Chicago v. Pooh Bah

CourtIllinois Supreme Court
DecidedOctober 5, 2006
Docket99804 Rel
StatusPublished

This text of Chicago v. Pooh Bah (Chicago v. Pooh Bah) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chicago v. Pooh Bah, (Ill. 2006).

Opinion

Docket No. 99804.

IN THE SUPREME COURT OF THE STATE OF ILLINOIS

THE CITY OF CHICAGO, Appellee, v. POOH BAH ENTERPRISES, INC., et al., Appellants.

Opinion filed October 5, 2006.

JUSTICE KARMEIER delivered the judgment of the court, with opinion. Chief Justice Thomas and Justices Fitzgerald, Kilbride, and Garman concurred in the judgment and opinion. Justice Freeman dissented upon denial of rehearing, with opinion. Justice Burke took no part in the decision.

OPINION

Section 4–60–140(d) of the Municipal Code of Chicago prohibits establishments licensed to serve alcoholic beverages from permitting any employee, entertainer or patron to engage in “any live act, demonstration, dance or exhibition *** which exposes to public view *** [h]is or her genitals, pubic hair, buttocks *** or [a]ny portion of the female breast at or below the areola thereof.” The issue we are asked to resolve today is whether this ordinance violates the first and fourteenth amendments to the United States Constitution (U.S. Const, amends. I, XIV) and article I, section 4, of the Illinois Constitution of 1970 (Ill. Const. 1970, art. I, §4). The circuit court of Cook County found that it does. The appellate court concluded that it does not. Nos. 1–01–0592, 1–01–1932 cons. (unpublished order under Supreme Court Rule 23). For the reasons that follow, we affirm the judgment of the appellate court. The events which gave rise to this appeal began in 1993, when the Liquor Control Commission of the City of Chicago initiated administrative proceedings against Pooh Bah Enterprises, Inc. (Pooh Bah), to revoke various municipal licenses which had been issued to the company, including its municipal retail liquor license. The challenged licenses had been issued to the company in connection with its operation of a so-called “gentlemen’s club” located at 1531 North Kingsbury Street in the City of Chicago.1 The basis for the revocation was that the company, by and through its agents, had permitted various female dancers at the club to expose their buttocks or portions of their breasts at or below the areola to public view in violation of section 4–60–140(d) of the Chicago Municipal Code. The record shows that Pooh Bah was originally owned by an individual named Jim Levin. Under Levin’s ownership, Pooh Bah operated the club as the “1531 Club.” When Levin began experiencing financial problems, Perry Mandera, owner and president of a Chicago- area-based shipping company known as The Custom Companies, lent him $300,000 in exchange for a security interest in 50% of Pooh Bah’s stock. Mandera subsequently lent Levin an additional $500,000 to finance improvements to the club undertaken in connection with its becoming a franchisee of a chain of “strip” clubs operated by Michael J. Peter Club Management, Inc., under the name “Thee Dollhouse.” Prior to the switch to the Thee Dollhouse format, no nude or seminude dancing was performed at the club. Strippers did not appear until the club became affiliated with the Michael J. Peter organization. Unfortunately for Levin, the introduction of strippers did not bring financial solvency, and he was unable to repay Mandera the money he

1 According to testimony presented in the circuit court, the term “gentlemen’s club” denotes a commercial establishment where, for a fee, patrons can watch live dancing by nude or seminude women.

-2- owed. Mandera ultimately took over full ownership of Pooh Bah through an entity he owned called Ace Entertainment. According to his testimony, Mandera, through Ace Entertainment, became the sole owner of Pooh Bah and thus the strip club in the summer of 1993. After taking over, Mandera terminated the club’s connection with the Michael J. Peter organization. In place of that company, Mandera, through Pooh Bah, entered into management and licensing agreements with Frederick John “Rick” Rizzolo, owner of a Las Vegas strip club known as “The Crazy Horse Too.” Rizzolo became active in the management of Pooh Bah’s club in 1995, while the license revocation proceedings were still pending.2 For his services, Rizzolo was paid $20,000 per month, plus travel expenses. Under Rizzolo’s regime, the club dropped the name “Thee Dollhouse” and began operating under the same name as Rizzolo’s club in Las Vegas, “The Crazy Horse Too.” Mandera explained that he affiliated his club with Rizzolo because, when he came across The Crazy Horse Too in Las Vegas, “[he] liked what they did.” He was

2 Mandera required management assistance because he had no experience running strip clubs. Interestingly, Thomas Bridges, the person Mandera hired to be the club’s general manager when Rizzolo entered the scene, had no such experience either. Prior to going to work for Mandera, Bridges had been a detective with the Chicago police department. Joe Pascente, one of the club’s assistant managers, had also been associated with the police department. He was a probationary officer, but was fired for failing to disclose that he was the subject of an FBI investigation into insurance fraud involving his father, Fred Pascente. That investigation ultimately led to Fred’s conviction on federal mail fraud charges. As with Bridges, Fred had been a Chicago police detective. Fred Pascente is now listed in the Nevada Gaming Commission and State Gaming Control Board’s “Black Book” of excluded persons based on the mail fraud conviction and on his connection t o organized crime in t h e C h i c a g o a r e a . S ee http://gaming.nv.gov/loep_pascente.htm. According to Joe, Fred was employed at the club when he began there in 1995 and remained working at the club up until the middle of 1999. Fred is the person who originally introduced Joe to Mandera. Joe described Mandera as a family friend and testified that before taking the job at the club, he worked for Mandera’s shipping company.

-3- impressed by the club’s success and its desire to expand into other cities. According to Mandera, Rizzolo was willing to give him a far better financial arrangement than the one Pooh Bah had with the Michael J. Peter organization. Being affiliated with Rizzolo also provided Pooh Bah with access to the same pool of dancers Rizzolo used. In addition, Mandera testified that Rizzolo “seemed like a very nice person and operated a nice, up-scale operation ***.”3 The club operated under the name The Crazy Horse Too until 2003. According to the briefs and records of the Illinois Secretary of State, the establishment now does business under the name “VIP’s” or “VIP’s, A Gentlemen’s Club.” Absent any indication from the parties to the contrary, we assume that its ownership and operations remain unchanged. At the time the license revocation proceedings against Pooh Bah commenced and throughout the period relevant to this litigation, its club at 1531 North Kingsbury Street has provided something that other licensed establishments selling liquor by the drink in Chicago do not: seminude dancers. Entertainment venues featuring nude and seminude female dancers operate within the City’s limits in compliance with municipal ordinances. None of them, however, has a liquor

3 Shortly after this case was argued in our court, Rizzolo pleaded guilty in the United States District Court for the District of Nevada to a felony charge of conspiring to defraud the United States of taxes in connection with operation of his Las Vegas The Crazy Horse Too club. See United States of America v. Rizzolo, No. 2:06–CR–188–PMP–PAL, Plea Memorandum (June 1, 2006). At the same time, The Power Company, Inc., which is the parent company of the Las Vegas club, pleaded guilty to federal charges of “Conspiracy to Participate in an Enterprise Through a Pattern of Racketeering.” See United States of America v. The Power Company, Inc., No. 2:06–CR–186–PMP–PAL, Plea Memorandum (June 1, 2006).

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