The US Supreme Court has accepted jurisdiction over a billboard case (Austin, TX v. Reagan National Advertising et al.).

On June 28, the high court granted an appeal by the City of Austin to review a legal challenge to its sign ordinance. In 2017, Reagan National Advertising challenged Austin’s sign code on constitutional grounds, attacking the City’s regulatory distinction between on-premise and off-premise signs. Lamar intervened, joining Reagan in the legal challenge. A federal district court (trial court) ruled in favor of the city in 2019. The US Fifth Circuit Court of Appeals reversed, siding with Reagan and Lamar.

The City of Austin then filed a petition to the US Supreme Court (Petition of Certiorari) to hear the case.

The Supreme Court’s action granting the City of Austin’s Petition for Certiorari triggers a cycle that begins with the submission of “merits” briefs by the parties and also includes the opportunity for interested parties to file supporting amicus curiae briefs.  The briefing is followed by oral arguments before the Court (probably in the late fall/early winter). A decision is expected in 2022.

Although the specific focus of the Reagan/Lamar challenge to the City’s sign code concerned the on-premise/off-premise distinction in the local ordinance, this case takes on broader importance because the federal Highway Beautification Act (HBA), state billboard laws, and local sign codes are all based on the same regulatory structure.

The City argued that the Supreme Court should take the case because:

• “This case cleanly presents a nationally important and unresolved constitutional issue that has divided the circuits.”
• “This case presents an ideal vehicle for resolving the threshold First Amendment question: whether strict scrutiny applies to all on-premises/off-premises distinctions.”(i.e. whether the on-premise/off-premise regulatory violates free speech protections or not)
• “If allowed to stand, the Fifth Circuit’s rule would create a maze of uncertainty that will stymie state and local officials seeking to regulate signs and produce endless litigation, with unpredictable results.”

Insider’s take: We had mentioned back in March we were not sure is the Court would take this case on.  Attorney Richard Hamlin predicted they would not.  The City of Austin hired strong counsel and they made a strong argument as highlighted by the bullet points above.  More to come on this one.

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