Nakatomi Investments, Inc. v. City of Schenectady

949 F. Supp. 988, 1997 U.S. Dist. LEXIS 259, 1997 WL 8833
CourtDistrict Court, N.D. New York
DecidedJanuary 7, 1997
Docket1:96-cv-01226
StatusPublished
Cited by13 cases

This text of 949 F. Supp. 988 (Nakatomi Investments, Inc. v. City of Schenectady) is published on Counsel Stack Legal Research, covering District Court, N.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nakatomi Investments, Inc. v. City of Schenectady, 949 F. Supp. 988, 1997 U.S. Dist. LEXIS 259, 1997 WL 8833 (N.D.N.Y. 1997).

Opinion

MEMORANDUM-DECISION & ORDER

McAVOY, Chief Judge.

I. BACKGROUND

This is a case ábout non-obscene nude dancing. At issue is Plaintiffs Nakatomi Investments and AEB Enterprises’ desire to *990 operate clubs, within the City of Schenectady, that feature nude and topless dancers.

The City of Schenectady (“City”) has two local laws that govern Plaintiffs’ business activities. The City’s Public Amusement Law regulates specific entertainment businesses and prohibits any person from exposing certain portions of the human body. See Schenectady City Code § 128-8. 1 In addition, the City Zoning Law requires that all “adult entertainment businesses” must be established, subject to the issuance of a Special Permit, solely within two designated zoning districts — districts G and H — as defined by the City Zoning Law. See Schenectady City Code § 264-91.

In early 1996, the City began an investigation into several business that were believed to be operating in violation of the City Zoning and Public Amusement laws. As a result of this investigation, various principals and employees of the Plaintiffs were arrested and charged with violating Sections 128-8 and 264-91 of the City Code.

On July 31, 1996, Plaintiffs brought this action under 42 U.S.C. §§ 1983 and 1985, claiming, inter alia, that the City’s Zoning and Amusement laws violated their rights under the First and Fourteenth Amendments to the United States Constitution. Presently before the Court is Plaintiffs’ Motion for a Preliminary Injunction seeking to enjoin Defendants from enforcing the above referenced ordinances during the pendency of this case, as well as Defendants’ Cross-Motion for Summary Judgment.

II. DISCUSSION

A. Preliminary Injunction Standard

In this Circuit, the standard for obtaining a preliminary injunction is well established. In order to obtain a preliminary injunction, the movant must make an affirmative showing of: (1) irreparable harm; and either (2) likelihood of success on the merits; or (3) sufficiently serious questions going to the merits to make them a fair ground for litigation and a balance of hardships tipping decidedly in favor of the movant. See, e.g., Covino v. Patrissi, 967 F.2d 73, 77 (2d Cir.1992); Resolution Trust Corp. v. Elman, 949 F.2d 624, 626 (2d Cir.1991); Jackson Dairy, Inc. v. H.P. Hood & Sons, Inc., 596 F.2d 70, 72 (2d Cir.1979). The Second Circuit, however, has also held that “where the moving party seeks to stay governmental action taken in the public interest pursuant to a statutory or regulatory scheme, the district court should not apply the less rigorous fair-ground-for-litigation standard and should not grant the injunction unless the moving party establishes, along with irreparable injury, a likelihood that he will succeed on the merits of his claim.” Plaza Health Laboratories, Inc. v. Perales, 878 F.2d 577, 580 (2d Cir.1989); see also Union Carbide Agricultural Products Co. v. Costle, 632 F.2d 1014, 1018 (2d Cir.1980).

Courts in this circuit have repeatedly stated that “ ‘[pjerhaps the single most important prerequisite for the issuance of a preliminary injunction is a demonstration that if it is not granted the applicant is likely to suffer irreparable harm before a decision on the merits can be rendered.’ ” Borey v. National Union Fire Ins. Co., 934 F.2d 30, 34 (2d Cir.1991) (quoting Bell & Howell: Mamiya Co. v. Masel Supply Co., 719 F.2d 42, 45 (2d Cir.1983)). Moreover, the party seeking the preliminary injunction must demonstrate that “it is likely to suffer irreparable harm if equitable relief is denied.” Borey, 934 F.2d at 34 (quoting JSG Trading Corp. v. Tray- *991 Wrap, Inc., 917 F.2d 75, 79 (2d Cir.1990)) (emphasis in original). Hence, a mere possibility of irreparable harm is insufficient to justify the drastic remedy of a preliminary injunction. Borey, 934 F.2d at 34. It must be noted that “irreparable injury means injury for which a monetary award cannot be adequate compensation.” Jackson Dairy, 596 F.2d at 72 (citing Studebaker Corp. v. Gittlin, 360 F.2d 692, 698 (2d Cir.1966) and Foundry Srvs., Inc. v. Beneflux Corp., 206 F.2d 214, 216 (2d Cir.1953)).

Turning our attention to the first prong of this test, it is clear that if the City’s enforcement will deprive Plaintiffs of their First Amendment right of expression, this constitutes per se irreparable injury to Plaintiffs. See Elrod v. Burns, 427 U.S. 347, 96 S.Ct. 2673, 49 L.Ed.2d 547 (1976). In Elrod v. Burns, the Supreme Court instructed that “[t]he loss of First Amendment freedoms, for even minimal periods of time, unquestionably constitutes irreparable injury.” 427 U.S. at 373, 96 S.Ct. at 2690; see also Paulsen v. County of Nassau, 925 F.2d 65, 68 (2d Cir.1991) (stating that even a temporary abridgment of the First Amendment right to free expression constitutes irreparable injury).

Accordingly, inasmuch as the City’s enforcement of its ordinances against Plaintiffs for even one day would result in a loss of First Amendment rights, that enforcement constitutes irreparable injury to these plaintiffs. Thus, Plaintiffs have satisfied the first of the two elements required for a preliminary injunction.

Having found that Plaintiffs will suffer irreparable harm in the absence of injunctive relief, the Court must determine whether Plaintiffs are likely to succeed on the merits of their constitutional challenge. Contrary to the position asserted by the City, the burden rests squarely on the City to justify its infringement of Plaintiffs’ rights. Indeed, it has long been axiomatic that once a party shows that a regulation deprives them of a protected First Amendment interest, the burden shifts to the Government to justify the infringement. See, e.g., Members of City Council v. Taxpayers for Vincent, 466 U.S. 789, 803 n. 22, 104 S.Ct. 2118, 2127 n. 22, 80 L.Ed.2d 772 (1984); City of Los Angeles v. Preferred Communications, Inc., 476 U.S. 488, 496, 106 S.Ct. 2034, 2038-39, 90 L.Ed.2d 480 (1986). The Supreme Court reiterated this burden shifting in Schad v. Borough of Mt. Ephraim, 452 U.S. 61, 66, 101 S.Ct. 2176, 2181, 68 L.Ed.2d 671 (1981).. In Schad, after reaffirming that nude dancing is expressive conduct within the scope of the First Amendment, the Supreme Court shifted the burden to the government to justify “its substantial restriction of protected activity.” 452 U.S. at 66, 72, 101 S.Ct. at 2181, 2184. Ultimately, the Schad

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949 F. Supp. 988, 1997 U.S. Dist. LEXIS 259, 1997 WL 8833, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nakatomi-investments-inc-v-city-of-schenectady-nynd-1997.