Bankshot Billiards, Inc. v. City of Ocala

634 F.3d 1340, 2011 WL 832222
Court of Appeals for the Eleventh Circuit·Decided March 11, 2011·No. 10-11474, 10-11616·Published·Cited by 32 cases

Opinion

TJOFLAT, Circuit Judge:

In this case, we consider whether a business may sue a municipality under 42 U.S.C. § 1983 to recover damages it sustained by cautiously complying with an ordinance that the business claims is unconstitutionally vague under the Fourteenth Amendment. The business does not engage in any constitutionally protected activities under the First Amendment or any other provision of the United States Constitution. It therefore does not claim that the unclear ordinance chilled protected conduct. Rather, it simply claims that the municipality violated its right to operate under clear laws. The district court denied the business’s request for damages, but granted it a permanent injunction and declared the ordinance “unconstitutionally vague on its face.”

Both the business and the municipality have appealed to this court. The business seeks § 1983 damages; the municipality asks us to vacate the injunction. Part I of this opinion sets out the facts and the procedural history of the case. Part II addresses whether the business sustained a constitutional injury and is thus owed damages under § 1983. Part III addresses the municipality’s argument that the injunction is now moot because the municipality repealed the ordinance after the district court entered judgment. Part IV concludes.

I.

Bankshot Billiards, Inc. (“Bankshot”) owns and operates an establishment by the same name in Ocala, Florida. Bankshot opened in 1995 as a billiard hall and operated exclusively as a billiard hall until 2004; the first floor of its two-story premises housed sixteen regulation pool tables, provided recreational billiard activities, and hosted pool tournaments. In 2004, Bankshot expanded its range of business, opening the second floor of its property as a night club. The night club offered a dance floor and music for its patrons, but was only open a few nights a week. The downstairs billiard portion was, and remains, open every day. Bankshot serves alcohol on its premises pursuant to a liquor license from the State of Florida, and also serves limited food items and non-alcoholic beverages. Until the present dispute arose, it permitted entry to persons under the age of twenty-one in both the upstairs night club and the downstairs billiard hall.

Starting in 2005, the City of Ocala (the “City”) began to express its concern that people under twenty-one were frequenting establishments serving alcohol. To that end, the City passed a series of zoning ordinances. In January 2005, the City passed an ordinance creating an age-restriction provision making it unlawful for anyone under twenty-one to enter an establishment selling alcohol. Bankshot and another establishment complained about this measure, filing suit in Florida state court. The City relaxed its rules and, in March 2005, amended the age-restriction ordinance to create an exemption to the under twenty-one prohibition for several categories of businesses, including billiard halls. The exemption would apply when, for billiard halls, the operation of billiards was the “primary attraction held out to the public.” Even with the upstairs night club, the record suggests that the City believed that Bankshot qualified for this exemption; Bankshot continued to permit persons under twenty-one to enter its premises without incident. 1

*1343 In July 2006, however, Bankshot took control of the adjacent store front and sought to expand its night club operations into that area. Bankshot applied for a building permit for the location and requested an opinion regarding what effect the expansion would have on its billiard hall exemption. An assistant city attorney sent a letter in response to this request. The letter first noted that the City and the Ocala police determine violations on a case-by-case basis and do not normally give advance opinions regarding violations. The city attorney opined, however, that, “given the size and configuration of the new area, [Bankshot] will likely, at least during certain times, have many more people dancing than playing, watching or waiting to play pool” and therefore would likely not be eligible for the pool hall exemption. If that were the case, Bankshot would have to exclude persons under twenty-one from its premises — the night club and the billiard hall — at all times.

Bankshot sought further clarification from several sources, meeting with Ocala police and the City Council. While Bank-shot pursued these clarifications, the City passed two ordinances that amended the age-restriction provision to narrow and further define the billiard hall exemption. 2 One of those amendments, which was passed in January 2007, excluded establishments from claiming the billiard hall exemption if they engaged in certain alcohol sales activities, such as minimum drink purchases, ladies nights, and serving drinks without charge.

Bankshot engaged in some of these activities during portions of its operating hours. Believing that this categorically barred it from claiming the billiard hall exemption, Bankshot stopped admitting persons under twenty-one during all hours. After it stopped admitting patrons under twenty-one, Bankshot’s gross revenues dropped from an average of $62,023.75 per month to an average of $33,566.64 per month.

In March 2007, Bankshot sued the City in the Circuit Court of Marion County, Florida. 3 Bankshot’s pleading requested injunctive and declaratory relief from the January 2007 amendments.

In response, the City repealed these amendments and, in April 2007, passed Ordinance 5650 (the “Ordinance”). The Ordinance re-wrote the City’s age-restriction scheme using a complex web of definitions and exemptions. Because the Ordinance is the ordinance at issue in these appeals, it is useful here to lay out the Ordinance’s relevant components.

The Ordinance’s core provision bars persons under twenty-one “to enter or remain in any alcohol beverage establishment ... except as hereinafter provided.” Ordinance § 6-9(b). An “alcohol beverage establishment” is a “bottle club, cocktail bar or nightclub.” Id. § 6-9(a)(l). A “nightclub” is defined as an

establishment that: is open after 11:00 p.m.; has floor space available and used for dancing; and has a band, orchestra or other form of music or musical or other entertainment. If the establishment meets the foregoing requirement during any business day, it is a “nightclub” for purpose of this section on all business days.

Id. § 6-9(a)(10). Bankshot was a “nightclub” under this definition and would, with *1344 out an exemption, be prohibited from admitting persons under twenty-one.

Billiard halls were, as in the prior ordinances, exempted from the age-restriction provision under the Ordinance. Id. § 6-9(c)(7). The Ordinance in turn defined “billiard hall” as:

a) Having the greater of: (i) 12 pool or billiard tables, or (ii) one full-size pool or billiard table per 625 square feet of gross floor area of the business establishment.

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Bankshot Billiards, Inc. v. City of Ocala, 634 F.3d 1340, 2011 WL 832222 (11th Cir. 2011).

634 F.3d 1340 (Bankshot Billiards, Inc. v. City of Ocala) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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