Stardust, 3007 LLC v. City of Brookhaven, Georgia , 899 F.3d 1164 ( 2018 )


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  •               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.
    I.      BACKGROUND
    ∗
    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
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    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
    ongoing basis,” 
    id. at 8,
    and “[f]eature” to mean “to give special prominence to,”
    doc. 5-3 at 2.
    2
    All citations to “Doc #” refer to the numbered district court docket entries.
    3
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    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.
    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
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    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
    building to combat any negative secondary effects of its business and to ensure that
    its permits and licensing were up to date.
    3
    Pink Pony was an “[a]dult [c]abaret” under the Code. Doc. 5-2 at 7.
    5
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    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.
    On multiple occasions, the City’s code enforcement officers visited the
    Stardust store and identified merchandise that qualified as sexual devices. For
    example, the Brookhaven Code Enforcement Manager visited Stardust “dozens” of
    times between November 2013 and August 2014. Doc. 5-11 at 1. During two of
    those visits, she photographed products she believed to be sexual devices, and she
    testified that those products were the “same sort of items [she] saw on display
    every time” she went inside the store. 
    Id. In May
    2015, another code enforcement officer counted over 1,500 alleged
    sexual devices in the Stardust store. The store contained three rooms, one in the
    front, and two—one large, one small—in the back. The officer counted well over
    1,000 items in the larger back room, which she identified as the sexual device
    room. The smaller back room, according to the officer, contained 29 sexual
    devices, and the front room contained 88 such devices. Although Stardust
    admitted that it “stock[ed] and display[ed] a number of sexual devices,” it disputed
    6
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    that all of the items documented by the City qualified as sexual devices under the
    Code. Doc. 77-1 at 22.
    C.     Litigation Between the Parties
    The City brought a 255-count accusation against Stardust in Brookhaven
    Municipal Court in early 2014, alleging Code violations. Stardust raised
    constitutional defenses to the charges, and in July 2014 it filed a civil suit in the
    Superior Court of DeKalb County, Georgia, seeking to enjoin enforcement of the
    Code on the grounds that it violated provisions of the United States and Georgia
    Constitutions.
    Several months after filing suit in state court, in November 2014 Stardust
    filed suit against the City in federal district court, challenging the City’s denial of
    Stardust’s application for a sign permit as violating Stardust’s rights under the
    United States and Georgia Constitutions. The City counterclaimed, seeking
    injunctive relief requiring Stardust to cease operating a sexual device shop.4 In
    response, Stardust filed an amended complaint raising the claims at issue in this
    appeal. The district court granted the City’s motion for summary judgment on
    September 29, 2016, and Stardust appealed.
    While this appeal was pending, on May 22, 2017, the superior court entered
    a permanent injunction against Stardust in the state court action, ordering it to
    4
    The City’s asserted reason for denying Stardust’s sign application was that Stardust was
    operating unlawfully as an unlicensed sexually oriented business.
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    cease operating a sexual device shop in violation of the Code. The Supreme Court
    of Georgia affirmed without opinion.
    II.    STANDARD OF REVIEW
    We review de novo the district court’s grant of summary judgment,
    construing the facts and all reasonable inferences from the facts in favor of the
    nonmoving party. Urquilla-Diaz v. Kaplan Univ., 
    780 F.3d 1039
    , 1050 (11th Cir.
    2015). Summary judgment is appropriate when there is “no genuine dispute as to
    any material fact and the movant is entitled to judgment as a matter of law.” Fed.
    R. Civ. P. 56(a). “Speculation does not create a genuine issue of fact; instead, it
    creates a false issue, the demolition of which is a primary goal of summary
    judgment.” Cordoba v. Dillards, Inc., 
    419 F.3d 1169
    , 1181 (11th Cir. 2005)
    (internal quotation marks omitted).
    III.   PRECLUSION
    Before discussing the merits of Stardust’s appeal, we address the impact of
    the state court litigation on our analysis. Specifically, we consider whether the
    doctrine of res judicata precludes any of Stardust’s claims. “The general principle
    of res judicata prevents the relitigation of issues and claims already decided by a
    competent court. Once a party has fought out a matter in litigation with the other
    party, he cannot later renew that duel.” Comm. State Bank v. Strong, 
    651 F.3d 1241
    , 1263 (11th Cir. 2011) (internal quotation marks omitted). The enforcement
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    of res judicata principles “is essential to the maintenance of social order; for the aid
    of judicial tribunals would not be invoked for the vindication of rights of person
    and property if, as between parties and their privies, conclusiveness did not attend
    the judgment of such tribunals in respect of all matters properly put in issue, and
    actually determined by them.” S. Pac. Ry. Co. v. United States, 
    168 U.S. 1
    , 49
    (1897). “Res judicata comes in two forms: claim preclusion . . . and issue
    preclusion . . . .” Comm. State 
    Bank, 651 F.3d at 1263
    . Because the distinction
    between claim preclusion and issue preclusion makes no difference for our
    purposes, we refer to both or either simply as “res judicata.”
    At first blush, it might appear that res judicata bars this action because in the
    state court action the Georgia courts adjudicated Stardust’s claims regarding the
    constitutionality of the Code and the City’s enforcement of it and decided the
    identical issues before us today. Before deciding whether we should apply the
    principles of res judicata, however, we must consider the nature of the Superior
    Court of DeKalb County’s order and the Supreme Court of Georgia’s summary
    affirmance. The superior court rejected Stardust’s claims that the City had violated
    its rights under the United States and Georgia Constitutions. On Stardust’s federal
    constitutional claims, the superior court held, based on the federal district court’s
    September 29, 2016 order granting summary judgment to the City, that those
    claims were barred by the doctrine of res judicata. As to Stardust’s claims based
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    on Georgia’s Constitution, the superior court issued alternative rulings. First, the
    superior court held that because the federal district court had found no violation of
    the United States Constitution—and because the Georgia constitutional provisions
    at issue were identical to the federal constitutional provisions—it was bound to
    rule in the City’s favor based on doctrine of res judicata. Second, the superior
    court held, in the alternative, that Stardust’s claims failed on the merits.5 The
    Supreme Court of Georgia affirmed the superior court’s order without an opinion.
    The Supreme Court of Georgia’s summary affirmance was issued pursuant
    to Georgia Supreme Court Rule 59. Although a Rule 59 affirmance may be
    afforded preclusive effect, see Rolleston Living Tr. v. Kennedy, 
    591 S.E.2d 834
    ,
    835 (Ga. 2004), we cannot know the grounds on which the Supreme Court
    affirmed the superior court’s decision, see Ga. Sup. Ct. R. 59 (“An affirmance
    without opinion may be rendered in any civil case when the Court determines . . .
    [there was] [n]o harmful error of law, properly raised and requiring reversal.”).
    Given the superior court’s alternative rulings, the Supreme Court may have
    affirmed the superior court’s holding that Stardust’s claims failed on the merits.
    Alternatively, it may have rejected that holding, affirming only on the ground that
    the doctrine of res judicata barred Stardust’s claims.
    5
    In reaching the merits, the superior court relied heavily on the federal district court’s
    reasoning regarding the federal constitutional claims.
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    The possibility that the Supreme Court of Georgia affirmed on the ground
    that it was bound by the federal district court’s decision in the instant litigation
    rather than on the merits prevents us from now holding that we, in turn, are bound
    by the Supreme Court’s decision. The fact that the district court’s judgment was
    pending appeal in this court does not mean the superior court erred in applying res
    judicata to Stardust’s claims in state court based on that judgment. See Jaffree v.
    Wallace, 
    837 F.2d 1461
    , 1467 (11th Cir. 1998) (explaining that under federal
    common law, “a final judgment retains all of its res judicata consequences pending
    decision of the appeal” (internal quotation marks omitted)). Here, though, we are
    presented with a unique circumstance in which we as an appeals court are being
    asked to forgo direct review of a district court’s judgment because another court
    decided it was bound to give that judgment preclusive effect. We conclude that, in
    this particular circumstance, res judicata does not bar the claims on appeal. To
    hold otherwise, as the First Circuit has said, would be “obviously circular and
    unfair.” In re Kane, 
    254 F.3d 325
    , 329 (1st Cir. 2001).
    Our court has never addressed this circumstance, but the Ninth Circuit has
    concluded that “the doctrine of res judicata does not operate to bar direct review of
    a district court judgment, even if that judgment has been accorded res judicata
    effect by other courts since it was entered.” Orion Tire Corp. v. Goodyear Tire &
    Rubber Co., 
    268 F.3d 1133
    , 1136 (9th Cir. 2001). A contrary rule would “turn[]
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    res judicata on its head” because the “[t]he doctrine is founded on the principle that
    ‘[a] judgment merely voidable because based upon an erroneous view of the law is
    not open to collateral attack, but can be corrected only by a direct review.’” 
    Id. (alteration in
    original) (quoting Federated Dept. Stores, Inc. v. Moitie, 
    452 U.S. 394
    , 399 (1981)).
    Direct review of the district court’s judgment is what Stardust now seeks;
    therefore, res judicata does not bar us from considering Stardust’s appeal. See In
    re 
    Kane, 254 F.3d at 330
    (“Direct review of the erroneous original decision cannot
    be precluded because, in the meantime, the original court has repeated the error in
    the same case or other courts have adopted it by cross reference.”); Alpha Epsilon
    Phi Tau Chapter Hous. Ass’n v. City of Berkeley, 
    114 F.3d 840
    , 843 n.3 (9th Cir.
    1997) (explaining, in an opinion authored by Supreme Court Justice Byron R.
    White, that when a state court ruling was based on the res judicata effect of the
    district court’s decision, the federal appeals court nonetheless could review the
    district court’s judgment); McLaughlin v. Alban, 
    775 F.2d 389
    , 391 (D.C. Cir.
    1985) (declining to afford preclusive effect to judgments that “relied wholly on the
    preclusive effect of decisions by the trial court in the instant case”). We agree with
    our sister circuits that it would make no sense for an appeal from a district court
    order or judgment to be precluded simply because another court treated the order
    or judgment as having preclusive effect. We conclude that res judicata does not
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    preclude Stardust from litigating its claims in this appeal, and thus we turn to the
    merits of those claims.
    IV.   DISCUSSION
    On appeal, Stardust challenges the district court’s grant of summary
    judgment to the City, arguing that its constitutional rights have been violated
    because: (1) the Code impermissibly restricts Stardust’s right to free speech;
    (2) the Code’s definition of “sexual device shop” is void for vagueness; (3) the
    City’s enforcement of the Code violates Stardust’s right to equal protection; and
    (4) the Code impermissibly infringes on an individual substantive due process right
    to intimate sexual activity. We will address each argument in turn.
    A.    The Code Imposes No Impermissible Restriction on Stardust’s
    Freedom of Speech.
    Stardust argues that the Code is unconstitutional under the Constitution’s
    First Amendment because it operates as an impermissible restriction on Stardust’s
    constitutionally protected commercial speech. Specifically, Stardust challenges the
    definition of sexual device shop as a commercial establishment that “regularly
    features” sexual devices. Doc. 5-3 at 2. We conclude, however, that the Code’s
    definition of sexual device shop does not unconstitutionally restrict Stardust’s
    freedom of speech.
    Before we consider whether the Code’s definition of sexual device shop
    offends the First Amendment, we first must decide what it means to “regularly
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    feature[]” sexual devices. According to Stardust, because the Code defines
    “regularly featur[ing]” sexual devices as regularly “giv[ing] special prominence to”
    those devices, whether a store falls within the Code’s definition of sexual device
    shop depends on the manner in which the store displays its merchandise. The City
    disputes that the Code regulates “how one may display sexual devices in a
    commercial establishment.” Appellee’s Br. at 11 (internal quotation marks
    omitted). Although the question is a close one, we agree with Stardust.
    Stardust’s interpretation of the meaning of “regularly features” finds support
    in the Code’s text. The Code defines another type of sexually oriented business, an
    “[a]dult [b]ookstore or [a]dult [v]ideo [s]tore,” as an establishment that, as one of
    its “principal business activities,” offers for sale or rental certain listed items. Doc.
    5-2 at 6. A “principal business activity” exists where one of several factors is met,
    including “[a]t least 35% of the establishment’s displayed merchandise consists of
    said items,” “[t]he establishment maintains at least 35% of its floor space for the
    display, sale, and/or rental of said items,” “[t]he establishment maintains at least
    five hundred square feet . . . of its floor space for the display, sale, and/or rental of
    said items,” or “[t]he establishment regularly features said items.” 
    Id. By including
    “regularly features” as one of these alternatives, the Code’s definition of
    “principal business activity” suggests that “regularly features” must mean
    something other than the number of items, percentage of inventory, or amount of
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    floor space, because other listed alternatives define “principal business activity”
    based on those factors. See Hibbs v. Winn, 
    542 U.S. 88
    , 101 (2004) (“A statute
    should be constructed so that effect is given to all its provisions, so that no part will
    be inoperative or superfluous, void or insignificant . . . .” (internal quotation marks
    omitted)).
    We acknowledge that the canon of noscitur a sociis, “which holds that a
    word is known by the company it keeps,” Babbit v. Sweet Home Chapter of Cmtys.
    for a Great Or., 
    515 U.S. 687
    , 694 (1995), may suggest a contrary interpretation.
    Specifically, application of this canon may indicate that “regularly features”—like
    percentage of inventory or amount of floor space—refers to a quantifiable amount
    of stocked merchandise rather than to a restriction on the manner in which the store
    displays its merchandise. But the Code states that “there is documented evidence
    of sexually oriented businesses, including adult bookstores and adult video stores,
    manipulating their inventory and/or business practices to avoid regulation while
    retaining their essentially ‘adult’ nature.” Doc. 5-2 at 1. In context, then, applying
    the canon of noscitur a sociis would be inconsistent with the expressed intent of
    the Code’s drafters to regulate adult businesses that are not captured by
    quantifiable caps on inventory and floor space. We therefore conclude that the
    Code’s definition of sexual device shop turns not only on the store’s stocking and
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    selling of certain products, but also on its display and arrangement of those
    products.
    Having decided that the Code defines sexual device shop with reference to a
    store’s manner of displaying and arranging products, we must decide whether a
    restriction based on product display and arrangement offends the First
    Amendment. As an initial matter, neither the United States Supreme Court nor this
    court has ever held that a business has a free speech interest in the display and
    arrangement of commercial products, let alone that regulation of such activity
    might violate the First Amendment. The Supreme Court has assumed that such an
    interest exists, however, concluding under the facts before it that an ordinance
    requiring tobacco products to be placed behind counters nonetheless satisfied the
    First Amendment. See Lorillard Tobacco Co. v. Reilly, 
    533 U.S. 525
    , 569 (2001)
    (“Assuming that petitioners have a cognizable speech interest in a particular means
    of displaying their products, these regulations withstand First Amendment
    scrutiny.” (citation omitted)). We follow the same approach and assume, for our
    purposes here, that the Code’s definition of sexual device shop implicates the First
    Amendment.
    Of course, not all laws implicating the First Amendment are
    unconstitutional. A zoning ordinance designed to regulate the negative secondary
    effects of adult businesses, “justified without reference to the content of the
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    regulated speech,” is considered a content neutral time, place, and manner
    restriction. City of Renton v. Playtime Theatres, Inc., 
    475 U.S. 41
    , 48 (1986)
    (internal quotation marks omitted). Despite its incidental impact on free speech,
    such an ordinance complies with the First Amendment if it is designed to serve a
    substantial government interest and leaves open alternative avenues of
    communication. 
    Id. at 50.
    6
    The Code represents a time, place, and manner restriction that regulates
    where and when adult businesses may operate. Further, the City has a substantial
    interest, unrelated to the content of the speech at issue, in regulating negative
    secondary effects of adult businesses. See 
    id. (“[A] city’s
    interest in attempting to
    preserve the quality of urban life is one that must be accorded high respect.”
    (internal quotation marks omitted)).
    We thus consider only whether the Code is designed to serve that interest
    and whether it leaves open alternative avenues of communication. As to the first
    consideration, the City must point to specific evidence it relied upon when drafting
    6
    In Lorillard Tobacco Co., the Supreme Court analyzed the constitutionality of a
    restriction on the manner of product display in a commercial establishment under the test the
    Court has applied “when ‘speech’ and ‘nonspeech’ elements are combined in the same course of
    conduct” and the government has an interest in “regulating the nonspeech element.” United
    States v. O’Brien, 
    391 U.S. 367
    , 376, 382 (1968); see Lorillard Tobacco 
    Co., 533 U.S. at 569
    .
    Neither party argues that O’Brien is applicable here, however. Stardust argues instead that the
    Supreme Court’s test for commercial speech applies. See Cent. Hudson Gas & Elec. Corp. v.
    Pub. Serv. Comm’n of N.Y., 
    447 U.S. 557
    (1980). O’Brien, Central Hudson, and Renton each
    require intermediate scrutiny and a consideration of similar elements. Thus, under any of these
    tests, our analysis would be similar and our conclusion would be the same.
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    the Code that supports the conclusion that the Code advances its interest in
    preventing negative secondary effects. See Peek-A-Boo Lounge of Bradenton, Inc.
    v. Manatee Cty. (Peek-A-Boo II), 
    630 F.3d 1346
    , 1355 (11th Cir. 2011). If the City
    meets this burden, the “burden shifts to [Stardust] to cast direct doubt on this
    rationale.” 
    Id. (internal quotation
    marks omitted).
    When drafting the Code the City relied on—and cited—dozens of studies
    and cases linking the operation of adult businesses to negative secondary effects.
    This evidence is sufficient to establish that the Code, in general, advances the
    City’s legitimate interest in regulating those effects. We next ask a more nuanced
    question—whether, on the record before us, the City has met its burden to show
    that its particular definition of sexual device shop furthers its interest in avoiding
    the secondary effects of adult businesses. In drafting the Code, the City was
    entitled to rely on evidence “reasonably believed to be relevant.” 
    Renton, 475 U.S. at 51-52
    . Here, as the district court noted, the City relied on specific case
    examples of adult businesses “manipulating their inventory . . . to avoid
    regulation.” Doc. 5-2 at 1.
    For example, the Code cites a case in which the Texas Court of Appeals
    upheld a jury’s determination that the defendant operated a “sexually-oriented
    enterprise” without a license. Taylor v. State, No. 01-01-00505, 
    2002 WL 1722154
    , at *1-*4 (Tex. Ct. App. July 25, 2002). Although the majority of
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    merchandise in the store was non-adult, 
    id. at *3,
    investigating officers testified
    that they never saw any customers in the non-adult section of the store, 
    id. at *4.
    Additionally, some of the non-adult videos had cobwebs, but the adult videos were
    “newly packaged and . . . not covered with cobwebs.” 
    Id. The Code’s
    definition
    of sexual device shop may help prevent the kind of manipulation that occurred in
    Taylor and which the Code intends to regulate. 7 See Doc. 5-2 at 1-2 (citing to
    Taylor and other cases as justification for the City’s intention to regulate
    businesses that “manipulate[] their inventory . . . while retaining their essentially
    ‘adult’ nature”). Because the City “has produced evidence that it reasonably
    believed to be relevant to its rationale,” Peek-a-Boo 
    II, 630 F.3d at 1357
    , the City
    has met its burden of showing that the definition of sexual device shop furthers its
    interest in regulating the secondary effects of adult businesses. The burden thus
    shifts to Stardust to “cast direct doubt on the [City’s] rationale, either by showing
    that the [City’s] evidence does not actually support its rationale or by producing
    evidence disputing the [City’s] factual findings.” 
    Id. Stardust has
    failed to do so.
    This case is unlike Peek-A-Boo Lounge of Bradenton, Inc., v. Manatee
    County (Peek-A-Boo I), 
    337 F.3d 1251
    , 1270 (11th Cir. 2003), for example, where
    we concluded that the plaintiffs had produced sufficient evidence to “cast direct
    doubt” on the challenged ordinance. In that case, the plaintiffs had submitted
    7
    We do not suggest that Stardust engaged in such manipulation.
    19
    Case: 16-17176     Date Filed: 08/10/2018    Page: 20 of 27
    satisfactory health and safety reports, incident reports showing that crime rates
    were lower near their businesses than in other areas, data revealing an increase in
    property values near the plaintiffs’ businesses, an award given to one plaintiff by
    the County Sheriff for its contribution to the community, and three expert studies
    disputing the County’s evidence and rationale. 
    Id. We held
    that summary
    judgment was inappropriate and “the burden shift[ed] back to the municipality to
    supplement the record with evidence renewing support for a theory that justifie[d]
    its ordinance.” 
    Id. at 1272
    (internal quotation marks omitted).
    Unlike the plaintiffs in Peek-A-Boo I, Stardust has presented no evidence
    disputing the City’s rationale or factual findings. Instead, Stardust relies on
    rhetorical questions, asking, for example, “Who is harmed by a retail store
    advertising—inside its premises—sexual devices in a way that ‘gives special
    prominence to’ them?” Appellant’s Br. at 17. This kind of speculative reasoning
    is insufficient to survive summary judgment. See 
    Cordoba, 419 F.3d at 1181
    .
    Stardust also argues that the Code’s definition of sexual device shop is
    underinclusive because it exempts pharmacies and establishments primarily
    dedicated to healthcare products, and those establishments may cause the same
    negative secondary effects the Code intends to regulate. According to Stardust, the
    underinclusive nature of the definition undercuts the City’s justification for its
    definition of sexual device shop. But there is no evidence in the record that any
    20
    Case: 16-17176    Date Filed: 08/10/2018    Page: 21 of 27
    Brookhaven pharmacies or other establishments primarily dedicated to healthcare
    products regularly feature sexual devices or cause negative secondary effects. The
    City is entitled to amend the Code if and when it learns that establishments falling
    within the healthcare exception are regularly featuring sexual devices and bringing
    about negative secondary effects. See 
    Renton, 475 U.S. at 52-53
    (rejecting an
    argument that an ordinance regulating adult theaters was underinclusive because it
    did not regulate other types of adult establishments, where there was no evidence
    that other adult businesses were located in the city, and noting that the city could,
    in the future, “amend its ordinance to include other kinds of adult businesses that
    have been shown to produce the same kinds of secondary effects as adult
    theaters”).
    We now turn to the final consideration under Renton—whether the Code
    leaves open sufficient alternative avenues of communication. “A new zoning
    regime must leave adult businesses with a reasonable opportunity to relocate, and
    the number of sites available for adult businesses . . . must be greater than or equal
    to the number of adult businesses in existence at the time the new zoning regime
    takes effect.” Daytona Grand, Inc. v. City of Daytona Beach, 
    490 F.3d 860
    , 871
    (11th Cir. 2007) (internal quotation marks omitted).
    The record establishes that the City has, at most, two adult businesses,
    Stardust and Pink Pony. The City has identified 73 sites inside its city limits where
    21
    Case: 16-17176       Date Filed: 08/10/2018     Page: 22 of 27
    a licensed sexually oriented business could operate. The number of sites—which
    Stardust does not dispute on appeal—is far greater than the number of adult
    businesses. And Stardust does not argue that some reason other than the number of
    compliant locations prevents it from relocating. The Code therefore leaves opens
    sufficient alternative avenues of communication to meet the Renton test. See 
    id. at 871-72
    (concluding that the existence of 24 sites in the district was sufficient for
    First Amendment purposes and noting that whether the property was in fact
    available for sale or development was irrelevant).
    “A zoning measure can be consistent with the First Amendment if it is likely
    to cause a significant decrease in secondary effects and a trivial decrease in the
    quantity of speech.” City of Los Angeles v. Alameda Books, Inc., 
    535 U.S. 425
    ,
    445 (2002) (Kennedy, J., concurring in the judgment). 8 The Code is such a zoning
    measure; it does not impermissibly infringe Stardust’s First Amendment right to
    display and arrange its products.
    B.     The Code Is Not Unconstitutionally Vague.
    Stardust next argues that two phrases in the Code are impermissibly vague,
    in violation of the Due Process Clause of the Fourteenth Amendment. First, it
    argues that the phrase “establishment primarily dedicated to healthcare products” is
    8
    “There was no majority opinion in Alameda Books, but because Justice Kennedy’s
    concurrence reached the judgment on the narrowest grounds, his opinion represents the Supreme
    Court’s holding in that case.” Peek-A-Boo 
    II, 630 F.3d at 1354
    n.7.
    22
    Case: 16-17176      Date Filed: 08/10/2018      Page: 23 of 27
    unconstitutionally vague because a reasonable person could not know what it
    means to be “primarily dedicated” to such products. Second, it argues that the
    term “[f]eature,” which is defined in the Code to mean “to give special prominence
    to,” is also impermissibly vague.
    The Constitution does not require perfect clarity in the language of statutes
    and ordinances. “All . . . due process . . . requires is fair notice . . . sufficient to
    enable persons of ordinary intelligence to avoid conduct which the law forbids.”
    High Ol’Times, Inc. v. Busbee, 
    673 F.2d 1225
    , 1229 (11th Cir. 1982). To succeed
    on a claim that an ordinance is void for vagueness, “the complainant must
    demonstrate that the law is impermissibly vague in all of its applications.” Vill. of
    Hoffman Estates v. Flipside, Hoffman Estates, Inc., 
    455 U.S. 489
    , 497 (1982). A
    corollary of this rule is that “[a] plaintiff who engages in some conduct that is
    clearly proscribed cannot complain of the vagueness of the law as applied to the
    conduct of others.” 
    Id. at 495.
    On this record, Stardust lacks a genuine question regarding whether its
    business is “primarily dedicated to healthcare products.” Likewise, whether
    “special prominence” turns on number, variety, or arrangement and display of
    sexual devices, “persons of ordinary intelligence,” could recognize that Stardust
    gave special prominence to sexual devices in its store. High Ol’ Times, 
    Inc., 673 F.2d at 1229
    . Indeed, Stardust displayed hundreds of different types of sexual
    23
    Case: 16-17176     Date Filed: 08/10/2018    Page: 24 of 27
    devices in its store, devoting to them an entire room plus space in other rooms.
    The district court therefore correctly concluded that Stardust’s vagueness challenge
    fails because its operation clearly falls within the zone of prohibited conduct. See
    Vill. of Hoffman Estates, 
    Inc., 455 U.S. at 495
    .
    C.    The City’s Enforcement of the Code Does Not Violate Stardust’s Right
    to Equal Protection.
    Stardust also argues that its right to equal protection under the Fourteenth
    Amendment was violated because the City has allowed Pink Pony—also a sexually
    oriented business operating within 100 feet of another sexually oriented business—
    to continue to operate while the City has continued to issue citations to Stardust.
    The Supreme Court has recognized this kind of “class of one” equal protection
    claim in which a party “alleges that [it] has been intentionally treated differently
    from others similarly situated and that there is no rational basis for the difference
    in treatment.” Vill. of Willowbrook v. Olech, 
    528 U.S. 562
    , 564 (2000). This court
    has held that the plaintiff and the comparator were not similarly situated where,
    although both companies “had received high pollutant readings,” only the
    comparator had alerted the Environmental Protection Division to the problem and
    voluntarily cooperated with remediation efforts. Griffin Indus., Inc. v. Irvin, 
    496 F.3d 1189
    , 1206 (11th Cir. 2007).
    Stardust has not demonstrated that it is similarly situated to Pink Pony.
    Stardust argues that Pink Pony is a similarly situated business because it also is a
    24
    Case: 16-17176     Date Filed: 08/10/2018    Page: 25 of 27
    sexually oriented business and both businesses were in existence when the City
    added the spacing requirements to the Code. But Stardust ignores relevant
    differences between the two establishments. Pink Pony had lawfully operated in
    its location for more than 20 years before the City enacted the Code, but Stardust
    first opened its doors after the Code was passed. And Pink Pony—unlike
    Stardust—has cooperated with the City to counteract secondary effects by agreeing
    to pay for additional police presence, ensure that its licensing and permits are up to
    date, and relocate within a set number of years. As in Griffin, Pink Pony’s
    cooperation precludes a determination that it is similarly situated to Stardust.
    But, as the district court noted, even if Stardust and Pink Pony were
    similarly situated, the City’s unequal treatment of the two businesses passes
    rational basis review. See Vill. of 
    Willowbrook, 528 U.S. at 564
    . The Code
    prohibits a sexually oriented business from locating within 100 feet of another
    sexually oriented business. Because Stardust and Pink Pony were operating within
    100 feet of each other, and both were sexually oriented businesses, “it is beyond
    cavil that, to comply with the statute, one may stay and one must go.” Doc. 104 at
    31. We cannot say that the City’s decision to allow Pink Pony—which cooperated
    with the City and which operated lawfully in its location for many years before the
    Code was enacted and before Stardust, which opened only after the Code was
    25
    Case: 16-17176         Date Filed: 08/10/2018       Page: 26 of 27
    passed, established its store—to continue to operate while enforcing the Code
    against Stardust was not rational.9 Stardust’s equal protection claim therefore fails.
    D.     The Code Does Not Impermissibly Infringe on the Substantive Due
    Process Right to Private Sexual Intimacy.
    Stardust argues that the Code infringes on a constitutional right to private
    sexual intimacy, but it acknowledges that based on our prior panel precedent, there
    is no “substantive due process right of consenting adults to engage in private
    intimate sexual conduct.” Williams v. Attorney Gen. of Ala., 
    378 F.3d 1232
    , 1236
    (11th Cir. 2004) (emphasis omitted). Under our prior panel precedent rule, a
    holding by a prior panel is binding unless there is “a clearly contrary opinion of the
    Supreme Court or of this court sitting en banc.” Garrett v. Univ. of Ala. at
    Birmingham Bd. of Trs., 
    344 F.3d 1288
    , 1292 (11th Cir. 2003) (emphasis and
    internal quotation marks omitted).
    Stardust suggests that we should reconsider Williams in light of the Supreme
    Court’s decisions in United States v. Windsor, 
    570 U.S. 744
    (2013), and Obergefell
    v. Hodges, 
    135 S. Ct. 2584
    (2015). We need not decide whether these cases have
    abrogated Williams because we cannot agree with Stardust that the Code infringes
    on any constitutional right to private sexual intimacy. As we explained in Part
    IV.A, the Code—a zoning ordinance—is a valid time, place and manner restriction
    9
    We note that, although the City’s decision to allow Pink Pony to continue to operate in
    that location passes rational basis review, Pink Pony will not operate in that location indefinitely.
    Under its exit agreement with the City, it must relocate in a set number of years.
    26
    Case: 16-17176     Date Filed: 08/10/2018   Page: 27 of 27
    that leaves open 73 sites within the City for the operation of adult businesses,
    including sexual device stores. It neither bans the sale or use of sexual devices in
    the City nor impedes any individual’s ability to engage in private, consensual
    sexual activity. We thus reject Stardust’s argument that the Code violates a
    substantive due process right to private sexual intimacy.
    V.    CONCLUSION
    We affirm the district court’s grant of summary judgment to the City.
    AFFIRMED.
    27
    

Document Info

Docket Number: 16-17176

Citation Numbers: 899 F.3d 1164

Filed Date: 8/10/2018

Precedential Status: Precedential

Modified Date: 1/12/2023

Authorities (25)

Kane v. Town of Harpswell (In Re Kane) , 254 F.3d 325 ( 2001 )

Community State Bank v. Strong , 651 F.3d 1241 ( 2011 )

Sherri Williams v. Attorney General of Alabama , 378 F.3d 1232 ( 2004 )

Daytona Grand, Inc. v. City of Daytona Beach , 490 F.3d 860 ( 2007 )

Garrett v. University of Alabama at Birmingham Board of ... , 344 F.3d 1288 ( 2003 )

Griffin Industries, Inc. v. Irvin , 496 F.3d 1189 ( 2007 )

Obergefell v. Hodges , 135 S. Ct. 2584 ( 2015 )

Francis X. McLaughlin v. Miles F. Alban, Jr. , 775 F.2d 389 ( 1985 )

Moreton Rolleston, Jr., Living Trust v. Kennedy , 277 Ga. 541 ( 2004 )

alpha-epsilon-phi-tau-chapter-housing-association-a-california-corporation , 114 F.3d 840 ( 1997 )

Lea Cordoba v. Dillard's Inc. , 419 F.3d 1169 ( 2005 )

Peek-A-Boo Lounge of Bradenton, Inc. v. Manatee County , 630 F.3d 1346 ( 2011 )

Peek-A-Boo Lounge of Bradenton, Inc. v. Manatee County , 337 F.3d 1251 ( 2003 )

orion-tire-corporation-a-california-corporation-china-tire-holdings , 268 F.3d 1133 ( 2001 )

Hibbs v. Winn , 124 S. Ct. 2276 ( 2004 )

Southern Pacific Railroad v. United States , 18 S. Ct. 18 ( 1897 )

Central Hudson Gas & Electric Corp. v. Public Service ... , 100 S. Ct. 2343 ( 1980 )

Federated Department Stores, Inc. v. Moitie , 101 S. Ct. 2424 ( 1981 )

Hoffman Estates v. Flipside, Hoffman Estates, Inc. , 102 S. Ct. 1186 ( 1982 )

United States v. O'Brien , 88 S. Ct. 1673 ( 1968 )

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