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All opinions are subject to modification and technical correction prior to official publication in the North Carolina Reports and North Carolina Court of Appeals Reports. In the event of discrepancies between the electronic version of an opinion and the
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NO. COA01-1412
NORTH CAROLINA COURT OF APPEALS
Filed: 1 October 2002
J. NELSON DOLLAR,
Plaintiff,
v
.
TOWN OF CARY, a Municipal Corporation, and ROCKETT, BURKHEAD &
WINSLOW, INC.,
Defendants.
Appeal by Defendant Town of Cary from order filed 6 September
2001 by Judge Donald W. Stephens in Wake County Superior Court.
Heard in the Court of Appeals 20 August 2002.
Stam, Fordham & Danchi, P.A., by Paul Stam, Jr., for plaintiff
appellee.
Tharrington Smith, L.L.P., by Michael Crowell and Deborah R.
Stagner, for defendant-appellant Town of Cary.
The Law Office of John T. Benjamin, Jr., by John T. Benjamin,
Jr., for defendant-appellee Rockett, Burkhead & Winslow, Inc.
GREENE, Judge.
The Town of Cary (the Town) appeals from an order filed 6
September 2001 granting a preliminary injunction in favor of J.
Nelson Dollar (Plaintiff).
On 28 August 2001, Plaintiff filed suit against the Town
seeking injunctive and declaratory relief. The complaint alleged:
(1) the Town had no authority to conduct its Growth Management
Education and Outreach campaign (Campaign), and (2) the Town was
engaging in an impermissible attempt to influence the outcome of
the 2001 Town Council (the Council) election through a media
advertising campaign. In response to the complaint and after a hearing on the
matter, the trial court found in pertinent part:
3. On or about March 8, 2001 and June 28,
2001 [the Council] appropriated public funds
for a [Campaign] . . . , using the sum of
$200[,]000 for[,] among other things[,]
direct mail, media buys, and contracted
services . . . to better inform citizens
about growth management issues.
4. The [Campaign] promotes the merits of
what it refers to as smart growth or
managed growth in a coordinated print, radio
and television campaign which includes paid
media to run from September 6, 2001 through
November 19, 2001.
(See footnote 1)
There is undisputed evidence in the record that growth management
in the Town was an important issue in the 2001 municipal elections
(See footnote 2)
and, although no incumbents were running to retain seats, several
candidates for the Council had aligned themselves with the Town's
slow growth or managed growth policies. Plaintiff was a
candidate for an at large seat on the Council who did not agree
with the growth management policies of the Town. The trial court
then found as a fact that:
6. . . . [I]t is more likely than not that a
Wake County jury would find that a primary
purpose of this [Campaign] is to influence
[the Town's] voters in favor of slow growth
or managed growth candidates in the upcoming
election. The trial court concluded:
8. The Town . . . lacks enabling authority
to spend money for the advertising campaign
. . . (including the materials to be
disseminated in the newspaper, radio, and
television advertisements) which has as a
primary purpose to influence [the Town's]
voters during a municipal election campaign.
9. The Plaintiff is likely to prevail on the
merits. A preliminary injunction is necessary
to protect Plaintiff's rights during the
course of litigation.
10. Plaintiff's motion for a preliminary
injunction should be allowed because of the
timing of the advertising campaign and the
utilization of tax revenue.
The preliminary injunction only enjoined the newspaper, radio,
and television advertisements and was set to expire at the
conclusion of the elections.
______________________________
The dispositive issue is whether the Town's promotion of its
growth management policies through newspaper, radio, and television
advertising was permissible during the 2001 municipal elections for
the Council in which growth management was a campaign issue.
(See footnote 3)
Local government advertising on particular issues is allowed
where the advertising is of an informational nature.
See Dennis v.
Raleigh, 253 N.C. 400, 405, 116 S.E.2d 923, 927 (1960) (city is
permitted to advertise its advantages);
see also Bardolph v.Arnold, 112 N.C. App. 190, 435 S.E.2d 109 (1993) (no cause of
action against county commissioners in their personal capacity
arising from an expenditure for advertising for informational
purposes about a referendum on a school merger and school board
redistricting). Where the advertising, however, is designed to
promote a viewpoint on an issue in order to influence an election,
it is impermissible.
See David M. Lawrence,
Financing Capital
Projects in North Carolina, at 87 (2d ed. 1994); s
ee also Burt v.
Blumenauer, 699 P.2d 168 (Ore. 1985) (county officials may be held
personally liable for expenditures used to promote the defeat of a
measure on a ballot);
Stanson v. Mott, 551 P.2d 1 (Cal. 1976)
(promotional advertising by a state parks and recreation department
during a bond campaign is impermissible);
Citizens to Protect
Public Funds v. Bd. of Educ., 98 A.2d 673 (N.J. 1953) (board of
education was not permitted to fund advertising promoting voting
for school bonds).
The determination of whether advertising is informational or
promotional is a factual question, and factors such as the style,
tenor, and timing of the publication should be considered.
Stanson, 551 P.2d at 12. It is not necessary for the advertisement
to urge voters to vote yes or no or for or against a
particular issue or candidate in order for the advertising to be
promotional.
Id.
In this case, the undisputed evidence shows the Council
authorized the spending of $200,000 on multimedia advertisements in
support of its smart growth and managed growth policies. Theadvertisements were to run between 6 September and 19 November
2001, a period of time coinciding with the Council elections where
the smart/managed growth concept was a contested issue between
candidates. We agree with the trial court that this evidence
reveals it is more likely than not that a . . . jury would find
that a primary purpose of this [Campaign] is to influence [the
Town's] voters in favor of 'slow growth' or 'managed growth'
candidates in the [2001 Council] election and failure to issue an
injunction would cause irreparable harm to Plaintiff.
See
Investors, Inc. v. Berry, 293 N.C. 688, 701, 239 S.E.2d 566, 574
(1977) (standard for issuing preliminary injunction). The
advertisements, in the context of the Council elections, appear to
be more than informational in nature and instead implicitly promote
the candidacy of those Council candidates in sympathy with the
Council's position on the Town's growth.
(See footnote 4)
It is not material that
the advertisements did not directly support one candidate over
another; they promoted only one point of view on an important
campaign issue.
See Citizens to Protect Public Funds, 98 A.2d at
677.
Accordingly, the trial court properly granted the preliminary
injunction.
Affirmed.
Judges TIMMONS-GOODSON and McCULLOUGH concur.
Footnote: 1 The Town does not assign error to these findings of fact and
they are thus deemed to be supported by evidence in the record.
Anderson Chevrolet/Olds v. Higgins, 57 N.C. App. 650, 653, 292
S.E.2d 159, 161 (1982).
Footnote: 2 The Council elections were to be conducted on 9 October 2001
and 6 November 2001.
Footnote: 3 The complaint raises the separate and more fundamental issue
of whether the Town has the authority to conduct a Growth
Management Education and Outreach Project. The trial court did not
reach that issue, and we will not address it in this appeal.
Although this appeal is interlocutory and subject to dismissal, we
elect to review it as a petition for writ of certiorari and address
the merits.
See N.C.R. App. P. 21.
Footnote: 4 Just as the trial court's findings of fact and other rulings
in a preliminary injunction hearing are not binding at trial, this
Court's decision and findings of fact are not binding at a trial on
the merits.
DaimlerChrysler Corp. v. Kirkhart, 148 N.C. App. 572,
578, 561 S.E.2d
276, 282 (2002).
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