Royal Oak Entertainment, LLC. v. City of Royal Oak

205 F. App'x 389
CourtCourt of Appeals for the Sixth Circuit
DecidedNovember 9, 2006
Docket05-1637
StatusUnpublished
Cited by19 cases

This text of 205 F. App'x 389 (Royal Oak Entertainment, LLC. v. City of Royal Oak) 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
Royal Oak Entertainment, LLC. v. City of Royal Oak, 205 F. App'x 389 (6th Cir. 2006).

Opinion

ALICE M. BATCHELDER, Circuit Judge.

Plaintiffs Royal Oak Entertainment, LLC (“ROE”), Royal Oak Theatre, LLC (“ROT”), Murray Hodgson (“Hodgson”), and Peter Hendrickson (“Hendrickson”) (collectively, “Plaintiffs”) appeal the judgment of the district court granting Defendant City of Royal Oak, Michigan (“Royal Oak”) and several of its employees and members of its City Commission and City Liquor Control Commission Committee (“Committee”) (collectively, “Defendants”) summary judgment on Plaintiffs’ claims brought under 42 U.S.C. § 1983, 42 U.S.C. § 1985(3), 42 U.S.C. § 1986, and 18 U.S.C. §§ 1961 and 1962. We will affirm the judgment of the district court dismissing the Plaintiffs’ federal claims, in part for the reasons given by the district court, and in part on other grounds.

I. Statement of Facts

Nobody in Particular Presents (“NIPP”), which is not a party to this action, purchased the Royal Oak Music Theater (“the Theater”), located in Royal Oak, Michigan, and the Theater’s liquor license, at a bankruptcy sale some time before 2000. NIPP thereafter obtained the City’s approval of a plan of operation (“PO”) for the Theater, and for a time operated the Theater itself. In the fall of 2002, Hodgson and Hendrickson began negotiating with NIPP for the purchase of *392 the Theater, including the liquor license, the Sunday sales permit and the dance permit. In anticipation of the sale — and without ever having requested that the liquor license be transferred — Hodgson submitted a PO to the Committee on May 28, 2003, stating that he was doing business as “Royal Oak Music Theater” on behalf of “an entity to be formed.” The Committee voted to set this PO for a public hearing on June 26, 2003. For reasons not explained by the parties and certainly not clear from the record, the minutes of the Committee state that the public hearing would be set for June 26, 2003, but the minutes of the hearing itself indicate that it was held on June 25, 2003.

On June 24, 2003, Sergeant T.J. Berrington (“Berrington”) of the Royal Oak Police Department (“ROPD”) sent a memorandum to his superiors regarding a nightclub called “Space” that Hodgson had operated in Detroit. The memorandum contained information — apparently derived from Berrington’s conversations with members of the Detroit Police Department and from two newspaper articles — indicating that there were 19 assault and battery reports stemming from incidents at Space, mostly concerning bouncers’ assaulting customers. Berrington’s memorandum was forwarded to Deputy Chief Wightman (“Wightman”) and then to Police Chief Quisenberry (“Quisenberry”). Wightman also included his own memorandum reiterating that there were 19 assault and battery reports resulting from incidents at Space.

Before the June 25th hearing, Hodgson submitted a new PO; it is this PO that was discussed at the hearing on June 25. At that hearing, Deputy City Attorney James Marcinkowski (“Marcinkowski”) advised the Committee that POs are not subject to public hearing, so the Committee voted to continue the hearing until July 15. On July 4, Hodgson wrote an email to Quisenberry in order to set the record straight regarding the information contained in the June 24 memorandum, stating that 12 of the 19 assaults that allegedly occurred at Space in fact occurred after Space had closed. Hodgson sent another email to Quisenberry on July 10, complaining that Donald Foster (“Foster”) of the ROPD refused to meet with him in order to hear his side of the story.

The next day, Foster sent Quisenberry a report entitled “Space Nightclub Background Investigation (2nd Part),” which Plaintiffs assert was made available to the public and the media before the Plaintiffs were allowed to see it. The report was not flattering from Plaintiffs’ perspective. It quoted a newspaper article describing Space as having “mind-altering lights,” which it connected with possible use of the drug “ecstasy” at the club, but it also summarized interviews with neighbors of Space and news investigators, all of whom reported that Space was well-run and a good neighbor. A section entitled ‘Word on the Street” included nine unattributed quotes, supposedly provided by people on the “streets of Detroit in area of Space,” all of which cast Space in a negative light from a law-enforcement perspective. The final section of the report again stated that there had been 19 criminal reports stemming from incidents at Space, and additionally linked a murder to the club by stating that the suspect and victim had been arguing inside Space and that the shooting occurred in the Space parking lot. 1 Hodgson was eventually vindicated to some extent when an investigator from *393 the Detroit Police Department sent a letter to Hodgson admitting that “[a]t no time has [sic] warrants been issued or bouncers been investigated for any alleged crimes at Space Night Club.”

The July 15th public hearing went forward as scheduled, and Hodgson told the Committee that, if NIPP’s liquor license was ever transferred, it would be transferred to ROT, which Hendrickson owns. The Committee voted to recommend that the PO be denied because neither Hodgson, Hendrickson, nor ROT owned a valid liquor license, and none of them had applied for a new license or the transfer of a new license into Royal Oak. In the Committee’s view, the City’s ordinances did not permit a non-licensed party — other than an applicant for a new license or for transfer into the City of a new license — to submit a PO.

On July 24, 2003, ROE and NIPP entered into a management agreement for the Theater which provided that NIPP would operate the Theater until all licenses and permits were transferred to ROE, at which time ROE would take over management. About the same time, Hendrickson submitted a request that NIPP’s liquor license be transferred to ROT. On August 1, Marcinkowski drafted two proposed resolutions for the Committee to adopt, stating “BE IT RESOLVED that the request of ‘Space’ and/or Murray Hodgson to operate the Royal Oak Music Theatre (318 West Fourth Street) is denied” and “BE IT FURTHER RESOLVED that the proposed plan of operation of ‘Space’ and/or Murray Hodgson is denied.” The Committee adopted both resolutions at its August 4th meeting.

Two days later, Marcinkowski sent a letter to Julie Wendt, Director of Licensing for the Michigan Liquor Control Commission (“MLCC”), informing her that the Committee had passed a resolution denying Hodgson’s request to operate the Theater. He sent another letter on August 12th, telling her about the management agreement between NIPP and ROE. The MLCC wrote to Hendrickson on August 11th, telling him not to invest any money in renovating the Theater until the transfer of the liquor license from NIPP to ROT was approved.

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

Related

Jones v. State of Tennessee
E.D. Tennessee, 2023
Borke v. Warren
E.D. Michigan, 2022
Reece v. CArey
E.D. Kentucky, 2021
Stark v. City of Memphis
W.D. Tennessee, 2021
Deja Vu Of Nashville v. Metropolitan Government
360 F. Supp. 3d 714 (M.D. Tennessee, 2019)
Zell v. Ricci
321 F. Supp. 3d 285 (D. Rhode Island, 2018)
Curtis v. Breathitt Cnty. Fiscal Court
288 F. Supp. 3d 789 (E.D. Kentucky, 2018)
Jon Jon's Inc. v. City of Warren
162 F. Supp. 3d 592 (E.D. Michigan, 2016)
Tini Bikinis-Saginaw, LLC v. Saginaw Charter Township
836 F. Supp. 2d 504 (E.D. Michigan, 2011)
Long v. CITY OF COOPERTOWN
801 F. Supp. 2d 674 (M.D. Tennessee, 2011)
Phifer v. CITY OF GRAND RAPIDS, MICHIGAN
657 F. Supp. 2d 867 (W.D. Michigan, 2009)
Royal Oak Entertainment, LLC v. City of Royal Oak
316 F. App'x 482 (Sixth Circuit, 2009)
Royal Oak Entertainment, L.L.C. v. City of Royal Oak
486 F. Supp. 2d 675 (E.D. Michigan, 2007)

Cite This Page — Counsel Stack

Bluebook (online)
205 F. App'x 389, Counsel Stack Legal Research, https://law.counselstack.com/opinion/royal-oak-entertainment-llc-v-city-of-royal-oak-ca6-2006.