City of Chicago v. Pooh Bah Enterprises, Inc.

865 N.E.2d 133, 224 Ill. 2d 390, 309 Ill. Dec. 770, 2007 Ill. LEXIS 441
CourtIllinois Supreme Court
DecidedMarch 5, 2007
Docket99804
StatusPublished
Cited by65 cases

This text of 865 N.E.2d 133 (City of Chicago v. Pooh Bah Enterprises, Inc.) 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
City of Chicago v. Pooh Bah Enterprises, Inc., 865 N.E.2d 133, 224 Ill. 2d 390, 309 Ill. Dec. 770, 2007 Ill. LEXIS 441 (Ill. 2007).

Opinions

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 Nos. 1 — 01— 0592, 1 — 01—1932 cons, (unpublished order under Supreme Court Rule 23).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 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 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 license. Throughout all of Chicago, Pooh Bah’s club is the only commercial establishment where the sale of liquor by the drink and dancing by seminude women are combined.

The mix of alcohol sales and nude or seminude dancing was not always so rare. Roger G. O’Brien, a veteran Chicago police officer who has worked in the Department’s 18th District vice unit since 1979, testified that the City’s Rush Street entertainment district was once home to 12 or 13 strip clubs, all of which served alcohol. During that time, prostitution in and around the clubs was pervasive. According to O’Brien, in the late 1970s and mid-1980s, there were prostitutes on every corner in the Rush Street area, and inside the clubs, waitresses and dancers frequently solicited customers for sex. Antiprostitution campaigns waged by the City during the 1980s ultimately resulted in the closure of all these establishments. O’Brien estimated that when the strip clubs serving alcohol were shut down, the number of prostitution arrests in the area declined by 80%.

Pooh Bah’s club is not located in Chicago’s Rush Street entertainment area and is not related to any of the City’s 1970- and 1980-era strip clubs. The type of entertainment presented at Pooh Bah’s club would, however, probably be familiar to patrons of those now-defunct establishments. After paying an admission charge, $15 in the year 2000, customers of the club enter a room containing a bar, an elevated stage area, and tables and chairs.4 Female performers take turns going on stage, where they remove their clothing while dancing to prerecorded background music. For the most part, the performers called to testify in this case had not received any formal dance training. One described taking dance lessons when she was a child. Another indicated that while she had never been taught dance steps, she had “either choreographed or hired choreographers” to assist her in her performance.

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Cite This Page — Counsel Stack

Bluebook (online)
865 N.E.2d 133, 224 Ill. 2d 390, 309 Ill. Dec. 770, 2007 Ill. LEXIS 441, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-chicago-v-pooh-bah-enterprises-inc-ill-2007.