City of Austin, TX v. Reagan National Advertising of Austin Case Brief Summary | Law Case Explained

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City of Austin, Texas v. Reagan National Advertising of Austin, 142 S. Ct. 1464 (2022)

Cities have long regulated outdoor advertisements. Often, these regulations distinguish between on-premises signs and off-premises signs. On-premises signs advertise or promote things in the same location as the sign, while off-premises signs advertise or promote things located elsewhere. In City of Austin versus Reagan National Advertising, the Supreme Court considered whether this distinction is constitutional.

Reagan National Advertising owned billboards in Austin, Texas. Austin’s sign code permitted on-premises signs to be digitized but prohibited digitizing off-premises signs. Austin denied Reagan’s application for permission to digitize some of its off-premises billboards. Reagan sued Austin in state court, seeking a declaratory judgment that the digitization rule violated the First Amendment. Austin removed the case to federal court.

After a bench trial, the district court ruled for Austin. The Fifth Circuit reversed. That court concluded that the regulation was content-based because, in classifying a sign as on- or off-premises, it required a reader to evaluate the sign’s content. Applying strict scrutiny, the Fifth Circuit struck down the regulation as unconstitutional. The United States Supreme Court granted cert.

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