Nightclubs, Inc.,plaintiff-Appellant v. City of Paducah

202 F.3d 884, 2000 U.S. App. LEXIS 1245, 2000 WL 122184
CourtCourt of Appeals for the Sixth Circuit
DecidedFebruary 2, 2000
Docket98-6581
StatusPublished
Cited by117 cases

This text of 202 F.3d 884 (Nightclubs, Inc.,plaintiff-Appellant v. City of Paducah) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nightclubs, Inc.,plaintiff-Appellant v. City of Paducah, 202 F.3d 884, 2000 U.S. App. LEXIS 1245, 2000 WL 122184 (6th Cir. 2000).

Opinions

ALDRICH, D. J., delivered the opinion of the court, in which CLAY, J., joined. MERRITT, J. (pp. 894-97), delivered a separate dissenting opinion.

OPINION

ALDRICH, District Judge.

Plaintiff-Appellant Nightclubs, Inc. (“Nightclubs”) brought this action against the City of Paducah, Kentucky; the City Commission of the City of Paducah, Kentucky; Albert Jones, in his official capacity as the Mayor of Paducah, Kentucky; and James Zumwalt, in his official capacity as the City Manager of Paducah, Kentucky (collectively “the City” or “Paducah”). Pursuant to 42 U.S.C. § 1983, Nightclubs challenges the constitutionality of a Padu-cah ordinance that provides for the licensing and regulation of sexually oriented businesses and their employees. The District Court denied Nightclubs’ motion for a preliminary injunction in substantial part. Nightclubs appeals that denial, arguing that the ordinance’s licensing scheme amounts to an unlawful prior restraint in violation of the First and Fourteenth Amendments to the United States Constitution. This Court has jurisdiction pursuant to 28 U.S.C. § 1291 and § 1292(a)(1). Because the District Court erred in not enjoining the licensing scheme, we REVERSE, VACATE, and REMAND.

I.

Nightclubs, Inc., doing business as “Regina’s House of Dolls,” is a Kentucky corporation that owns and operates an adult entertainment business featuring performances by female dancers. The business has been operating continuously in Padu-cah, Kentucky since 1987. On August 11, 1998, the City of Paducah enacted Ordinance No. 98-8-5925 (“the ordinance”), which is designed to regulate sexually oriented businesses. Regina’s House of Dolls qualifies as an “adult cabaret” under § 11— 2(3) of the ordinance.1

[887]*887In addition to regulating the substantive operation of sexually oriented businesses, the ordinance requires such businesses to obtain licenses from the City prior to operation. See Ord. § 11 — 6(a). The ordinance also requires individuals who work as managers and entertainers in sexually oriented businesses to obtain employee licenses from the City. See id. Section 11-6 delineates the licensing application procedures. See Ord. §§ 11 — 6(b)—(g). An applicant for a sexually oriented business license must submit various pieces of information to the City, including a complete set of fingerprints “on forms as prescribed by the Chief of Police,” his or her social security number and/or tax identification number, and a description of “the nature of the activity or activities to be engaged in at the establishment.” Ord. § ll-6(e). The applicant must also disclose certain details regarding any crime(s) that he or she has been convicted of “relating to prostitution, solicitation, or sexual offenses” within the three years prior to the date of the application. Ord. § ll-6(e)(3). Section 11-6(e)(ll) states that the applicant must already possess a current “City business license,” and that “the premises must be inspected and found to be in compliance with health, fire, zoning, plumbing and building codes of the City.” Ord. § 11-6(e)(ll).

Section ll-7(a) provides as follows:

Upon receipt of an application properly filed with the Director and upon payment of the non-refundable application fee, the Director or his/her designee shall immediately stamp the application as received and shall immediately thereafter initiate an investigation of the application and the proposed sexually oriented business by all appropriate City departments and agencies. The City shall approve or deny the issuance of a license to an applicant within ten (10) business days after receipt of a completed sexually oriented business application.

Ord. § ll-7(a). Thus, once an applicant submits a “completed” business license application in accordance with § 11-6, the City Manager must immediately instruct various City departments to conduct the appropriate investigations.2 Section 11-7(a) further declares that the City “shall approve” the issuance of a sexually oriented business license “unless” the City determines that the application is deficient in one of eight specified ways. Id. That is, Paducah will deny a business license if the applicant is overdue on any payments to the City, has failed to provide requisite information on the application, has failed to pay the license fee, or otherwise “has failed to comply with any provision or requirement of this ordinance.” Id. A business license will also be denied if the premises to be used for the sexually oriented business is not in compliance with zoning requirements or with applicable health, fire, building, and plumbing codes. Id. Licenses are to be renewed annually under these same procedures. See Ord. §§ 11 — 10(a)—(b).

Sections 11-15 and 11-17 govern appeals from the denial, suspension, or revocation of licenses. Section 11-15 provides that an aggrieved applicant may appeal the denial of a license to the Board of Commissioners (“the Board”) within ten- days of receiving notice that his or her application was denied. See Ord. § ll-15(b). The Board must hold a hearing on the appeal within ten days of the filing of the notice of appeal. Id. The applicant may be represented by counsel, present evidence, and cross-examine witnesses at the hearing; the City Manager has the burden to prove [888]*888that denial of the license was appropriate. See Ord. § ll-15(c). The Board must render a decision in writing within five days of hearing the appeal. See Ord. § 11 — 15(d). If the Board chooses to remand the matter to the City Manager “for further review and action,” the City Manager must complete further review within ten days of the remand. Id. Section ll-15(e) states, “The applicant shall have the right to seek prompt judicial review of the Board of Commissioners’ decision in any court of competent jurisdiction as provided by law. The action shall be promptly reviewed by the court.” Ord. § ll-15(e). Section 11-17 prescribes almost identical appeal rights for a license holder seeking an appeal of the suspension or revocation of a license. See Ord. § 11 — 17(a)—(f).

Soon after the Paducah ordinance went into effect, Nightclubs filed this action, challenging the constitutionality of the ordinance both on its face and as applied.3 After conducting a hearing on the plaintiffs motion for a preliminary injunction, the District Court enjoined only those sections of the ordinance pertaining to the high cost of licensing fees and the requirement that landowners submit notarized acknowledgments along with license applications. See Ord. §§ 11 — 6(e)(13), ll-9(a)(d).4 The District Court declined to enjoin the remaining operational and licensing provisions of the ordinance. Nightclubs appeals that denial with respect to the licensing scheme, arguing that on its face, the scheme is an unconstitutional prior restraint upon one’s freedom of expression.

II.

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Cite This Page — Counsel Stack

Bluebook (online)
202 F.3d 884, 2000 U.S. App. LEXIS 1245, 2000 WL 122184, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nightclubs-incplaintiff-appellant-v-city-of-paducah-ca6-2000.