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Federation of Advertising Industry Representatives, Inc., an Illinois Not-For-Profit Corporation v. City of Chicago

Citations: 326 F.3d 924; 2003 U.S. App. LEXIS 7920; 2003 WL 1948858Docket: 02-1909

Court: Court of Appeals for the Seventh Circuit; April 25, 2003; Federal Appellate Court

Narrative Opinion Summary

The case concerns the Federation of Advertising Industry Representatives, Inc. challenging a Chicago ordinance that prohibited alcohol and cigarette advertisements in public areas. The Federation argued the ordinance violated the First Amendment and was preempted by federal and state laws, seeking declaratory and injunctive relief, attorney's fees, and damages. Initially, the district court ruled in favor of the Federation regarding cigarette advertising preempted by the Federal Cigarette Labeling and Advertising Act (FCLAA), but denied damages due to insufficient evidence. The Seventh Circuit later reversed the preemption ruling, except for a specific exception, and remanded the case. Subsequent Supreme Court decisions influenced the City's decision to repeal the ordinance, leading the district court to dismiss the case as moot. The Federation sought attorney's fees under 42 U.S.C. § 1988, claiming prevailing party status, but this was denied, as the court found no judicially sanctioned change in legal status. The Federation's appeal, challenging the mootness and denial of fees, was also unsuccessful, reaffirming the mootness due to the ordinance's repeal and lack of evidence for its likely reenactment.

Legal Issues Addressed

First Amendment and Commercial Speech

Application: The Federation challenged the Chicago ordinance as an invalid regulation of noncommercial and commercial speech under the First Amendment.

Reasoning: The Federation moved for summary judgment, arguing that the alcohol advertising regulation in the ordinance was an invalid content-based regulation of noncommercial speech and an improper restriction of commercial speech.

Judicial Review of Mootness and De Novo Review

Application: The court conducted a de novo review of the mootness ruling, emphasizing that voluntary cessation by government officials is treated with deference.

Reasoning: The Federation appealed both the mootness ruling and the denial of attorney's fees, with mootness being a question of law subject to de novo review, particularly relevant when a challenged ordinance is repealed during litigation.

Mootness Doctrine in Repealed Ordinances

Application: The case was deemed moot by the district court following the repeal of the ordinance, as there was no reasonable expectation of reenactment.

Reasoning: The City Council repealed the ordinance on October 31, 2001, leading the district court to grant the motion to dismiss, concluding the case was moot.

Preemption under Federal Cigarette Labeling and Advertising Act (FCLAA)

Application: The district court initially found the ordinance preempted by FCLAA concerning cigarette advertising, but the Seventh Circuit reversed this finding.

Reasoning: In 1998, the district court ruled in favor of the Federation on the preemption claim concerning cigarette advertising, holding it was preempted by the Federal Cigarette Labeling and Advertising Act (FCLAA)... On appeal, the Seventh Circuit reversed the district court's ruling regarding FCLAA preemption.

Prevailing Party and Attorney's Fees under 42 U.S.C. § 1988

Application: The Federation was not considered a prevailing party entitled to attorney's fees as it did not achieve a judicially sanctioned change in legal status.

Reasoning: The Federation then sought rehearing, claiming to be a 'prevailing party' entitled to attorney's fees under 42 U.S.C. § 1988. However, the district court denied this, reaffirming its mootness ruling and stating the Federation did not qualify as a 'prevailing party' per the Supreme Court's interpretation in Buckhannon Board & Care Home, Inc. v. W. Va. Dep't of Health and Human Res.