Judge throws out LA deal for digitizing billboards

LOS ANGELES - A judge on Thursday overturned a settlement allowing major outdoor advertising companies to convert more than 800 billboards in Los Angeles into digital displays, but declined to revoke permits already granted for about 100 conversions.

Superior Court Judge Terry Green said in his decision that the city must withdraw from its 2006 agreement with CBS Corp.'s Outdoor division and Clear Channel Outdoor Holdings Inc.

The companies had settled a lawsuit challenging the city's billboard ban in place at the time.

Summit Media, a smaller billboard company, had sued the city over that settlement, arguing that it selectively exempted the large firms from zoning laws.

Green agreed in his ruling that the settlement was illegal, but said that the city should decide whether to revoke permits that it already issued for digital conversions.

Summit attorney Anthony P. Alden called the ruling a victory.

"We're confident that city officials will now do the right thing and revoke the permits for the existing digital signs and insist that the signs be promptly turned off and removed," he said.

CBS Outdoor spokeswoman Shannon Jacobs and Clear Channel spokesman Tony Alwin said in separate statements that their company believe the agreement is valid and that they plan to appeal the ruling.

City attorney's spokesman Frank Mateljan said his office's staff would consult with the City Council before deciding how to proceed.

City Councilmen Paul Koretz and Eric Garcetti have already introduced legislation that would have the city reconsider permits that have been issued.

"I'm thrilled that the courts struck down the settlements that I think have cause a tremendous amount of billboard blight in our communities," Koretz said. "I don't think we should now appeal that decision."

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.