Austin – April 29, 2015 – Today, the Texas Supreme Court ruled in favor of the State of Texas in a lawsuit filed by Clear Channel Outdoor involving condemnation costs to acquire billboards that stood in the way of the widening of the Katy Freeway (IH-10) in Houston bringing to close an eight-year court battle
Advertising revenues realized from a billboard may not be considered in a condemnation action, wrote Chief Justice Nathan Hecht, in a unanimous opinion, upholding the Court’s prior precedent in the State v Central Expressway case. Clear Channel made a determined effort to distinguish the Central Expressway ruling but the Court expressly rejected the various proposed grounds of distinction. The Court concluded, “…Clear Channel is not entitled to further compensation for its loss of business operations at the site.”
The ruling has a far-reaching impact on the future acquisition of billboards across the state and their impact on highway construction costs and, ultimately, to taxpayers who could foot the bill. In this case, Clear Channel claimed that the billboards in question had a total value in the range of $700,000, and it was seeking this amount as its award in the condemnation proceeding. Once advertising revenues were excluded from the valuation formula, however, Clear Channel’s own expert testified that the value of each billboard taken was $15,000.
Scenic Texas praised the court’s decision. “Clear Channel Outdoor pays nothing to use our public highways even though that is the source of 100% of their value,” said Margaret Lloyd, vice president of the Scenic Texas Board of Directors. “The Texas Supreme Court ruling is the final word. Clear Channel should not be unjustly compensated by the taxpayers when highway construction requires their billboards to be removed. We think the Court reached a fair result.”
Brief History:
- 2006-2007:
o The state condemned two plots needed to expand Interstate 10 in Houston.
o TxDOT offers to compensate Clear Channel for the value of the structures and the relocation. Clear Channel rejects the offer.
o The City of Houston offers to relocate the billboards to a comparable location. Clear Channel rejects the offer.
o Clear Channel files lawsuit.
- 2008: Jury in state district court trial awarded Clear Channel $268,235.27.
- 2012: The 1st District Court of Appeals in Houston affirmed the jury’s ruling.
- 2014: Texas Supreme Court accepts oral arguments.
- 2015: Texas Supreme Court rules in favor of State of Texas.
For more information and access to the amici curaie brief, visit: http://www.scenictexas.org/wp-content/themes/uploads/2014-04-21-Brief-of-Amici-Curiae.pdf
Scenic Texas was one of the organizations that supported the State in an Amici Curaie brief. Scenic Texas was joined by the Texas Municipal League, the Texas Association of Counties, the Texas Conference of Urban Counties, The Alamo, Central Texas, North East Texas, and North Texas Regional Mobility Authorities, the City of Houston, and Harris County.
To view the press release as a PDF, click here.