Several other sign companies have followed World Wide Rush into court, using the same legal argument, according to the city's lawyers. Meanwhile, one billboard firm, Summit Media has filed a lawsuit challenging the legality of the settlement agreement with CBS and Clear Channel.
With neighborhood groups furious over the city's inability to enforce its laws, the council approved a new, temporary 90-day sign ban. Although the moratorium took effect Dec. 26, some unpermitted signs have continued going up, according to the city's lawyers.
Councilman Bill Rosendahl, whose Westside district takes in coastal neighborhoods, applauded Tuesday's ruling, saying it would give the city credibility in its battle against billboards. "Obviously, we have seen billboards pop up like mushrooms in our district," he said. "It has been totally out of control."
At the heart of the Metro Lights case are two votes by the City Council. In 2001, the council awarded a contract to CBS-Decaux LLC for advertising on municipal "street furniture" -- restrooms, magazine stands and bus shelters. Months later, the council imposed a citywide off-site sign ban, saying such images have a negative effect on traffic and visual aesthetics.
Metro Lights argued that the ban was unconstitutional, with the city favoring one form of advertising over another. That legal argument was also embraced by Michael McNeilly, founder of the Beverly Hills-based company SkyTag, whose website promotes graphics "so large they can be seen from space."
In a lawsuit filed in August, McNeilly argued that the city could not regulate "supergraphics" -- images applied to vinyl or plastic and placed on the sides of buildings -- while selling its ad space at Los Angeles International Airport and on other city facilities.
Last month, images of the Statue of Liberty with McNeilly's name began appearing on the sides of multistory buildings on Wilshire, Westwood and Santa Monica boulevards. City inspectors said they have launched investigations into at least three buildings with McNeilly images.
McNeilly has not responded to requests from The Times for interviews. But in an e-mail, he argued that his Statue of Liberty images are murals and cannot be controlled by the city.
"The murals of the Statue of Liberty are an artistic and political expression protected by the 1st Amendment," he wrote last week.
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