ATM Exp., Inc. v. City of Montgomery, Alabama

376 F. Supp. 2d 1310, 20 A.L.R. 6th 763, 2005 U.S. Dist. LEXIS 14072, 2005 WL 1618595
CourtDistrict Court, M.D. Alabama
DecidedJuly 8, 2005
DocketCIV.A. 2:04CV0990-M (WO)
StatusPublished
Cited by2 cases

This text of 376 F. Supp. 2d 1310 (ATM Exp., Inc. v. City of Montgomery, Alabama) is published on Counsel Stack Legal Research, covering District Court, M.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ATM Exp., Inc. v. City of Montgomery, Alabama, 376 F. Supp. 2d 1310, 20 A.L.R. 6th 763, 2005 U.S. Dist. LEXIS 14072, 2005 WL 1618595 (M.D. Ala. 2005).

Opinion

MEMORANDUM OPINION AND ORDER ON MOTION

MCPHERSON, United States Magistrate Judge.

In this civil action, the plaintiff, ATM EXPRESS, INC. [“ATM”], challenges the constitutionality of the business licensing ordinance enforced by the City of Montgomery, Aabama [“City”] on its face and as applied. ATM invokes this court’s jurisdiction pursuant to 28 U.S.C. §§ 1331, 1 1343(4), 2 2201, 3 and 2202;. it seeks declaratory and injunctive relief, damages, attorney fees and other supplemental relief because of the City’s denial of a business license to operate an adult bookstore and videostore in Montgomery.

This suit is brought pursuant to 42 U.S.C. § 1983, in support of ATM’s claims that the City’s denial of a business license to operate the store violates its rights under the First and Fourteenth Amendments to the United' States Constitution. ATM’s challenge is two-fold: It attacks the ordinance on its face, alleging that the municipal statute “is a mode of censorship, regulation and control of certain specific kinds of speech” (Doc. #1). It further alleges that, because the City exacts requirements from license applicants for “adult” businesses. that are not required of “mainstream (non-adult) video stores”, the ordinance is also unconstitutional as applied.

The issues are currently before the court on the following motions:

1. ATM’s Motion For Partial Summary Judgment, filed on 1 December 2004 *1313 (Doc. # 20); 4 and
2. The City’s Motion for Summary Judgment, filed on 3 December 2004 (Doc. # 23). 5

For the reasons set forth in this Memorandum, the court concludes that ATM’s Motion For Partial Summary Judgment should be granted in part and denied in part, and the City’s Motion For Summary Judgment should be denied.

I. FACTS AND PROCEDURAL HISTORY

Pursuant to the court’s order, the parties submitted a Joint Statement of Stipulated Facts on 1 December 2004 (Doc. #19).

ATM’s store, known as “X-Mart Adult Supercenter”, is located on the Birmingham highway in Montgomery. ATM wishes to sell “videotapes and DVD’s which feature adults engaged in various explicit sexual activities,” as well as “magazines which include similar content”. ATM also plans to sell “a variety of lingerie, ‘adult novelties’, ‘marital aids’ and other products of interest to adults” (Doc. # 1, Doc. # 19, ¶¶ 3, 4). The store would have been the third of its kind in Montgomery (Doc. # 19, ¶ 10), but ATM does not operate the other stores.

On 23 September 2004, ATM applied for a standard business license but was told by the city’s Director of Finance [“Director”], 6 who administers Montgomery’s business license regulations, that the application could not be processed until ATM’s principal consented to a criminal background check (Doc. # 19, ¶ 23). The Director also required ATM to describe whether the content of the material to be leased and sold would be considered “hard core” or “soft core” pornography (Doc. # 19, ¶ 23). ATM’s legal counsel drafted a letter to the Director objecting to the additional requirements on First Amendment grounds (Doc. # 19, ¶ 26; Doc. # 1, Pi’s. Ex. A). ATM opened its store for business without having complied with the additional requests or obtained a business license (Doc. # 19, ¶ 27).

ATM provided the Director with the requested consent and content description on 24 September 2004 (Doc. # 19, ¶ 28). The narrative stated, in pertinent part, as follows:

This business is best characterized as an “adult videostore”. The primary sales/rentals will consist of videotapes and DVDs with a sexually explicit content. Your application process apparently calls for a description of the content of these films — in particular, whether the films are “hard core” or “soft core” pornography. Those terms are not recognized in the industry and we do not believe they have any commonly accepted meaning. For instance, *1314 the commercial distributors of these films merely rate them as “X” and do not notify retailers whether they are “hard core” or “soft core”.
These films are limited to adults only. Persons under the age of 18 will not be permitted in the store. None of the films to be sold or rented are obscene under contemporary community standards. While many of the films depict actual sexual activities, those activities are not themselves obscene and, when viewed in context, have serious literary, artistic, political or scientific value. We believe that these films are comparable to those already being sold in Montgomery. 7

On 29 September 2004, the City notified ATM that the City Council would consider the matter at a hearing scheduled for 5 October. (Doc.' # 19, ¶ 29). On the day before the scheduled meeting, City police officers, citing the failure to obtain the necessary business license, ordered ATM to shut down. (Doc. # 19, ¶ 30). 8 At the hearing the next day, after being advised by the City’s attorney that it was improper to open a business without a license, the City Council votec] to deny ATM’s business license. (Doc. # 19, ¶¶ 33-34).

ATM then filed a civil complaint seeking to enjoin enforcement of City of Montgomery License Ordinance 48-91 [“48-91”], which ATM cited as the statutory premise of the city’s denial of the business license (Doc. # 1, ¶ 49), on the ground that the ordinance violates the First Amendment on its face and as applied (Doc. # 1).

Following ATM’s filing of a Motion For Preliminary Injunction on 15 October 2004 (Doc. #2), the court, at both counsels’ request, conducted a telephone status conference on 10 November 2004. During the conference, counsel for ATM and the City encouraged the court to schedule the case non-traditionally, i.e., outside the routine scope of Rule 16 because, in their opinion, the case was resolvable by reference to the application of law. Fed. R. Civ. P. 16. Counsel also indicated that both parties were willing to submit the disposition of the case to summary judgment without resort to the usual discovery process. Thereafter, the court entered an order scheduling the parties’ motions (Doc. # 15).

Thus, on 1 December 2004, ATM filed its Motion For Partial Summary Judgment (Doc. # 20), along with its memorandum in support (Doc. #21). The City filed its response to the motion on 8 December *1315 2004 (Doc. # 25), five days after it filed its own Motion For Summary Judgment (Doc. #23).

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376 F. Supp. 2d 1310, 20 A.L.R. 6th 763, 2005 U.S. Dist. LEXIS 14072, 2005 WL 1618595, Counsel Stack Legal Research, https://law.counselstack.com/opinion/atm-exp-inc-v-city-of-montgomery-alabama-almd-2005.