Gene Lovelace Enterprises, LLC v. City of Knoxville

CourtCourt of Appeals of Tennessee
DecidedJune 11, 2021
DocketE2019-01574-COA-R3-CV
StatusPublished

This text of Gene Lovelace Enterprises, LLC v. City of Knoxville (Gene Lovelace Enterprises, LLC v. City of Knoxville) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gene Lovelace Enterprises, LLC v. City of Knoxville, (Tenn. Ct. App. 2021).

Opinion

06/11/2021 IN THE COURT OF APPEALS OF TENNESSEE AT KNOXVILLE April 21, 2021 Session

GENE LOVELACE ENTERPRISES, LLC, ET AL. V. CITY OF KNOXVILLE, ET AL.

Appeal from the Circuit Court for Knox County Nos. 2-391-05, 2-494-05 William T. Ailor, Judge

___________________________________

No. E2019-01574-COA-R3-CV ___________________________________

This is the second appeal of this action concerning the enforceability of a licensing ordinance applicable to sexually oriented businesses in the City of Knoxville. The trial court found the ordinance lawful upon remand from this court and granted summary judgment in favor of the City. We affirm.

Tenn. R. App. P. 3 Appeal as of Right; Judgment of the Circuit Court Affirmed; Case Remanded

JOHN W. MCCLARTY, J., delivered the opinion of the court, in which D. MICHAEL SWINEY, C.J. and CARMA DENNIS MCGEE, J., joined.

Matthew A. Grossman, Knoxville, Tennessee, for the appellant, Gene Lovelace Enterprises, LLC and Bambi’s, LLC.

Scott D. Bergthold, Bryan A. Dykes, and Robert T. Noland, Chattanooga, Tennessee, for the appellee, the City of Knoxville.

OPINION

I. BACKGROUND

The City of Knoxville (“the City”) drafted the licensing ordinance at issue to regulate the conduct permitted on the premises of sexually oriented businesses by, inter alia, (1) prohibiting total nudity and touching of patrons; (2) prohibiting alcohol on the premises; (3) limiting hours of operation; and (4) requiring sexually oriented businesses and their employees to obtain licenses. The ordinance was presented to the Metropolitan Planning Committee (“MPC”). Following a hearing over the course of two days on March 10 and April 14, 2005, the MPC denied recommendation of the licensing ordinance.

The ordinance was then presented to the Knoxville City Council (“the City Council”), at which the City’s outside counsel, Scott Bergthold, presented evidence, claiming that regulation was necessary because the subject businesses caused adverse secondary effects upon the community, namely diminished property values; increased personal, property, and drug crimes; spread of disease; and neighborhood blight.1 Attorneys for the businesses at issue were present and objected to the passing of the ordinance with the support of their own documentary evidence. Members of the public were also present and offered their personal opinions on the matter. The ordinance was approved following a full hearing over the course of two days in May 2005.

Gene Lovelace Enterprises, LLC a/k/a Last Chance Theatre & Musical Club 2000 at Alcoa Highway and Bambi’s, LLC (collectively “Plaintiffs”), and other adult businesses then filed the instant action to challenge the validity of the ordinance, claiming that (1) the ordinance is invalid because the City did not timely appeal the MPC’s denial of the ordinance and that (2) the ordinance violates the constitutional right of free speech because it was enacted based on “shoddy” or misleading information and contains unconstitutionally vague and overbroad terms. The City moved for summary judgment, providing specific evidence of crimes occurring in and around Knoxville near the subject businesses. The City also provided studies performed in other cities showing similar effects of such businesses in other municipalities.

At the discovery stage, Plaintiffs requested permission to depose Attorney Bergthold to gain information concerning the basis for his selection of the materials presented to the City Council. The City moved for a protective order precluding his deposition based upon claims of legislative immunity, the attorney-client privilege, and the work product doctrine. The trial court entered a protective order, citing the immunities and privileges claimed without further explanation.

Plaintiffs responded to the motion for summary judgment with, inter alia, their own affidavit, in which Larry Miller, Ph.D. alleged that the studies provided by the City contained flawed methodology or were otherwise unreliable. Dr. Miller attested that he found no evidence of adverse secondary effects resulting from the operation of the subject businesses. Plaintiffs also provided a report from a cultural anthropologist, who concluded that displays of nudity such as those at issue here have artistic merit and communicative expression, and an article in which the writer concluded that crime was more common around fast food restaurants than around adult businesses.

1 Plaintiffs refer to Attorney Bergthold’s evidence as “the legislative predicate.” -2- Following a hearing, the trial court granted summary judgment in the City’s favor. Plaintiffs appealed to this court. We reversed the grant of summary judgment and remanded for further proceedings, holding that the trial court failed to fully analyze the requested enactment of the ordinance using the four-factor test developed in United States v. O’Brien, 391 U.S. 367 (1968). Lovelace v. City of Knoxville, No. E2013-01584-COA- R3-CV, 2014 WL 7069956, at *8 (Tenn. Ct. App. Dec. 15, 2014) (“Lovelace I”). The test at issue is as follows:

1. whether the ordinance is within the city’s constitutional power to enact;

2. whether the ordinance furthers an important government interest:

3. whether the government interest is related to suppression of free expression; and

4. whether the restriction is no greater than is essential to furtherance of the government interest.

O’Brien, 391 U.S. at 377 (citations omitted). We directed the trial court as follows:

Specifically, as regarding the second factor of the O’Brien test, the trial court must consider whether Plaintiffs’ evidence, consisting of expert affidavits as well as a study and report based on empirical data specific to the City of Knoxville, was successful in casting doubt upon the City’s factual findings regarding adverse secondary effects on the community. The trial court must apply the proper burden-shifting framework . . . to determine whether the subject ordinance serves a substantial government interest.

Lovelace I, 2014 WL 7069956, at *8. We likewise held that the trial court’s ruling concerning the protective order did not allow for meaningful appellate review because it failed to delineate the specific privilege or immunity forming the basis for the order.

Upon remand, Plaintiffs provided an updated report from Dr. Miller in which he again found no adverse secondary effects upon the community from the subject businesses. The trial court renewed the protective order barring the deposition of Attorney Bergthold with the following additional reasoning:

[Plaintiffs] want to depose [Attorney Bergthold] to show the Court that the data relied upon by the [City] is “shoddy” by using the impressions of [Attorney Bergthold] and his opinions and why he chose the information he chose to present to the City which supported his conclusions. The Court is of the opinion that those things are clearly covered by the attorney-client -3- privilege as [Attorney Bergthold] was hired by the City to help them develop the ordinance which is a legal function and something that the City Attorney does on a regular basis. To rule otherwise would open up the City Attorney to being deposed every time someone decided to question the efficacy of an ordinance prepared by that office. Questioning [Attorney Bergthold] as to why he chose the information he chose will not test whether the data relied on was based on shoddy work by those who developed it. That would have nothing to do with the data but [Attorney Bergthold’s] opinions as to why he chose the data he chose.

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Gene Lovelace Enterprises, LLC v. City of Knoxville, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gene-lovelace-enterprises-llc-v-city-of-knoxville-tennctapp-2021.