# Opposition Brief — City of Henderson v. Nevada Entertainment Industries, Inc.

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Opposition Brief
- **Published:** January 1, 1995
- **Citation:** 513 U.S. 1078

## Text

4 \

SHAUNA M.HUGHES

No. 94-786

IN THE

Supreme Court of the

OCTOBER TERM, 1994

NEVADA ENTERTAINMENT INDUSTRIES, INC.,
A NEVADA CORPORATION AND DANIEL BISHOP,

PETITIONERS
v.

CITY OF HENDERSON, A NEVADA MUNICIPAL CORPORATION,
JAMES GOFF, CHIEF OF POLICE OF THE CITY OF HENDERSON,

RESPONDENTS

On Petition For A Writ Of Certiorari
To The United States Court Of
Appeals For The Ninth Circuit

RESPONDENTS’ BRIEF IN OPPOSITION

City Attorney JAMES J. CLANCY
LIZA CONROY (Counsel of Record)
Assistant City Attorney CAROL A. CLANCY
9055 La Tuna Canyon Road
City of Henderson Sun Valley, CA 91352
240 Water Street (818) 352-2069
Henderson, NV 89015
(702) 565-2394 Counsel for Respondents

ot

ole
QUESTIONS PRESENTED BY RESPONDENT
CITY OF HENDERSON ET. AL., IN
RELATION TO ELEVENTH AMENDMENT
INFIRMITIES IN LIEU OF PETITIONER
NEVADA ENTERTAINMENT’S QUESTIONS 1,
2, AND 3.
I
Whether the filing of the federal
civil rights complaint by Nevada
Entertainment Enterprises, Inc., a Nevada
Corp. and citizen of the State of Nevada,
in the U.S. District Court for the
District of Nevada on April 24, 1990,
while the Nevada State License Revocation
Proceedings were still pending before the
City Council of Henderson sitting as a
Nevada Quasi-Judicial Board of Fact
Finders, in which a quasi-judicial order

of business license revocation by the

Henderson City Council had been

voluntarily stayed for 10 days by the City
Council from its issuance on April 16,
41990 to May 1, 1990, for the purpose of
permitting Nevada Enterprise to appeal

Nevada District Court, under the State of

: - —————=-™

wite
Nevada procedure, and Nevada Enterprises’
procurement and execution of a compulsive
federal temporary restraining order, and
compulsive preliminary injunctions of the
U.S. District Court and the U.S. Court of
Appeals, which extended the City Council's
stay order indefinitely and interfered
with the State of Nevada’s Administration
of the judicial procedures; constituted a
“patent” violation of the Eleventh
Amendment to the Federal Constitution by
Nevada Entertainment which, per force,
ousted the federal courts of subject |
matter jurisdiction and required the U.S..
District Court and Court of Appeal to
abstain and dismiss such Complaint in the
U.S. District Court under this Court's
binding precedents in Huffman v. Pursue
Ltd., 420 U.S. 592 (1975) and Ohio Civil
Rights Commission v. Dayton Christian
Schools Inc., 477 U.S. 619 (1986).

i: aaa sae me

-iii-
II

Whether the City of Henderson was
denied due process of law by the Ninth
Circuit Court of Appeals’ (Browning,
Canby, and Kelleher) Order of April 7,
1994 withdrawing its opinion in 8 F3,
1348, without cause and without
explanation, and refusal of that Court to
apply (as the law of the case) the rulings
of this Court in Huffman v. Pursue Ltd.,
supra, and Ohio Civil Rights Commission v.
Dayton Christian School, Inc., supra,
which the Ninth Circuit on November 2,
1993 had held to be binding precedent in
Nevada Entertainment Industries Inc. v.
City of Henderson, 8 F3, 1348, and which
required the federal court to dismiss the
federal complaint, but which refused to
rule upon the City’s additional claim that
the dismissal was predicated upon an
Eleventh Amendment violation: and for lack
of subiect matter jurisdiction, and where

such refusal, and subsequent withdrawal

has caused Nevada Entertainment

oiy=
Inc., thereafter, in its Response in No.
662 and its Petition in No. 786, to change
its prior arguments, and to file this
petition for writ of certiorari under a
(different) rule of law which had not,
theretofore, been available to it under
the Huffman vy. Pursue, and Dayton
Christrian School rulings which required a

dismissal of the federal civil complaint

for violation of the Eleventh Amendment,

see Petition for Writ of Certiorari in

94-662 at pages 32 and 33, and 34.

-Y~=

TABLE OF CONTENTS

TABLE OF AUTHORITIES. ...0ccccccccee

THE NEVADA ENTERTAINMENT STATEMENT
OF FACTS IS EGREGIOUSLY IN ERROR...

STATEMENT OF FACTS i cicccccccccdccsse
THE ELEVENTH AMENDMENT FORBIDS THE

FILING OF NEVADA ENTERTAINMENT 'S
FEDERAL COMPLAINT........e+seeeeves

RESPONDENTS’ OBJECTIONS TO
PETITIONERS QUESTIONS 1, 2,
BRD Be cccePbpesisevecccscrevecervede

-vi-

FEDERAL CASES

Anderson v. Haless,
469 0.8. Gar ee ra vs kc ct cack tcans 50

DC. Court of Appeals vy. Feldman,
460 U.8.: 468 See chs eeed ie nes 042 26

23 F.3d 218 (CA 9,
April ©, 199G Decne svnceveseceds eee ves 33, 34

England v. Louisiana State Board
of Medical Examiners
376 G. Hh. : Bee Cok bn dais ba ews 16

Hicks yv. Miranda,
"4224 ©. Be ee iar es Fk ae vei 15, 24

Huffman v. Pursue, Ltd...

420 U.S. S98 ChGpeics ocean es aS: a) Pee |
26, 28, 30, 32, 33, 36, 45,
48, 51, 52, 53

Kokkonnen v. Guardian Life Ins, Co.

of America,

54 CCH S.Ct. Bull. B1724

(CA ©, Wie Se ah on os hc ee 37

New York Football Giants. Inc. v.
L.A. Chargers Football Club, Inc.,

291 F. Fe Bee ee rs oe 6 oe rces 14
Ohio B Emp) ts

yv. Hodory,

43% ©.5. SUE Ce a a a ee co so 16
Ohio Civil Rights ¢ POON

Dayton Christian Schools, Inc.
477 U.3. Ga Fee eh aceeiesecst ice 44, 53

-vii-
TABLE OF AUTHORITIES
PAGE
FEDERAL CASES

11126 Baltimore Blvd. v. Prince George's
MCMC TERIA: |.0. Fives s cugaqeeesdggacesese: 49
11126 Baltimore Blyd v Prince George's
County, Md.,
32 F.3d 109
ee errr err ere ee Pee 49
Watson v. Buck,
313 U.S. 367 (1941)... cece eee eeees 28, 48, 49
RU rere i ecceseccedcesccses 40
23 F.3d 263 (CA 9,
BO h By BOBS Frc ccs ccscccscesecsccccres 33, 34
Inc. vy. City of Tempe,
820 F.2d 1079 (CA 9, 1987).----+eeeeeers a
Younger v. Harris
401 U.S. 37 (1971)... ccccrcvereres 13, 35, 48
City of Las Vegas v. Nevada Industries
ER £2). Serre 18, 44, 45, 46, 52
United Stat : bituti

Amendments

EE pc chee eee eeeeereseserrresees 47

Eleventh......-+--> ‘a. 2, 23. 39, 40,

41, 45, 47, 48, 51
Fourteenth..... secre eerrrrrerees 47

——————————————

~ Question 2 reads: “Is an
adult bookstore without constitutional
protection vis-a-vis an invalid zoning
ordinance because it obtained its business
license by deception?” _Question 3 reads:
“To prove that a city utilizes an
uncontitutional zoning scheme to ban all
adult bookstores, may an adult bookstore
employ deception in obtaining a business
license?™

Nevada Entertainment's filing of its
Petition for Writ of Certiorari in 94-786
for the purpose of answering the above 3
questions, is frivolous as & matter of law
because the federal courts below lack
“subject matter jurisdiction’, under the

command of the Eleventh Amendment. “The

-~48-

Judicial power of the United States shall
not be construed to extend to any suit...”
STATEMENT OF THE CASE

The “stake” in this lawsuit is the
sovereign, Eleventh Amendment right of the
City of Henderson, acting as the agent for
the State of Nevada, to enact by ordinance
and apply the ‘conditional use” zoning
principle and the States use of
quasi-judicial proceedings to adult book
stores in Henderson, Nevada, and to have
such ordinances relating to the State's
laws and license revocation procedure and
the use of quasi-judicial proceedings,
tested for the first time in the State of
Nevada Courts under Watson v. Buck, 313
U.S. 387 (1941), pot in the federal
courts. This Court should place a_ focus
on this principle and label it “Watson v.
Buck Abstention. Further, it should also
identify the fact that all such special
abstention defenses ("“Younger” ~“Huffman'’ )
are derived from the Eleventh Amendment

commands. That claim (which initiated

ee eee ee

-~49-
this litigation) was made four years ago
under the City’s contention that A
“conditional use” ordinance could be
constitutionally applied in such a case,
see 11126 Baltimore Blvd. vy. Prince
George’s County. Md., 886 F.2d 1414 at

page 1426-1429. See Case No. 90-1771, at
pages 52-61. See also Case No. 92-643 at
Point III on pages 46-57, copies of which
are attached to this Brief at Appendix B
to this Brief. That the City was
“prudent” in its judgment that a Nevada
state court (and not a federal trial
court) should make that judgment under
Watson v. Buck, see and compare the
bizarre result (contradictory holdings)
reached by two courts in the most recent
United States District Court and United

States Court of Appeals opinions in the

Prince George’s County case in j11126
Balti Blvd Pri ; "sc )

Md., 32 F.3d 109 (1994) (August 12,

1994)!!!

Se ee eee wertate

-50-
Respondent contends that the record
on appeal in this litigation establishes
“pure” “constitutional” error of great
magnitude -- not merely “judicial” error.
It is pot a matter of “correcting”
technical errors in cases of only local
importance where the correction in no way
promotes the development of the law.”
Anderson v. Haless, 459 U.S. 412 (1982)
(Stevens,J., dissenting), and is not
“concerned with the correction of errors
in lower court decision” or other errors
which do not attain the title and rank of
“constitutional” error (see the
text in Stern, Gressman, Shapiro, and

Geller, Supreme Court Practice, at Section

5.12, “Summary Disposition on the Merits,”
at page 251.) This is a real controversy
which is deserving of a grant of writ of
certiorari by this Court. It is
universally recognized that ‘adult
businesses’ pose their own peculiar law

enforcement problems. In that regard, see

City of Henderson news articles at

aSia

Appendix C to this Brief. As the present
time, the duplicate expense to State
government in prosecuting such State
sovereignty, Eleventh Amendment rights to
conclusion in abstention cases in _ two
court systems is substantial, (see
Appendix D to this Brief, for example,
showing the costs to the City of Henderson
to date in asserting this Eleventh
Amendment right). As further injury, the
Ninth Circuit having ruled that “Huffman
Abstention” controls, has withdrawn that
decision rather than rule on the specific
rule of law which has been the “focus” of
the four years of litigation. Under the
present practices, the “chance” of
achieving a hearing on the merits and
prevailing “cost-wise” in abstention
litigation is routinely characterized as
being on a par with “Russian roulette”.
It is for this latter reason that many
abstention rulings, which should have been
appealed, have not been appealed.

Nevada Entertainment's use of the

-52. Licenses:

Municipal Corporations:

Portions of penalty provision of
municipal business license ordinances
determined to be invalid for failing
to establish valid maximum fine could
be severed without defeating
objectives of ordinance and,
therefore, validity of remaining
portions of ordinance would be

sustained. Const. Art. l, ig.

George F. Ogilvie, City Atty., Robert
Yeargin and Val Steed, Deputy City Attys.,
Las Vegas, for appellant.

Alan B. Andrews, Las Vegas, For
respondent.

OPINION

YOUNG, Chief Justice.

4-4

This action arose out of the appellant
Las Vegas City Council's (Las Vegas)
decision to revoke respondent Nevada
Industries’ business’ licenses. Nevada
Industries operates a lounge facility with
a jacuzzi and meeting rooms. A detective
observed nudity and the exposure’ and
touching of female breasts during a visit to

the facility.
After an investigation and a hearing,
Las Vegas revoked the business’ licenses
because it found that Nevada Industries is
a sexually oriented business, i.e. a “nude
show." Consequently, it found that
respondent made a misrepresentation on its
application for business licenses by stating
that it would not operate ae sexually
oriented business.' Moreover, Las Vegas
found that Nevada Industries violated a Las
Vegas zoning ordinance prohibiting the
establishment of a sexually oriented
business within one thousand feet of another
sexually oriented business, church, school,

park or playground.’ Las Vegas also found

4-5

that Nevada Industries violated ordinances
concerning the keeping of business records
and failed to properly maintain its State
Industrial Insurance System (SIIS) coverage.
Pursuant to these findings, Las Vegas
revoked Nevada Industries’ business licenses
and fined respondent $50,000.°

On Nevada Industries" motion, the
district court issued a writ of mandamus and
reviewed Las Vegas’ actions. The district
court concluded that Nevada Industries’
activities enjoyed First Amendment
protection because Las Vegas sought to
regulate them as a "nude show." The court
found the applicable ordinances
unconstitutional as applied to this
protected activity, and issued a permanent
injunction and a writ of mandamus
prohibiting their enforcement against Nevada
Industries. Las Vegas appeals from the
district court's judgment.

[1] Las Vegas’ finding that Nevada
Industries’ activities constituted a nude

show provided the basis for its conclusion

Ee

4-6
that Nevada Industries made
misrepresentations on its application for a
business license, and for its finding that
Nevada Industries violated Las Vegas’ zoning
ordinance by operating within one thousand
feet of another sexually oriented business.
LVMC §19.74.020(1) addresses sexually
oriented businesses, and defines "nude show”
as "any establishment which provides or
permits sexual conduct or the display of
specified anatomical areas upon its premises
as entertainment or as an attraction for

business." The provision also defines adult
motion picture theaters, adult bookstores,
and similar establishments as_ sexually
oriented businesses. Las Vegas correctly
points out that the sucking of a woman's
breast by a man, as observed by one of its

) detectives, constitutes "sexual conduct”
under LVMC §19.74.010(A)(1) as do other
actions which the detective observed.

Nevada Industries’ facilities and

advertising support the conclusion that it

intended to operate in its present manner

4-7

(i.e. as a sexually oriented business) at
the time it applied for its business
license. Therefore, the record demonstrates
that Nevada Industries falsely represented
on its license application that it was not
a sexually oriented business.

Consequently, we conclude that we need
not address the issue of whether Nevada
Industries’ activities enjoy First Amendment
protection because respondent's affirmative
misrepresentation formed the basis for the
revocation of its licenses. Accordingly,
without addressing the First Amendment
issues raised by respondent, we hold that
Las Vegas acted within its discretion when
it revoked Nevada Industries" business
licenses pursuant to the Las Vegas Municipal
Code.

Because Las Vegas determined that
Nevada Industries’ operation included a
"nude show,” the district covrt held that
this case must turn upon Pirst Amendment

principles. According to the United States

Supreme Court, under some circumstances,

aE ee

4-8
nude dancing might be entitled to First and

Fourteenth Amendment protection. California

v. LaRue, 409 U.S. 109, 118, 93 S.Ct. 390,

397, 34 L.Ed.2a@ 342 (1972). Thus, the
district court concluded that Las Vegas'
licensing procedures must meed the strict
constitutional standards imposed on all
statutes which impinge upon First Amendment
rights. We disagree. |

Las Vannes characterized the
entertainment provided by Nevada Industries
as "nude show”™ in order to demonstrate that
respondent made misrepresentations on its
business license applications. Las Vegas
revoked Nevada Industries’ business licenses
not because of the forms of expression which
occurred at their operations, but for the
simple reason that respondent perpetrated a
fraud upon Las Vegas. Therefore, Nevada
Industries' First Amendment rights are not
dispositive of this case.

We note that under our decision in this
case, Nevada Industries remains free to

reapply for new business licenses. However,

4-9

should they continue to operate as a
sexually oriented business, Las Vegas
Municipal Code section 19.74.0300 provides a
basis for denying their licenses.

Accordingly, we reverse that portion of
the district court's decision which
permanently enjoined Las Vegas from using
its municipal ordinances to revoke Nevada
Industries’ business licenses. However, we
affirm the district court insofar as it
enjoined the imposition of Las Vegas’
$50,000 fine upon respondent.

[2-5] According to Las Vegas Municipal
Code section 6.88.120, after a hearing on a
dispute, the board of commissioners shal]
render a decision on the merits, including

"the penalty to be imposed, if any." After

concluding that Nevada Industries violated

Las Vegas" business licensing ordinances,
the board of commissioners fined respondents
$50,000.

Generally, municipalities enjoy the

power to enforce their ordinances’ using

fines. Commonwealth v. Cabell, 199

|
4-10
Pa.Super. 513, 185 A.2d 611, 616 (1962).

However, the ordinance must fix a valid

maximum penalty. Verona _v. Shalit, 96
N.J.Super. 20, 232 A.2d 431, 433
(App.Div.1967). Because the penalty

provision of section 6.88.120 fails to
provide any limitation on the fines imposed,
that clause is void. Id.

Municipal ordinances must not be

oppressive. Hunter v. City of Atlanta, 212

Ga. 179, 91 S.E.2d 338, 340 (1956). In its
present form, section 66.88.120 is invalid
because it vests Las Vegas officials with
uniimited discretion to establish fines. A
standardless ordinance invites
discriminatory enforcement. Baer v. City of
Wauwatosa, 716 F.2d 1117, 1124 (7th
Cir.1983). Because of the great risk of
excessive fines resulting from enforcement
of the penalty provision, it cannot stand.!
Nev. Const. art. 1, Je.

When invalid provisions of a municipal
ordinance are severable without defeating

the objectives of the ordinance, we sustain

4-11

and give effect to valid portions of the

ordinance.’ City of Portland v. Dollarhide,
71 Or.App. 289, 692 P.2d 162, 167 (1984).

Accordingly, we sustain the validity of the
remaining portions of section 6.88.120.
Therefore, we affirm the judgment of
the district court insofar as it enjoins the
imposition of Las Vegas’ fine on Nevada
Industries, and reverse that portion of the
district court's decision which permanently
enjoined Las Vegas from using its municipal
ordinances to revoke Nevada Industries’
business license.

STEFFEN, SPRINGER and MOWBRAY, JJ.,

concur.

\

1/ Las Vegas Municipal Code 16 .02.330
provides in part:

6.02.330 Disciplinary action-Good
cause designated. The licensee may be
subject to disciplinary action by the
Board of Commissioners for good cause,
which may include, but is not limited
to:

(A) The application is
incomplete or contains false,
misleading or fraudulent statements
with respect to any information
required in the application;

f
'
I

4-12

(B) The licensee or any of its
principals’ fails to satisfy any
qualification or requirement imposed
by this Code, or other local, State or
Federal Law or regulation pertaining
to the particular license or approval
for suitability sought or held;

(F) The licensee or any of its
principals has committed acts which
would constitute a crime involving
moral turpitude, or involving any
Federal, State or local law or
regulation relating to the same or a
similar business;

(G) When substantial information
exists which tends to show that the
licensee or any of its principals is
dishonest or corrupt;

(I) The actual business activity
constitutes a public or private
nuisance, or will be or is conducted
in an unlawful, illegal or improper
manner;

2/ In Young v. American Mini Theatres, 427
0.8. 50, 96 S.Ct. 2440, 49 L.Bd.2d 310
(1976), the Supreme Court upheld the
constitutionality of a zoning ordinance
similar to that implemented by Las Vegas in
this case. The Court noted that the mere
fact that commercial exploitation of
material arguably protected by the First
Amendment is subject to zoning and other
licensing criteria is an insufficient reason
for invalidating these ordinances. Id. at

62, 96 8.Ct. at 2448. Moreover, we must
give great respect to Las Vegas’ interest in
preserving the quality of urban life and to

4-13

2/ Cont.

its need to experiment with solutions to
difficult problems. Id. at 71, 96 S.Ct. at
2452-53. Thus, we find that the zoning
ordinance implicated in this case is
constitutional.

3/ The City imposed the fine pursuant to
Las Vegas Municipal Code '6.88.120 which
provides that:

6.88.120 Decision by Board.
After the hearing of a contested
matter, the Board of Commissioners
shall render a decision on the merits
which shall include findings of fact
and conclusions of law and the penalty
to be imposed, if any, and_ shall
thereafter make and enter its order in
its minutes in conformity to such
decision. The decision of the Board
shall be served on the parties
personally or shall be sent to them by
registered or certified mail. The
decision shall become and remain
effective upon such service unless the
Board shall otherwise order.

4/ According to NRS 193.170, whenever a
statute prohibits the performance of any act
but fails to impose a penalty for the
violation thereof, commission of the act
shall be a misdemeanor.

5/ We note that the vague penalties
referred to in section 6.88.120 can easily
be clarified by amendment.

6/ The Honorable Robert E. Rose, Justice,
did not participate in the decision of this
appeal.

siveuibadlbdrein nts hadiathadtaadhens entered aneaeeme eee

APPENDIX B

PORTION OF TEXT OF PETITION FOR WRIT OF
CERTIORARI, FILED IN CONNECTION WITH
CASE NO. 92-643, AT POINT III ON’ PAGES
46-57 { THE TEST IN WATSON V. BUCK IS
CONTROLLING AND MUST BE APPLIED.” ]

{Reference: Respondents’ Brief in
Opposition at 46-57. ]

i |

B-1

license revocation proceeding is barred.

III
THE TEST IN WATSON V. BUCK IS
CONTROLLING AND MUST BE APPLIED.

In Watson v. Buck, 313 U.S. 387 (1941),

the U.S. District Court for the Northern
District of Florida had enjoined a Florida

State containing a severability clause which

had never been before the Florida Supreme

Court for interpretation. In reversing that

judgment and the granting of the injunction,

this Court held at pages 401-402 that a |
State statute which contains a severability )
Clause must be "flagrantly and patently vio- |
lative of express constitutional prohibi-
tions in every Clause, sentence, and para-
graph, and in whatever matter and against
whomever an effort mights be made to apply

it ..." before a federal court can inter-

fere with the right of the state court to

interpret such legislation.

In such a case it is reversible error

for a federal court to grant an injunction

and preempt the state court from its func-

ez .

B-2

tion, unless the reacerd shows there were
"exceptional circumstances and a clear show-
ing that an injunction is necessary in order
to afford adequate protection of constitu-

tional rights...." Further, under Watson v.

Buck, that "clear showing" must demonstrate
that the danger of irreparable loss "is both
great and immediate." Otherwise, the de-
fenses must be set up in the state court
even though the validity of the ordinance is
challenged, for there is ample opportunity
for ultimate review by the United States
Supreme Court of federal questions. It is
patent upon the face of the record below

that the Watson v. Buck requirements of "“ir-

reparable loss"..."both great and immediate"
have not been established.

(1) A NUMBER OF IMPORTANT STATE
INTERESTS ARE INVOLVED

This federal case has impaired a
number of important and compelling state
interests and rights of the City of
Henderson:

(1) The exercise of Home Rule

B-3

powers; i.e. to ensure that the license
issuing and zoning process is kept free
from the perpetration of material fraud
by individual license and zoning
applicants;

(2) The administration of state
laws, to obtain compliance with the
Precise standards embodied in those
laws, and to conduct the state enforce-
ment process free from unwarranted
federal interference which disrupts
municipal efforts;

(3) The right not to have newly-
enacted comprehensive municipal zoning
ordinances subjected to federal judi-
cial review to protect the legitimate
interests which underlie state laws,

until after the state court system has

been given an adequate Opportunity to
review and interpret said laws and the
issues are ripe for adjudication;

(4) To practice judicial economy
by requiring that litigation involving

the above judicial functions be conduc-

B-4

ted in the most efficient forum (i.e.
the State Court);

(5) A quick, definitive determi-

nation of matters involving the opera-
tion of a business without a license.
Such an activity constitutes a "per se"
public nuisance and "pez se" irrepara-
ble harm which requires abatement. See

World Famous Drinking Emporium, Inc. v.

City of Tempe, 820 F.2d 1079 at 1083.

(6) Suppression of fraud in the
governmental license application pro-

cess. See City of Las Vegas v. Nevada

Industries, 772 P.2d 1275, infra, at p.

41-42. It is contrary to established
public policy to obstruct state en-
forcement action against applicants who
deliberately make false statements to
the government in a business applica-
tion in order to obtain a license.

(7) Control of the issuance and
revocation of revenue-based business
licenses, as part of a local revenue

collection (taxation) scheme.

B-5

Unless effective, Summary relief is ac-

corded cities against such unlawful "collat-
eral" appeals by this Court exercising its

under the All Writs Act,

corrective power
the City of Henderson will sustain the same

type of irreparable harm as that suffered by

the state of Ohio in the Huffman case, and
by other cities in similar cases, where im- |

portant state laws are prevented from being

presented to the state appeals courts and

this Court for an authoritative construction
-

of state law under the federal Constitution .

-
Because of the federal court interfer-

ence with state a

ppellate proceedings,

in

Huffman, the substantive appellate question
involving application of state law (re

"closure"

of a public nuisance) was never

decided, and could never be presented to

this Court

for definitive review.

Huffman

involved the power of a state court t

© close

a 100% continuing public nuisance (obsceni-
ty) [utilizing a remedial approach accepta-
ble under Red Light Abatement statutes,
where the object is the reformation of
property used to conduct a per se public
nuisance (prostitution) ]. Because a_ final
State determination on this important legal
issue, regarding the scope of available
State remedies, was collaterally blocked by

the federal courts in Huffman, an Ohio
(Footnote Continued)

(Footnote Continued)

appellate determination on "closure" was
unavailable as a precedent for the state of
Ohio and for other state court systems, and
the substantive legal issue could not be
reviewed by this Court, leaving the
"closure" issue, to date, unsettled across
the Nation.

The question of the extent to which the
states may exercise the remedy of "closure"
in connection with the exercise of their
police power has arisen in other state
cases, with varying results. See State of
Idaho ex rel. Kidwell et al. v. U.S.
Marketing, Inc. et al., 102 Idaho 451
(1982), tr: noted 454 U.S.1140 (1982), and
app. dismissed 455 U.S. 1009 (1982), in
which a unanimous State Supreme Court upheld
the constitutionality of one-year closure
provision and award of attorney fees against
a pornographic bookstore. Compare, Juris-
dictional Question #1 posed in the Petition
for writ of certiorari in Cooper v. Mitchell
Brothers Santa Ana Theater et al., No. 81-
271, October Term 1980, decided on other
grounds in 454 U.S. 90 (1981), and Jurisdic-
tional Question #1 posed in Cooper Vv.
Mitchell Bros. Santa Ana Theater et al., No.
82-345, October Term 1982, denied in 459
U.S. 944 (1982). Because the applicability
of "closure" to the public nuisance abate-
ment process involving pornographic outlets
has never been answered by this Court, after
a protracted, time-consuming and expensive
abatement procedure in which it was demon-
strated that the defendant Mitchell Brothers
had engaged in the regular continuous
exhibition of obscene films as a course of
conduct continuing over a period of 10
years, the City of Santa Ana was forced to
"throw in the towel" in 1987, and settled
the controversy by paying defendants their
attorney's fees and allowing their
pornographic outlet to continue operations
in Santa Ana.

B-7

(2) THE STATE COURT WITH A__"DIRECT"
ATTACK ON THE "PENDING" STATE ACTION
PROVIDES A MORE EFFICIENT JUDICIAL
FORUM FOR THE RESOLUTION OF DISPUTES
THAN THE "COLLATERAL" CHALLENGES BEING
ASSERTED IN THE FEDERAL COURT AGAINST
THE STATE STATUTES AND CITY ORDINANCES

IN SUCH "PENDING" CASES.

The exercise of federal jurisdiction

Striking a state statute Or Ordinance is not
proper, except where the challenged law is
"flagrantly and patently violative of
express constitutional prohibitions in every
Clause, sentence, and paragraph and in
whatever manner and against whomever an
effort might be made to apply it." Watson
Vv. Buck, 393 U.S. 387 (1941).

Without doubt, the U.s. District Court
has jurisdiction in the instant case to
decide the question of jurisdiction. U.S.

v. United Mine Workers of America, 330 U.S.

258 (1974). Where, however, a state statute
or a city ordinance involving an "important
State interest" is susceptible of a
construction which will render the statute

constitutional and a State court action is

pending, under Middlesex County Ethics

EO
B-8

Committee, supra, the federal court must

abstain and must allow the matter to be
returned to the state court system for an
authoritative construction by the state
court. One of the principle reasons why
this result is mandated is the fact that a

federal court lacks jurisdiction to authori-

tatively construe state legislation, U.S. v.

Thirty-Seven Photographs, 402 U.S. 363

(1971), a task routinely performed by state
court.

There is a marked difference in the
way in which the state and federal courts
approach the constitutional issue regarding
legislation. Largely because of the doc-
trine of separation of powers, the rule has
evolved that state courts are obliged to
render a construction of state legislation
which will arrive at a constitutional re-

sult. In People ex rel. Busch v. Projection

Room Theater, 17 Cal.3d 55 at 56, the

California Supreme Court noted, at page 336:

"Furthermore, the United States
Supreme Court recently emphasized
within the foregoing context that

B-9

courts have an Obligation to construe
Statutes in such a Way as to avoid
serious constitutional Goupts . . .*
(Our emphasis. )

and, at page 338:

"We are obliged to construe and
interpret legislation in a manner which
will uphold its validity. (Citations).
Thus, the courts have held that
Provision for a prior adversary hearing
may be implied by law in otherwise
Silent statutory provisions."

Because federal courts do not bear the’ same
relationship to state legislatures and do
not function in the same manner as regards

State legislation, see U.S. v. 37

Photographs, Supra, the end result is
certain to differ.

Additionally, the question as to
whether defective federal and state
legislation may be "saved" by statutory
construction or by severance of the
defective portion presents important
Public policy matters for federal and

state governments. See Tilton Vv.

Richardson, 403 uU.s. 672 at 684, where

Chief Justice Burger noted:

"The cardinal principle of statutory

B-10

construction is to save and not
destroy."

In examining the record of this case,
it is apparent that the state system is the
most efficient and proper forum for
interpreting the interplay of the _ state
statutes and municipal ordinances involved.
Were the constitutionality of the

8
"conditional use" zoning laws an issue ,

8

The constitutionality of the condi-
tional use in the CH zone is not yet in
issue, inasmuch as the federal plaintiffs
never applied for a variance ora special
use permit. Shelter Creek Development Corp.
| v. City of Oxnard, 838 F.2d 375 (CA9, 1988);
Ill. Commerce Comm'n v. Thompson, 318 U.S.
| 675, and National Bank v. Bd. of County Com-
missioners, 264 U.S. 450 (1924). When the
conditional use ordinance is properly made
an issue, the construction to be given the
newly enacted legislation is one for the
Nevada Courts, not the U.S. District Court.
See Watson v. Buck, supra, discussed at
pages 46 - 47, herein, and U.S. v. 37
Photographs, 402 U.S. 363 at 369-375 (1971)
and U.S. v. 12-200 Ft. Reels of 8mm_Filn,
| 413 U.S. 123 at 130, fn. 7. Compare, in
+ this regard, the construction given by
# California Courts to People v. Library One,
Inc., 229 Cal.App.3d 873 (1989), and Thomas
v. County of Los Angeles, 232 Cal.App.3d
916 (1991), re the effect of this Court's
ruling in FW/PBS, Inc. v. Dallas, 493 U.S.

215 (1990) on specific time limits during
which decision is required on permit
applications, and note, in this regard, that
the issue here is license revocation, not
license procurement.

B-11
there is ample authority to support the
legal proposition that a conditional use
zoning ordinance similar to that which has
been adopted by the City of Henderson can be

constitutionally applied, and only a state

court has both the right and duty to give

the same _a__constitutional interpretation.

See 11126 Baltimore Blvd. v. Prince George's

County, Md., 886 F.2d 1415 at Pages 1426-

1429 [4th Cir. 1989, Rehearing and Rehearing
en Banc denied October 25, 1989; cert.
granted, remand to U.S. Court of Appeals for
further consideration in light of FW/PBS,
493 U.S. 215 (1990))}.

The question as to whether a state
Statute is severable is more properly a

matter for the state court. In a statement

confirming the importance of the "statutory

construction" factor and the right of state

courts to interpret city Ordinances, this

Court in Metromedia, Inc. v. San Diego, 453

U.S. 490 (1981) (involving a direct appeal
of a city ordinance after a state court

decision by the California Supreme Court

aiken

B-12
upholding the ordinance as being constitu-
tional on its face) remanded the case back

to the California Supreme Court for further

statutory construction by the state court,

notwithstanding the fact that this Court

held the ordinance to be unconstitutional on
7
its face . See in this regard, Associate

Justice White's opinion in Metromedia, Inc.,

announcing the judgment of the Court, at
521, fn. 26, wherein he addresses the issue
of severability and the right of state
courts in that regard.

IV

FEDERAL PLAINTIFFS HAVE FAILED TO STATE
A CAUSE OF ACTION UNDER 42 U.S.C.
SECTION 1983 IN THAT THEY HAVE FAILED
TO PLEAD AND PROVE WHY THE PRINCIPLES
ESPOUSED IN WATSON V. BUCK AND HUFFMAN
V. PURSUE, LTD. DO NOT CONTROL SO AS TO
REQUIRE A DISMISSAL FOR LACK OF FEDERAL
JURISDICTION.

Under the rationale expressed in Allen

9

Unlike the "“Humpty-Dumpty" approach of
the federal court system (which cannot
construe a state law), the superiority of
the state forum is self-evident where the
"egg" can immediately be put back together
again.

APPENDIX C

HENDERSON NEWS ARTICLES REPORTING UPON
CRIMINAL ACTS (TWO MURDERS) UPON THE
PREMISES INVOLVED.

(Reference: Respondents’ Brief in
Opposition at 51. ]

C=-l

Clerk found murdered in
porn viewing booth

Altel9e

By Katherine E. Scott
News Staff Writer

A 22-ycar-old night clerk at
Fantasy Vidco Plus was found
shot to death inside a vicwing
booth early Sunday moming fol-
lowing an apparent robbery, ac-
cording to the Henderson Police
Department.

Denver Duane Tumer was shot
three times in the back of the head
with a .22 caliber weapon, the
Clark County Coroncr’s Office
reported Monday. Police said
Tumer was last known to have
been alive when his roommate
spoke with him about | a.m.
Sunday.

Police were called around 5:20
a.m. by a customer who found
Tumer’s body at the back of the
adult-oriented novelty store, HPD
Detective Richard Perkins said
Sunday at the scence. Ile said
moncy was missing from the store.

“A security video tape is being
reviewed as part of the investiga-

tion,” police stated in a press re-
Icasc. Police are asking any per-
sons with information to contact
investigators at 565-2031 or 565-
2004, the detective burcau at 565-
2009 or the police department at
565-8933.

| Police said Tumcr’s body was
found in a viewing booth in the
southeast section of the Boulder
Highway store. The door to the
booth was open when the cus-
tomer—a man in his 40s—found
the victim.

Police said store management
locked the business Sunday
moming, with plans to open the
following day. An electronic
reader board in front of the store
said the business would be closed
until noon Monday, with no late
fecs to be charged.

That was believed to be the first
lime the store has closed its doors
since opening on Feb.1. The city
of Henderson revoked the
company's business license April
10 duc to alleged misrepresenia-
tions in the application process,
but the store has remained open
pending a lawsuit filed April 24 in
U.S. District Court.

Henderson Assistant City At-
tomcy Liza Conroy said last month
that the city is attempting to have
the action moved to Clark County
District Court because it believes
licensing is the issue. Fantasy
Video spokespersons have said
their constitutional rights are be-
ing denicd by the city, and that the
case should remain in federal
eour,

C-2

' Fantasy Video murder suspects

}

caught in Oregon

te hen 2

By Katherine E. Scott
News Staff Writer

Suspects in the Nov. 4 murder
of a Henderson pom store clerk
are being held in Oregon pending
extradition to face charges here,
according to the Henderson Police
Department.

Police said Amber Lynn Adams
and Lance Matthew Reberger
were apprehended in Coos Bay,

| Ore. on Friday moming, after lo-

Cal police entered them as sus-
pects in the National Crime In-
formation Computer.

They are suspected of shooting
22-year-old Denver Duane Turmer
early Nov. 4 as he worked in
Fantasy Video Plus, an adult-
oriented novelty store located on
Boulder Highway.

The victim was shot three times
in the back of the head, according

Ito the Clark County Coroner’s
Office. Police saia mis voay was
found in a viewing booth in the
back of the store by a customer
who entered the store shortly after
5 a.m.

A police investigation found
evidence implicating Adams and
Reberger, providing enough in-
formation for them to be placed in
the NCIC system, police said.
Adams was also known with the
sumame Harvey, police said.

|No cash taken,
in robbery at
Fantasy Video

Tla41 4o
No cash was taken in an

armed robbery at Fantasy

Video last week, according

to the Henderson Police Dept.
Police said a young, blond
man took less than $100 worth
of sexual aids from a clerk at
the Boulder Highway store
about 4:25 a.m. Thursday. ‘A
small caliber chrome automatic
pistol was used, according to
police.
' “A security camera was
operating at the time and the
suspect was photographed,”
HPD Assistant Chief Kip
Botkin said Monday. He added
that police detectives are in-
vestigating the incident.

oe
|
|
¢ ;
lL,
|
'

C~3

Murder suspects

0 Se
to fight extradition
es —{risAe =.

By Katherine E. Scott
News Staff Writer

Suspects in the Nov. 4 murder

f a clerk at Fantasy Video Pius,
who Henderson Police said had
first agreed to waive extradition
from Oregon, instead said they
would fight extradition when they
appeared before a judge Tuesday
in Coos Bay, Ore.

Amber Lynn Adams, 22, and
Lance Matthew Reberger,24, face
charges of murder, robbery and
burglary in the death of 22-year-
old Denver Duane Turner at the
adult-oriented novelty store on
Boulder Highway. They were ar-
tested Friday at a homeless shel-
|ter in the Oregon town, HPD Sgr.
Ray Moser said in a telephone
interview Tuesday.
| HPD Detective Monty Sparks,
who traveled to Oregon to inves-
‘tigate the case, said that “during
the court appearance on Tuesday
they requested council, and their
extradition hearing was continued
until Tuesday of next week.”

Sparks said during a telephone
interview Wednesday that the pair
“were abusive and obnoxious
during their court appearance, and
totally disrespectful.”

tified as suspects following a tip
which led investigators to several
persons who provided enough

evidence of their guilt that pouce
were able to seek a warrant for
their arrest.
' He said a video surveillance
tape police removed from the store
had run out before the murder
occurred. Turner was believed to
¢ been killed approximately
nla.m.and5a.m.onNov.

Henderson police entered
Adams and Reberger into the
National Crime Information
Computer on Thursday, Nov. 8,
Moser said.-He said police offic-
ers in Coos: Bay-récognized the
COdple from’a fecetit’child ‘abuse
report,’and arrested them ‘at the
homeless shelter where they were
staying.

Sparks said Oregon's Child
Protective Services is caring for
Adams’ 3-year-old son. He said
the child’s natural father, who lives
in Las Vegas, is seeking custody.

Police said Adams, also known
with the sumame Harvey, was
from the Las Vegas area. Reberger
was believed to be a transient who
came here from Florida.

oS Sie nally rir ele ersten) tal

C-4

Fantasy Video murder suspect
gets second preliminary hearing

By Katherine E. Scott
News Staff Writer
One defendant in last year’s
murder of aclerk at Fantasy Video
Plus was scheduled recently fora
second preliminary hearing in Las
| Vegas Justice Court on June 18.
| Lance Matthew Reberger was
to stand trial Monday in Clark

County District Court on charges’

of murder, robbery and burglary.
However, his case was remanded
for a new preliminary hearing fol-
lowing a May 3 court appearance.

Defense attomey Phil Dunleavy

By Katherine E. Scott
News Staff Writer

Amber Lynn (Harvey) Adams,
22, is scheduled to stand trial
Monday in Las Vegas District
Court for the Nov. 4 murder of a
local adult-oriented video and
novelty store clerk.

Adams and 24-year-old Lance
Matthew Reberger are charged
with murder, robbery and burglary
for the death of 22-year-old
Denver Duane Turner inside
Fantasy Video Plus last year.
Reberger faces a June 18 pre-
‘liminary hearing in Las Vegas
Justice Court.

A motion to suppress evidence
was denied last week, and Adams’
‘court dates still stood as of
presstime, according to court

records. A calendar call is sched- —

uled today.

S/it 14

said Wednesday that he was-as-
signed the capital murder case
after it had reached District Court
for trial. “I didn’t feel the man had

Murcer
suspect

trial starts

6/6/91.

Monday

Adams and Reberger were ar-
rested on Nov. 9 in Coos Bay,
Ore., after police there received a
bulletin from Nevada that they
were suspected in a murder here.
|Oregon officers recognized the

| couple from a child-neglect in-

vestigation a day earlier regarding
Adams’ young son.

Both waived extradition, and
Adams also waived her prelimi-
nary hearing. She was later found
competent to stand trial following
a psychiatric evaluation ordered
by Las Vegas District Court.

She was remanded to Justice.
Court for a March 18 preliminary
hearing, then was bound over fo

| ajury trial, scheduled to begin on
Monday.

9/9)

’. Henderson police are seeking a
gunman who robbed the Pure
Pleasure adult book and video
store on Boulder en ~~
day night.

| “The clerk advised that a ted
in] a mask, brandishing a shot

fled on foot with an undis-
Closed amount of cash.

The suspect was wearing blue
denim pants and a dark T-shirt,
police said. Any person with in-

formation are asked to call the

ire Pleasure suspect nabbed Mn

By Thomana is oe

News Staff Writer
amderson Police have arrested
in suspected of robbing the

Pleasure adult bookstore
cand mspected of wbbing
ailar store in Las Vegas.
uart Whiting, 22,ofnoknown -

Wednesday for the robberies

which occurred on Dec. 14 and
Nov. 26. He was arrested at Vo-
Tech, where ie wes attempting to
pick up his girlfriend. .

Whiting was transported to the

‘:. Henderson Jail and booked on. -

“two counts of armed robbery. He

ress was .arrested last is being held on $60,000 bail.’

Adult bookstore
robbed once again

By Thomas Moore
News Staff Writer
An allegedly intoxicated rob-
‘ ber was caught Sunday after
stealing $12.95 in magazines and
$7.50 in tokencoins from the Pure
Pleasure Video and Bookstore on
Boulder Highway at approxi-
mately 8:35 p.m. .

According to a Henderson Po-
lice Department news release,
Eugene Charles Lee, 32, of
; Henderson and a past customer,
| walked into the store and threat-

COPY

ened to shoot the clerk if he did
not give him some cash.

The clerk gave the man $12.95
in token coins and as the suspect
walked out he grabbed amagazine.
The police searched the sur-
rounding area and found Lee
drinking in a bar on Boulder
Highway not far from the scene of
the crime. He was arrested and
taken to the Henderson Jail where
he was booked on a charge of
robbery.

litle setts A Napier ane .

Adult bookstore .
scene of slaying

5/3/94

By Thomas Moore
News Staff Writer

A Las Vegas man was shot in
the chest early Friday morning
outside the Pure Pleasure adult
bookstore on Boulder Highway.

| He died later that moming during
| Surgery at the University Medical
Center.

According to a Henderson Po-
lice Department news release,
Redentor Castillo Nicolas, 27, had
been inside Pure Pleasure some

_ time before 2 a.m. He left the store
but then retumed to the store to

"tell the clerk he had been shot and
then collapsed onto the floor. The
Clerk called the police and para-
medics. Nicolas was taken to
UMC where he died at 5 a.m.

Police have videotape, taken
from surveillance cameras in the
store, that shows two possible
suspects who were in the store
shortly before the shooting.

The first suspect was described
as a white male in his late 20s or
early 30s standing about 5 feet, 9
inches tall, weighing from 160 to
180 pounds with sandy brown hair.
He wore a dark colored baseball
Cap, a green camouflage jacket,
blue jeans and light-colored ten-
nis shoes.

The second suspect was in the
same age range, but stood ap-
proximately 5 feet, 7 inches tall
and weighed 150-160 pounds. He
also had sandy brown hair and
wore a dark-colored baseball cap
and light-colored tennis shoes.
However, this suspect was wear-
ing a brown-colored camouflage
jacket and bluish-grey short pants.

The two suspects drove away in
a white vehicle. Anyone with in-
formation is asked to call
Henderson Detective James
White, 565-2031.

Arrests made in death

By Thomas Moore
News Staff Writer
Police have arrested two sus-
pects in the April shooting death
of aman outside the Pure Pleasure
. Adult bookstore. )
| Carl George Schulte, 25, of
‘Henderson and Larry John Ledale
Gomer, 22, of Chino, Calif., were
arrested for the murder while al-
ready in the Henderson Jail for
stealing a motor vehicle.

6/7/94

Redentor Castillo Nicolas was

| killed Friday, April 29, shortly

after2 a.m. after visiting the store.
The police had surveillance tapes
of some people who were in the
store before the killing but were

| unable at the time to find the killer.

SW Ni i ands a

¥
3
*

APPENDIX D

CITY ATTORNEY LETTER DATED NOVEMBER 17,

1994, REPORTING ON COSTS OF ABSTENTION
LITIGATION TO DATE.

(Reference: Respondents’ Brief

in
Opposition at 51. ]

D-1

CiTY OF HENDERSON
CITY HALL 240 WATER STREET 702/565-2323
HENDERSON, NEVADA 89015

Gateway to Lake Mead Resorts

November 17, 1994

James J. Clancy, Esq.
9055 LaTuna Canyon Road
Sun Valley, CA 91352

Dear Jim:

You have requested a compilation of costs incurred by the City to
date in litigating the case of Nevada Entertainment Industries,
I have compiled the attorney’s fees and costs for outside counsel
and estimated our in-house counsel time.

Outside counsel fees and costs are as follows:

1990-91 $41,530.02
1992 21,794.68
1993 24,161.20
1994 ~32.728.08
TOTAL $120,213.98

The time estimates for in-house counsel in litigating the initial
stages of the case and in later review and discussion of the
ongoing litigation are set forth below. Since we do not keep track
of hours on a per case basis, these estimates are true estimates
derived by reviewing the files, documents and transcripts to arrive
at an approximation of the time involved.

Based upon a reasonable billing amount in the legal community of
$100 per hour, I arrived at the following values:

1990 80 Hrs. $8,000.00
1991 45 Hrs. 4,500.00
1992 25 Hrs. 2,500.00
1993 25 Hrs. 2,500.00
1994 15 Hrs. _1,500,00

TOTAL 212..000.00

ie ae.

en Sie Aaa tet ie

1 ee

lin? sentient

:
|
:
{
:

‘James J. Clancy, Esq. Page 2

November 17, 1994

Additionally, you requested copies of newspaper clippings
concerning criminal activity at the subject premises which included
two homicides. Attached to this letter are xerox copies of
newspaper clippings from the Henderson Home News.

If you need any additional information, please do not hesitate to
contact me.

| Very truly yours,
at,

ff
ee,
aes /
Liza Conroy
Assistant City Attorney
LC/avea

Enclosures

een i AG acu
2 Sn Rae ee nt oe tS ea a

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386012_0736%3A2. Public record. Not legal advice.
