Discotheque, Inc. v. Augusta-Richmond County, Georgia

Court of Appeals for the Eleventh Circuit·Decided October 5, 2022·No. 21-13218·Unpublished

Opinion

[DO NOT PUBLISH]

In the

United States Court of Appeals For the Eleventh Circuit

No. 21-13218

Non-Argument Calendar

DISCOTHEQUE, INC., THELMORE JAMES LESTER, As Executor of the Estate of James Thelmore Lester, and Next of Kin, Plaintiffs-Appellants,

versus AUGUSTA-RICHMOND COUNTY, GEORGIA, MAYOR HARDIE DAVIS, JR., In his individual and official capacity, WILLIAM FENNOY, In his individual and official capacity, DENNIS WILLIAMS, In his individual and official capacity, 2 Opinion of the Court 21-13218

MARY DAVIS, In her individual and official capacity, et al.,

Defendants-Appellees.

Appeal from the United States District Court for the Southern District of Georgia D.C. Docket No. 1:19-cv-00074-JRH-BKE

Before WILSON, ROSENBAUM, and ANDERSON, Circuit Judges. PER CURIAM:

This appeal requires us to consider the constitutionality of several provisions of an ordinance adopted by Augusta, Georgia (the “City”), which subjects adult-entertainment businesses to various permitting, licensing, and zoning regulations. The owners and operators of two longstanding nude-dancing clubs in downtown Augusta, Discotheque Lounge and Joker’s Lounge, sued the City and others claiming in part that the ordinance and related regulations violated the First Amendment. The district court granted summary judgment to the City on some claims and concluded that the plaintiffs lacked standing on other claims, and this appeal followed . After careful review of the record and the parties’ briefs, we affirm.

21-13218 Opinion of the Court 3

I.

In 2003, the City enacted an adult-entertainment ordinance with the stated purpose of combating negative secondary effects associated with adult-oriented businesses. See Augusta-Richmond County Code (“A.R.C.C.”) § 6-1-1. The ordinance did several things. It imposed licensing and permitting requirements for “adult entertainment establishments,” including “erotic dance establishments ” and “adult dancing establishments.” Id. §§ 6-1-2, 6- 1-5, 6-1-6, 6-1-11. It prohibited the sale or transfer of permits to operate adult-entertainment establishments (the “non-transferability provision”). Id. § 6-1-15. The ordinance also regulated certain conduct within such establishments. Id. §§ 6-1-3, 6-1-4. And it limited the locations where adult-entertainment establishments could operate, though it allowed businesses existing as of January 2003 to continue operating as nonconforming uses. Id., § 6-1-9(e).

When the 2003 Ordinance passed, Discotheque, Inc., owned and operated two nude-dancing clubs in downtown Augusta, Joker’s Lounge and Discotheque Lounge, which were first opened by James Thelmore Lester 1 (“Lester”) in the early 1970s. Despite being in prohibited locations, the two clubs were permitted to continue operating as lawful nonconforming uses. Discotheque assumed ownership of the clubs in 1981, but Lester maintained the

1 We note that James Thelmore Lester and Thelmore James Lester are two different people. As we note later in this opinion, Thelmore James Lester served as executor of Lester’s estate.

4 Opinion of the Court 21-13218

necessary permits for both businesses individually in his own name until his death in April 2019, after which Lester’s family took over ownership of Discotheque. Before Lester’s death, the City considered but ultimately rejected an exception to the non-transferability provision to allow inheritance of permits to operate adult-entertainment establishments.

Soon after Lester’s death, Plaintiffs-Appellants Discotheque and Thelmore James Lester, as executor of Lester’s estate (collectively , “Plaintiffs”), sued the City out of “fear that Augusta will attempt to enforce the [] non-transferability provision[] against them.” They alleged that certain licensing and permitting provisions of the 2003 Ordinance and related alcohol, zoning, and business tax regulations threatened to put them out of business and deprived them of rights protected by the First and Fourteenth Amendments. Plaintiffs would not have been able to obtain new adult-entertainment permits or alcohol licenses because of the ordinance ’s location requirements.

The district court sua sponte raised the issue of Plaintiffs’

standing, given the lack of allegations in the complaint that the City had “enforced or attempted to enforce the regulations in question against Plaintiffs.” After a hearing and supplemental briefing, the court determined that Plaintiffs had standing to challenge the licensing and business tax regulations. But the court found that Plaintiffs lacked standing to challenge the alcohol or zoning regulations in part because “the real issue and real injury to Plaintiffs is the inability to obtain proper permitting to continue operating the 21-13218 Opinion of the Court 5

Lounges as adult entertainment businesses.” In the court’s view, the clubs’ continued operation “depend[ed] on the challenge[]” to the licensing regulations, not the other challenges.

The district court then granted summary judgment to the City on the remaining issues. It rejected Plaintiffs’ arguments that the 2003 Ordinance’s definitions of “erotic dance establishment” and “adult dancing establishment” were overly broad and impermissibly vague. It also concluded that the ordinance was not subject to strict scrutiny as a content-based regulation under Reed v. Town of Gilbert, Arizona, 576 U.S. 155, 163 (2015), and that intermediate scrutiny was satisfied. Plaintiffs now appeal.

II.

We review de novo the grant of summary judgment, viewing the evidence and drawing all reasonable inferences in favor of Plaintiffs, the nonmoving parties. Stewart v. Happy Herman’s Cheshire Bridge, Inc., 117 F.3d 1278, 1284 (11th Cir. 1997). We also review standing issues de novo. A&M Gerber Chiropractic LLC v. GEICO Gen. Ins. Co., 925 F.3d 1205, 1210 (11th Cir. 2019).

III.

We start with Plaintiffs’ challenge to the 2003 Ordinance’s licensing and permitting regulations. They argue that certain definitions are overbroad, that the regulations are content-based and subject to strict scrutiny, and that, even if intermediate scrutiny applies , the regulations still fail the proportionality test set forth by Justice Kennedy in his concurrence in City of Los Angeles v.

6 Opinion of the Court 21-13218

Alameda Books, Inc., 535 U.S. 425 (2002). We consider these arguments in turn. A. The challenged definitions are not overbroad.

Plaintiffs claim that the 2003 Ordinance’s definitions of “adult dancing establishment” and “erotic dance establishment” are unconstitutionally overbroad because they fail to exclude isolated instances of nudity or serious artistic works that feature some degree of nudity.

In the First Amendment context, the overbreadth doctrine allows a party to challenge a law on its face, rather than as applied to him or her, because it also threatens others not before the court who may refrain from engaging in legally protected expression rather than risking prosecution or challenging the law. Cheshire Bridge Holdings, LLC v. City of Atlanta, Ga., 15 F.4th 1362, 1370 (11th Cir. 2021). Because declaring a law overbroad is a remedy of “last resort,” plaintiffs must show that the challenged law is “substantial [ly] overbroad” relative to its legitimate sweep. Id. “[S]ubstantial overbreadth requires a realistic danger that the law will significantly compromise recognized First Amendment protections of parties not before the court.” Id. (cleaned up). A few conceivable “impermissible applications of a statute [are] not sufficient to render it susceptible to an overbreadth challenge.” Id. (quotation marks omitted). Rather, “the danger to the suppression of First Amendment rights must be both ‘real’ and ‘substantial.’” Curves, LLC v. Spalding Cnty., 685 F.3d 1284, 1292 (11th Cir. 2012).

21-13218 Opinion of the Court 7

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Discotheque, Inc. v. Augusta-Richmond County, Georgia, (11th Cir. 2022).

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