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1. Pleadings--motion to dismiss--verification of complaint
The trial court did not err in a declaratory and injunctive relief case concerning the
interpretation and enforcement of a county ordinance regulating sexually oriented businesses by
denying defendant's motion to dismiss plaintiff's complaint based on it not being verified by an
officer, or managing or local agent of the county as required by N.C.G.S. § 1A-1, Rule 11(d),
because: (1) this case is not the type of action for which a verified complaint is required; and (2)
there are no statutes requiring verification of plaintiff's complaint requesting declaratory and
injunctive relief under N.C.G.S. § 153A-123.
2. Counties_pleading section and caption of ordinance
Plaintiff county's complaint sufficiently pleaded both the section number and caption of
the pertinent amended ordinance in accordance with N.C.G.S. § 160A-179 in an action seeking
declaratory and injunctive relief concerning the interpretation and enforcement of an ordinance
regulating sexually oriented businesses.
3. Appeal and Error_preservation of issues_invited error
Defendants waived the issue as to whether the trial court applied the wrong standard
when it denied their motion to dismiss plaintiff's complaint at the close of evidence where
defendants expressly consented to the standard applied by the court and thus invited the alleged
error of which they complain.
4. Constitutional Law_county ordinance_regulation of sexually oriented
businesses_not ex post facto law
An amended county ordinance regulating sexually oriented businesses was not an
unconstitutional ex post facto law even though it provided that all enforcement action would be
based upon the effective date of the original ordinance because a retroactive civil regulatory law
does not violate the ex post facto clause, and the amended ordinance was a civil regulatory law
since it placed a time, place and manner restriction on the location of sexually oriented
businesses and was enacted pursuant to the county's police powers.
5. Constitutional Law_county ordinance _regulation of sexually oriented businesses--
finding of fact
In determining that a county ordinance regulating sexually oriented businesses was not
content-based and thus not subject to strict constitutional scrutiny, competent evidence supported
the trial court's finding that the county relied upon a variety of evidence regarding the secondary
effects of sexually oriented businesses even though plaintiff did not show that members of the
board of commissioners (BOC) actually viewed the documentary evidence tendered by plaintiff,
because: (1) the sheriff testified that he and county legal staff began researching the 2002
ordinance approximately one year before it was adopted by the BOC, and the BOC wasundoubtedly aware of the efforts of county staff on their behalf; (2) the sheriff was present at the
agenda meeting at which the 2002 ordinance was reviewed by the BOC, and the sheriff was
available to answer questions about the ordinance; and (3) the legislative reality is that county
staff, not county commissioners, are most often the actual individuals drafting county legislation
on the commissioners' behalf.
6. Constitutional Law_county ordinance_regulation of sexually oriented
businesses_content-neutral_intermediate scrutiny
A county ordinance and amended ordinance regulating sexually oriented businesses were
content-neutral, and thus subject to intermediate constitutional scrutiny, even though defendants
contend individual commissioners did not personally review the research materials considered by
county legal staff during drafting of the ordinance, because: (1) a zoning ordinance regulating
sexually oriented businesses is content-neutral when it is unrelated to the suppression of free
expression and its purpose is to eliminate undesirable secondary effects of the sexually oriented
business; (2) a content-neutral ordinance is subject to intermediate scrutiny, meaning the
reviewing court must consider whether the ordinance is designed to serve a substantial
governmental interest and allows for reasonable alternative avenues of communication; and (3)
county legal staff did complete meaningful review of the secondary effects generated by sexually
oriented businesses.
7. Constitutional Law--county ordinance_regulation of sexually oriented
businesses_free speech--reasonable alternative avenues of communication
An amended county ordinance regulating sexually oriented businesses left open
reasonable alternative avenues of communication for defendant businesses even though
defendants emphasize that a county map identifying locations in which sexually oriented
businesses were prohibited or permitted was not prepared until after the amended ordinance was
enacted, and the cost of relocating is prohibitive, because: (1) the question of whether an
ordinance allows for reasonable alternative avenues of communication concerns the effect of the
ordinance on speech and not the process by which the ordinance was adopted; and (2) the county
planning director testified that the county had approximately 124 square miles available for the
development of sexually oriented businesses which was approximately 19% of the entire land
area of the county.
8. Constitutional Law-_county ordinance_regulation of sexually oriented
businesses_Equal Protection
A county ordinance regulating sexually oriented businesses did not violate the Equal
Protection clauses of the United States and North Carolina Constitutions even though defendant
Hudson argues the amended ordinance prevents him from living within 1,320 feet of a sexually
oriented business that he operates, because: (1) defendant Hudson is not treated differently than
similarly situated individuals; (2) every business in noncompliance with the amended ordinance
is required to come into compliance before being granted a license; and (3) every citizen who,
like defendant Hudson, resides within 1,320 feet of such business will be deprived of the
opportunity to continue living in such close proximity in their current residence.
Pitt County Legal Department, by Janis Gallagher for
plaintiff-appellee.
The Robinson Law Firm, P.A., by Leslie S. Robinson, for
defendant-appellants Deja Vue, Inc., Deja Vue, II, Charles Lee
Cummings, Jr., Silver Bullet Dolls, Inc., Matthew Earl
Faulkner, Linda Faulkner and Dora Crawford Faulkner.
David W. Silver for defendants Misty's, Rex Hudson and Marie
Hudson.
STROUD, Judge.
This is an action for declaratory and injunctive relief filed
in Superior Court, Pitt County, concerning the interpretation and
enforcement of a Pitt County ordinance regulating sexually oriented
businesses. Plaintiff Pitt County sought a declaratory ruling that
defendants unlawfully operated unlicensed sexually oriented
businesses in locations prohibited by the county ordinance, as well
as temporary and permanent injunctions enjoining defendants from
conducting sexually oriented business at those locations.
The parties stipulated that defendants Deja Vue, Inc., Deja
Vue II,
(See footnote 1)
Misty's, and Silver Bullet Dolls, Inc. are sexually
oriented businesses located in Pitt County North Carolina.
(See footnote 2)
Defendant Mark Saied operates Deja Vue, Inc. and defendant Charles
Lee Cummings, Jr. operates Deja Vue, II. Defendant Marie Bradshaw
Hudson owns Misty's and defendant Rex Hudson operates Misty's.
Defendants Matthew Earl Faulkner and Linda Faulkner operate Silver
Bullet Dolls, Inc. in a building owned by defendant Dora Crawford
Faulkner. For purposes of this opinion, we refer to defendants
Deja Vue, Inc., Deja Vue II, Mark Saied, and Charles Lee Cummings,
Jr. collectively as Deja Vue. We refer to defendants Misty's,
Marie Bradshaw Hudson, and Rex Hudson collectively as Misty's and
defendants Silver Bullet Dolls, Inc., Earl Faulkner, Linda
Faulkner, and Dora Crawford Faulkner collectively as Silver
Bullet.
Defendant Silver Bullet has been operating in Pitt County for
more than twenty years. Defendant Misty's and defendant Deja Vue,
Inc. began operating in Pitt County before 7 October 2002;
(See footnote 3)
however, defendant Deja Vue II began operating after that date.
Defendants have not been charged with prostitution, crimes against
nature, or any violation of North Carolina obscenity law. Pitt
County alleges only that defendants may not operate sexually
oriented businesses in their current locations or without licenses
as required by Pitt County Code.
added).
Plaintiff and defendants stipulated that Pitt County adopted
the Amended Ordinance pursuant to its police powers. See N.C. Gen.
Stat. § 153A-121 (2005) (defining a county's [g]eneral ordinance
making power). Defendants Misty's applied for a sexually oriented
business license as required by the Amended Ordinance, but the
application was denied because the Misty's sexually oriented
business is located within 1,320 feet of a residential dwelling, as
are the businesses of all defendants in this matter. The remaining
defendants have not applied for sexually oriented business licenses
under either ordinance.
Plaintiff Pitt County sought a declaratory ruling that
defendants unlawfully operated unlicensed sexually oriented
businesses in locations prohibited by the Amended Ordinance, as
well as temporary and permanent injunctions enjoining defendants
from conducting sexually oriented business at those locations.
Defendants Deja Vue and defendants Silver Bullet filed motions to
dismiss plaintiff's complaint pursuant to N.C. Gen. Stat. § 1A-1,
Rule 11, arguing that plaintiff failed to properly verify its
complaint, and pursuant to N.C. Gen. Stat. § 1A-1, Rule 12(b)(6),
arguing that plaintiff failed to state a claim upon which relief
may be granted. Defendants Misty's also filed a motion to dismiss
plaintiff's complaint pursuant to N.C. Gen. Stat. § 1A-1, Rule12(b)(6). Pitt County Superior Court Judge W. Russell Duke, Jr.
orally denied defendants' motions on 14 November 2005.
At the declaratory judgment hearing, plaintiff called two
witnesses: Pitt County Sheriff Mac Manning and Pitt County
Planning Director James Rhodes. Sheriff Manning testified that he
has responded to numerous calls at sexually oriented businesses in
Pitt County, including calls concerning assault, drunk driving,
trespassing, suspicious activity, hit and run, intoxicated and
disruptive behavior, loud music, and even murder. Sheriff Manning
further testified that he has received general complaints from a
number of homeowners who reside near sexually oriented businesses.
The homeowners complained of squealing tires, beer bottles in their
front yards, and trespassers. Many of these incidents occurred
after 2:00 a.m., the time at which ABC regulated bars close. All
of these incidents occurred before enactment of the 2002 Ordinance.
Additionally, Sheriff Manning received a complaint concerning plans
to locate an adult bookstore near a local high school.
Sheriff Manning further testified that sexually oriented
businesses that do not sell alcoholic beverages are not subject to
ABC regulation. According to Sheriff Manning, these businesses
tend to run all night long and present more forms of nudity and
sexually oriented type exhibitions. At least one established
sexually oriented business in Pitt County gave up its alcoholic
beverage license so that it would be better suited to compete with
newer unregulated sexually oriented businesses locating in Pitt
County. Based on these complaints and Sheriff Manning's previous
experience policing Pitt County, Sheriff Manning asked Pitt County
legal staff whether the County could regulate sexually oriented
businesses. Sheriff Manning and members of the legal staff looked
at studies done in other jurisdictions and adopt[ed] and
incorporate[d] the conclusions of these studies into the
ordinance building process. The publications reviewed by county
staff included: (1) a University of North Carolina at Chapel Hill
Institute of Government publication entitled Regulating Sexually
Oriented Businesses and a supplement to that publication; (2) a
summary of calls to law enforcement in Pitt County; (3) a summary
of studies concerning sexually oriented businesses conducted in
other jurisdictions; (4) Internet photos of an x-rated Super Bowl
party held at Deja Vue; and (5) a letter from the ABC Board Law
Enforcement Division informing Pitt County that sexually oriented
businesses that turn in their alcoholic beverage licenses are no
longer subject to ABC regulation. These materials were admitted
into evidence at the declaratory judgment hearing.
During drafting of the 2002 Ordinance, the county staff also
relied on N.C. Gen. Stat. § 160A-181.1 (2005), which provides:
(a) The General Assembly finds and determines
that sexually oriented businesses can and do
cause adverse secondary impacts on neighboring
properties. Numerous studies that are
relevant to North Carolina have found
increases in crime rates and decreases in
neighboring property values as a result of the
location of sexually oriented businesses in
inappropriate locations or from the operation
of such businesses in an inappropriate manner.
Reasonable local government regulation of
sexually oriented businesses in order toprevent or ameliorate adverse secondary
impacts is consistent with the federal
constitutional protection afforded to
nonobscene but sexually explicit speech.
(b) In addition to State laws on obscenity,
indecent exposure, and adult establishments,
local government regulation of the location
and operation of sexually oriented businesses
is necessary to prevent undue adverse
secondary impacts that would otherwise result
from these businesses.
(emphasis added). The trial court took judicial notice of N.C.
Gen. Stat. § 160A-181.1 during the hearing.
At an agenda review meeting preceding the Board of
Commissioner's vote on the 2002 Ordinance, Sheriff Manning
discussed the basis for the ordinance with the Commissioners and
identified the need for the ordinance.
Pitt County Planning Director James Rhodes testified that he
is the Code Enforcement Officer for the Amended Ordinance. Rhodes
further testified that Pitt County is a total area of 656 square
miles and that, after accounting for the Amended Ordinance and the
100-year flood plain, approximately 124 square miles are available
for the development of sexually oriented businesses.
At the close of plaintiff's evidence, defendants moved to
dismiss arguing, in part, that the twelve-month amortization period
contained in the Amended Ordinance had not expired at the time
plaintiff filed its complaint. After hearing argument from both
parties, Judge Duke denied defendants' motion.
Defendants presented no evidence at the declaratory judgment
hearing. On 21 December 2005, Judge Duke ordered defendants to
immediately cease all operation of the[ir] sexually orientedbusinesses and permanently enjoined [defendants] from continuing
to operate their sexually oriented businesses in violation of the
[2004] Ordinance. In so doing, Judge Duke found that the county
had relied on the documentary evidence tendered by plaintiff when
it drafted the 2002 Ordinance and the Amended Ordinance.
Defendants appeal.
A. Findings of Fact
Defendants Deja Vue and Silver Bullet argue that the trial
court erred in finding that [t]he County relied upon a variety of
evidence regarding the secondary effects of sexually oriented
business because plaintiff did not show that members of the Board
of Commissioners actually viewed the documentary evidence tendered
by plaintiff. We conclude that the trial court's finding was
supported by competent evidence. Sheriff Manning testified that he and county legal staff began
researching the 2002 Ordinance approximately one year before it was
adopted by the Board of Commissioners. During that time, Sheriff
Manning and county staff considered studies done in other
jurisdictions and adopt[ed] and incorporate[d] the conclusions
of those studies into the ordinance building process. Sheriff
Manning compiled a list of service calls related to Pitt County
sexually oriented businesses. He also spoke with sexually oriented
business proprietors and members of the ABC Board concerning the
effect of new sexually oriented businesses choosing not to obtain
alcoholic beverage licenses. Finally, Sheriff Manning accumulated
a list of general complaints from residents living near sexually
oriented businesses in Pitt County.
From this evidence, and our review of the record in total, we
conclude that the Pitt County Board of Commissioners was
undoubtedly aware of the efforts of county staff on their behalf.
Moreover, Sheriff Manning was present at the Agenda Meeting at
which the 2002 Ordinance was reviewed by commissioners. At that
time, Sheriff Manning was available to answer questions about the
ordinance. In fact, Sheriff Manning testified that he discussed
the basis for the ordinance with the commissioners and identified
the need for the ordinance.
We hold that plaintiff presented competent evidence from which
the trial court could find [t]he County relied upon a variety of
evidence regarding the secondary effects of sexually oriented
business, including the documentary evidence tendered by plaintiffat the declaratory judgment hearing. In so doing, we acknowledge
the legislative reality that county legal staff, not county
commissioners, are most often the actual individuals drafting
county legislation on the commissioner's behalf. See e.g. Lakeland
Lounge v. Jackson, 973 F.3d 1255, 1258 (5th Cir. 1992) (noting that
the city council could properly place some reliance upon others to
do research concerning the secondary effects of sexually oriented
business in their municipality), cert. denied, 507 U.S. 1030, 123
L. Ed. 2d 469 (1993).
This assignment of error is overruled.
B. Conclusions of Law
This Court reviews a trial court's conclusions of law de novo.
Luna v. Div. of Soc. Servs., 162 N.C. App. 1, 4, 589 S.E.2d 917,
919 (2004).
1. Content-neutral vs. content-based
[6] Defendants argue that the trial court erred by concluding
that the Amended Ordinance was content-neutral, and therefore
subject to intermediate constitutional scrutiny, because individual
commissioners did not personally review the research materials
considered by county legal staff during drafting of the ordinance.
We disagree.
A zoning ordinance regulating sexually oriented businesses is
content-neutral, when it is unrelated to the suppression of free
expression and its purpose is to eliminate undesirable secondary
effects of the sexual oriented business. Renton v. Playtime
Theaters, Inc., 475 U.S. 41 (1986). Put another way, theordinance does not attempt to regulate the primary effects of the
expression, i.e., the effect on the audience of watching nude
erotic dancing, but rather the secondary effects, such as the
impacts on public health, safety, and welfare, which the United
States Supreme Court has previously recognized are 'caused by the
presence of even one such establishment.' Erie v. Pap's A.M., 529
U.S. 277, 291, 146 L. Ed. 2d 265, 279 (2000)
(See footnote 9)
. A content-neutral
ordinance is subject to intermediate scrutiny, meaning the
reviewing court must consider whether the . . . ordinance is
designed to serve a substantial governmental interest and allows
for reasonable alternative avenues of communication. Renton, 475
U.S. at 50, 89 L. Ed. 2d at 39.
In Renton, the United States Supreme Court specifically
refused to set . . . a high bar for municipalities that want to
address merely the secondary effects of protected speech. L.A. v.
Alameda Books Inc., 535 U.S. 425, 438, 152 L. Ed. 2d 670, 683
(2002) (citing Renton, 475 U.S. at 47-48, 50, 89 L. Ed. 2d 29).
The Court held that a municipality may rely on any evidence that
is 'reasonably believed to be relevant' for demonstrating a
connection between speech and a substantial, independent government
interest. Id. (quoting Renton, 475 U.S. at 51-52, 89 L. Ed. 2d at
40.) Relevant evidence may include the secondary effects ofsexually oriented businesses in other communities. Renton, 475
U.S. at 51-52, 89 L. Ed. 2d at 40.
In Lakeland Lounge v. Jackson, the United States Court of
Appeals for the Fifth Circuit considered a similar constitutional
challenge to a sexually oriented business ordinance. Lakeland
Lounge, 973 F.3d 1255. In Lakeland, a business regulated by the
ordinance challenged its constitutionality, arguing, in part, that
there was no testimony that the members of the city council ever
looked at the studies about secondary effects or that they
received any summary of those studies from their staff. Id. at
1258. Considering the question, the Fifth Circuit perceive[d] no
constitutional requirement that the council members personally
physically review the studies of secondary effects, and concluded
that such a holding would fly in the face of legislative reality.
Id.
We are persuaded by the reasoning of the Fifth Circuit. As
explained above, the Board of Commissioners relied upon the
research and conclusions of Pitt County legal staff who drafted the
ordinance on their behalf. The research and drafting process was
carried out by multiple county employees over the course of a year.
Sheriff Manning was present at the Board of Commissioner's Agenda
Meeting preceding adoption of the 2002 Ordinance to answer
questions about the ordinance, discuss[] the basis for the
ordinance, and identif[y] the need for the ordinance.
While the best practice would be for each commissioner
personally to fully review evidence of secondary effects and forthe county to document that the review occurred, we do not believe
that the omission in this case transformed the 2002 Ordinance and
the Amended Ordinance into content-based regulations. In so doing,
we emphasize that county legal staff did, in fact, complete
meaningful review of the secondary effects generated by sexually
oriented businesses.
For the reasons stated above, we hold that the trial court did
not err by concluding that the Amended Ordinance are content-
neutral. Accordingly, the trial court properly subjected the
Amended Ordinance to intermediate scrutiny when resolving
defendants' constitutional challenge.
This assignment of error is overruled.
2. Reasonable Alternative Avenues of Communication
[7] Defendants Deja Vue and Silver Bullet argue that the trial
court erred by concluding that the Amended Ordinance left open
reasonable alternative avenues of communication. In support of
their argument, defendants Deja Vue and Silver Bullet emphasize
that a county map identifying locations in which sexually oriented
businesses were prohibited or permitted was not prepared until
after the Amended Ordinance was enacted; thus, the map was not
considered by the Board of Commissioners when adopting the
ordinance. Defendants further emphasize that the cost of
relocating, including the cost of improving an available site and
constructing a building thereon, is prohibitive.
As explained above, intermediate scrutiny requires the
reviewing court to consider whether the . . . ordinance isdesigned to serve a substantial governmental interest and allows
for reasonable alternative avenues of communication. Renton, 475
U.S. at 50, 89 L. Ed. 2d at 39. The question of whether an
ordinance allows for reasonable alternative avenues of
communication concerns the effect of the ordinance on speech; not
the process by which the ordinance was adopted. Thus, to the
extent defendants Deja Vue and Silver Bullet argue that there are
not reasonable alternative avenues for communication because the
Board of Commissioners did not review the subsequently created
zoning map, this argument is without merit.
With respect to defendants Deja Vue and defendants Silver
Bullet's argument that locations in which they may operate sexually
oriented business under the Amended Ordinance are not commercially
viable, the United States Supreme Court rejected a similar argument
in Renton. In Renton, the ordinance permitted development of
sexually oriented business on approximately 520 acres or five
percent of the entire land area of the municipality. Renton, 475
U.S. at 53, 89 L. Ed. 2d at 41. The respondents argued that some
of the land [was] . . . already occupied by existing businesses,
that 'practically none' of the undeveloped land [was] currently for
sale or lease, and that in general there [were] no 'commercially
viable' adult theater sites within the 520 acres left open by the
Renton ordinance. Id. The United States Supreme Court held
[t]hat respondents must fend for themselves in
the real estate market, on an equal footing
with other prospective purchasers and lessees,
does not give rise to a First Amendment
violation. . . . In our view, the First
Amendment requires only that Renton refrainfrom effectively denying respondents a
reasonable opportunity to open and operate an
adult theater within the city, and the
ordinance before us easily meets this
requirement.
Id. (emphasis added).
Here, Pitt County Planning Director James Rhodes testified
that Pitt County is a total area of 656 square miles and that,
after accounting for the Amended Ordinance and the 100-year flood
plain, approximately 124 square miles are available for the
development of sexually oriented businesses. This is approximately
nineteen percent of the entire land area of Pitt County. We
conclude that the Amended Ordinance affords defendants Deja Vue and
defendants Silver Bullet a reasonable opportunity to open and
operate sexually oriented businesses within these 124 square miles
of Pitt County.
For the reasons stated above, this assignment of error is
overruled.
V. Defendant Rex Hudson's Constitutional Right to Equal Protection
[8] Defendant Rex Hudson argues that the trial court erred by
concluding that the Amended Ordinance does not violate the Equal
Protection clauses of the United States and North Carolina
Constitutions. In support of his argument, defendant Hudson argues
that the Amended Ordinance prevents him from living within 1,320
feet of Misty's. We disagree.
[T]o state an equal protection claim, a claimant must allege
(1) the government (2) arbitrarily (3) treated them differently (4)
than those similarly situated. Lea v. Grier, 156 N.C. App. 503,509, 577 S.E.2d 411, 416 (2003). Here, defendant Hudson is not
treated differently than other similarly situated individuals.
Every business in noncompliance with the Amended Ordinance is
required to come into compliance before being granted a license.
Correspondingly, every citizen who, like defendant Hudson, resides
within 1,320 feet of such a business will be deprived of the
opportunity to continue living in such close proximity in their
current residence. Accordingly, we conclude that the Amended
Ordinance does not violate defendant Hudson's right to Equal
Protection. In so doing, we note that defendant Hudson cites no
substantive legal authority in support of his argument.
For the reasons stated above, this assignment of error is
overruled.
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