Midvale City Corp. v. Haltom

2003 UT 26, 73 P.3d 334, 474 Utah Adv. Rep. 4, 2003 Utah LEXIS 55, 2003 WL 21114831
CourtUtah Supreme Court
DecidedMay 16, 2003
Docket20010794
StatusPublished
Cited by15 cases

This text of 2003 UT 26 (Midvale City Corp. v. Haltom) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Midvale City Corp. v. Haltom, 2003 UT 26, 73 P.3d 334, 474 Utah Adv. Rep. 4, 2003 Utah LEXIS 55, 2003 WL 21114831 (Utah 2003).

Opinions

JACKSON, Judge:

T1 Defendants John Haltom and Doctor John's, Inc. (Dr. John's) appeal the trial court's issuance of a permanent injunction prohibiting Dr. John's from doing business in Midvale City. We affirm.

[338]*33812 Associate Chief Justice Durrant, Justice Russon, and Justice Wilkins concur in Judge Jackson's opinion. However, Associate Chief Justice Durrant, joined by Justice Russon and Justice Wilkins, writes separately to set forth an alternative rationale for denying Dr. John's facial challenge, to address Dr. John's "as applied" challenge, and to clarify that the "good cause" exception does not need to be severed or given a limiting construction at this time.

BACKGROUND

13 The operative facts of this case are undisputed. - Defendants, acting primarily through John Haltom (Haltom), commenced business in Midvale City as Dr. John's Lingerie and Novelty Boutique (Dr. John's) in June of 2000, and applied 'for a commercial business license.

{4 On June 14, 2000, Haltom filled out an application where he described his business as selling "lingerie, swimwear, roses & gifts." On June 15, 2000, Susan Shreeve (Shreeve), the Midvale City Business License Administrator, asked Haltom for a definition of the novelties he intended to sell at his business. Haltom described such items as "candles and lotions." He failed to mention a legion of sexual devices and hundreds of associated products.

T5 On June 28, 2000, Shreeve visited Dr. John's on a business license inspection as scheduled by Haltom, and decided that some of the novelties constituted sexually oriented products as defined by the Midvale City Code. Shreeve admonished Haltom to apply for a sexually oriented business (SOB) license, and revealed that she could not approve his current business license, presumably because he had affirmatively misrepresented the items he was going to sell. On July 29, 2000, Dr. John's began operating without a business license.

T6 On August 8, 2000, the district court entered a Temporary Restraining Order that prohibited defendants from operating. On the same date, the parties appeared, were represented by counsel, and reached a specific agreement, as reflected in the order, that if "Haltom remov[ed] the product lines which [were] considered sexual[ly] oriented as de-seribed in the SOB ordinance, ... the City [would] not take further action in terms of the business operating and [would] consider the operation pursuant to the general business license application submitted on June 14, 2000."

T7 For a brief time after the issuance of the Temporary Restraining Order, defendants removed all inventory covered by the ordinance, were issued a license, and continued to operate. On October 2, 20, and 24, and November 7, 2000, Midvale's City Code Enforcement Officer, Vicki Siegal, made inspections of Dr. John's and observed several hundred sexual gratification devices.

T8 On November 21, 2000, the trial court held a hearing wherein it determined that Dr. John's was doing business as an SOB without an SOB license. Since defendants never submitted an application to Midvale City for an SOB license, the trial court issued a permanent injunction prohibiting it from doing business in Midvale City. Dr. John's appeals.

ISSUES AND STANDARDS OF REVIEW

9 Dr. John's presents four challenges to the trial court's injunction. First, it challenges the trial court's determination that Midvale City's SOB ordinance was not unconstitutionally vague or overbroad. Second, it challenges the trial court's determination that injunctive relief is an available remedy in this case. Third, Dr. John's challenges the trial court's determination that the ordinance in question is a valid time, place, and manner restriction. Fourth, Dr. John's challenges the trial court's determination that the Utah Constitution does not offer broader protection than the United States Constitution.

1 10 These are all questions of law that we review for correctness. See Grand County v. Emery County, 969 P.2d 421, 422 (Utah 1998) (holding a trial court's conclusion that a statute or ordinance is constitutional presents a question of law reviewed for correctness); Alta v. Ben Hame Corp., 886 P.2d 797, 804 (Utah Ct.App.1992) (determining availability of injunctive relief as matter of law); Whitmer v. City of Lindon, 948 P.2d 226, 228 [339]*339(Utah 1997) (reviewing trial court's ruling on state constitutional claims for correctness).

ANALYSIS

1 11 We are called upon to decide whether a municipality may classify certain businesses as sexually oriented businesses, and require them to apply for a different license prior to engaging in business. There is no constitutional right to be free from classification. Accordingly, we hold that a city may classify businesses without implicating the First Amendment as long as the licensing process at issue does not adversely affect such businesses.

I. STANDING

112 We first discuss whether Dr. John's had standing to file suit, The district court made no factual findings that could support standing, and after careful review, it appears that this issue is dispositive. "[It is the burden of the 'party who seeks the exercise of jurisdiction in his favor [to clearly allege] facts essential to show jurisdiction. If [it] faills] to make the necessary allegations, [it has] no standing." FW/PBS, Inc. v. City of Dallas, 498 U.S. 215, 281, 110 S.Ct. 596, 608, 107 L.Ed.2d 608 (1990) (citations omitted).

{13 Because of the unique manner in which this case arose, the issue of standing is somewhat complicated. The issuance of an injunction conferred standing on Dr. John's as to licensing, and in effect, the constitutional challenge was bootstrapped in light of the dispute regarding classification. In essence, Dr. John's argues that unbridled discretion as to classification bears some relation to unbridled licensing discretion. We disagree.

¶ 14 A claim of prior restraint, valid or not, properly elicits a court's attention. "[Thhe judiciary is vigilant in its oversight of prior restraints because of the fear that they deprive or delay access to information, and because restraints that lack procedural safeguards may lead to content-based discrimination." Groff v. City of Chicago, 986 F.2d 1055, 1068 (7th Cir.1993) (en bane). "While [plrior restraints are not unconstitutional per se ... [alny system of prior restraint ... comes to [the Court] bearing a heavy presumption against its constitutional validity." FW/PBS, Inc., 498 U.S. at 225, 110 S.Ct. at 604 (citations omitted) (first and second alteration in original).

T15 A facial challenge is permitted where the licensing system "is directed narrowly and specifically at expression or conduct associated with expression," City of Lakewood v. Plain Dealer Publ'g Co., 486 U.S. 750, 760, 108 S.Ct. 2188, 2145, 100 L.Ed.2d 771 (1988), because when a licensing scheme implicates protected speech, "applicants [may] be intimidated into censoring their own speech by not applying for a license," (Graff, 986 F.2d at 1073.

116 "[A] facial challenge lies whenever a licensing law gives a government official or agency substantial power to discriminate based on the content or viewpoint of speech by suppressing disfavored speech or disliked speakers." City of Lakewood, 486 U.S. at 759, 108 S.Ct. at 2145.

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Cite This Page — Counsel Stack

Bluebook (online)
2003 UT 26, 73 P.3d 334, 474 Utah Adv. Rep. 4, 2003 Utah LEXIS 55, 2003 WL 21114831, Counsel Stack Legal Research, https://law.counselstack.com/opinion/midvale-city-corp-v-haltom-utah-2003.