Diamond S.J. Enterprise, Inc. v. The City of San Jose

CourtDistrict Court, N.D. California
DecidedDecember 30, 2019
Docket5:18-cv-01353
StatusUnknown

This text of Diamond S.J. Enterprise, Inc. v. The City of San Jose (Diamond S.J. Enterprise, Inc. v. The City of San Jose) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Diamond S.J. Enterprise, Inc. v. The City of San Jose, (N.D. Cal. 2019).

Opinion

8 UNITED STATES DISTRICT COURT

9 NORTHERN DISTRICT OF CALIFORNIA 10 SAN JOSE DIVISION 11

12 DIAMOND S.J. ENTERPRISE, INC., Case No. 18-CV-01353-LHK

13 Plaintiff, ORDER GRANTING DEFENDANT’S MOTION FOR SUMMARY 14 v. JUDGMENT AND DENYING PLAINTIFF’S CROSS-MOTION FOR 15 THE CITY OF SAN JOSE, PARTIAL SUMMARY JUDGMENT 16 Defendant. Re: Dkt. Nos. 102, 103 17 18 Before the Court is Defendant City of San Jose’s motion for summary judgment, ECF No. 19 102, and Plaintiff Diamond S.J. Enterprise, Inc.’s cross-motion for partial summary judgment, 20 ECF No. 103. Both motions have been fully briefed. Having considered the submissions of the 21 parties, the relevant law, and the record in this case, the Court GRANTS Defendant’s motion for 22 summary judgment and DENIES Plaintiff’s cross-motion for partial summary judgment. 23 I. BACKGROUND 24 A. Factual Background 25 Defendant’s version of the facts is drawn from its request for judicial notice of the state 26 administrative record, ECF No. 102-1 (“RJN”). Plaintiff also asks the Court to adopt Defendant’s 27 1 1 statement of facts for purposes of summary judgment. Pl.’s Mot. at 1. A court “may take notice 2 of proceedings in other courts, both within and without the federal judicial system, if those 3 proceedings have a direct relation to matters at issue.” United States ex rel. Robinson Rancheria 4 Citizens Council v. Borneo, Inc., 971 F.2d 244, 248 (9th Cir. 1992). The Court GRANTS 5 Defendant’s request for judicial notice. The Court also grants Plaintiff’s request that the Court 6 adopt Defendant’s statement of facts for purposes of the instant motions. 7 Plaintiff Diamond S.J. Enterprise, Inc. operates a nightclub called SJ Live, sometimes 8 referred to as Studio 8. The nightclub is owned by Jenny Wolfes, who also owns two other clubs. 9 Plaintiff’s patrons generally reserve tables and agree to purchase bottles of alcohol, referred to as 10 “table service” or “bottle service,” rather than paying in advance. 11 Daniel Embay, an event promoter, approached Wolfes to have her book an artist named 12 “Lucci,” whom Wolfes agreed to book for the evening of May 27, 2017. However, during the 13 event, Wolfes realized that Embay had collected money from some people in advance for table 14 service. Wolfes believed that Embay had “double-booked” tables, when Embay was not supposed 15 to book any tables at all. Wolfes responded by telling Embay, “We’re done.” Wolfes paid Embay 16 approximately $5,000, cancelled the entertainment, and asked Embay to leave. Embay then 17 threatened Wolfes in front of security guards. Wolfes soon closed the front door. 18 San Jose Police Officer Condon was later called to the scene to respond to a call reporting 19 that a shooting took place at approximately 1:30 a.m. Officer Condon learned that a man, later 20 identified as Embay, exited Plaintiff’s establishment, walked to his car, and retrieved a gun from 21 the trunk. Embay purportedly walked toward a group of approximately ten people with his gun, 22 and several people were seen ducking and running out of his way. Embay fired his gun multiple 23 times before he returned to his car and drove out of the parking lot. 24 Upon reviewing the footage, the San Jose Police Department noticed a number of security 25 violations. For example, the outside area of the club was not cleared once the club decided to 26 close its front door. Wolfes estimated that 40 to 50 people were in line when the doors were 27 2 1 closed. Wolfes explained that people who were told they would have a table that night became 2 angry once the doors closed, and they stormed the front door. Wolfes also acknowledged that she 3 had not secured an indemnification agreement with Embay prior to the event. 4 On July 17, 2017, the San Jose Police Chief issued a Notice of Intended Action to Revoke 5 Entertainment Permit to Plaintiff. Plaintiff requested an administrative hearing to review 6 Defendant’s intended revocation of SJ Live’s entertainment permit. On October 11, 2017, an 7 administrative hearing was held before deputy chief of police Mark Bustillos. On November 17, 8 2017, Bustillos issued a “Notice of and Decision on Intended Action to Revoke Entertainment 9 Permit, in which Defendant announced its decision to suspend SJ Live’s entertainment permit for 10 thirty days,” in lieu of completely revoking the entertainment permit. Bustillos found that Plaintiff 11 violated SJMC Chapter 6.60 by hiring an unlicensed promoter for whom Plaintiff was responsible 12 and by creating a public nuisance. 13 SJ Live then appealed the suspension to the Appeal Hearings Board, which held a hearing 14 on February 8, 2018. In its written decision mailed on February 26, 2018, the Board rejected the 15 administrative hearing’s finding regarding the hiring of an unlicensed promoter but upheld the 16 public nuisance charge. Thus, the Board affirmed the suspension of SJ Live’s entertainment 17 permit for 30 days. 18 B. Procedural History 19 On March 1, 2018, Plaintiff brought suit in this Court against Defendant. ECF No. 1. The 20 complaint was accompanied by an ex parte motion for a temporary restraining order. ECF No. 2. 21 The temporary restraining order was denied without prejudice on March 1, 2018. ECF No. 12. 22 On March 2, 2018, Plaintiff filed an amended motion for a temporary restraining order. ECF No. 23 15. That same day, the Court directed the Plaintiff to serve Defendant and ordered Defendant to 24 respond. ECF No. 18. On March 2, 2018, the Court denied Plaintiff’s amended motion for a 25 temporary restraining order. ECF No. 22. 26 On June 20, 2018, Plaintiff filed a first amended complaint (“FAC”). ECF No. 32. 27 3 1 Defendant filed its motion to dismiss and/or strike the FAC on July 20, 2018, ECF No. 37, which 2 the Court granted in part and denied as moot in part, ECF No. 51. 3 On November 28, 2018, Plaintiff filed a second amended complaint. ECF No. 54 4 (“Second Amended Complaint,” or “SAC”). The SAC alleges four claims for relief against 5 Defendant: (1) a claim under 42 U.S.C. § 1983 for violation of Plaintiff’s First Amendment rights, 6 pursuant to theories of overbreadth, vagueness, and prior restraint; (2) a claim under 42 U.S.C. § 7 1983 for violation of Plaintiff’s Fourteenth Amendment due process rights for impermissible 8 vagueness; (3) a claim under 42 U.S.C. § 1983 for violation of Plaintiff’s Fourteenth Amendment 9 due process rights to a fair hearing; and (4) a claim under the California Constitution for 10 interference with free speech and due process rights. Id. 11 On December 12, 2018, Defendant filed a motion to dismiss, for judgment on the 12 pleadings, and/or to strike the SAC. ECF No. 55. On July 1, 2019, the Court granted Defendant’s 13 motion in part and dismissed all of Plaintiff’s claims, with the exception of its First Amendment 14 claim based on theories of overbreadth and vagueness (“MTD Order”). ECF No. 82. On 15 September 5, 2019, the Court denied Plaintiff’s request to file a motion for reconsideration and 16 denied Plaintiff leave to amend the Second Amended Complaint. ECF No. 97. 17 On October 31, 2019, Defendant filed a motion for judgment on the pleadings, summary 18 judgment, and/or partial summary judgment, ECF No. 102 (“Def’s Mot.”). On November 14, 19 2019, Plaintiff filed an opposition, ECF No. 105 (“Opp’n to Def.’s Mot.”), and Defendant filed a 20 reply on November 21, 2019, ECF No, 107 (“Reply to Def’s Mot.). 21 Plaintiff filed a cross-motion for partial summary judgment, ECF No. 103 (“Pl.’s Mot.”).

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Diamond S.J. Enterprise, Inc. v. The City of San Jose, Counsel Stack Legal Research, https://law.counselstack.com/opinion/diamond-sj-enterprise-inc-v-the-city-of-san-jose-cand-2019.