Stardust, 3007 LLC v. City of Brookhaven, Georgia

CourtCourt of Appeals for the Eleventh Circuit
DecidedAugust 10, 2018
Docket16-17176
StatusPublished

This text of Stardust, 3007 LLC v. City of Brookhaven, Georgia (Stardust, 3007 LLC v. City of Brookhaven, Georgia) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stardust, 3007 LLC v. City of Brookhaven, Georgia, (11th Cir. 2018).

Opinion

Case: 16-17176 Date Filed: 08/10/2018 Page: 1 of 27

[PUBLISH]

IN THE UNITED STATES COURT OF APPEALS

FOR THE ELEVENTH CIRCUIT ________________________

No. 16-17176 ________________________

D.C. Docket No. 1:14-cv-03534-ELR

STARDUST, 3007 LLC, d.b.a. Stardust, MICHAEL MORRISON,

Plaintiffs - Counter Defendants - Appellants,

versus

CITY OF BROOKHAVEN, GEORGIA, SUSAN CANON, individually and in her official capacity as Director of Community Development,

Defendants - Counter Claimants - Appellees.

________________________

Appeal from the United States District Court for the Northern District of Georgia ________________________ (August 10, 2018) Case: 16-17176 Date Filed: 08/10/2018 Page: 2 of 27

Before WILLIAM PRYOR, JILL PRYOR and CLEVENGER, ∗ Circuit Judges.

JILL PRYOR, Circuit Judge:

The City of Brookhaven passed an ordinance regulating adult businesses for

the stated purpose of preventing the negative secondary effects of such businesses.

Stardust, 3007 LLC—a purveyor of products subject to the City’s ordinance—and

Stardust’s manager, Michael Morrison (collectively “Stardust”), brought suit in

federal district court, claiming that the ordinance and the City’s implementation of

it violates the United States Constitution. The district court granted summary

judgment to the City. 1 On appeal, Stardust argues: (1) the ordinance

impermissibly restricts Stardust’s constitutionally protected speech; (2) the

ordinance is unconstitutionally vague, in violation of due process; (3) the City’s

enforcement of the ordinance violates Stardust’s equal protection rights; and (4)

the ordinance impermissibly infringes on individuals’ substantive due process right

to intimate sexual activity. After careful review, and with the benefit of oral

argument, we affirm.

∗ Honorable Raymond C. Clevenger III, United States Circuit Judge for the Federal Circuit Court of Appeals, sitting by designation. 1 The district court also granted summary judgment to Susan Canon, individually and in her official capacity as the Director of Community Development. For purposes of this opinion, however, we will refer to the City only. 2 Case: 16-17176 Date Filed: 08/10/2018 Page: 3 of 27

I. BACKGROUND

A. The City’s Sexually Oriented Business Code

The City of Brookhaven was incorporated in December 2012. In January

2013, it enacted a code to “regulate sexually oriented businesses in order to

promote the health, safety, and general welfare of the citizens of the City, and to

establish reasonable and uniform regulations to prevent the deleterious secondary

effects of sexually oriented businesses within the City.” Doc. 5-2 at 3. 2 The Code

regulates various types of adult businesses, which it refers to as “[s]exually

[o]riented [b]usiness[es],” including, as relevant to this appeal, “sexual device

shop[s].” Id. at 9. The Code, as amended in May 2013, defines a “[s]exual

[d]evice shop” as “a commercial establishment that regularly features sexual

devices. This definition shall not be construed to include any pharmacy, drug

store, medical clinic, or any establishment primarily dedicated to providing

medical or healthcare products or services.” Doc. 5-3 at 2-3. A “[s]exual

[d]evice” is defined in part as “any three (3) dimensional object designed for

stimulation of the male or female human genitals, anus, buttocks, female breast, or

for sadomasochistic use or abuse of oneself or others.” Doc. 5-2 at 9. The Code

defines “[r]egularly” to mean “the consistent and repeated doing of an act on an

2 All citations to “Doc #” refer to the numbered district court docket entries.

3 Case: 16-17176 Date Filed: 08/10/2018 Page: 4 of 27

ongoing basis,” id. at 8, and “[f]eature” to mean “to give special prominence to,”

doc. 5-3 at 2.

The Code does not ban sexually oriented businesses; rather, it sets up a

licensing system for these businesses and their employees, requires sexually

oriented businesses to submit to inspections, and sets requirements for, among

other things, lighting, signs, and hours of operation. Under its “Spacing

Requirements” provision, added in May 2013, the Code makes it unlawful to

operate a sexually oriented business “within 100 feet of another sexually oriented

business” or “within 300 feet of a residential district, place of worship, park, or

public library.” Id. at 3. There are 73 locations in the City where a licensed

sexually oriented business could operate in compliance with these spacing

requirements.

B. Stardust’s Operation

Shortly after the City’s incorporation and enactment of the Code, Stardust

opened a retail store in the City. In February 2013, Stardust applied for an

occupation tax certificate, as required by Article II of Chapter 15 of the Code of

the City of Brookhaven. On the application form, Stardust described its business

as “Retail—Smoke Shop, Tobacco; related accessories; gifts.” Doc. 5-8 at 2.

Stardust denied in its application that it would operate a sexually oriented business

as defined by the Code.

4 Case: 16-17176 Date Filed: 08/10/2018 Page: 5 of 27

In April 2013, Stardust sent a letter notifying the City that Stardust planned

to include, “as a non-principle [sic] business activity,” merchandise covered by the

Code. Doc. 63-22 at 1. According to the letter, the part of the store containing

these items would “occupy less than 500 sq. ft. of floor space, and constitute less

than 35% of . . . displayed merchandise.” Id. Stardust inquired whether it was

required to amend its business license to “list these goods” or whether its current

business license was sufficient. Id. The City apparently did not respond to the

letter, and Stardust began selling sexual devices in late April 2013.

Located across the street from the Stardust store was a residential area, and

located next to Stardust was Pink Pony, an adult entertainment club that qualified

as a sexually oriented business under the Code. 3 Pink Pony had been operating at

that location since 1990. Following the City’s incorporation and the passing of the

Code, Pink Pony sued the City over the Code and alcohol licensing issues. See

Trop, Inc. v. City of Brookhaven, 764 S.E.2d 398, 400-02 (Ga. 2014) (concluding

that the Code did not violate Pink Pony’s right to free speech by “separating

alcohol from adult entertainment” (internal quotation marks omitted)). As a result

of the litigation, Pink Pony entered into an exit agreement with the City that

required Pink Pony to relocate within a certain number of years. In addition, Pink

Pony agreed to pay for additional law enforcement to patrol the area around its

3 Pink Pony was an “[a]dult [c]abaret” under the Code. Doc. 5-2 at 7. 5 Case: 16-17176 Date Filed: 08/10/2018 Page: 6 of 27

building to combat any negative secondary effects of its business and to ensure that

its permits and licensing were up to date.

In June 2013, the City began ticketing Stardust for (1) operating a sexually

oriented business without a license, (2) operating a sexually oriented business

within 100 feet of another sexually oriented business, (3) operating a sexually

oriented business within 300 feet of a residential zone, and (4) failing to identify its

line of business on its occupation tax certificate.

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