Salina’s Cozy Inn Appeal Goes Before Federal Appeals Court Today as Legal Costs Remain in Focus

The City of Salina’s appeal in its long-running legal fight with the Cozy Inn reaches a significant point today, Sept. 16, as attorneys are scheduled to argue the case before the U.S. Court of Appeals for the Tenth Circuit.

The hearing comes after Salina311 reported that the City’s total Cozy Inn-related legal spending had reached $840,110.87 through June 29, including $120,769.52 in charges posted after commissioners authorized the appeal in December.

The case, Cozy Inn, Inc., et al. v. City of Salina, Kansas, Case No. 25-3225, is scheduled for oral argument at 9 a.m. today at the Byron White U.S. Courthouse in Denver. The Cozy Inn case is the third of five cases scheduled for the court’s morning session.

The City of Salina is appealing a November 2025 federal district court ruling that found the City violated the First Amendment in its handling of the Cozy Inn mural dispute. The court rejected a separate claim that the City's sign regulations were unconstitutionally vague.

The three-judge panel scheduled to hear the appeal consists of Tenth Circuit Judges Scott Matheson Jr. and Gregory Phillips, along with U.S. District Judge David H. Urias of New Mexico, sitting by designation.

Appeal Reached $50,000 — Then the Accounting Changed

Today’s oral argument also brings renewed attention to what Salina taxpayers have spent since commissioners decided to appeal.

On Dec. 16, 2025, commissioners authorized the appeal with up to $50,000 for appellate legal expenses and another $20,000 if the case required oral argument.

City accounting records later obtained and reviewed by Salina311 showed four Fairfield & Woods charges specifically identified as appeal expenses:

Jan. 22 — $4,660.50

Feb. 19 — $11,696

March 19 — $40,000

April 30 — $3,541.50

Together, those charges totaled $59,898.

Then, on June 29, City records showed a negative $9,898 adjustment associated with Fairfield & Woods.

That adjustment brought the net amount specifically identified as appeal expenses to exactly $50,000 — the amount commissioners had initially authorized for the appeal.

Salina311 asked City Manager Jacob Wood why the adjustment was made, how the $9,898 figure was calculated, whether it represented a refund, billing correction, fee limit or reclassification, and whether other appeal-related expenses were being recorded under different descriptions.

As of Sept. 16, Salina311 has not received an explanation from the City for the $9,898 adjustment, including whether it represented a refund, billing correction, fee limit, reclassification or another accounting change.

More Than $120,000 Posted Since Appeal Was Approved

The $50,000 specifically labeled for the appeal does not represent all Cozy Inn-related legal charges posted since commissioners voted to appeal.

Salina311's review of City records found $120,769.52 in Cozy Inn-related legal charges were posted after the Dec. 16 appeal authorization.

That does not mean the entire $120,769.52 was spent on the appeal. The records did not identify all of those charges as appellate work, and charges posted after Dec. 16 could include work performed on the underlying federal case.

Through June 29, Salina311 calculated total Cozy Inn-related legal spending at $840,110.87. Of that amount, $719,341.35 was posted before commissioners authorized the appeal and $120,769.52 was posted afterward.

Of the post-authorization spending, the records specifically identified a net $50,000 as appeal expenses after the June adjustment.

Oral Argument Could Bring Additional Costs

Today's hearing also reaches the condition commissioners discussed when they approved additional funding.

The Dec. 16 authorization allowed for another $20,000 if oral argument was required.

Oral argument is now taking place.

That does not establish that the City has spent the additional $20,000. New invoices would be needed to determine what the City was actually charged for preparing for and participating in today's hearing, including any associated expenses.

Those costs would come after the $840,110.87 documented through June 29.

How the Case Reached Denver

The appeal follows the November 2025 federal court ruling in favor of Cozy Inn on its First Amendment claim.

The City appealed the decision in December.

During the spring, the case also attracted participation from national organizations supporting Cozy Inn. Seven groups filed briefs in the case, including the Goldwater Institute, Manhattan Institute and Pacific Legal Foundation.

The mural at the center of the dispute was completed by June while the appeal remained pending.

On July 15, Salina city commissioners met in executive session with outside counsel regarding the litigation. Commissioners returned to open session without taking action.

What Happens Today

Attorneys for the City and Cozy Inn will present their arguments to the three-judge panel, whose members can question both sides about the constitutional and legal issues raised in the appeal.

A decision is not expected today.

After oral argument, the judges will consider the case and eventually issue a written decision. There is no fixed date for that ruling.

The Tenth Circuit typically makes recordings of oral arguments available online, which could provide additional information about the issues and questions the judges focused on during today's hearing.

For Salina, today's argument represents another major step in a dispute that has moved from a local disagreement over a restaurant mural to a federal appellate court — with more than $840,000 in City legal charges documented through June and additional costs from the appeal still being determined.