Resort Development International, Inc. v. City of Panama City Beach

636 F. Supp. 1078, 1986 U.S. Dist. LEXIS 26035
CourtDistrict Court, N.D. Florida
DecidedMay 1, 1986
DocketMCA 85-1061-RV
StatusPublished
Cited by3 cases

This text of 636 F. Supp. 1078 (Resort Development International, Inc. v. City of Panama City Beach) is published on Counsel Stack Legal Research, covering District Court, N.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Resort Development International, Inc. v. City of Panama City Beach, 636 F. Supp. 1078, 1986 U.S. Dist. LEXIS 26035 (N.D. Fla. 1986).

Opinion

ORDER GRANTING MOTION FOR SUMMARY JUDGMENT

VINSON, District Judge.

The defendant, City of Panama City Beach (“City”), has filed a motion for summary judgment, pursuant to Rule 56, Federal Rules of Civil Procedure. (Doc. 28) Finding no dispute as to any material fact, I conclude that the defendant is entitled to judgment as a matter of law. Defendant’s motion, therefore, is GRANTED.

*1080 I. FACTUAL BACKGROUND.

Resort Development International, Inc. (“RDI”) operates timeshare resorts within the City of Panama City Beach. A substantial amount of RDI’s marketing consists of off-premises, personal contact with prospective customers initiated by its employees. Much of RDI’s peripatetic solicitation occurs on the City’s sand beach areas located along the Gulf of Mexico. According to the complaint, this marketing technique “has been highly successful to [RDI] and has produced the majority of [RDI’s] sales.” Complaint, ¶ 10. In fact, Kenn R. Keim, President of RDI, stated that the “substantial number of employees who solicit and canvass the sand beach area for the purpose of introducing potential customers to the purchase of timeshare condominiums ... [is integral to] the major portion of RDI’s sales.” Affidavit of Kenn R. Keim, doc. 7, at 2.

Finding that peripatetic solicitation on the beach constituted a nuisance, and in an effort to regulate commercial solicitation along its sand beaches, the City adopted Ordinance No. 297 1 on May 23, 1985, which, before it was amended on December 12, 1985, stated in part:

No person shall solicit or canvass for the sale or rental of merchandise, services, goods, or property of any kind oi character, in, upon, or from the sand beach areas between the waters of the Gulf of Mexico and the Coastal Line established by the State of Florida, Department of Natural Resources.

Section 1 of Ordinance No. 297 further defines “solicit or canvass” to mean:

any act, delivery or exchange not initiated by the prospective customer, which directs attention to any business, mercantile or commercial establishment, or any other commercial activity, for the purpose of directly or indirectly promoting commercial interests through sales, rentals or any exchanges of value.

Before its amendment on December 12, 1985, the prohibitions found in Section 1 of the ordinance did not apply to persons soliciting or canvassing from a booth or stall. “Booth or stall” is defined as “an immobile structure or partial enclosure not exceeding fifty (50) square feet of gross horizontal space.” Additionally, the ordinance completely exempted from its booth requirement the canvassing and solicitation for the sale or rental of certain products such as umbrellas, sale boats, jet skis, floats, chairs, suntan lotions, and the like, on the basis that those products “directly serve a public need in the sand beach areas and are not themselves a nuisance or detriment.” Finally, Section 5 of the ordinance states that any person violating the ordinance shall be guilty of an offense punishable as provided by law.

One day after the City adopted Ordinance No. 297, RDI filed a complaint in this Court seeking injunctive and declaratory relief, as well as damages and attorney’s fees. Briefly, the complaint alleges that the ordinance, as applied to RDI, impermissibly infringes upon RDI’s First Amendment right to freedom of speech. The complaint also asserts a challenge to Ordinance No. 297 based on the equal protection clause of the Fourteenth Amendment.

On May 30, 1985, I entered an order enjoining the City from enforcing Ordinance No. 297 against RDI, pending a decision on the merits of this case. Shortly thereafter, the City moved for judgment on the pleadings, pursuant to Rule 12(c), Federal Rules of Civil Procedure. In its motion, the City argued (1) that under Central Hudson Gas & Electric Corp. v. Public Services Commission, 447 U.S. 557, 100 S.Ct. 2343, 69 L.Ed.2d 341 (1980), Ordinance No. 297 did not violate RDI’s First Amendment rights, and (2) that the exemptions provided in the ordinance were not based on speech and rationally related to a legitimate state interest. RDI agreed that Central Hudson, supra, controlled, but ar *1081 gued that Ordinance No. 297 regulated more extensively than necessary to serve the City’s governmental interests and that the ordinance was actually impermissible content regulation of speech associated only with the timeshare industry. In addition, RDI argued that the exemptions noted in the ordinance were totally arbitrary in that the products exempted failed to serve a public need any greater than the timeshare condominiums marketed by RDI.

On September 24, 1985, I entered an order denying the City’s motion for judgment on the pleadings. Applying the four-part test articulated by the Supreme Court of the United States in Central Hudson, supra, I ruled that too many material facts remained in dispute to allow me to grant the City judgment as a matter of law. As indicated in that order, the parties agreed that peripatetic solicitation was a form of commercial speech protected by the First Amendment. Furthermore, the parties agreed that the City had a substantial governmental interest in preventing “unreasonable interference with the flow, recreation, enjoyment, and privacy of persons otherwise upon the sand beach areas.” Order, September 24, 1985, at 4 n. 3. However, the unexplained presence of the listed exemptions in the ordinance and the City’s inability on a motion for judgment on the pleadings to articulate some minimally reasonable distinction between exempted and prohibited solicitation both engendered difficulty with whether the ordinance directly advanced the governmental interest and whether the ordinance regulated too extensively. Order, September 24,1985, at 4-5. See Central Hudson, supra, 447 U.S. at 566, 100 S.Ct. at 2351. Consequently, the City’s motion was denied.

Apparently in reaction to language in my order of September 24, 1985, the City amended Ordinance No. 297 on December 12, 1985, by adopting Ordinance No. 299. Potentially the most significant change, and the one which is the primary subject of the City’s present motion for summary judgment, is the requirement that any person soliciting or canvassing on the sand beach areas must do so from within a booth or stall, including soliciting and canvassing for those products previously exempted from the booth requirement. Otherwise, Ordinance No. 297 remains substantially intact.

The City now contends that the amendment eliminated any potential finding that the ordinance regulates commercial speech on the basis of content. Additionally, by eliminating the exemptions and confining all commercial solicitation and canvassing to booths or stalls, the City also asserts that Ordinance No. 297, as amended, fully complies with the equal protection clause.

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636 F. Supp. 1078, 1986 U.S. Dist. LEXIS 26035, Counsel Stack Legal Research, https://law.counselstack.com/opinion/resort-development-international-inc-v-city-of-panama-city-beach-flnd-1986.