MAXIM CABARET, INC. v. CITY OF SANDY SPRINGS

Procedural entryThis page is a short order in MAXIM CABARET, INC. v. CITY OF SANDY SPRINGS. Read the opinion of the Court — 816 S.E.2d 31
Supreme Court of Georgia·Decided June 18, 2018·No. S18A0496·Published

Opinion

In the Supreme Court of Georgia

Decided: June 18, 2018

S18A0496. MAXIM CABARET, INC. d/b/a MAXIM CABARET et al. v. CITY OF SANDY SPRINGS, GEORGIA.

GRANT, Justice.

Appellant Maxim Cabaret, Inc. d/b/a Maxim Cabaret is a strip club in

Sandy Springs, Georgia, and appellant Theo Lambros is the club’s operator,

sole shareholder, and president (collectively “Maxim”). Maxim appeals from

the Fulton County Superior Court’s order granting summary judgment to the

City of Sandy Springs on Maxim’s legal challenges to city ordinances. We

hold that Maxim’s challenges to prior versions of the City’s ordinances that

have since been replaced or amended are moot; current adult business

ordinances prohibiting the sale of alcohol at businesses that offer live nude

entertainment constitutionally regulate negative secondary effects of strip

clubs without unduly inhibiting free speech or expression; and because the City

may constitutionally prohibit Maxim from obtaining a license to sell liquor on

its premises under the City’s adult business licensing ordinances, Maxim lacks standing to challenge the City’s alcohol licensing regulations. We affirm.

I.

Lambros has owned and operated Maxim Cabaret, an adult

entertainment establishment featuring nude dancing, in its current location

since March 1992. The club operated in unincorporated Fulton County until

December 1, 2005, when it came under the jurisdiction of the newly

incorporated City of Sandy Springs. In March 2003, Maxim stopped offering

full nudity and offered cabaret entertainment with its performers clothed or

partially clothed. At the same time, it applied for and was granted a Fulton

County license for on-premises consumption of alcoholic beverages. After

experiencing a drop in profits, however, Maxim resumed operating as a full-

nudity strip club several months later.

In December 2005, the Sandy Springs city council conducted hearings at

which it received and considered information concerning the negative

secondary effects of sexually oriented businesses. The minutes reflect that the

City was “deeply and profoundly concerned” about criminal activities

associated with “the commercial combination of live nudity and alcohol,”

including specifically “disorderly conduct, prostitution, public solicitation,

public indecency, fighting, battery, assaults, drug use, and drug trafficking.”

2 The City also expressed concern with other undesirable effects on the

community of such establishments, including “commercial depression of

property values, an acceleration of community blight in the surrounding

neighborhoods,” and increased costs for law enforcement and the judicial

system. Effective January 1, 2006, the City enacted several zoning, business

licensing, and alcohol licensing ordinances regulating adult entertainment

establishments.1 The ordinances included provisions that banned alcohol from

the premises of adult entertainment establishments and restricted the

permissible locations for such businesses. Under these regulations, Maxim is

not authorized to operate as a strip club in its current location.

In January 2006, Maxim sued the City in Fulton County Superior Court,

claiming that the City’s adult business regulations were unconstitutional and

seeking mandamus relief, declaratory and injunctive relief, and damages. 2 In

July 2011, the parties moved for summary judgment. The superior court heard

argument on the summary judgment motions on November 28, 2011 and May

1 The City’s definition of “adult entertainment establishment” encompasses businesses like Maxim that feature nude dancing. 2 The trial court found that because the City had not enforced its alcohol ban or the adult entertainment business location restrictions against Maxim during the litigation, Maxim had incurred no damages with respect to the licensing and location regulations. Maxim does not contest this finding on appeal. 3 4, 2015, and on June 10, 2016, issued an order granting summary judgment to

the City on all of Maxim’s claims.

Shortly after filing its first complaint, Maxim applied for a license to sell

and serve alcohol on its premises, which was denied. By agreement with the

City, however, Maxim has been allowed to operate with nude dancers and on-

premises alcoholic beverage sales in its current location during the pendency

of this litigation.

II.

During the decade-long course of this litigation in superior court, the

City amended its adult business ordinances multiple times, in many cases

changing or removing provisions that Maxim had alleged to be

unconstitutional. Maxim also filed eight amendments to its complaint, the last

of which consolidated all of its claims into a single pleading. In its eighth

amended complaint, Maxim reasserted its constitutional claims regarding some

of the City’s ordinances that had since been amended, contending that because

the original ordinances were unconstitutional and void, they could not be cured

by amendment. In granting the City’s summary judgment motion, the superior

court found that “the general rule—that repeal of a challenged provision of law

renders the challenge moot—applies.” On appeal, Maxim claims that this

4 finding was error. We disagree.

Maxim acknowledges that the City has since amended the ordinances at

issue to remove or replace the purportedly unconstitutional provisions, and it

has not cited to any evidence in the record showing that the complained-of

provisions were ever enforced against it. Nor has it shown that there is any

likelihood that the original ordinances will be re-enacted and enforced in the

future. Under the circumstances, Maxim’s claims regarding the previous

ordinances are moot. See Shelley v. Town of Tyrone, 302 Ga. 297, 307 (806

SE2d 535) (2017) (challenges to zoning ordinance that had been repealed and

replaced were moot); Pawnmart, Inc. v. Gwinnett Cty., 279 Ga. 19, 19 n.1 (608

SE2d 639) (2005) (County’s amendment of its ordinance to remove objected-

to provision rendered Pawnmart’s challenge to the provision moot).

Maxim’s claims are not saved by its argument that its constitutional

challenges to the City’s original adult business regulations are not moot

because the challenged ordinances were amended rather than repealed and

replaced. It is true that “once a statute is declared unconstitutional and void, it

cannot be saved by a subsequent statutory amendment, as there is, in legal

contemplation, nothing to amend.” In the Interest of R.A.S., 249 Ga. 236, 237

(290 SE2d 34) (1982). The same rule applies to ordinances. But the

5 ordinances challenged by Maxim were never declared unconstitutional, and the

mere existence of litigation challenging their constitutionality does not

preclude an amendment to remove the challenged provisions. See Shelley, 302

Ga. at 307.

Because the challenged ordinances no longer exist and were never

enforced against Maxim, the resolution of Maxim’s claims concerning those

ordinances “would amount to the determination of an abstract question not

arising upon existing facts or rights,” and the trial court correctly determined

that those claims were moot. Sexual Offender Registration Review Bd. v.

Berzett, 301 Ga. 391, 396 (801 SE2d 821) (2017) (citation and punctuation

omitted). “‘[I]t is a settled principle of Georgia law that the jurisdiction of the

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