San Diego enacted Ordinance No. 10795 prohibiting outdoor advertising display signs. The California Supreme Court defined such signs as rigidly assembled signs permanently affixed to the ground or attached to buildings or other permanent structures and used for displaying a commercial or other advertisement to the public.
The ordinance created exceptions for onsite signs designating the name of the owner or occupant or advertising goods manufactured or services rendered on the premises. It also exempted twelve additional categories that included government signs, signs at public bus stops, commemorative historical plaques, religious symbols, for-sale and for-lease signs, signs on public and commercial vehicles, time-temperature-news signs, approved temporary off-premises subdivision directional signs, and temporary political campaign signs.
Appellants Metromedia, Inc. and other companies engaged in the outdoor advertising business owned approximately 500 to 800 billboards within San Diego. All were located in areas zoned for commercial and industrial use, and most were situated on property leased specifically for maintaining the signs. Each billboard had a remaining useful income-producing life exceeding 25 years and a fair market value between $2,500 and $25,000.
Space on the signs was made available to all comers, with copy changed regularly, usually monthly. The billboards had been used to convey both commercial messages and a broad range of noncommercial political and social messages. The parties entered a stipulation of facts stating that enforcement of the ordinance as written would eliminate the outdoor advertising business in San Diego. The stipulation also stated that outdoor advertising increases sales of products and produces numerous public benefits, that valuable commercial, political, and social information reaches the public through such displays, and that many businesses and politicians rely on outdoor advertising because other forms are insufficient, inappropriate, and prohibitively expensive.
Appellants brought suit in state court to enjoin enforcement of the ordinance. After extensive discovery the parties filed cross-motions for summary judgment. The trial court held the ordinance unconstitutional as an exercise of police power and an abridgment of First Amendment rights. The California Court of Appeal affirmed on the police power ground alone. The California Supreme Court reversed, upholding the ordinance as a proper exercise of municipal zoning authority. Appellants sought review in the United States Supreme Court, which noted probable jurisdiction.
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