People of N.Y., Inc. v. City of New York

84 A.D.3d 48, 923 N.Y.S.2d 11
CourtAppellate Division of the Supreme Court of the State of New York
DecidedApril 7, 2011
StatusPublished
Cited by9 cases

This text of 84 A.D.3d 48 (People of N.Y., Inc. v. City of New York) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
People of N.Y., Inc. v. City of New York, 84 A.D.3d 48, 923 N.Y.S.2d 11 (N.Y. Ct. App. 2011).

Opinion

OPINION OF THE COURT

Acosta, J.

This challenge to the constitutionality of the 2001 Amendments to New York City Zoning Resolution § 12-10, which placed certain restrictions on adult establishments, presents two significant issues. The first is whether the City established that certain nightclubs fitting the technical definition of “60/40” establishments retained a predominant focus on sexually explicit activity, and thus, that the amendments were constitutional. If this first issue is resolved in the affirmative, then the second must be addressed — whether the 2001 Amendments to the Zoning Resolution were constitutional on an as-applied basis.

[52]*52Background

Before 1995, New York City made no distinction between adult entertainment and nonadult entertainment, as the Zoning Resolution of December 15, 1961 allowed adult entertainment businesses to coexist with other uses. In 1993, the New York City Department of City Planning (DCP) began a comprehensive assessment of the impact of adult establishments. That effort culminated with the release of the “Adult Entertainment Study” in 1994 (DCP Study). Based on the material before it, the DCP concluded that adult entertainment establishments, particularly those concentrated in specific areas, tended to produce negative secondary effects such as increased crime, decreased property values, reduced commercial activities, and erosion of community character.

In response to the DCP Study, the City adopted an Amended Zoning Resolution in 1995 (1995 Resolution), which barred adult businesses from all residential zones and most commercial and manufacturing districts (Amended Zoning Resolution § 32-01 [a]; § 42-01 [b]). The 1995 Resolution defined an “adult establishment” as a commercial establishment in which a “substantial portion” of the establishment includes “an adult book store, adult eating or. drinking establishment, adult theater, or other adult commercial establishment, or any combination thereof’ (Text Amendment N 950384 ZRY [No. 1322]).1 Notably, the 1995 Resolution placed particular emphasis on the presence of “specified sexual activities” and/or “specified anatomical areas” in determining whether an establishment was of an adult character.2

[53]*53Some time thereafter, the City Planning Commission (CPC) determined “substantial portion” to be defined as 40%, and made it clear that any commercial establishment with “at least 40 percent of its accessible floor area used for adult purposes qualifies as an ‘adult establishment’ or ‘adult bookstore.’ ” After the 60/40 formula became the governing standard, adult businesses altered their character to ensure that they did not qualify as “adult establishments” within the meaning of the City’s zoning law. Following unsuccessful claims against adult businesses for “sham compliance” on the basis of the Nuisance Abatement Law,3 the New York City Council adopted and ratified Text Amendment N 010508 ZRY to the Zoning Resolution in 2001 (the 2001 Amendments). To include those establishments that had superficially complied with the 60/40 formula but remained essentially adult establishments, the amended definition included a provision clarifying that nonadult material shall not be considered stock-in-trade for the purpose of the “substantial portion” analysis where one or more of the following features were present: (1) customers had to pass through adult material to reach the nonadult section; (2) any material exposed one to adult material; (3) nonadult material was only for sale, while adult material was for sale or rent; (4) more adult printed materials were available than nonadult ones; (5) minors were restricted from the entire store or from any section offering nonadult material; (6) signs or window displays of adult matter were disproportionate to signs and window displays featuring nonadult matter; (7) “[o]ne or more individual enclosures” were available for viewing adult movies or live performances; and (8) purchasing nonadult material exposed the buyer to adult material.

On or about October 1, 2002, Ten’s Cabaret commenced an action against the City, seeking, among other things, a declaratory judgment declaring the 2001 Amendments to be unconstitutional and invalid and also seeking a permanent injunction against their enforcement. At the same time, the plaintiff moved for a preliminary injunction preventing the City from enforcing the amendments. On October 1, 2002, Supreme Court (Faviola Soto, J.) granted a temporary restraining order against enforcement of the amendments against Ten’s Cabaret. On October 18, [54]*542002, three other 60/40 establishments — Pussycat Lounge, Inc., doing business as Pussycat Lounge; Church Street Café, Inc., doing business as BabyDoll; and 62-20 Queens Boulevard Inc., doing business as Nickels — commenced an action similar to the one Ten’s had commenced. The three plaintiffs moved by order to show cause for a temporary restraining order, which Supreme Court (Paviola Soto, J.) granted, and to consolidate their action with Ten’s, on the ground that the two actions were substantively identical. The two actions were consolidated by stipulation on May 12, 2003.

Additionally, two other 60/40 establishments — For the People Theatres of N.Y., doing business as Fair Theater, and JGJ Merchandise Corp., doing business as Vishans Video, also known as Mixed Emotions — also brought similar actions. Both plaintiffs sought a judgment declaring the 2001 Amendments unconstitutional and unenforceable as well as a preliminary injunction. By order entered October 30, 2002, Supreme Court (Louis B. York, J.) enjoined the enforcement of the 2001 Amendments “to the same extent as the temporary restraining order issued in Pussycat Lounge v City of New York.”

In a decision dated September 9, 2003, Supreme Court granted summary judgment in favor of the plaintiffs in the Ten’s Cabaret action (Ten’s Cabaret v City of New York, 1 Misc 3d 399 [Sup Ct, NY County 2003]). In so doing, the court concluded that defendants did not meet their burden under the First Amendment, or show that the 2001 Amendments were justified by concerns unrelated to speech. On the same date, Supreme Court issued a decision in For the People, finding, as it had in Ten’s Cabaret, that the City had failed to meet its constitutional burden to permit the court to uphold the amendments (For the People Theatres of N.Y. v City of New York, 1 Misc 3d 394 [Sup Ct, NY County 2003]).

Ten’s Cabaret and For the People were consolidated for the purposes of appeal to this Court, which reversed the Supreme Court’s judgments (20 AD3d 1 [2005]). In its decision, this Court found that no new “secondary impacts” study was required absent a showing that the essential nature of the 60/40 businesses had changed (id. at 17-18).

On appeal, the Court of Appeals modified this Court’s decision, finding that the action should be remitted for a hearing (For the People Theatres of N.Y., Inc. v City of New York, 6 NY3d 63 [2005]). In so doing, it held that the plaintiffs had disputed the factual findings underlying the City’s 2001 Amendments, [55]*55and had submitted expert affidavits, along with other documents, supporting their arguments (id. at 82-83).

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Bluebook (online)
84 A.D.3d 48, 923 N.Y.S.2d 11, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-of-ny-inc-v-city-of-new-york-nyappdiv-2011.