1995 Venture I, Inc. v. ORANGE COUNTY, TEXAS

947 F. Supp. 271, 1996 WL 673180
CourtDistrict Court, E.D. Texas
DecidedNovember 14, 1996
Docket1:96-cv-00375
StatusPublished
Cited by4 cases

This text of 947 F. Supp. 271 (1995 Venture I, Inc. v. ORANGE COUNTY, TEXAS) is published on Counsel Stack Legal Research, covering District Court, E.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
1995 Venture I, Inc. v. ORANGE COUNTY, TEXAS, 947 F. Supp. 271, 1996 WL 673180 (E.D. Tex. 1996).

Opinion

MEMORANDUM OPINION AND ORDER DENYING DEFENDANTS RULE 12(b)(1) MOTION TO DISMISS AND GRANTING DEFENDANTS MOTION FOR SUMMARY JUDGMENT

SCHELL, Chief Judge.

This matter is before the court on Defendant’s Rule 12(b)(1) Motion to Dismiss and, in the alternative, Motion for Summary Judgment, filed on September 27, 1996. Plaintiff filed a response on October 11,1996. Upon consideration of the motion, response, and applicable law, the court is of the opinion that Defendant’s Motion to Dismiss should be DENIED and Defendant’s Motion for Summary Judgment should be GRANTED.

INTRODUCTION

1995 Venture I, Inc., d/b/a Frenchies (“Plaintiff’), filed suit on June 17, 1996, under 28 U.S.C. §§ 1331, 1343(a)(3), and 1367, and 42 U.S.C. §§ 1983 and 1988, seeking declaratory relief, preliminary and permanent injunctive relief, and attorney’s fees. *275 Plaintiff claims that the adoption and application of Orange County’s (“Defendant”) regulations governing sexually oriented businesses violates (1) Plaintiffs right to freedom of expression under the First Amendment to the United States Constitution and Article 1, § 8 of the Texas Constitution and (2) its rights to substantive and procedural due process under the Fourteenth Amendment to the United States Constitution and Article 1, § 19 of the Texas Constitution. Plaintiff also claims that Defendant’s regulations were not adopted in accordance with the Texas Open Meetings Act 1 or the enabling statute, Chapter 243 of the Texas Local Government Code. Furthermore, Plaintiff seeks declaratory relief that the enabling statute is invalid as an attempt to confer sovereignty upon counties insofar as it grants to counties the power to treat a violation of county regulations as a Class A misdemeanor. 2

Attached to its complaint, Plaintiff filed a motion for preliminary injunction. Pursuant to the court’s order dated June 18, 1996, Plaintiff filed a brief in support of its motion for preliminary injunction on June 28, 1996. Defendant filed its response in opposition to Plaintiffs motion for preliminary injunction on July 5, 1996. In the court’s order dated September 10, 1996, the court consolidated the hearing on Plaintiffs motion for preliminary injunction with the trial on the merits. In a September 17,1996 pretrial hearing, the court set this cause for trial on October 23, 1996, and set the filing deadlines for any and all dispositive motions. Since the timely receipt of Defendant’s motion and Plaintiffs response, the court has found it necessary to postpone the trial from its original setting. 3 Because the court now GRANTS Defendant’s Motion for Summary Judgment, the resetting of this ease for trial is unnecessary.

FACTS

Plaintiff contends that it contacted Defendant on January 23, 1996 to inquire as to whether a permit was required to operate a sexually oriented business in the county. Defendant admits that it did not have regulations governing sexually oriented businesses or permit requirements for such businesses on that date, but Defendant neither admits nor denies conveying that information to the Plaintiff. Subsequently, Plaintiff contends it purchased a braiding for $100,000 and spent in excess of $104,300 in remodeling the building for use as a sexually oriented business. 4 Further, Plaintiff contends that these steps were taken with the understanding that no permit was needed to operate such a business.

According to Defendant, it posted public notice on March 22, 1996, indicating that the County Commissioners Court would discuss and take possible action regarding regulation of sexually oriented businesses in Orange County at the March 25, 1996 meeting. Defendant then enacted an ordinance regulating sexually oriented businesses at the March 25th meeting. According to Plaintiff, Defendant then adopted an application form for a permit to operate a sexually oriented business on March 29,1996. Defendant contends that notice of possible action concerning the adoption of the application form was posted on March 29th, but formal adoption did not occur until April 1, 1996, at a special court session allegedly attended by Plaintiff’s counsel. Defendant further contends that since the enactment of the regulations, Plaintiff has neither attempted to open nor applied for the required permit. 5 Plaintiff contends that *276 applying for a permit would be an exercise in futility.

DISCUSSION

I. Rule 12(b)(1) Motion to Dismiss

Federal Rule of Civil Procedure 12(b)(1) authorizes a court to dismiss a claim for lack of subject matter jurisdiction. “It is axiomatic that a district court may inquire into the basis of its subject matter jurisdiction at any stage of the proceedings.” Menchaca v. Chrysler Credit Corp., 613 F.2d 507, 511 (5th Cir.1980) (citation omitted). In this case, Plaintiffs claims under the First and Fourteenth Amendments to the United States Constitution are sufficient to establish federal question jurisdiction 6 and withstand a “facial attack” on the complaint. 7 See id. Defendant, however, has launched a “factual attack” on the existence of subject matter jurisdiction, which “challenges the existence of subject matter jurisdiction in fact, irrespective-of the pleadings, and matters outside the pleadings, such as testimony and affidavits, are considered.” Id. (citation omitted). “[A] factual attack under Rule 12(b)(1) may occur at any stage of the proceedings, and plaintiff bears the burden of proof that jurisdiction does in fact exist.” Id. (citations omitted).

A Plaintiff’s Standing

Defendant contends that Plaintiff has no standing to challenge Defendant’s regulations governing the operation of sexually oriented businesses because Plaintiff has suffered no injury, i.e., denial of a requested permit or a criminal conviction resulting from a violation of the regulations. According to Defendant, “[b]ecause Plaintiff has never made an application, it has never been denied such a permit, and because Plaintiff has never attempted to open, Defendant has never taken any action against [Plaintiff] under the regulations.” Def.’s Mot. to Dismiss, and in the Alternative, Mot. for Summ.J. at 7.

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Cite This Page — Counsel Stack

Bluebook (online)
947 F. Supp. 271, 1996 WL 673180, Counsel Stack Legal Research, https://law.counselstack.com/opinion/1995-venture-i-inc-v-orange-county-texas-txed-1996.