Oxnard Hospitality Enterprises v. City of Los Angeles CA2/8

CourtCalifornia Court of Appeal
DecidedSeptember 30, 2015
DocketB256727
StatusUnpublished

This text of Oxnard Hospitality Enterprises v. City of Los Angeles CA2/8 (Oxnard Hospitality Enterprises v. City of Los Angeles CA2/8) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Oxnard Hospitality Enterprises v. City of Los Angeles CA2/8, (Cal. Ct. App. 2015).

Opinion

Filed 9/30/15 Oxnard Hospitality Enterprises v. City of Los Angeles CA2/8 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION EIGHT

OXNARD HOSPITALITY B256727 ENTERPRISES, INC. et al., (Los Angeles County Plaintiffs and Appellants, Super. Ct. No. BC454667)

v.

CITY OF LOS ANGELES,

Defendant and Respondent.

APPEAL from a judgment of the Superior Court of Los Angeles County. Debre Katz Weintraub, Judge. Affirmed.

Lane & Gulino, and John J. Gulino, for Plaintiffs and Appellants.

Michael N. Feuer, City Attorney, Thomas H. Peters, Chief Deputy City Attorney, Ronald S. Whitaker, Assistant City Attorney, and Gerald M. Sato, Deputy City Attorney, for Defendant and Respondent.

__________________________________ Plaintiff and Appellant Oxnard Hospitality Enterprise, Inc.,1 doing business as “Babes and Beers,” filed an action for damages and injunctive relief against Defendant and Respondent City of Los Angeles based on causes of action alleging violations of its constitutional rights of free speech, due process, and equal protection under the federal and state constitutions. Following a ruling on a motion for summary adjudication as to Oxnard’s speech causes of action, and an ensuing bench trial on its remaining causes of action, the trial court entered judgment in favor of the City. Oxnard appeals. We affirm. FACTS Background In 1977, A.H. Bronson (not a party in the trial court or on appeal) applied to the City for a building permit and certificate of occupancy to add a dance area in a building located on Oxnard Street in the City’s Tarzana neighborhood, in an area zoned for “M1” and “CM” uses, meaning “limited industrial” use and “commercial manufacturing” use. At that time, the building was already being used as a “beer café.” In May 1978, the City issued a certificate of occupancy to Bronson; the certificate stated that the “occupancy designation” for the property was a beer café with a dance area.2

1 Hereafter Oxnard. Our references to Oxnard include plaintiff and appellant Elias Laty, Oxnard’s sole shareholder. We hereafter refer to Laty only as needed to establish context for the opinion. 2 At trial, Oxnard called Frank Lara, a principal inspector in the City’s Department of Building and Safety. During his testimony, Lara explained that there is a difference between an “occupancy designation” for a property and the “zoning designation” for a property. For example, Bronson’s building on Oxnard Street had an “occupancy designation” of B-2, meaning it had been approved for occupancy as “a small cafe, less than 50 people.” As Lara explained: “The certificate of occupancy . . . although it designates the use – it’s more related to the occupancy. And occupancy is concerned with how many people are in a building. Because the reason for different occupancies are different occupancies require different type of construction. So the reality is that the certificate of occupancy is intended to approve the construction or the structure for that use rather than to try to control the use itself.”

2 At the time of Oxnard’s current case, the City had not located “any” record of a conditional use permit ever having been issued for the Oxnard Street building. “[S]ometime in 1977,” the City enacted a conditional use permit ordinance governing the service of alcohol at all properties in the City. Under the City’s zoning laws, a particular use at a property that preceded the adoption of a conditional use ordinance applicable to the property would be deemed to have “approved status,” which means that the property owner would not be required to go through the conditional use process to continue the use “because [it] pre-existed the ordinance.” This is commonly characterized as being a “grandfather right.” Sometime around 1996, Charles Parnes purchased the Oxnard Street building.3 At the time Parnes acquired the building, it was being operated as what he described as a “bikini bar.” Sometime around 1998 or 1999, Parnes leased the Oxnard Street building to Dino’s Victory Roadhouse, Inc. doing business as “The Frisky Kitty.” As best as can be ascertained from the record, The Frisky Kitty apparently operated for some time as a “bikini bar,” but then changed its style of business. By the early 2000s, The Frisky Kitty’s bikini-clad alcohol servers became nude dancers who did not serve alcohol. In short, The Frisky Kitty became a strip club, without any alcohol. There is evidence in the record showing that Dino’s “surrendered” its alcohol license back to the California Department of Alcoholic Beverage Control (ABC) in early 2001 “in order to operate as a full nude club.” The Frisky Kitty Case In 2006, the City initiated a civil action for injunctive relief against Dino’s, as the operator of The Frisky Kitty, and against Parnes, as the owner/landlord of the Property. (L.A. Sup. Ct., No. BC353242.) The City’s 2006 action alleged various causes of action which basically claimed that The Frisky Kitty was a nuisance in that it was operating as an “adult cabaret” as defined by the Los Angeles Municipal Code (LAMC), and that the operation of such a business at the Property’s location violated the LAMC’s zoning laws,

3 Our references to Parnes include any relevant living trust as to which he acted as trustee, or any other related entity.

3 as well as an “Order to Comply” issued by the City’s Department of Building and Safety. The alleged zoning violation with The Frisky Kitty was that the LAMC does not permit adult cabarets within 500 feet of a residential or “R” zone under the City’s zoning laws, and The Frisky Kitty was allegedly located less than 500 feet from its nearest residential neighbor. Dino’s defense against the City’s 2006 action consisted largely of a legal argument that the City had used an incorrect measuring methodology to fix the 500 feet boundary line around The Frisky Kitty. Based on the record, there does not appear to have been any issues related to the serving of alcohol involved in the City’s 2006 action because, as already noted, Dino’s had surrendered its alcohol license years before. At the conclusion of a bench trial in June 2007, the Los Angeles Superior Court (LASC) allegedly entered a judgment with a permanent injunction directing Dino’s not to operate as an “adult cabaret” with nude dancers, but allowing it to operate as a “bikini bar.” We deliberately use the word “allegedly” here; the record before us on Oxnard’s current appeal does not include a copy of the LASC’s 2007 judgment in The Frisky Kitty case, and, thus, we do not know the exact language of the judgment. A reporter’s transcript from part of the LASC’s trial in 2007, which is included in the record, shows that it was understood at the time by the City’s and by Dino’s lawyers that dancers at The Frisky Kitty would have to “keep their tops and bottoms on.” During the course of an exchange, the City’s lawyer told the trial court that it was not the City’s position that The Frisky Kitty had to close, only that it had to operate as a bikini bar, not as a nude adult cabaret.4 The statements of the City’s lawyer, of course, were made in the context of a

4 On our own motion, we take judicial notice that our court eventually affirmed the LASC’s 2007 judgment insofar as its permanent injunction provisions were concerned. (See People ex re. City of Los Angeles v. Dino’s Victory Roadhouse, Inc. (Dec. 19, 2008, B202083) [nonpub.

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Oxnard Hospitality Enterprises v. City of Los Angeles CA2/8, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oxnard-hospitality-enterprises-v-city-of-los-angeles-ca28-calctapp-2015.