Restaurant Associates, Inc. v. Board of Adjustment , 91 F. App'x 958 ( 2004 )


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  •                                                              United States Court of Appeals
    Fifth Circuit
    F I L E D
    UNITED STATES COURT OF APPEALS                  March 18, 2004
    FIFTH CIRCUIT
    Charles R. Fulbruge III
    Clerk
    No.    03-10337
    RESTAURANT ASSOCIATES, INC.,
    Plaintiff-Appellee,
    versus
    BOARD OF ADJUSTMENT, Of the City of Fort Worth, Texas; CITY OF
    FORT WORTH, TEXAS,
    Defendants-Appellants.
    Appeal from the United States District Court
    for the Northern District of Texas
    (4:02-CV-328-Y)
    Before SMITH, BARKSDALE, and CLEMENT, Circuit Judges.
    PER CURIAM:*
    Two issues are presented in this appeal by the City of Fort
    Worth, Texas, and its Board of Adjustment from the summary judgment
    awarded Restaurant Associates:         whether the Board’s denial of a
    certificate to Associates to operate a sexually oriented business
    (SOB) was   an   abuse   of   discretion;    and   whether   the   ordinance
    requiring the certificate is an unconstitutional prior restraint.
    VACATED and RENDERED.
    *
    Pursuant to 5TH CIR. R. 47.5, the court has determined that
    this opinion should not be published and is not precedent except
    under the limited circumstances set forth in 5TH CIR. R. 47.5.4.
    I.
    In late 2001, Associates applied to the City’s Department of
    Development for the requisite SOB certificate for 2300 Cobb Street.
    It was denied because the Department’s Director concluded that, in
    violation of section 5.200.B.2.a of the Fort Worth Zoning Code, the
    location was within 1000 feet of a “religious institution”:             the
    Love Memorial Church of God in Christ, which meets in a chapel
    inside the multi-purpose wing of the Salvation Army building at
    1855 East Lancaster.
    Associates appealed the certificate-denial to the Board, which
    upheld the Director’s decision.       Next, in state court, Associates
    claimed the Board’s decision was illegal.          See TEX. LOC. GOV’T CODE
    ANN. § 211.011.    The action was removed to federal court, based on
    federal question jurisdiction over Associates’ prior restraint
    claim.
    On cross motions for summary judgment, the district court
    granted judgment for Associates, holding the Board had abused its
    discretion in denying the certificate because it acted arbitrarily
    and unreasonably in concluding that the Church is a religious
    institution pursuant to the ordinance.          Accordingly, it was not
    necessary   for   the   district   court   to   reach   Associates’   prior
    restraint claim.
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    II.
    A summary judgment is reviewed de novo, applying the same
    standard of review as the district court.           E.g., Daniels v. City of
    Arlington, 
    246 F.3d 500
    , 502 (5th Cir.), cert. denied, 
    534 U.S. 951
    (2001). Such judgment is proper if movant demonstrates there is no
    genuine issue of material fact and is entitled to judgment as a
    matter of law.       FED. R. CIV. P. 56(c); e.g., Anderson v. Liberty
    Lobby, Inc., 
    477 U.S. 242
    , 248 (1986); Crawford v. Formosa Plastics
    Corp., 
    234 F.3d 899
    , 902 (5th Cir. 2000).
    Two issues are presented:              whether the certificate-denial
    violated   Texas     law;   and   whether    the   ordinance   requiring   the
    certificate is an unconstitutional prior restraint.             There are no
    material fact issues; therefore, our review is limited to whether
    either side is entitled to judgment as a matter of law.            Restated,
    the two issues are questions of law; and the record is sufficient
    to address each.
    A.
    Because the state law claim (certificate-denial) is in federal
    court through supplemental jurisdiction, 28 U.S.C. § 1367, Texas
    law controls; in this instance, it also provides the standard of
    review for the certificate-denial.            (Because it was inadequately
    briefed,   we   do    not   address   Associates’     contention   that    the
    “legislative model” is inapplicable because this action was removed
    3
    to federal court.)   Pursuant to Texas law, the standard of review
    is quite narrow indeed:
    The Board is a quasi-judicial body, and
    the [state] district court sits only as a
    court of review by writ of certiorari. TEX.
    LOC. GOV’T CODE ANN. § 211.011(c).   The only
    issue    for  determination  in  a   writ  of
    certiorari proceeding is the legality of the
    Board’s order. A legal presumption exists in
    favor of the Board’s order, and the party
    attacking it has the burden of establishing
    its illegality.
    To establish that an adjustment board’s
    order is illegal, the contesting party must
    make a very clear showing that the board
    abused its discretion, i.e., acted arbitrarily
    and unreasonably, without reference to any
    guiding rules or principles.      The [state]
    district court cannot put itself in the
    adjustment board’s position or substitute its
    discretion for that of the board.
    SWZ, Inc. v. Bd. of Adjusment of the City of Fort Worth, 
    985 S.W.2d 268
    , 269-70 (Tex. App.—Fort Worth 1999 pet. denied) (emphasis
    added; some citations omitted).
    Citing Bd. of Adjustment v. Underwood, 
    332 S.W.2d 583
    (Tex.
    Civ. App.—San Antonio 1960, writ ref’d n.r.e.), Associates also
    disputes applying the abuse of discretion standard of review
    (which, as noted, the district court utilized), contending that we
    may be less deferential to the Board because the question is one of
    ordinance interpretation.   Underwood held: a court is not bound by
    the Board’s legal construction of an ordinance; on the other hand,
    the abuse of discretion standard applies when reviewing the Board’s
    application of an ordinance to facts.      
    Id. at 585.
        Here, the
    4
    certificate-denial was the application of the ordinance to the
    facts; accordingly, we review only for abuse of discretion.
    It is undisputed that the Church is within 1000 feet of the
    proposed    SOB;       therefore,    if       the   Church     is    a     “religious
    institution”, the proposed SOB is prohibited by the ordinance.                        A
    religious institution is defined as “a building [discussed infra]
    in which persons regularly assemble for religious worship and
    activities intended primarily for purposes connected with such
    worship or for propagating a particular form of religious belief”.
    FORT WORTH TEX., ZONING ORDINANCES, app. A, Ch. 9, § 9.101 (emphasis
    added).
    Concerning        the   Church’s         worship   services         and    related
    activities, the following undisputed facts were before the Board:
    the Salvation Army has allowed the Church to use its chapel since
    1995; the Church, led by an ordained Church of God in Christ
    minister,   is     a   Christian    denomination        with   its   own       distinct
    doctrines and history; services are held at the Church twice a week
    (Friday night and Sunday morning); the pastor conducts a Bible
    study at the Church on Wednesday night and has performed marriages
    and memorial services on occasion; the pastor distributes business
    cards with the Church’s worship schedule in hopes people will
    attend; and worship bulletins are prepared for the services held at
    the Church.      In sum, the Church’s worship services and related
    5
    activities     are    those   typically     associated     with   a   religious
    institution.
    According       to   Associates,    however,    the   Church     is   not   a
    religious institution because it is not a “building” as required by
    the ordinance.       A “building” is defined as a “structure having a
    roof supported by columns or walls for the housing or enclosure of
    persons, animals or chattels”.          FORT WORTH TEX., ZONING ORDINANCES, app.
    A, Ch. 9, § 9.101.        The Board asserts that, for the certificate-
    denial, it did not consider the entire Salvation Army building as
    a “religious institution”; rather, it considered the building’s
    multi-purpose wing, which contains only the chapel and a gymnasium.
    (The district court held the Board abused its discretion because
    the Salvation Army facility is only one building and the Church is
    inside that facility and not itself a building.)
    In the light of the narrow abuse of discretion standard of
    review, we must review the Board’s decision based on the reasons it
    gave for certificate-denial.       Therefore, our inquiry is limited to
    whether the Board abused its discretion in finding the multi-
    purpose wing is a building, satisfying that element for a religious
    institution.
    With respect to the multi-purpose wing, the summary judgment
    record shows:        the Director of the Department of Development
    testified that it meets the ordinance’s definition of a building
    because it is a structure with a roof supported by walls; the
    6
    chapel used by the Church is located within that part of the
    Salvation Army building; that part also houses a gymnasium, which
    is used for religious purposes; the architectural plans for that
    part are on a separate page from the rest of the building and are
    labeled “multi-purpose building”; that part is separated from the
    rest of the building by an enclosed breezeway with a roof; a cross
    design adorns the brick wall outside where the chapel is located,
    but nowhere else on the Salvation Army building; within the chapel
    are pews, crosses, and a lectern designed for worship; the primary
    purpose of the Salvation Army building is as a homeless shelter;
    less than three percent of the Salvation Army facility is devoted
    to the chapel; there are no signs inside or outside the Salvation
    Army building indicating that religious services are available; the
    Salvation Army does not denominate the building as one where the
    public may attend religious services; the Salvation Army receives
    emergency shelter grant funding from the federal government, and
    its regulations restrict the funds’ use in connection with worship
    services; and the Salvation Army building has only one address and
    one certificate of occupancy.
    In sum, the summary judgment evidence arguably conflicts on
    whether, under the ordinance’s definition, the multi-purpose wing
    is a “building”. As 
    discussed supra
    , however, given the applicable
    abuse of discretion standard of review, we must defer to the
    Board’s decision unless it was arbitrary or unreasonable. See SWZ,
    
    7 985 S.W.2d at 270
    ; Southwest Paper Stock, Inc. v. Zoning Bd. of
    Adjustment of the City of Fort Worth, 
    980 S.W.2d 802
    , 805 (Tex.
    App.—Fort Worth 1998, pet. denied).                 Indeed, under this narrow
    standard, we must defer to the decision even if the overwhelming
    preponderance of the evidence is against it.                Southwest 
    Paper, 980 S.W.2d at 805
    .         In this regard, the Board does not abuse its
    discretion by basing its decision on conflicting evidence, as long
    as some evidence of substantive and probative character exists to
    support the decision.         
    Id. at 805-06.
    The Board’s decision that the multi-purpose wing is a building
    pursuant to the ordinance is supported by the requisite evidence.
    For example, as discussed, the architectural drawings label that
    part    a    “multi-purpose     building”;      the   multi-purpose        wing    is
    separated from the rest of the Salvation Army building by a
    breezeway; crosses adorn the outside of the multi-purpose building,
    but not the Salvation Army building as a whole; and the Development
    Director      testified     that   the       multi-purpose     wing      meets    the
    ordinance’s definition of a building.
    Accordingly,     the   Board    did    not   abuse    its   discretion     in
    concluding that the multi-purpose wing is a building.                      This is
    consistent with Texas law.             In SWZ, the Texas Court of Appeals
    upheld      the   Board’s   decision     that   a   hall    used   for    religious
    activities and prayer meetings, which was a portion of a church
    complex, qualified as a church under a predecessor Fort Worth
    8
    zoning ordinance.    
    SWZ, 985 S.W.2d at 271
    .   The Court of Appeals
    noted:   “[T]he mere fact that the hall and the sanctuary are not
    physically connected or part of the same structure is irrelevant to
    our inquiry — as long as the hall meets the city’s definition of a
    ‘church’”.   
    Id. Likewise, the
    Board’s decision that the Church is
    a religious institution is not an abuse of discretion merely
    because the multi-purpose wing is connected to the rest of the
    Salvation Army building.
    Hooters, Inc. v. City of Texarkana, Texas, 
    897 F. Supp. 946
    (E.D. Tex. 1995), is not to the contrary.       There, in granting
    plaintiffs a preliminary injunction, the district court construed
    the same predecessor ordinance and held that a prison room being
    used for religious activities did not qualify as a church because
    it was not a building.   Critical to that decision was that the room
    used for religious activities shifted regularly and thus, the court
    would have to find either that the “building” moved or that the
    entire prison was a church.    
    Id. at 952.
    B.
    The other issue is Associates’ claim that the ordinance is an
    unconstitutional prior restraint on freedom of speech, violative
    of the First, through the Fourteenth, Amendment. As noted, because
    the district court held the Board had abused its discretion, it did
    not need to reach this constitutional issue.    As 
    discussed supra
    ,
    we can decide it without further development of the record.
    9
    Ordinances regulating speech and contingent on the discretion
    of    an   official    are     burdens       on    speech      classified     as    prior
    restraints.    E.g., Chiu v. Plano Ind. Sch. Dist., 
    339 F.3d 273
    , 280
    (5th Cir. 2003) (citing Staub v. City of Baxley, 
    355 U.S. 313
    (1958)). A prior restraint is not unconstitutional per se; it will
    be upheld if it has narrow, objective, and definite standards to
    guide the licensing authority.                
    Id. at 281
    (citing Southeastern
    Promotions,    Ltd.     v.   Conrad,     
    420 U.S. 546
    ,     558   (1975)).         A
    delegation    scheme,     as    at    issue       here,   is    permissible        if   its
    standards are “susceptible of objective measurement”. Keyishian v.
    Bd. of Regents, 
    385 U.S. 589
    , 604 (1967).
    Associates     maintains,       erroneously,         that       the   Director’s
    application of the term “building” to “a one room (chapel) in a
    large facility” demonstrates unbridled discretion.                       As discussed,
    the    ordinance      includes       three        components     for     a   “religious
    institution”: (1) a building; (2) in which persons regularly
    assemble; (3) for religious worship and related activities.                         These
    standards are objective and the Director’s discretion is not
    unbridled.     Further, the definition of “building” as a “structure
    having a roof supported by columns or walls, for the housing or
    enclosure of persons, animals, or chattel” contains definitive,
    intelligible standards for the Director to follow.                       The standards
    sufficiently limit the Director’s discretion.
    10
    Our    court   has   upheld    similar       ordinances    against    prior
    restraint challenges.      E.g., FW/PBS, Inc. v. City of Dallas, 
    837 F.2d 1298
    (5th Cir. 1988) (upholding ordinance prohibiting license
    for SOB if within 1000 feet of church because ordinance standards
    were capable of objective measurement), rev’d on other grounds, 
    493 U.S. 215
    (1990).    SDJ, Inc. v. City of Houston, 
    837 F.2d 1268
    , 1277
    (5th Cir. 1988), cert. denied, 
    489 U.S. 1052
    (1989), upheld an
    ordinance which provided that a permit to operate a SOB would issue
    unless one of eight specific exceptions existed. One exception was
    that “[t]he applicant’s enterprise is located within 750 feet of
    any school, church, or licensed day care center”.                   
    Id. at 1277
    n.28.   Associates’ contention that SDJ is inapplicable because
    plaintiffs there brought a facial, rather than an as applied,
    challenge is unavailing.
    In sum, the standards for issuing a certificate are capable of
    objective   measurement,      and   the    Director’s   application       of   the
    ordinance here falls squarely within its objective criteria. There
    is no unconstitutional prior restraint.
    III.
    For    the   foregoing   reasons,      the   judgment     is   VACATED    and
    judgment is RENDERED for the Board and City.
    VACATED and RENDERED
    11