TINY B., INC. v. City of Newport Beach

81 Cal. Rptr. 2d 6, 69 Cal. App. 4th 1
CourtCalifornia Court of Appeal
DecidedDecember 30, 1998
DocketG016950, G019250, G022132
StatusPublished
Cited by36 cases

This text of 81 Cal. Rptr. 2d 6 (TINY B., INC. v. City of Newport Beach) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
TINY B., INC. v. City of Newport Beach, 81 Cal. Rptr. 2d 6, 69 Cal. App. 4th 1 (Cal. Ct. App. 1998).

Opinion

Opinion

BEDSWORTH, J.

The sine qua non of a life in the law is a willingness to devote a great deal of thought to issues which seldom concern nonlawyers. In this case, for example, we discuss appropriate ways in which to distinguish a theater from a restaurant—something with which the general public *8 seems to have absolutely no difficulty, but which regularly defies the best efforts of courts and counsel.

This is a dispute over the extent to which the City of Newport Beach may constitutionally regulate the operation of the Mermaid, an adult entertainment establishment owned and operated by Tily B., Inc., of which An and Olivia Nguyen are the sole shareholders (Mermaid).

The Mermaid appeals first from a judgment denying its petitions for writs of mandate to compel the city to issue use and entertainment permits. The city appeals from a judgment holding unconstitutional an ordinance prohibiting nude dancing (the “pasties and G-string” ordinance) and granting a writ of mandate directing it to repeal the ordinance. The Mermaid reconfigured its club to meet city requirements and obtained the needed permits, later revoked by the city, and now it also appeals from a judgment that denied its petition for a writ of mandate ordering the city to set aside the revocation/ nonrenewal of its permits, granted summary judgment for the city on the Mermaid’s claims for deprivation of civil rights under 42 United States Code section 1983, and permanently enjoined the Mermaid from operating without required city permits.

The Mermaid argues that city ordinances violated its rights under the United States and California Constitutions, and that there were triable issues of fact on its federal civil rights claims precluding summary judgment. The city, in turn, argues that its pasties and G-string ordinance is constitutional.

We hold the city did not violate the Mermaid’s constitutional rights in denying the initial permit applications and affirm the decision in No. G016950. The pasties and G-string ordinance is constitutional, so we reverse the decision in No. G019250. The city, did not violate the Mermaid’s constitutional rights in revoking the later-issued permits, and summary judgment against the Mermaid on the civil rights claims was proper, so we affirm the decision in No. G022132.

I

In 1993, the Nguyens bought a vacant restaurant in Newport Beach. Included in the purchase was a conditional use permit to operate a restaurant with live band music. They wanted to change the fare to adult entertainment and rename the establishment the Mermaid.

The Newport Beach Municipal Code then required a use permit to operate a restaurant, and required an amended permit be obtained prior to any *9 change in the operational characteristics of the business. (Newport Beach Mun. Code, § 20.72.020.) 1 The Nguyens applied to the city planning commission to amend their use permit to allow them to serve lunch, dinner and snacks, and to offer entertainment on six “theater stages” and in a number of booths for private “couch dances.” The planning commission denied the application because of inadequate parking space, and the Nguyens appealed to the city council.

In February 1994, the city council denied the application because the Mermaid did not qualify as a restaurant, the only use for which the site was zoned. The city council found the Mermaid was a theater with ancillary food service, applying a “principal use” or “primary use” test not found in its zoning ordinances, which defined a restaurant as a “business which sells or serves food ... for consumption on the premises.” (§ 20.72.010.) The finding was based on the Mermaid’s submitted plan to use approximately 32 percent of the net public area for entertainment, its admission that “food and drink [service] ... is incidental to the entertainment being provided,” and its description in its business license application of the proposed business as “adult theater[s]” with food and beverage service.

In October 1994, admittedly as the result of the Mermaid’s lawsuit, the city amended its definition of restaurant to codify the unwritten interpretation. The amended provision defined a restaurant as a business “with the principal purpose” of selling food and beverages for on-premises consumption, adding the requirement that “the area devoted to live entertainment and/or dancing does not exceed twenty percent (20%) of the ‘net public area.’ ” (Newport Beach Ord. No. 94-52, § 2.)

Newport Beach also required an entertainment permit for any business that wanted to provide entertainment in a place where food and beverages were served. 2 In November 1993, the Nguyens applied for an entertainment permit to offer adult entertainment. The entertainment ordinance as then written did not require the city to act on an application within any stated time, 3 and it neither granted nor denied the Nguyen’s application.

In January 1994, the city amended its live entertainment ordinance by emergency action that recited as the need for urgency that “an adult business *10 is planning to open within the City within the next few weeks.” (Newport Beach Ord. No. 94-7, § 1.) The Nguyens submitted a second application for an entertainment permit, under the new ordinance, to offer “striptease/ cabaret/burlesque where female entertainers will. . . progress from clothed to semi-clothed to nude.” The city manager, and then the city council, denied the application for the same reason that the use permit was denied: The Mermaid was a theater but the site was zoned only for restaurant use.

In October 1994, the trial judge denied the Mermaid’s writ petitions.

A

The Mermaid argues the city’s licensing scheme for restaurants, as applied, was an unconstitutional prior restraint on its freedom of speech. It says the unwritten primary use test gave the city too much discretion, enabling it to censor the Mermaid’s erotic message while allowing others it considered less objectionable to have a use permit. We agree, but conclude that because the amended ordinance cured this defect, the city was not required to issue the use permit.

“Any system of prior restraint . . . ‘comes . . . bearing a heavy presumption against its constitutional validity.’ ” (Southeastern Promotions, Ltd. v. Conrad (1975) 420 U.S. 546, 558 [95 S.Ct. 1239, 1246, 43 L.Ed.2d 448].) Nude dancing comes within this rule because it is “expressive conduct within the outer perimeters of the First Amendment, though . . . only marginally so.” (Barnes v. Glen Theatre, Inc. (1991) 501 U.S. 560, 566 [111 S.Ct. 2456, 2460, 115 L.Ed.2d 504].) In the leading case dealing with the licensing of sexually oriented businesses, the Supreme Court observed that “[o]ur cases addressing prior restraints have identified two evils that will not be tolerated in such schemes.

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Cite This Page — Counsel Stack

Bluebook (online)
81 Cal. Rptr. 2d 6, 69 Cal. App. 4th 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tiny-b-inc-v-city-of-newport-beach-calctapp-1998.