Millennium Restaurants Group, Inc. v. City of Dallas

191 F. Supp. 2d 802, 2002 U.S. Dist. LEXIS 2907, 2002 WL 265083
CourtDistrict Court, N.D. Texas
DecidedFebruary 21, 2002
Docket3:01-cv-00857
StatusPublished
Cited by7 cases

This text of 191 F. Supp. 2d 802 (Millennium Restaurants Group, Inc. v. City of Dallas) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Millennium Restaurants Group, Inc. v. City of Dallas, 191 F. Supp. 2d 802, 2002 U.S. Dist. LEXIS 2907, 2002 WL 265083 (N.D. Tex. 2002).

Opinion

MEMORANDUM ORDER

FISH, Chief Judge.

Before the court is the motion of plaintiffs Millennium Restaurants Group, Inc. d/b/a Cabaret Royale (“Millennium”) and Steven Craft (“Craft”) (collectively, “Millennium”) for summary judgment on their claim for a permanent injunction against the City of Dallas (“the City”) and against Dallas Chief of Police Terrell Bolton (“Bolton”). 1 For the reasons discussed below, the motion for summary judgment is granted.

I. BACKGROUND 2

Millennium is an existing licensed adult cabaret operating in a conforming location under Chapter 41A of the Dallas City Code, the provision which governs “Sexually Oriented Businesses” (“Chapter 41A”). Plaintiffs’ Brief in Support of Motion for Summary Judgment and Permanent Injunction (“MSJ”) at 3; Plaintiffs’ and In-tervenors’ Appendix in Support of Findings of Fact and Conclusions of Law and Brief in Support of Preliminary Injunction (“Plaintiffs’ Appendix”) at 40, 43. Millennium or its predecessors have operated a licensed adult cabaret since 1988. MSJ at 3; Plaintiffs’ Appendix at 41. Millennium does business as Cabaret Royale, located at 10723 Composite Drive, Dallas, Texas. MSJ at 3; Plaintiffs’ Appendix at 40-41, 43. Craft, an officer of Millennium, holds the license under which Millennium operates as an adult cabaret. MSJ at 3; Plaintiffs’ Appendix at 40, 43.

On or about April 17, 2001, the City issued a letter to Cabaret Royale revoking its license under Chapter 41A to operate as a sexually oriented business. MSJ at 4; Chapter 41A, § 41A-10.1, Plaintiffs’ Appendix at 44-45. The revocation would have become effective on May 17, 2001 if a temporary restraining order prohibiting revocation had not issued in this case. MSJ at 4; Plaintiffs’ Appendix at 14, 44-45. The revocation letter cited Chapter 41A, § 41A-10 as the basis for revocation of the license, specifically referring to the convictions of four entertainers at Cabaret Royale for public lewdness on the premises. MSJ at 4; Plaintiffs’ Appendix at 44-45.

An “adult cabaret” is defined in Chapter 41A, § 41A-2(4) as

a commercial establishment that regularly features the offering to customers of live entertainment that:
(A) is intended to provide sexual stimulation or sexual gratification to such customers; and
(B) is distinguished by or characterized by an emphasis on matter depicting, simulating, describing, or relating to “specified anatomical areas” or “specified sexual activities.” 3

Id,., Plaintiffs’ Appendix at 2; MSJ at 4.

Millennium offers performances of erotic dancing to its customers. MSJ at 4; Plaintiffs’ Appendix at 40-411, 61. The female performers dance topless and wear G-strings. MSJ at 4; Plaintiffs' Appendix at 40, 61.

*805 Based on an ostensible concern for the effect that a sexually oriented business such as the one operated by Millennium can have on surrounding neighborhoods, Chapter 41A imposes significant obstacles to the opening of adult cabarets and other establishments featuring erotic entertainment and expression. MSJ at 4; Plaintiffs’ Appendix at 7, 8, 15. There are, among other things, restrictions on lawful locations for such businesses (Sec. 41A-13), special licensing requirements (Sec. 41A-4), and limitations on the individuals who may hold licenses (Sec. 41A-5). MSJ at 4-5; Chapter 41A, Plaintiffs’ Appendix at 15, 7, and 7-10, respectively. Millennium has met all of the statutory requirements for the presentation of erotic dance to the public and it has done so continually and lawfully for years. MSJ at 5; Plaintiffs’ Appendix at 61-62.

The City proposes to revoke Millennium’s license on the basis of § 41A-10(b)(6) of Chapter 41A, a provision of the Sexually Oriented Business Ordinance which states:

(b) The chief of police shall revoke a license if the chief of police determines that one or more of the following is true:
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(6) On two or more occasions within a 12-month period, a person or persons committed an offense occurring in or on the licensed premises of a crime listed in Section 41A-5(a)(8)(A) 4 for which a conviction has been obtained, and the person or persons were employees of the sexually oriented business at the time the offenses were committed.

MSJ at 5; Plaintiffs’ Appendix at 12-13.

This section, under which the City has acted, does not require that the license holder have knowledge of an employee’s violation of the law. Section 41A-21(b) provides that “[ejxcept where otherwise specified, a culpable mental state is not required for the commission of an offense under this chapter.” MSJ at 5, n. 4; Plaintiffs’ Appendix at 24. Nor does the section require that the licensee have been negligent in failing to adequately instruct or supervise employees in avoiding lewd conduct as part of their erotic dance. MSJ at 5-6; Plaintiffs’ Appendix at 13, 24. Rather, the ordinance calls for the automatic revocation of the license without permitting any inquiry into the culpability of the licensee for the unlawful conduct. MSJ at 6; Plaintiffs’ Appendix at 12-13, 24. Whether the licensee used efforts to train the dancers or prevent violations is not to be considered by the chief of police. MSJ at 6; Plaintiffs’ Appendix at 12-13, 24. Chapter 41A confers no discretion on the chief of police; rather, it orders him to revoke the license after two violations. MSJ at 6; Plaintiffs’ Appendix at 12-13, 24.

This statutory indifference to the culpability of the licensee is carried over into the operation of the ordinance in practice. MSJ at 6; Plaintiffs’ Appendix at 13, 24, 57-58. A dancer who has accused of violating the ordinance is sent a notice by mail of a misdemeanor violation. MSJ at 6; Plaintiffs’ Appendix at 58. The license holder is not given notice of the first, or of any subsequent, citation. MSJ at 6; Plaintiffs’ Appendix at 57-58. Once two convictions have been obtained, the chief of police must revoke the license. MSJ at 5; Chapter 41A, § 41A-10(b)(6), Plaintiffs’ Appendix at 12-13.

All of the convictions for public lewdness on which the City proposed to revoke the license at issue here were based on conduct occurring during the course of a *806 dance performance. MSJ at 7; Plaintiffs’ Appendix at 61. The conduct involved was protected expression which at some point crossed the line from lawful to unlawful.

II. ANALYSIS

A. Evidentiary Burdens on Motion for Summary Judgment

Summary judgment is proper when the pleadings and evidence on file show that no genuine issue exists as to any material fact and that the moving parties are entitled to judgment as a matter of law. Fed. R. Civ. P. 56(c). 5

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Bluebook (online)
191 F. Supp. 2d 802, 2002 U.S. Dist. LEXIS 2907, 2002 WL 265083, Counsel Stack Legal Research, https://law.counselstack.com/opinion/millennium-restaurants-group-inc-v-city-of-dallas-txnd-2002.