Penthouse International, Ltd. v. Webb

594 F. Supp. 1186
CourtDistrict Court, N.D. Georgia
DecidedSeptember 18, 1984
DocketCiv. A. C84-1769A
StatusPublished
Cited by6 cases

This text of 594 F. Supp. 1186 (Penthouse International, Ltd. v. Webb) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Penthouse International, Ltd. v. Webb, 594 F. Supp. 1186 (N.D. Ga. 1984).

Opinion

ORDER

SHOOB, District Judge.

I. INTRODUCTION

This is an action under 42 U.S.C. § 1983 for declaratory and injunctive relief as well as for damages. Plaintiff, publisher of the monthly magazine “Penthouse,” alleges that James Webb, Solicitor General of Fulton County, has wrongfully brought accusations against plaintiff and Elson’s News and Gift Shops, Inc., a distributor of Penthouse, for violation of the Georgia obscenity distribution statute, O.C.Ga.Ann. § 16-12-80, in the distribution of the September 1984 issue of Penthouse, and has thus violated plaintiff’s rights under the first and fourteenth amendments to the United States Constitution. Plaintiff seeks a permanent injunction against enforcement of O.C.Ga.Ann. § 16-12-80 with respect to distribution of the September 1984 issue of Penthouse; a declaration that the accusation filed against plaintiff is null and void; a declaration that the September 1984 issue of Penthouse is not obscene and is protected by the first and fourteenth amendments to the U.S. Constitution; a declaration that the actions of Webb and his agents are in bad faith and violate plaintiff's rights under the first and fourteenth amendments; a declaration that the statute authorizing service of a criminal accusation upon a corporation, O.C.Ga.Ann. § 17-7-92, is unconstitutional as applied to plaintiff; dam *1189 ages; and attorney’s fees under 42 U.S.C. § 1988.

Plaintiff has applied for a temporary restraining order to enjoin the arrest of any person for distribution of the September or October 1984 issues of Penthouse and to prevent the enforcement of the obscenity distribution statute with regard to those issues. The Court held a hearing on the application on September 4 and 5, 1984. Because counsel for both parties were present, the Court treats the application as being for a preliminary injunction under Rule 65(a), Fed.R.Civ.P., and hereby enters its findings and conclusions as required by Rule 52, Fed.R.Civ.P. 1

II. FACTUAL BACKGROUND

On August 8, 1984, two investigators of the Solicitor General’s office purchased a copy of the September 1984 Penthouse from a newsstand owned by Elson’s News and Gift Shops, Inc. The investigators went before a magistrate of Fulton County and obtained two “Jane Doe” arrest warrants against the salesperson based upon a determination that the issue was probably obscene within the meaning of O.C.Ga.Ann. § 16-12-80(b). Solicitor General Webb then filed accusations in the State Court of Fulton County against plaintiff and against Elson’s News and Gift Shops.

Penthouse is a nationally distributed magazine styling itself “the international magazine for men.” It has a world-wide circulation of 5 million. Plaintiff distributes the magazine through Curtis Circulation Company, which selects wholesalers in different areas of the United States. 2 Plaintiff derives revenue both from sale of the issues and from advertising; advertising income itself depends upon circulation, because advertisement prices rise and fall with the number of readers reached.

Approximately 500 wholesalers distribute Penthouse throughout the country. Sixth largest of these wholesalers is Atlanta News Agency, Inc. (“ANA"). ANA controls 98 percent of the periodical distribution market in the Atlanta metropolitan area and in Savannah, which is Georgia’s second largest city. Both ANA and Elson’s News and Gift Shops are owned or controlled by Atlantan Edward E. Elson.

Upon the filing of an accusation against Elson’s News and Gifts, Inc., Mr. Elson caused ANA to cease distributing copies of the September 1984 Penthouse. Elson also informed Penthouse that ANA would not distribute the October 1984 issue because of the fear of arrest and prosecution. 3

Elson testified that no threat has been expressed to him, his companies, or any employees concerning distribution of the October 1984 issue of Penthouse. His decision not to distribute that issue was based upon business reasons and upon his knowledge of the history of litigation between him and the former Solicitor General of Fulton County over sexually oriented publications. Elson stated that he feared to distribute the October 1984 issue because of the controversy over the September 1984 issue; in his view — derived from information or complaints generated by others, and not from personal observation — there has been no significant change in the content of Penthouse over the last ten years. In his words, the prosecution for the September issue amounts to a threat of prosecution for the October issue.

Elson also testified that, owing to the size and complexity of its distribution network, ANA cannot screen individual issues *1190 of the 2800 different periodicals it handles. ANA is unable to intercept even the most extremely obscene issues; instead it depends upon the reliability and credibility of the publishers and distributors with whom it deals.

Elson estimated that there are approximately 500 retailers of Penthouse in Fulton County. Penthouse sales account for 4.8 percent of ANA’s gross revenues, although the percentage of revenues derived from Penthouse sales within Fulton County was not specified.

Elson testified that an interruption of ANA’s distribution of Penthouse causes a loss of credibility with retailers, who expect regular, distribution. He also testified that an accusation impairs ANA’s ability to do business because of the stigma attached to criminal prosecution for distribution of obscene materials. Elson stated that municipal governments and ■ large hotel chains dealing with ANA and Elson’s other companies are concerned with the distributor’s reputation and that the reputation is harmed by such an accusation.

Plaintiff’s chief financial officer, Mr. Prebich, .testified that the publisher loses revenue when part of the distribution system fails to operate. Although Curtis Circulation Company, not the publisher, deals directly with wholesalers, Mr. Prebieh estimated that it would be difficult for Curtis to find a new distributor to replace ANA. Mr. Prebieh also testified that an accusation such as that filed in Fulton County impairs the publisher’s relations with advertisers who are sensitive to the magazine’s image, but he could not cite any problems with advertisers over the current accusation.

Plaintiff called to the Court’s attention a history of litigation between it and Hinson McAuliffe, defendant’s predecessor in office, over alleged obscenity of various issues of Penthouse and of a film, Caligula, distributed by plaintiff. In Penthouse International, Ltd. v. McAuliffe, 436 F.Supp. 1241 (N.D.Ga.1977) (Penthouse I), Judge Freeman of this court found that the conduct of McAuliffe, “consisting of numerous and harassing arrests with or without a warrant prior to a final adjudication upon the issue of obscenity vel non

Free access — add to your briefcase to read the full text and ask questions with AI

Related

2025 Emery Highway, LLC v. Bibb County, Georgia
377 F. Supp. 2d 1310 (M.D. Georgia, 2005)
Tipp-It, Inc. v. Conboy
596 N.W.2d 304 (Nebraska Supreme Court, 1999)
White's Place, Inc. v. Glover
975 F. Supp. 1333 (M.D. Florida, 1997)
Phelps v. Hamilton
840 F. Supp. 1442 (D. Kansas, 1993)

Cite This Page — Counsel Stack

Bluebook (online)
594 F. Supp. 1186, Counsel Stack Legal Research, https://law.counselstack.com/opinion/penthouse-international-ltd-v-webb-gand-1984.