Lead Opinion
Appellant Plain Dealer Publishing Company challenges the constitutionality of a municipal ordinance that regulates the placement of newspaper dispensing devices (“newsracks”) on the city streets of Lakewood, Ohio. Plain Dealer filed the instant action against the City of Lakewood (“City”) after being denied permission to place its newsracks on City property pursuant to Section 901.181 of the Lakewood Codified Ordinances, as amended. On July 12, 1984, the district court entered judgment for the City with court costs assessed against the City. For the following reasons, we affirm in part and reverse in part.
I.
FACTS
The Plain Dealer daily newspaper is distributed as a publication of general circulation throughout the Cleveland Metropolitan area and Ohio. Generally, Plain Dealer daily newspaper sales are 77 percent by home delivery through carriers and 80 percent on Sundays by home delivery. The balance of the sales are by single copy through retail outlets and coin-operated vending boxes, the latter constituting 4.6 to 5.27 percent of total sales.
The City of Lakewood is approximately 5.5 square miles. It is an older residential community located in Cuyahoga County, Ohio, west of Cleveland. In 1980, the population of the City was 61,963. Lakewood has historically been a city of homes. The commercial areas of the City are located essentially along Madison and Detroit Avenues, conveniently close to all residential areas of the City. There is no area within the City more than one-quarter mile from an all-night newspaper outlet.
In May 1982, Plain Dealer sought permission from the City Law Director to place coin-operated newsracks at sites within the City. The various sites included the commercial areas along Madison and Detroit Avenues and the residential areas along Clifton Boulevard. The City Law Director denied the request citing Section 901.18 of the Lakewood Codified Ordinances which provided at that time:
901.18 ERECTING BUILDINGS OR STRUCTURES ON PUBLIC GROUND. No person shall erect or place, or cause to be erected or placed, or permit to remain, any building or structure of any nature upon any street, lane, alley or public ground within the City.
Plain Dealer filed suit eight months later on January 5, 1983, attacking the constitutionality of Section 901.18. On August 18, 1983, the district court granted plaintiffs motion for summary judgment ruling the ordinance provision was an unconstitutional exercise of police power, and that it banned a reasonable means of newspaper distribution. The court held the issuance of a permanent injunction in abeyance for sixty (60) days in order to give the City an opportunity to enact constitutional provisions regulating placement of newsracks on public property.
On October 17, 1983, the City amended Section 901.18 to permit erection of a structure on public property with the consent of the City where permitted by city or state law. Under the amended ordinance, Plain Dealer would have to apply to the Mayor for a rental agreement or permit. After initial enactment of the amended ordinance, the City reexamined Plain Dealer’s objections to the ordinance and on January 3, 1984, again amended the ordinance. Section 901.181,
After the City had amended the regulatory scheme twice, Plain Dealer filed its amended complaint challenging the constitutionality of the regulatory scheme. Trial was scheduled on April 11, 1984, to hear Plain Dealer’s request for a preliminary and permanent injunction.
There was evidence at trial that although Plain Dealer made no application for a permit, it had intended to place newsracks at eighteen locations in Lakewood, eight of which were located in residential districts on Clifton Boulevard. The district court concluded the amended ordinances were constitutional and entered judgment for the City. On appeal, Plain Dealer argues that Sections 901.18 and 901.181 should be declared unconstitutional because they impose prior restraints on the freedom of press by requiring permits and the payment of rental fees, absolutely ban news-racks in residential districts, and impose unduly burdensome procedures for compliance. Essentially, this appeal analyzes the constitutionality of the Mayor’s power to grant or refuse permits, the constitutionality of the Board’s power to approve the designs of newsracks, the insurance requirement and the absolute ban in residential districts of newsracks.
II.
ANALYSIS OF ORDINANCE
A. Provision Giving Mayor Unbridled Discretion To Grant Or Deny Permit Is Unconstitutional
The right to distribute newspapers by means of newsracks is protected by the First Amendment to the United States Constitution. Miami Herald Publishing Co. v. City of Hallandale,
But even if the Secretary were correct, and the waiver provision were broad enough to allow for exemptions “whenever necessary,” we would find the statute only slightly less troubling. Our cases make clear that a statute that requires such a “license” for the dissemination of ideas is inherently suspect. By placing discretion in the hands of an official to grant or deny a license, such a statute creates a threat of censorship that by its very existence chills freespeech____ Under the Secretary’s interpretation, charities whose First Amendment rights are abridged by the fundrais-ing limitation simply would have traded a direct prohibition on their activity for a licensing scheme that, if it is available to them at all, is available only at the unguided discretion of the Secretary of State.
Id. at 964 n. 12,
It is settled by a long line of recent decisions of this Court that an ordinance which ... makes the peaceful enjoyment of freedoms which the Constitution guarantees contingent upon the uncontrolled will of an official — as by requiring a permit or license which may be granted or withheld in the discretion of such official — is an unconstitutional censorship or prior restraint upon the enjoyment of those freedoms.
Staub v. City of Baxley,
In Staub, the Supreme Court struck down an ordinance under which the Mayor and the City Council had the discretion to grant or deny a permit.
We find that the City of Lakewood’s ordinance unconstitutionally permits the granting of permits to be contingent upon the Mayor’s unbridled discretion. Section 901.181(c)(7) provides that a rental permit is granted upon “terms and conditions deemed necessary and reasonable by the Mayor.” It is clear from subsection (c)(7) that the Mayor is vested with unlimited discretion to grant or deny a permit and make it subject to almost any conditions he may choose. Furthermore, although the language of the ordinance limits the conditions under which the Mayor may grant a permit, it does not contain any standards for the Mayor to use when denying a permit. Consequently, the ordinance’s restriction is not narrowly tailored to serve a significant government interest. See Shuttlesworth,
The Supreme Court has repeatedly struck down ordinances which condition the exercise of First Amendment activities on the broad discretion of local officials, resulting in virtually unreviewable prior restraints on First Amendment rights. Kunz v. New York,
The district court held that application and appeal procedures pursuant to Section 901.181(e) and Ohio Revised Code Chapter 2506 provide an adequate remedy for any wrong alleged by Plain Dealer.
The City argues that under the holdings of Greer v. Spock,
In Gannett Satellite Information Network, Inc., supra, after holding that the
But there is no evidence or finding that MTA has arbitrarily denied licenses or imposed unreasonably discriminatory terms on anyone, or that there is any threat of such conduct. It is doubtful that this record presents a justiciable controversy with respect to the reasonableness of the licensing terms. Therefore, while guidelines might be helpful, we will not require them at this time.
Id. at 776. However, in this case, the City has issued regulations the validity of which is directly challenged by Plain Dealer. Moreover, subsection (c)(7) of those regulations permits, on its face, unbridled discretion and therefore an inherent threat of arbitrary decision making. Since Gannett did not involve a facial challenge to adopted licensing requirements, it is inapplicable to this instant case.
B. Provision Granting the Architectural Board of Review With Standardless Discretion Is Unconstitutional
The provision requiring the Board to approve the design of newsracks is unconstitutional under a time, place and manner analysis because the provision is not narrowly tailored to serve a significant governmental interest. See Perry Education Association v. Perry Local Educators’ Association,
C. Provision Requiring Indemnification Before Access to Public Streets and Sidewalks Is Unconstitutional
On appeal Plain Dealer also challenges the constitutionality of Section 901.-181(c)(5) of the Lakewood Codified Ordinance requiring that “permittees” indemnify and insure the City as a condition to gaining access to its public streets and sidewalks.
The district court held that since the City is liable under Ohio Revised Code Section 723.01 for the failure to maintain the streets, sidewalks, and publicways, it should not be exposed to additional liability without indemnification by any private commercial use on such City owned property. The district court cites Haverlack v. Portage Homes, Inc.,
D. Ban Of All Newsracks In Residential Areas Is Constitutional
The state may enforce time, place and manner regulations which are content-neutral, are narrowly tailored to serve a significant government interest and leave open ample alternative channels of communication. Perry Education Association v. Perry Local Educators’ Association,
We find that the City’s total ban of news-racks in residential areas is a constitutional time, place and manner regulation. First, the ordinance is content-neutral because it bans all newsracks in residential areas of the City. Second, the ordinance is narrowly tailored to serve a significant government interest. We agree with the district court’s holding that “traffic safety, proper functioning of a city’s safety and sanitation forces, maintaining a clear right-of-way on sidewalks for pedestrians, and aesthetics are all substantial government interests and the subject ordinances reach no further than necessary to accomplish the City’s objectives.” See Metromedia, Inc. v. City of San Diego,
III.
SEVERABILITY
The Supreme Court has held that invalid portions of a statute should be severed unless it is clear that the Legislature would not have enacted those provisions which are constitutional, independent of those provisions which are not. INS v. Chadha,
IV.
CROSS APPEAL FOR COSTS
The final issue is whether the district court abused its discretion in awarding costs to appellant Plain Dealer. The City argues that the district court committed reversible error by denying its requests for costs without stating reasons. In view of our disposition of the case on appeal, the district court’s award of costs to Plain Dealer is not erroneous. Furthermore, to prevail on cross-appeal, Lakewood must show more than error. We review decisions awarding costs under an abuse of discretion standard. Owen v. Modern Diversified Industries, Inc.,
Accordingly, the decision of the district court is affirmed in part and reversed in part consistent with the analysis of this opinion.
Notes
. 901.181 NEWSPAPER DISPENSING DEVICES; PERMIT AND APPLICATION.
Applications may be made to and on forms approved by the Mayor for rental permits allowing the installation of newspaper dispensing devices on public property along the streets and thoroughfares within the City respecting newspapers having general circulation throughout the City.
The Mayor shall either deny the application, stating the reasons for such denial or grant said permit subject to the following terms:
(a) The term "newspaper dispensing device”, as used in this Section, shall mean a mechanical, coin operated container constructed of metal or other material of substantially equivalent strength and durability, not more than fifty (50) inches in height and not more thantwenty-five (25) inches in length and width. The design of such devices shall be subject to approval by the Architectural Board of Review.
(b) Newspaper dispensing devices shall not be placed in the residential use districts of the City and shall otherwise be placed adjacent and parallel to building walls not more than six (6) inches distant therefrom or near and parallel to the curb not less than eighteen (18) inches and not more than twenty-four (24) inches distant from the curb at such locations applied for and determined by the Mayor not to cause an undue health or safety hazard, interfere with the right of the public to the proper use of the streets and thoroughfares, or cause a nuisance as proscribed by Ohio Revised Code, Section 723.01. Provided further, however, that no newspaper dispensing device shall be placed, installed, used or maintained:
(1) so as to reduce the clear, continuous combined sidewalk and paved tree lawn width to less than five (5) feet;
(2) within five (5) feet of any fire hydrant or other emergency facility;
(3) within five (5) feet of any intersecting driveway, alley, or street;
(4) within three (3) feet of any marked crosswalk;
(5) at any location where the width of paved clear space in any direction for the passageway of pedestrians is reduced to less than five (5) feet;
(6) within two hundred and fifty (250) feet of another newspaper dispensing device containing the same newspaper or news periodical, except that the Mayor may permit two such dispensing devices at an intersection where such placement would not impair traffic or otherwise create a hazardous condition; and
(7) at any location where three (3) newspaper dispensing devices tire already located.
(c) The rental permit shall be granted upon the following conditions:
(1) the permittee shall pay a rental fee which shall be Ten Dollars ($10.00) per year or part thereof, for each location where a newspaper dispensing device is installed;
(2) the permittee, upon the removal of a newspaper dispensing device, shall restore the property of the City to the same condition as when the device was initially installed, ordinary wear and tear excepted;
(3) the permittee shall maintain the device in good working order and in a safe and clean condition and keep the immediate area surrounding such device free from litter and debris;
(4) the permittee shall not use a newspaper dispensing device for advertising signs or publicity purposes other than that dealing with the display, sale, or purchase of the newspaper sold therein;
(5) the permittee shall save and hold the City of Lakewood harmless from any and all liability for any reason whatsoever occasioned upon the installation and use of each newspaper dispensing device and shall furnish, at permittee’s expense, such public liability insurance as will protect permittee and the City from all claims for damage to property or bodily injury, including death, which may arise from the operation under the permit or in connection therewith and such policy shall name the City of Lakewood as an additional insured, shall be in an amount not less than One Hundred Thousand Dollars ($100,000) combined single limit for any injury to persons and/or damaged property, and shall provide that the insurance coverage shall not be cancelled or reduced by the insurance carrier without thirty (30) days prior written notice to the City. A certificate of such insurance shall be provided to the City and maintained before and during the installation of such devices;
(6) rental permits shall be for a term of one year and shall not be assignable; and
(7) such other terms and conditions deemed necessary and reasonable by the May- or.
(e) A person aggrieved by a decision of the Mayor in refusing to grant or revoking a rental permit shall have the right to appeal to Council. Such appeal shall be taken by filing a notice of appeal including a statement of the grounds for the appeal with the Clerk of Council within ten (10) days after notice of the decision by the Mayor has been given. Council shall set the time and place for hearing such appeal and notice of such time and place shall be given in the same manner as specified hereinabove. The Council shall have the power to reverse, affirm, or modify the decision of the Mayor and any such decision made by the Council shall be final.
. However, we do not specifically discuss each issue raised by Plain Dealer because they are not dispositive of the ultimate determination of this case. For example, we believe the imposition of a rental fee withstands constitutional scrutiny.
. Saia involved a city ordinance which prohibited the use of a sound amplification device without the permission of the police chief. Other licensing systems which are similar have been held unconstitutional prior restraints on speech because they vest broad discretion in granting or withholding a permit upon broad criteria unrelated to proper regulation of public places. See Shuttlesworth v. City of Birmingham,
. Section 901.181(b) states that in determining the location of the newsracks the Mayor should not cause an undue health or safety hazard. However, the language does not state that the Mayor can only refuse a permit for health and safety reasons.
. The district court relied upon Parratt v. Taylor,
. Section 901.181(c)(5) provides that a newspaper box "permittee" must indemnify the City for all liability "for any reason whatsoever occasioned upon the installation and use” of a newspaper box. Furthermore, the ordinance requires the permittee to provide property damage and personal injury insurance in the amount of $100,000, naming the City as an insured.
Concurrence Opinion
concurring.
I concur in the opinion of the Court with the exception of the holding that the insurance or indemnity requirements of the Lakewood ordinance violate the First Amendment. I consider them legitimate and reasonable provisions for the protection of the City from liability. The fact that the City does not require insurance for public services of a quasi-governmental nature does not prohibit it from requiring insurance for other services.
