Gayety Books, Inc. v. Mayor of Baltimore

369 A.2d 581, 279 Md. 206, 1977 Md. LEXIS 893
CourtCourt of Appeals of Maryland
DecidedJanuary 24, 1977
Docket[No. 101, September Term, 1976.]
StatusPublished
Cited by10 cases

This text of 369 A.2d 581 (Gayety Books, Inc. v. Mayor of Baltimore) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gayety Books, Inc. v. Mayor of Baltimore, 369 A.2d 581, 279 Md. 206, 1977 Md. LEXIS 893 (Md. 1977).

Opinion

Orth, J.,

delivered the opinion of the Court.

Article 15, § 71 (a) of the Baltimore City Code (19661 (the ordinance) requires that

“Every person, firm, association, or corporation owning, or operating, or placing, or keeping, or permitting to be kept, or maintaining for use, or permitting the use of, any of the hereinafter described amusement devices for public entertainment or amusement, in any place or on any premises in the City of Baltimore shall obtain an annual license from the City Treasurer and shall pay therefore the annual license fee hereinafter set forth, before any such amusement device is placed in use or operation for any of the purposes hereinbefore mentioned . . . .”

*208 The amusement devices covered by the ordinance are described in subsection (a) (1):

“the term ‘coin-operated amusement device’ includes, but is not limited to, the following devices, if the same are operated or activated by coins or tokens; claw machines, bowling machines, shuffle board machines; pinball machines, pool tables, console machines, target machines, baseball machines, and other similar devices; provided, however, that such term does not include bona fide vending machines in which amusement features are not incorporated or made a part thereof. . . .”

The subsection, as amended, sets an annual license fee of $150 for each such device with exceptions not here relevant. Fayette News Center, Inc. (Fayette) and Gayety Books, Inc. (Gayety) were alleged to have operated such devices in Baltimore City, Gayety in 1972 and Fayette in 1971 and 1972. The Mayor and City Council of Baltimore (Baltimore City) sought to collect the license fees required by ordinance. The primary issue for decision is whether the ordinance is constitutional on its face and as applied to Fayette and Gayety. We hold that it is constitutional on its face and as applied.

The devices operated by Fayette and Gayety were coin-operated movie machines in individual viewing booths. In Dept. of Housing v. Ellwest Stereo, 263 Md. 678, 284 A. 2d 406 (1971) we held that establishments having a number of such devices on the premises were not motion picture theatres so as to be subject to motion picture theatre regulations. It was after this decision that Baltimore City attempted to collect the annual license fee required by the ordinance. When Fayette and Gayety refused to pay the fees for the devices operated by them, Baltimore City sued them in the District Court. 1 The actions were instituted by the *209 filing of statements of claim for summary judgment, in one case in the amount of $1350 for 9 devices against Gayety and Martin McKew, but referred to hereinafter simply as Gayety, and in the other case in the amount of $2850 against Fayette and 205 West Fayette Street Corporation, referred to hereinafter simply as Fayette. Each claim contained the common counts in assumpsit, and a special count referring to the ordinance and alleging that the defendants had not obtained the licenses required although found by Baltimore City to have such amusement devices on their premises. In each case the defendants elected a jury trial. The actions were transferred to the Superior Court of Baltimore City. Fayette and Gayety pleaded the general issue, and each filed a motion to dismiss and a supplemental motion to dismiss. The grounds for each original motion were that the ordinance as written and as applied was repugnant to the first, fourth, fifth and sixth amendments to the Constitution of the United States as applicable to the states under the fourteenth amendment. The ground for the supplemental motions was Ordinance No. 811, adding a new § 149 to Art. 32 of the Baltimore City Code, which had been duly passed and approved on 26 February 1975, effective thirty days from its passage. It required licensing for each “peep show establishment”, 2 § 1491, and a license for each coin-operated motion picture device, § 1496. Fayette and Gayety contended that the passage of this ordinance further rendered Art. 15, § 71 constitutionally repugnant because the new ordinance “cannot be superimposed upon the licensing requirements and fees of Article 15.” They urged *210 that the passage of Ordinance No. 811 showed that the former ordinance did not contemplate the licensing and regulation of coin-operated motion picture devices. 3

While all this was going on, an action challenging the constitutionality of Art. 15, § 71 of the Baltimore City Code was before the United States District Court for the District of Maryland. It had been brought by Al Star as President and Manager of Fayette and Gayety, seeking declaratory and injunctive relief against the Mayor, Director of Finance, City Solicitor and Treasurer of the City of Baltimore and the Governor and Attorney General of Maryland. 4 On 26 September 1973 the court held that “Art. 15, § 71 (a) (1) is constitutional on its face and as applied to the plaintiff”, and ordered that judgment be entered in favor of the defendants. Starv. Benton, Civil No. 72-607Y, unreported. The judgment was affirmed by the United States Court of Appeals for the Fourth Circuit in a per curiam opinion filed 23 December 1975, which read in its entirety:

“We affirm for the reasons stated by the district court. The City of Baltimore can apply a non-regulatory, non-confiscatory license tax on all coin-operated amusement devices to coin-operated movie machines.” Star v. Benton, 530 F. 2d 970.

By agreement of counsel, the proceedings against Fayette and Gayety in the Superior Court of Baltimore had been delayed pending the outcome of the litigation in the federal courts. As the federal case had become final to the extent that appellate review was available as a matter of right, Jones, J., presiding in the Superior Court of Baltimore City, deeming the decision of the United States District Court to be dispositive “as of the present time”, brought the cases *211 before her to a hearing, which was held on 18 March 1976. 5 On 24 March the court denied the motions to dismiss of each of Fayette and Gayety. It granted Baltimore City’s motions for a summary judgment as to the issue of the liability of Fayette and Gayety for the payment of license fees, leaving to be litigated at trial only the factual issue of the number of co in-operated devices which were in operation.

At trial on 5 April 1976, with Fayette and Gayety expressly preserving the question of the applicability of the ordinance and “the liability of the fee itself,” it was stipulated that during 1971 and 1972 Fayette had nine coin-operated movie machines in operation at 205 West Fayette Street for a total license fee charge in the amount of $2650, and that during 1972, Gayety had nine such devices in operation at 409 East Baltimore Street for a total license fee charge in the amount of $1350.

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Cite This Page — Counsel Stack

Bluebook (online)
369 A.2d 581, 279 Md. 206, 1977 Md. LEXIS 893, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gayety-books-inc-v-mayor-of-baltimore-md-1977.