Treants Enterprises, Inc. v. Onslow County

350 S.E.2d 365, 83 N.C. App. 345, 1986 N.C. App. LEXIS 2710
CourtCourt of Appeals of North Carolina
DecidedNovember 25, 1986
Docket864SC312
StatusPublished
Cited by25 cases

This text of 350 S.E.2d 365 (Treants Enterprises, Inc. v. Onslow County) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Treants Enterprises, Inc. v. Onslow County, 350 S.E.2d 365, 83 N.C. App. 345, 1986 N.C. App. LEXIS 2710 (N.C. Ct. App. 1986).

Opinion

BECTON, Judge.

Treants Enterprises, Inc. (Treants), the operator of three business establishments in Onslow County known locally as “Movie Mates,” brought this action to enjoin the enforcement of a county ordinance subjecting businesses which provide male or female “companionship” to various licensing requirements. By an order entered 29 October 1985, Superior Court Judge John B. Lewis, Jr. permanently enjoined the defendants, Onslow County, the Sheriff of Onslow County, and the Onslow County Tax Collector (Defendants), from enforcing the ordinance. From that judgment, Defendants appeal. We affirm.

This appeal primarily concerns the constitutionality of the challenged ordinance. Other issues on appeal relate to Treants’ standing to challenge the ordinance, preemption by state law, the imposition of an illegal tax, and severability.

I

A. The Ordinance: Its Scope and Coverage

On 19 June 1985, Onslow County enacted “An Ordinance Regulating Businesses Providing Male or Female Companionship.” Summarized briefly, the ordinance provides: No person, partnership, corporation, or association may operate “a business providing or selling male or female companionship” without first obtaining a license from the Onslow County Tax Collector. A male or female companionship business is defined as “any person, firm, corporation, or association engaged in the business of providing or selling male or female companionship in exchange for money or other valuable consideration.” A separate license is required for each location or premises used for the purpose of providing companionship, and such business may not be conducted in any place other than that designated by the license. Every applicant for a license must be photographed and fingerprinted and must, in addi *347 tion, supply to the Onslow County Sheriffs Department certain personal data “to assist in an investigation of his criminal record and character.” The foregoing requirements must be met by all persons owning any interest if the applicant is a partnership or association, and by each shareholder owning ten percent or more of the common stock if the applicant is a corporation. The application will be denied if any person required to be investigated has been convicted of a felony or of a crime involving prostitution or related offense within the preceding five years, and a like conviction thereafter constitutes grounds for immediate revocation of an issued license.

Furthermore, every employee of a companionship business must be registered by name and address with the Sheriffs department and be fingerprinted and photographed. A licensee may not knowingly hire a new employee who has been convicted of a felony within three years or of prostitution, assignation, or a related offense within two years, or is a felon whose citizenship has not been restored. Nor may a licensee continue to employ an existing employee who is convicted of like offenses after the effective date of the ordinance. Noncompliance with these provisions is grounds for revocation of the license.

A $25.00 fine is imposed for each license. An additional $25.00 “nonrefundable administrative fee” is charged for each applicant and employee who is required to be fingerprinted and photographed. Licensees must keep, available for inspection by “any law enforcement officer,” a permanent legible record of every transaction with a client or customer showing the date of the transaction, the patron’s name, address, date of birth, general physical description (including hair color, height and weight), the amount of money involved, and two forms of positive identification or one government-issued photo identification. A full and accurate copy of these records must also be filed with the Sheriff s department “within forty-eight hours of the transaction.” A licensee or employee may not “have any male or female companionship business transactions” with any person who is under the age of eighteen.

Finally, by express provision, massage parlors and massage-related businesses are exempt from the ordinance because such operations are subject to another county ordinance. The ordi *348 nance further states that it “is not intended to apply to persons performing babysitting or to persons engaged in housekeeping or related services.” Violation of any provision of the ordinance constitutes a misdemeanor punishable by fine or imprisonment in addition to providing grounds for license revocation.

B. Factual and Procedural History

The ordinance was to have become effective 1 August 1985. On 20 June 1985 Treants filed a complaint challenging the validity of the ordinance and seeking declaratory and injunctive relief. Hearings were held at the 9 September and 28 October 1985 sessions of Onslow County Civil Superior Court.

Testimony presented by Defendants tended to show the following facts: In Onslow County there are in operation six or seven businesses known as “Movie Mates.” In these businesses, a patron may, for a fee, have another person watch a movie or video tape with him in a private room. The testimony of Captain Kenneth Cooper supported the Court’s findings that prostitution and crimes against nature have been practiced in some of these businesses and that controlled substances have been used by some patrons in Movie Mates establishments. Because of instructions for detecting undercover officers given Movie Mates employees by their employers, Onslow County law enforcement officials have been unsuccessful in preventing these practices.

The evidence further showed that since the 17 July 1978 enactment of the “Onslow County Ordinance Regulating Massage Parlors,” there have been no massage parlors operating in the county. Finally, evidence was presented that the Movie Mates establishments are “off limits” to military personnel stationed at Camp Lejeune Marine Base in Onslow County.

Treants presented no evidence at the hearings. Based upon Defendants’ evidence, arguments of counsel, and briefs submitted by the parties, the trial court made numerous findings of fact, concluding that the ordinance is contrary to the federal and state constitutions.

*349 II

A. Standing: Treants

At the outset, Defendants contend that Treants lacks standing to challenge the ordinance. The Defendants initially raised the standing issue by motions filed 14 August and 10 October 1985 pursuant to Rules 12(b)(6) and 12(f) of the North Carolina Rules of Civil Procedure, and resubmitted the issue in a memorandum of law on 18 September 1985. However, the case below was heard primarily upon the facial validity of the ordinance. The standing question was not argued, and the trial court never ruled on the motions. At the 28 October hearing, counsel for Defendants requested that if the court entered a preliminary injunction, that the court also enter a permanent injunction. Counsel for Treants consented to this procedure. Arguably, Defendants thus abandoned their motions in the court below. In any event, we hold that Treants has standing to litigate this cause.

Standing exists in the state courts of North Carolina whenever the validity of state or local legislative action is challenged by a plaintiff who “is directly and adversely affected thereby,”

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Bluebook (online)
350 S.E.2d 365, 83 N.C. App. 345, 1986 N.C. App. LEXIS 2710, Counsel Stack Legal Research, https://law.counselstack.com/opinion/treants-enterprises-inc-v-onslow-county-ncctapp-1986.