidewalks, along any public way or right-of-way, for the accommodation of persons awaiting transportation or for other purposes” and “that may or may not have advertising located anywhere on their exterior.” Id. (quoting Covington, Ky. Ordinance O–2–09) (emphasis removed). The ordinance creates exceptions for “[a]ny property placed in the right-of-way by a governmental or quasi-governmental agency or body, including but not limited to . . . public transportation shelters [and] benches.” Id. (emphasis removed). After Covington began enforcing its ordinances and removing BBC’s benches from public rights-of-way, BBC filed suit, asserting constitutional challenges to the ordinances and later adding claims against the Transit Authority of Northern Kentucky (TANK). Id. at 396. The district court granted summary judgment in favor of Covington and TANK, holding that O–2–09 did not violate BBC’s constitutional rights and that BBC lacked standing to bring its claims against TANK. In Bench Billboard I , we affirmed, and our mandate issued on March 8, 2012. R.143, Page I.D. # 2073.
On March 27, 2012, Covington filed a motion with the district court, requesting “a mandatory injunction, or alternatively a court order for specific relief under Fed. R. Civ. P. 70, that *3 would require [BBC] to remove its sidewalk benches, which remain located in Covington’s rights- of-way in violation of Covington Ord. O–2–09.” R. 144-1, Page I.D. # 2077. According to Covington, BBC refused to remove its benches from public rights-of-way, even though this Court had affirmed the constitutionality of O–2–09. Id. at 2078. [2]
The district court granted Covington’s motion for further relief.
Bench Billboard Co. v. City
of Covington, Ky.
, CIV.A. 06-75-DLB,
II.
We review the district court’s order granting injunctive relief for an abuse of discretion.
Abuse of discretion is the correct standard of review for injunctive relief generally.
U.S. S.E.C. v.
*4
Sierra Brokerage Servs., Inc.
,
BBC argues that the Court should review the district court’s order de novo because the First
Amendment is implicated in this case. We have applied de novo review only where a district court
grants a preliminary injunction implicating First Amendment rights.
E.g. Bays v. City of Fairborn
,
*5
An abuse of discretion occurs if the district court “relied on erroneous findings of fact,
applied the wrong legal standard, misapplied the correct legal standard when reaching a conclusion,
or made a clear error of judgment.”
Sierra Brokerage Servs.
,
A.
The only issue presented in this appeal is whether BBC should be enjoined to remove its benches found at TANK bus stops because the benches are located in Covington’s public rights-of- way in violation of Ordinance O–2–09. BBC does not challenge the district court’s authority to issue the injunction or raise any objections to the district court’s findings of fact in support of its decision to grant injunctive relief. BBC merely contests the district court’s legal conclusions and the scope of the injunctive relief fashioned by the district court. Specifically, BBC contends that the district court abused its discretion by ordering BBC to remove all of its benches in Covington’s public rights-of-way at TANK bus stops. We disagree and hold that the district court’s order granting further injunctive relief was not an abuse of discretion.
*6
As an initial matter, BBC has not challenged the district court’s conclusion that nothing in
the declaratory judgment or in our opinion in
Bench Billboard I
limited the holding only to certain
benches found at certain locations. The district court explained that “[i]n its prior decision
upholding the constitutionality of Ordinance O–2–09, the Court considered all Bench Billboard
benches located in Covington’s pubic rights-of-way as subject to Ordinance O–2–09.”
Bench
Billboard Co.
,
BBC argues that, while Bench Billboard I held Covington’s ordinance to be constitutional, this Court never specifically concluded that BBC could not place its benches at TANK bus stops. BBC contends that under Ky. Rev. Stat. Ann. § 100.324(1), ordinances like O–2–09 do not reach TANK service facilities or any other encroachment placed by TANK at its service facilities, such as bus shelters or benches, that happen to be located in Covington’s public rights-of way. In other words, BBC asks us to construe broadly the exemption from local ordinances under Kentucky law so that the exemption runs to all property located at TANK’s service facilities, whether the property is TANK’s or the property of a private party like BBC. In a slight variation of the same argument, *7 BBC argues that TANK can “allow” third parties to locate property at TANK bus stops and thereby receive the benefit of TANK’s exemption under § 100.324(1). BBC’s Br. 17 (“[I]f TANK can allow the placement of advertising signs on the sides of transit shelters, . . . regardless as to local zoning ordinances [like O–2–09], it can certainly allow the placement of advertising benches at its bus stops . . . .”). Therefore, BBC argues that based on TANK’s statutory exemption from local ordinances like O–2–09, BBC’s benches at TANK bus stops should be exempt from the encroachment ordinance as well.
The district court correctly held that the statutory exemption did not shield BBC’s benches
from local ordinances like O–2–09. Ky. Rev. Stat. Ann. § 100.324(1) reads in relevant part that
“[a]ll other provisions of this chapter to the contrary notwithstanding, public utilities operating under
the jurisdiction of the Public Service Commission . . . shall not be required to receive the approval
of the planning unit for the location or relocation of any of their service facilities.” Ky. Rev. Stat.
Ann. § 100.324(1). It is undisputed here that TANK is a “public utility” covered by this section.
The district court assumed for purposes of its analysis that TANK was not required to receive the
approval of the planning unit for the location or relocation of any of its service facilities.
Bench
Billboard Co.
,
When considering a matter of statutory interpretation, this court begins with the statutory language itself. Ashland Hosp. Corp. v. Serv. Emps. Int’l Union, Dist. 1199 WV/KY/OH , 708 F.3d 737, 741 (6th Cir. 2013) (citation omitted). Where the meaning of the statute’s language is plain, the Court gives it effect, and the Court’s analysis is at its end. Id. (citation omitted). Here the *8 meaning of Ky. Rev. Stat. Ann. § 100.324(1) is plain. Section § 100.324(1) exempts public utilities like TANK from receiving prior approval “for the location or relocation of any of their service facilities.” Ky. Rev. Stat. Ann. § 100.324(1) (emphasis added). While the statute does not define “service facilities,” the statute grants the exemption only to “public utilities” like TANK. The statute’s use of the possessive pronoun “their” clearly limits the exempted service facilities to those possessed or owned by the utility itself and which the utility has located or relocated. The statute provides no support for BBC’s theory that the exemption runs to any property such as BBC’s benches, simply because the property is located or relocated by a third party at a utility’s “service facility.” As the district court aptly stated in its order on injunctive relief, “TANK, as a public utility, does not need approval from the City of Covington for the placement of its service facilities, including shelters, benches, and identifying signs,” and yet BBC “appears to continually overlook” the fact that BBC’s “benches are not the property of a public utility .” Bench Billboard Co. , 2012 WL 2919158, at *8 n.9 (emphasis added). Strictly as a matter of statutory interpretation, § 100.324(1)’s exemption would only apply to TANK’s own “service facilities,” which TANK has located or relocated, and not to benches owned and placed by BBC at TANK’s “service facilities.” Therefore, BBC’s argument fails under a plain reading of Ky. Rev. Stat. Ann. § 100.324(1).
Our construction of Ky. Rev. Stat. Ann. § 100.324(1) is consistent with the district court’s analysis below. In granting Covington’s motion for injunctive relief, the district court correctly found that BBC had adduced no evidence to show that TANK had ever taken any steps “to claim the benches as its own, or to assert any right to the benches or their placement.” Id. at *6. BBC concedes as much on appeal where it admits that the exemption under Kentucky law “belongs to TANK not BBC.” BBC’s Br. 12. Nevertheless, BBC denies that TANK must own or adopt the *9 benches in order for the exemption to apply. So long as the benches are located on TANK’s service facilities, the act of placing the benches “is really TANK’s.” Id. at 18–19. For the reasons already discussed, BBC’s theory is not supported by the plain language of § 100.324(1), and BBC has failed to cite any legal support for its broader construction of § 100.324(1). Therefore, BBC’s benches at TANK bus stops are not exempt from O–2–09.
In what appears to be an alternative argument, BBC argues that under § 100.324(1) TANK has the right “to utilize its service facility by allowing the placement of signs/structures, even though contrary to local zoning ordinances.” BBC’s Br. 12. BBC contends that TANK “is merely maximizing its use and enhancement of its bus stops” and “not conferring upon [any] third parties its statutory exemption.” Id. at 18. For example, TANK “contracts with third parties allowing them to place ads on many of the TANK bus shelters located at the bus stops.” Id. at 17. BBC asks rhetorically then whether there is “really any difference between TANK allowing third parties to place ads on its transit shelters and TANK allowing BBC to place advertising benches at its service facilities.” Id. at 18 (emphasis added).
BBC’s alternative argument is without merit. First, the answer to BBC’s rhetorical question must obviously be yes. BBC has failed to show how the two circumstances, TANK’s power to sell advertising space on its own bus shelters and the unauthorized placement of BBC’s benches at or near TANK bus stops, are legally or factually similar. On the contrary, the record in this case proves the two situations to be entirely distinguishable. It is undisputed that TANK formerly contracted with third-party advertisers to sell space on its own bus shelters in Covington and generated revenue *10 from the ad sales. [7] As this court stated in , after BBC filed suit in this matter, “TANK agreed to voluntarily cease placing paid advertisements on its bus shelters in Covington” in response to Covington’s request that TANK remove the advertising. Bench Billboard I , 465 F. App’x at 399 (emphasis removed). However, in its briefing in this appeal, BBC states that “TANK is knowingly allowing the placement of third-party ads at its bus stops,” suggesting that TANK passively acquiesced in the unauthorized, independent acts of third parties to attach advertisements to TANK’s own bus stops. BBC’s Opening Br. 18. BBC has cited no evidence to support its characterization of TANK’s activities. [8]
By contrast it is undisputed that TANK has no contractual relationship with BBC and
receives no revenue from BBC for the placement of BBC’s benches at TANK bus stops. In
Bench
Billboard I
, we noted the record evidence that BBC had placed its benches at TANK bus stops
“without TANK’s involvement or consent.”
Bench Billboard I
,
B.
Not only does BBC’s theory find no support under Kentucky law, BBC’s argument that TANK has “allowed” it to place BBC’s benches at TANK bus stops is foreclosed by the law of the case doctrine. Both Covington and TANK argue that the premises underpinning BBC’s theory were all previously considered and rejected in . According to Covington, the doctrines of issue preclusion and claim preclusion apply; TANK argues that the previous holdings are now *12 the law of the case. Covington and TANK contend that BBC cannot attempt to relitigate these issues in an effort to avoid complying with the district court’s injunction. BBC responds that “the precise issue that has never been decided on the merits is whether TANK can place or allow to be placed structures, such as: (1) transit shelters, with or without signage; and (2) benches, with or without signage, at its bus stops, even though it may be contrary to local zoning ordinances.” BBC’s Reply Br. 2. BBC argues that this issue is not res judicata because the issue was not actually litigated in a prior proceeding nor was its resolution necessary for the outcome of the proceeding. BBC requests for the first time in its reply brief that this court remand the case to the district court so that this issue “may be fully briefed, argued, and decided.” Id. at 9.
“Issues decided at an early stage of the litigation, either explicitly or by necessary inference
from the disposition, constitute the law of the case.”
Static Control Components, Inc. v. Lexmark
Int’l, Inc.
,
Our analysis of the record evidence in
Bench Billboard I
is now the law of the case, and
BBC’s premise that TANK has “allowed” it to place its benches at TANK bus stops is precluded
under the law of the case doctrine. In both appeals BBC has argued the legal effect of Ky. Rev. Stat.
Ann. § 100.324(1) on BBC’s benches situated at TANK bus stops. In the first appeal, BBC argued
that it had standing to assert claims against TANK, in part because TANK “is exempt from local
zoning regulations under Kentucky law” and therefore “could have circumvented [Covington’s
ordinances] by adopting BBC’s benches as TANK’s own.” ,
Even though each appeal has raised different questions of law (standing in the first and the
proper scope of injunctive relief in the second), BBC is attempting to religitate here evidentiary
issues that were necessarily decided at an earlier stage of the litigation. BBC’s position that TANK
has “knowingly allowed” BBC to place benches at TANK bus stops is merely a new gloss on BBC’s
previous argument that “TANK could have circumvented [Covington’s ordinances] by adopting
BBC’s benches as TANK’s own.”
Bench Billboard I
,
First, we found that “that BBC was aware from its prior dealings with TANK that BBC did not need permission from TANK to place benches at TANK bus stops.” Id. at 398 (emphasis in original). The record showed that BBC had addressed two letters to TANK, seeking information on how to request permission from TANK to place benches at TANK bus stops. Id. TANK did not respond to BBC’s letters, and the district court correctly held that TANK’s failure to respond did not constitute an injury-in-fact. Id. Second, BBC cited evidence of TANK placing third-party advertising on its bus shelters “at the time BBC was attempting to have TANK put its stamp of authority on the placement of [BBC’s] advertising benches at TANK bus stops.” Id. However, we decided that this evidence did not establish injury-in-fact because “BBC presented no evidence that TANK had authority to permit private corporations to install bench billboards at TANK bus stops *15 that would be exempted from local ordinances like O–48–05 [13] by virtue of TANK’s status as a public utility.” Id. [14] Finally, we found that “the record evidence supports that TANK cannot authorize placement of privately owned benches at TANK bus stops,” noting that BBC had placed its benches at TANK bus stops “without TANK’s involvement or consent.” Id. Based on this record evidence, BBC could not prove an injury-in-fact fairly traceable to TANK.
Bench Billboard I
’s assessment of the record evidence is now the law of the case. The court
in
Bench Billboard I
addressed some of the same issues raised in this appeal and considered the
same evidentiary record.
Cf. Moss v. United States
, 323 F.3d 445, 457 n.17 (6th Cir. 2003)
(declining to apply the law of the case doctrine where prior panel did not possess a fully developed
evidentiary record). Specifically, the court found that BBC had adduced no proof that TANK could
even permit BBC to place its benches at TANK bus stops much less extend TANK’s statutory
exemption from local ordinances to BBC’s benches.
[15]
The record actually showed that BBC had
*16
placed its benches at TANK bus stops “without TANK’s involvement or consent.”
Bench Billboard
I
,
Under the circumstances, we will consider BBC’s request for remand only if BBC can show
that “exceptional circumstances” exist at this stage of the litigation.
Westside Mothers v. Olszewski
,
issues in Bench Billboard I were clearly erroneous and would work a manifest injustice. Id. Therefore, we decline to reconsider our previous assessment of the evidence in this case.
Additionally, remand would also be inappropriate because “the precise issue” raised by BBC
is not actually relevant to the proper scope of injunctive relief and merely presents a hypothetical
question. BBC seeks remand so that the district court can address the merits of “whether TANK can
place or allow to be placed structures, such as: (1) transit shelters, with or without signage; and (2)
benches, with or without signage, at its bus stops, even though it may be contrary to local zoning
ordinances.” BBC’s Reply Br. 2. However, there is no evidence in the record that TANK placed
BBC’s benches at TANK bus stops or allowed BBC to place its benches at TANK bus stops.
Therefore, TANK’s authority to “place or allow to be placed” benches at its bus stops is simply
irrelevant. Moreover, Ordinance O–2–09 itself creates an exception for “[a]ny property placed in
the right-of-way by a governmental or quasi-governmental agency or body, including but not limited
to . . . public transportation shelters [and] benches . . . .”
Bench Billboard I
,
For all of these reasons, BBC has not shown why remand and further consideration of “the precise issue that has never been decided on the merits” in this case is necessary, particularly in light *18 of the law of the case. Therefore, we decline to remand this case for further proceedings as to the “precise issue” presented by BBC.
C.
The remaining issue addressed by the district court was BBC’s contention below that TANK
had acquired the public rights-of-way by eminent domain, and therefore, only TANK had
jurisdiction to remove BBC’s benches from the property.
Bench Billboard Co.
,
III.
Because BBC has failed to show why the district court’s declaratory judgment should not reach BBC’s benches placed at TANK bus stops, the district court correctly required BBC to remove its benches from all Covington public rights-of-way pursuant to Ordinance O–2–09. Therefore, the scope of the injunctive relief granted by the district court was not an abuse of discretion. We AFFIRM.
Notes
[*] The Honorable S. Thomas Anderson, United States District Judge for the Western District of Tennessee, sitting by designation.
[2] Covington sought no injunctive relief as to TANK. For its part TANK did not respond to Covington’s motion, though counsel for TANK did attend the motion hearing. R. 154.
[3] The district court held that relief under Rule 70 of the Federal Rules of Civil Procedure was
not available under the circumstances.
Bench Billboard Co.
,
[4] BBC maintained at oral argument that First Amendment concerns might be presented if the Court remanded the case to the district court for further proceedings.
[5] The district court appears to have engaged in very little fact-finding in granting Covington’s motion for further relief. The district court noted that the “factual and procedural history of this matter is articulated in more detail in this Court’s previous opinions.” Bench Billboard Co. , 2012 WL 2919158, at *1. The only new factual developments in the case, i.e. BBC’s refusal to remove its benches pursuant to O–2–09, occurred after this court issued its opinion and mandate in Bench Billboard I . The district court briefly described the posture of the case post-mandate and then proceeded to its legal analysis. Id. at *2.
[6] BBC has argued in this appeal that neither this Court nor the district court had previously
reached the issue about BBC benches at TANK bus stops mainly because TANK was dismissed
from the case for BBC’s lack of standing. As more fully discussed below, this argument is without
merit. While it is true that BBC lacked standing to pursue any claim against TANK, BBC had a full
opportunity to engage in discovery as to TANK. In , this Court made several
factual determinations about the relationship between BBC and TANK and how BBC benches came
to be at TANK bus stops, all based on a fully developed evidentiary record.
[7]
See
R. 79, Malone Dep., Page I.D. # 878; R. 80, Newsome Dep., Page I.D. # 918; R. 87-2,
TANK’s Interrog. Resp., Page I.D. # 1135, 1141. The district court did not specifically rely on this
evidence in announcing its decision to grant injunctive relief, though this Court in
Bench Billboard
I
cited some of these same exhibits.
[8] BBC obliquely refers to the fact that some small percentage of TANK’s bus shelters were not actually placed by TANK. The record evidence shows that Northern Kentucky University owns some bus shelters at TANK bus stops and that some unidentified third party owns other shelters. R. 77, Berkley Dep. 20:14-21:10, Jan. 16, 2008, Page I.D. # 755. To borrow the language of § 100.324(1), TANK arguably did not “locate or relocate” these specific shelters. However, there is no evidence that any of these other shelters are actually located in the City of Covington so that Ordinance O–2–09 would apply. BBC has not shown then why bus shelters other than those owned, “located,” or “relocated” by TANK itself in Covington are relevant in this appeal.
[9] As more fully discussed below, these conclusions of the Billboard Bench I panel belie BBC’s contention that “the precise issue that has never been decided on the merits is whether TANK can place or allow to be placed structures such as: (1) transit shelters, with or without signage; and (2) benches, with or without signage, at its bus stops, even though it may be contrary to local zoning ordinances.” BBC’s Reply Br. 2.
[10] In its brief Covington mentions a recent decision of the Kentucky Court of Appeals construing § 100.324(4). Com., Transp. Cabinet, Dep’t of Highways v. Bd. of Educ. of Bellevue Indep. Sch. Dist. , No. 2010-CA-001733-MR, 2012 WL 876722 (Ky. Ct. App. Mar. 16, 2012). Although Covington discusses the facts of the case and the holding of the Kentucky court, Covington has not shown why the decision applies to the issue presented in this appeal. The Bellevue Independent Schools case concerned a public school’s right to erect a billboard on school property and then lease the advertising to a private third party. Notably the Kentucky Court of Appeals never construed paragraph (1) of Ky. Rev. Stat. Ann. § 100.324, apparently because that paragraph applies to public utilities, and not to public school districts.
[11] The law-of-the-case doctrine applies here because this is a successive appeal in the same
case between the same parties.
E.g. Bach v. First Union Nat. Bank
,
[12] In its opening brief, BBC challenges this statement from and attempts
to reargue the evidence on this point. BBC’s Br. 11. Because our conclusion from
Bench Billboard
I
is now the law of the case on this issue, BBC must present “exceptional circumstances” to justify
reconsideration.
Westside Mothers v. Olszewski
,
[13] As explained in
Bench Billboard I
, Covington Ordinance O–48–05 was enacted on August
26, 2005, and “prohibited the placement of advertising benches in the public rights-of-way” unless
the owner of the bench first obtained a permit from the city.
Bench Billboard I
,
[14] BBC also challenges this statement from
Bench Billboard I
and takes another bite at
briefing the issue. BBC’s Br. 12. Again our conclusion from is now the law of
the case on this issue, and BBC has not raised any “exceptional circumstance” to warrant
reconsideration.
Westside Mothers
,
[15] In its reply brief, BBC contends that this court “has previously acknowledged a lack of
evidence on this issue.” BBC’s Reply Br. 2. BBC is presumably referring to our statement in
Bench
Billboard I
that “BBC presented no evidence” about TANK’s authority to permit BBC to install
benches at TANK bus stops.
Bench Billboard I
,
[16] Ky. Rev. Stat. Ann. § 94A.080(3) states that a transit authority may, if unable to contract or agree with the owner or owners thereof, acquire real and personal property, franchises, bus certificates, easements and other rights when necessary in and to the accomplishments of the public purposes of the authority, through exercise of the power of eminent domain . . . . Any exercise of such power shall be initiated by resolution of the board of the authority identifying the properties or rights to be acquired, reciting the board’s determination that acquisition by such means is necessary, and authorizing initiation of proceedings as required by law; and such resolution of the board of the authority shall not be conclusive of such determination but shall be subject to the approval of the fiscal court or courts of the county or counties in which the property sought to be condemned is located.
