B Street Commons, Inc. v. Board of County Commissioners

835 F. Supp. 1266, 1993 U.S. Dist. LEXIS 15762, 1993 WL 459882
CourtDistrict Court, D. Colorado
DecidedMay 27, 1993
DocketCiv. A. No. 87-M-1679
StatusPublished
Cited by2 cases

This text of 835 F. Supp. 1266 (B Street Commons, Inc. v. Board of County Commissioners) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
B Street Commons, Inc. v. Board of County Commissioners, 835 F. Supp. 1266, 1993 U.S. Dist. LEXIS 15762, 1993 WL 459882 (D. Colo. 1993).

Opinion

MEMORANDUM OPINION AND ORDER

MATSCH, District Judge.

In this action under 42 U.S.C. § 1983 the defendants’ moved for summary judgment on the plaintiffs’ damages claims, and the plaintiffs and intervenors filed a cross motion for partial summary judgment on the issue of qualified immunity. The plaintiffs are B Street Commons, Inc. (a Colorado corporation), Just Buddies, Inc. (a Colorado corporation d/b/a the Blue Moon Saloon), and Daniel Sobieray. The intervening plaintiffs are Vince Harrington, Gregory Dowell, and Penny Clark. These parties are collectively called plaintiffs. The defendants are the Board of County Commissioners of El Paso County (the Board), Gary Shupp, Marcy Morrison, Charles Meier, Loren Whittemore, and Jim Campbell (the commissioners) in their individual and official capacities. Jurisdiction exists pursuant to 28 U.S.C. § 1343(a)(3).

El Paso County regulated adult entertainment businesses under Resolution 86-83, Land Use 36 (“the Resolution”), enacted by the Board on March 27, 1986. The definition of “adult uses” included adult bookstores, adult hotels, and adult movie theaters. On November 4, 1987 John Muse and Daniel Sobieray, then owner-operators of the Blue Moon Saloon, filed a § 1983 action claiming that the special use permit requirement in the Resolution was facially invalid, as violative of the First and Fourteenth Amendments. (John Muse is no longer a plaintiff in this case.) Vince Harrington and Gregory Dowell’s motion to intervene in this matter was granted on November 18, 1987. On January 12, 1990, this court granted plaintiffs’ original motion for. partial summary judgment, declaring the special use permit requirement unconstitutional on its face. On March 27, 1990 Penny Clark’s motion to intervene was granted.

The commissioners denied two applications for special use permits for two locations for adult business establishments in El Paso County: one filed by Sobieray and Muse, and a second filed by Dowell and Harrington. Both denials occurred before the Resolution was declared unconstitutional. The plaintiffs were involved in business plans concerning two properties in El Paso County—one at 2145 B Street, Colorado Springs, and the second at 3675 South Highway 85/87. They claim that denial of a special use permit destroyed their plans. In a consolidated amended complaint, filed April 16,1990, Daniel Sobieray and the two corporations claimed damages for loss of a sale of the B Street property to Clark; expenses for improve[1268]*1268ment of the property and to make the sale; loss of a development loan for two adjacent lots; loss of leases on the adjacent lots; holding costs; out-of-pocket expenses incurred in seeking the special use permit; lost business opportunities; and losses incurred in the foreclosure of the B Street property. Harrington and Dowell claimed as damages: out-of-pocket expenses in seeking the special use permit; loss of a lease option for the South Highway property resulting in a lost business opportunity to establish an adult business; and expenses to improve the property. Intervenor Clark seeks damages for: loss of income and profits; loss of business opportunity and future income; construction and remodelling expenses; prepaid expenses of rent and security deposits; and additional costs of doing business, e.g., salaries, tax, and insurance. All plaintiffs seek attorneys fees, costs, and legal expenses.

From the papers filed with the motions, these facts appear to be uncontested:

History of the B Street Properiy
March 27, 1986—the Resolution was enacted by the Board of County Commissioners.
July 15, 1986—Muse and Sobieray bought the property located at 2145 B Street in Colorado Springs, taking title as tenants in common. They intended to divide this property into three parcels, and construct new buildings on two of the parcels.
September 25, 1986—B Street Commons, Inc. and Just Buddies, Inc. were incorporated. Muse and Sobieray were named as officers and directors of both corporations. Sobieray was the president of both. Just Buddies took the trade name Blue Moon Saloon.
March 6, 1987—Muse and Sobieray submitted their application for special use permit for the B Street premises to the El Paso County Planning Commission.
April 20, 1987—El Paso County Land Use Department received a letter from Philip Anderson, as attorney for Muse and Sobieray, requesting a 30-day delay on the adult use application because his clients had signed a sales contract for the B Street property with a potential buyer not interested in the adult use.
May 3, 1987—Muse quitclaimed his interest in the B Street property to Sun Hwang and Duck Gibson.
June 2, 1987—Muse transferred his stock in Just Buddies, Inc. and B Street Commons, Inc. to Hwang and Gibson, and resigned as an officer and director of both corporations.
June 19, 1987—Penny Clark executed a contract with B Street Commons, Inc. to purchase the B Street property for $450,-000. The contract included an addendum for a lease and option to acquire the business of the Blue Moon Saloon. The contract was signed by Sobieray as President of B Street Commons, Inc., Hwang, and Gibson as sellers, and Clark as buyer. The record title ownership of the real property at this time is not clear.
The addendum also provided for the transfer of 1,000 shares of stock in Just Buddies, Inc. to Clark to allow her to apply for a liquor license transfer. Also, the addendum stated that the lease contract would be terminated after 18 months if Clark did not receive the adult use permit for a topless nightclub.
July 6, 1987—Clark executed a lease with option to buy with B Street Commons, Inc. for the B Street property. The lease terms authorized Clark to use the leased premises for an adult tavern/nightclub. The signers were Sobieray as president of B Street Commons, Inc. and Clark.
July 13, 1987—Clark executed a management agreement with Just Buddies, Inc. with respect to the Blue Moon Saloon. The signers were Sobieray as president of Just Buddies, Inc., and Penny Clark. Clark also executed a bill of sale for 1,000 shares of stock in Just Buddies from B Street Commons. The stock was to be held in escrow. Sobieray signed the contract as president of B Street Commons, Inc.
July 14, 1987—The board of directors of Just Buddies, Inc. (directors present listed in minutes as Sobieray, Hwang, and Gibson) approved the sale of the corporation, [1269]*1269with all 1,000 shares of stock to be held in escrow pending approval of the local liquor licensing authority. The board also approved the management agreement for Clark to operate the Blue Moon Saloon until approval of the liquor license.
The board canceled the nomination of Hwang and Gibson as directors, and resolved that the election of new officers and directors would be delayed until the corporation received approval from the liquor authority.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Diva's, Inc. v. City of Bangor
176 F. Supp. 2d 30 (D. Maine, 2001)

Cite This Page — Counsel Stack

Bluebook (online)
835 F. Supp. 1266, 1993 U.S. Dist. LEXIS 15762, 1993 WL 459882, Counsel Stack Legal Research, https://law.counselstack.com/opinion/b-street-commons-inc-v-board-of-county-commissioners-cod-1993.