ABCDE Operating, LLC v. City of Detroit

254 F. Supp. 3d 931, 2017 WL 2276982, 2017 U.S. Dist. LEXIS 80163
CourtDistrict Court, E.D. Michigan
DecidedMay 25, 2017
DocketCase No. 14-13158
StatusPublished
Cited by5 cases

This text of 254 F. Supp. 3d 931 (ABCDE Operating, LLC v. City of Detroit) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ABCDE Operating, LLC v. City of Detroit, 254 F. Supp. 3d 931, 2017 WL 2276982, 2017 U.S. Dist. LEXIS 80163 (E.D. Mich. 2017).

Opinion

OPINION AND ORDER REGARDING CROSS-MOTIONS FOR SUMMARY JUDGMENT [52, 53, 55, 75]

Nancy G. Edmunds, United States District Judge

Plaintiff ABODE Operating, LLC, doing business as the Penthouse Club, commenced this suit in this Court on August 15, 2014, alleging that the Defendant City of Detroit and a number of individual Defendant officers in the Detroit Police Department (“DPD”) violated Plaintiffs rights under the First and Fourth Amendments to the U.S. Constitution by conducting warrantless and suspicionless raids of Plaintiffs adult entertainment club in retaliation against Plaintiffs exercise of its First Amendment rights.1 Specifically, Plaintiff alleges that the first of these challenged raids occurred in January of 2014, shortly after Plaintiff wrote to the Detroit Chief of Police complaining of increased police investigations of adult entertainment facilities, and that DPD officers conducted a number of additional raids after Plaintiff brought this suit and began actively pursuing discovery in support of its claims. In Plaintiffs view, the Defendant City and officers conducted these raids in retaliation against Plaintiffs exercise of its constitutionally protected rights to free speech and to seek redress from the courts, and the manner in which these raids were carried out violated the constitutional guarantee against unreasonable searches and seizures.

[936]*936Four dispositive motions presently are pending before the Court. First, the Defendant City and its officers seek the dismissal of Plaintiffs claims or, alternatively, an award of summary judgment in their favor as to each of these claims,2 arguing primarily (i) that the Defendant officers were entitled to enter the public areas of Plaintiffs club without a warrant, (ii) that the officers did not exceed the scope of their lawful authority while on Plaintiffs premises as they carried out administrative inspections and engaged in other legitimate law enforcement activities, (iii) that to the extent any Defendant officers might have violated any constitutional principles, these officers nonetheless would be entitled to qualified immunity from liability, and (iv) that Plaintiff cannot show that any constitutional violations are attributable to a municipal custom or policy, as necessary to hold the Defendant City liable for these alleged violations.3 For its part, Plaintiff has filed two motions for partial summary judgment, contending (i) that its constitutional rights were violated by virtue of a City of Detroit custom authorizing warrantless, suspicionless enforcement actions against adult entertainment venues located in the City, and (ii) that three particular Defendant police officers who led and participated in the war-rantless raids of Plaintiffs club engaged in unlawful activities that violated Plaintiffs constitutional rights as a matter of law. Finally, Plaintiff contends in a more recent motion that under principles of issue preclusion, a state court ruling in a criminal proceeding brought against one of Plaintiffs employees prevents the Defendant City and three of the Defendant officers from relitigating the lawfulness of the December 2015 raid of Plaintiffs club.

On April 19, 2017, the Court heard oral argument on the parties’ motions.4 For the reasons stated more fully below, the Court [937]*937GRANTS Defendants’ motion for summary judgment, and DENIES each of Plaintiffs three motions for partial summary judgment.

I. FACTS

A. The Parties

Plaintiff ABODE Operating, LLC operates the Penthouse Club, an adult cabaret located on Eight Mile Road in Detroit. According to the complaint, the Penthouse Club “offer[s] adult entertainment including erotic dance to consenting adult[ ]” patrons. (Fourth Amended Complaint at ¶ 3.)

Plaintiffs club is subject to a number of municipal regulations governing sexually-oriented businesses, (see Defendants’ Motion, Ex. 34, Detroit City Code Article XV), including such requirements as (i) securing a “valid sexually-oriented business license,” (id. at § 5-15-21(a)), (ii) ensuring that each employee obtains a “valid sexually-oriented business employee license” and keeps this license on the premises while the employee is “working, performing or entertaining,” (id. at §§ 5-15-41(a), 5-15-42(e)), (iii) limiting semi-nude dancers to performing on a “non-portable fixed stage, on which no patrons are permitted, that is at least eighteen (18) inches from the floor in a room of at least six hundred (600) square feet configured and maintained in such a manner that there is an unobstructed view of every area of the room,” (id. at § 5-15-7(a)(3)), (iv) prohibitions against intentional contact between semi-nude performers and patrons, (id. at § 5-15-7(a)(4)), and (v) prohibitions against allowing the business “to become a place for criminal activity” or allowing “the possession, sale, or use of controlled substances or drug paraphernalia on the premises,” (id. at §§ 5-15-7(a)(6), 5-15-7(a)(14)).5 In addition, because Plaintiffs club serves alcohol, it must comply with liquor laws and regulations enacted by the State of Michigan, including statutory provisions mandating that the club (i) obtain a liquor license, see Mich. Comp. Laws § 436.1501 et seq., (ii) secure a topless activity permit, see Mich. Comp. Laws § 436.1916, and (iii) make its premises available for “inspection and search” by an investigator from the Michigan Liquor Control Commission (“MLCC”) or a law enforcement officer authorized to enforce the MLCC’s regulations, Mich. Comp. Laws § 436.1217(2).

The Defendant City of Detroit is a municipal corporation located in Wayne County, Michigan. Each of the 23 individual defendants is or was employed by the Detroit Police Department (“DPD”) as a law enforcement officer, and at all pertinent times, James Craig has served as Detroit’s Chief of Police.6 Shortly after he was appointed to this position in July of 2013, Chief Craig reinstituted the DPD’s Vice Enforcement Unit (“VEU”), which is charged with inspecting and investigating suspected illegal activity at a variety of Detroit commercial establishments, including sexually-oriented businesses, bars, liquor stores, and gas stations. (See Deten-[938]*938dants’ Motion, Ex. 13, Craig Dep. at 6-7.)7 Of the 23 individual DPD officers named as defendants in Plaintiffs Fourth Amended Complaint, 16 were either members of the VEU or exercised supervisory authority over VEU officers during the time period of relevance here. The remaining seven individual defendants were members of the DPD’s narcotics unit during the relevant time period.

B. The January 18, 2014 Warrantless Entry into Plaintiffs Club

Within a'short time after the DPD reinstated the VEU, this unit began conducting enforcement actions at a number of Detroit strip clubs. Plaintiffs club was not among the establishments targeted in these initial VEU operations. Nonetheless, on December 5, 2013, an attorney representing the Plaintiff club and other Detroit-based sexually-oriented businesses wrote a letter to Chief Craig expressing his clients’ “substantial concern” about the increasing frequency of DPD investigations of adult cabarets and the conduct of the officers conducting these investigations. (See Dkt. 53, Plaintiffs Motion for Partial Summary Judgment, Ex.

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254 F. Supp. 3d 931, 2017 WL 2276982, 2017 U.S. Dist. LEXIS 80163, Counsel Stack Legal Research, https://law.counselstack.com/opinion/abcde-operating-llc-v-city-of-detroit-mied-2017.