Lead Opinion
Opinion by Judge HALL; Partial Concurrence and Partial Dissent by Judge CALLAHAN.
Outdoor Media Group appeals the district court’s dismissal of its 42 U.S.C. § 1983 complaint under Federal Rule of Civil Procedure 12(b)(6). Outdoor Media asserts that the City of Beaumont’s billboard ordinance violates the First and Fourteenth Amendments. Beaumont repealed the challenged ordinance and replaced it with a new ordinance that specifically bans new billboard construction.
I. Background
On May 22, 2003, Outdoor Media filed a conditional use permit application with the Planning Commission of the city of Beaumont to erect four billboards at the junction of Interstate 10 and State Route 60. On July 8, the City’s Director of Planning recommended that the Planning Commission deny the application, because the signs “would result in excessive, undue and adverse visual intrusion in the character of the subject Interstate 10 and State Highway 60 commercial corridors, by adding unrelated advertising to a future new commercial facility.” It also found the proposed billboards would “have a detrimental effect on the general public, health, safety and welfare by adversely affecting existing views of open space and visual relief and future views of new commercial development.” The Planning Commission accepted this recommendation and rejected Outdoor Media’s permit application. Outdoor Media appealed to the City Council, which affirmed the denial.
Outdoor Media filed this suit on December 12, 2003, alleging that the city deprived it of its First and Fourteenth Amendment rights. Specifically, Outdoor Media alleges that (1) the ordinance violates the First Amendment because it regulates signs on the basis of content, regulates commercial speech without a substantial government interest, allows the city standardless discretion in the permitting process, and is overbroad; (2) the city violated Outdoor Media’s procedural due process rights because its denial was unreasonable, arbitrary, and capricious; and (3) the ordinance violates the Equal Protection Clause by regulating on the basis of arbitrary and unreasonable classifications. Outdoor Media sought damages for deprivation of its constitutional rights, a declaration that the sign ordinance is unconstitutional on its face and as applied to Outdoor Media, and injunctive relief prohibiting the city from interfering with Outdoor Media’s efforts to erect otherwise-conforming signs within the city.
On February 3, 2004, the City Council repealed the challenged sign ordinance and replaced it with a new ordinance that specifically bans new billboards. The city sought judicial notice of the old and new sign ordinances, and filed a motion to dismiss the complaint. Outdoor Media opposed the motion to dismiss and sought judicial notice of the Director of Planning’s recommendation to reject the company’s permits. On June 30, 2005, the district court granted both motions for judicial notice and the motion to dismiss. Outdoor Media timely appealed.
II. Standard of Review
We review de novo the district court’s grant of a motion to dismiss under Federal Rule of Civil Procedure 12(b)(6). Knievel v. ESPN,
III. Analysis
A. Jurisdiction
Before we examine the merits of Outdoor Media’s appeal, we must address Beaumont’s claim, raised for the first time at oral argument, that we lack jurisdiction to consider this case because Outdoor Media has failed to exhaust its state law remedies. Generally, the federal courts deem waived any arguments that are not raised and presented in the parties’ opening briefs. See, e.g., Holland America Line Inc. v. Wartsila North America, Inc.,
Beaumont’s jurisdictional argument flows from two premises: (1) a plaintiff must exhaust its state law remedies before pursuing a federal claim, and (2) a writ of administrative mandamus is the exclusive state law remedy for an allegedly improperly denied conditional use permit. We need not address the second premise because the first is fatally flawed. The Supreme Court has explained that “exhaustion of state administrative remedies is not a prerequisite to an action under § 1983.” Patsy v. Bd. of Regents, 457 U.S. 496, 507,
B. Mootness of Claims for Declaratory and Injunctive Relief
Outdoor Media asserts that the district court erred in finding that the repeal of the ordinance mooted its requests for a declaration that the ordinance is unconstitutional and for an injunction prohibiting its enforcement. “A claim is moot when the issues presented are no longer live or the parties lack a legally cognizable interest in the outcome. The basic question is whether there exists a present controversy as to which effective relief can be granted.” Vill. of Gambell v. Babbitt,
Here, the district court correctly determined that the city’s repeal of the sign ordinance moots Outdoor Media’s claims for declaratory and injunctive relief. Because there is no longer any risk that Outdoor Media will be subject to the challenged ordinance, there exists no live issue upon which the court could issue prospective relief. Noatak,
Outdoor Media also claims that its claim is not moot because the new ordinance remains constitutionally infirm. In Northeastern Florida Chapter of the Associated General Contractors of America v. Jacksonville,
C. Damages
As the district court correctly noted, the repeal of the ordinance under which Outdoor Media’s permits were denied does not moot its claim for damages. Buckhannon Bd. & Care Home v. W. Va. Dep’t of Health & Human Res.,
The district court’s ruling was correct as to Outdoor Media’s procedural due process claim. “The requirements of procedural due process apply only to the
The district court erred, however, in dismissing Outdoor Media’s First Amendment and Equal Protection claims on this ground. The establishment of a vested property right is irrelevant to such a challenge. See Rutan v. Republican Party of Ill.
even though a person has no ‘right’ to a valuable governmental benefit and even though the government may deny him the benefit for any number of reasons, there are some reasons upon which the government may not rely. It may not deny a benefit to a person on a basis that infringes his constitutionally protected interests-especially, his interest in freedom of speech. For if the government could deny a benefit to a person because of his constitutionally protected speech or associations, his exercise of those freedoms would in effect be penalized and inhibited. This would allow the government to produce a result which it could not command directly. Such interference with constitutional rights is impermissible.
Id. (internal quotation marks and citations omitted). We therefore hold that the district court erred in dismissing Outdoor Media’s First Amendment and Equal Protection claims solely due to lack of a vested property right, and examine whether any of these theories state a claim upon which relief may be granted.
1. First Amendment: Unbridled Discretion
The prior restraint doctrine requires that a licensing regime “avoid placing unbridled discretion in the hands of government officials.” GK Ltd. Travel v. City of Lake Oswego,
Under the old ordinance, a permit was required for any sign that was not expressly exempted from the permit scheme. Former City of Beaumont Municipal Code (hereafter “Old Ordinance”) § 17.60.020(A).
Notably, the Old Ordinance explicitly prohibited all “Off-site signs, except temporary subdivision directional signs as provided for in this Chapter.” Id. § 17.60.025(B). “Off-site signs” were defined as “[a]ny sign which advertises or informs in any manner businesses, services, goods, persons or events at some location other than that upon which the sign is located.” Id. § 17.60.010(M). Regulations governing the Commercial-Freeway Service zone, where Outdoor Media sought to erect its signs, were even more specific: the planning commission could grant permits for freeway-facing signs only if the signs are “located upon or within five hundred (500) feet of the property upon which the use identified is located” and “in the vicinity of a freeway interchange and within three hundred (300) feet of the freeway right-of-way and six hundred (600) feet of the intersecting street right-of-way.” Id. § 17.60.110(C). The Director of Planning must also make specific findings regarding the proposed height in relation to the freeway elevation, the number and spacing of signs in the area, and the sign’s height, design, and location in relation to its proposed use. Id. Finally, the Old Ordinance required all signs to be “compatible with the style or character of existing improvements upon lots adjacent to the site,” including incorporating specific visual elements such as type of construction materials, color, or other design detail. Id. § 17.60.200.
We hold that these restrictions sufficiently cabined the Director of Planning’s discretion by providing “adequate standards to guide the official’s decision.” The prohibition on offsite signs requires only that the Director of Planning determine whether the proposed sign’s content is related to its site. The definition of “off-site” is sufficiently clear to guide this discretion, particularly when coupled with the additional restrictions governing freeway-facing signs. In any case, the off-site/on-site distinction is well-canvassed in our prior case law. See Outdoor Sys., Inc. v. City of Mesa,
2. First Amendment: Regulation of Commercial Speech
Outdoor Media claims that the Old Ordinance impermissibly regulated commercial speech without stating a substantial governmental interest, and that the regulations were not narrowly tailored to those interests. Beaumont cited among its legislative purposes a desire to preserve the city’s aesthetics from “overhead clutter” and to “preclude potential traffic and safety hazards through good signing.” Old Ordinance § 17.60.005. As a regulation of commercial speech, both the Supreme Court and our circuit have endorsed these rationales as substantial governmental interests. See Metromedia, 453 U.S. at 508-09,
S. First Amendment: Regulation of Noncommercial Speech
Although Metromedia allows a city to completely ban off-site commercial billboards, it does not necessarily follow that the city may treat noncommercial speech in a like fashion. “The fact that the city may value commercial messages relating to on-site goods and services more than it values commercial communications relating to off-site goods and services does not justify prohibiting an occupant from displaying its own ideas or those of others.” Metromedia,
Here, the Old Ordinance’s off-site ban prohibits signs that “advertise!] or inform[] in any manner businesses, services, goods, persons, or events at some location other than that upon which the sign is located.” Old Ordinance § 17.60.010. This broad prohibition seems to reach beyond off-site commercial copy to preclude the posting of many noncommercial messages, if those messages are not related to the site upon which the sign is located. See Desert Outdoor Adv., Inc. v. City of Moreno Valley,
We also note that the Old Ordinance may also have impermissibly regulated noncommercial speech on the basis of content, by exempting certain noncommercial off-site signs from the permit requirement. For example, political signs relating to candidates or issues may be erected without a permit, subject to certain time and size restrictions. Old Ordinance § 17.60.025(A)(15). Certain directional and informational signs are also exempt. Id. § 17.60.025(A)(11). “Because the exemptions require City officials to examine the content of noncommercial ... signs to determine whether the exemption applies, the City’s regulation of noncommercial speech is content-based.” Desert Outdoor Adv.,
This case is before us on a motion to dismiss. The record is therefore not yet developed regarding the constitutionality of these restrictions. In addition, we reiterate that only Outdoor Media’s damages claims survive the repeal of the Old Ordinance, and “we cannot say whether this facial infirmity should enable [the plaintiff] to recover damages, as the record is inadequate at present to determine whether this infirmity was the cause of [the plaintiffs] harm.” Coral Const. Co. v. King County,
k- First Amendment: Overbreadth
Outdoor Media also claims, without explanation, that the Old Ordinance is overbroad. We affirm dismissal of this claim because the plaintiff is limited to damages, which are unavailable for an overbreadth challenge. An overbreadth claim is essentially a claim that a statute may be constitutional as applied to the plaintiff but sweeps so broad as to unconstitutionally suppress the speech of others not before the court. See Taxpayers for Vincent,
5. Equal Protection Clause
Finally, Outdoor Media claims that the Old Ordinance violates the Equal Protection clause. Because billboard operators are not a protected class, the city’s distinction between off-site and on-site advertisers is sustained if rationally related to a legitimate government interest. Kahawaiolaa v. Norton,
IV. Conclusion
We affirm the district court’s dismissal of Outdoor Media’s claims for injunctive and declaratory relief as moot in light of the revocation of the challenged ordinance. In addition, we affirm the dismissal of the company’s procedural due process claim because the company lacks vested rights in a permit application. We hold the district court erred in dismissing Outdoor Media’s First Amendment and Equal Protection claims under the vested rights doctrine. After reviewing the noticed ordinance, however, we conclude that none of these allegations states a claim under our case law, with the exception of the claim that the Old Ordinance improperly regulated noncommercial speech. We therefore reverse the dismissal of this claim only, and remand for further deliberation in light of this opinion. Each party shall bear its own costs on appeal.
AFFIRMED in part, REVERSED in part and REMANDED.
Notes
. See also id. (“As a general rule, if a challenged law is repealed or expires, the case becomes moot.”).
. See also Tanner Adver. Group, L.L.C. v. Fayette County, Ga.,
.We also note that it would be an odd incentive structure that punishes a city for repealing an ordinance in response to a litigant's suggestion that said ordinance was illegal.
. Outdoor Media also argues that the new ordinance is overly broad, but the breadth of the new ordinance's prohibition is not challenged in its complaint and in any case, Outdoor Media does not explain how the ban on new commercial billboards will "have any different impact on any third parties’ interests in free speech than it has” on itself. Members of City Council of City of Los Angeles v. Taxpayers for Vincent,
. Outdoor Media also argues that the statute’s repeal does not moot its claims because, unlike in Noatak and Federation of Advertising Industry Representatives v. City of Chicago,
. The Old Ordinance contained a list of exempted signs, none of which are implicated by Outdoor Media's permit applications. See Old Ordinance § 17.60.025(A).
. The Planning Director’s discretion was further cabined by provisions explicitly permitting administrative and judicial review of his decision. See Old Ordinance §§ 17.60.020(H), 17.60.300(D)(6); see also Get Outdoors II v. City of San Diego,
. Outdoor Media’s complaint faults the city for failing to conduct studies showing that off-site signs have an adverse effect upon the city’s aesthetics or safety. In the context of regulating commercial speech, our case law does not require any such analysis. See Ackerley,
. Contrary to the dissent, we find that content may well have played a role in the denial of the permits. The City’s Director of Planning recommended that the permits be denied because the signs "would result in excessive, undue and adverse visual intrusion ... by adding unrelated advertising to a future new commercial facility” (emphasis added). Because the term "advertising” is ambiguous and may include both commercial and noncommercial messages, Outdoor Media has standing to challenge the code as imposing too high a burden on noncommercial speech.
Concurrence Opinion
concurring in part and dissenting in part:
I concur in Parts I, II, III.A, and III.B of the majority opinion. I also concur in Parts III.C.1, III.C.2, and III.C.4, but I dissent from Part III.C.3 because I conclude that Outdoor Media does not have standing to raise a facial challenge to the regulation of noncommercial speech.
Outdoor Media’s conditional use permit application was denied based on Beaumont’s concerns for visual blight and unrelated advertising in close proximity to an anticipated new commercial development. Beaumont’s decision was not based on the content of messages that Outdoor Media would have posted had its conditional use permits been granted, nor could it. Outdoor Media erects its billboard structure on leased property and then leases its billboard advertising space to the public. Its application for the conditional use permits did not contain the content of any messages. Indeed, message content was unknown when Outdoor Media applied for the permits because it was yet to be determined by Outdoor Media’s future lessees.
In sum, Outdoor Media cannot establish that it was injured by the provision of Beaumont’s former ordinance regulating noncommercial speech. Accordingly, I would affirm the district court’s dismissal of Outdoor Media’s complaint in its entirety-
