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NEW ALBANY DVD, LLC v. City of New Albany, Ind.

Citations: 581 F.3d 556; 2009 U.S. App. LEXIS 20232; 2009 WL 2882817Docket: 05-1286

Court: Court of Appeals for the Seventh Circuit; September 10, 2009; Federal Appellate Court

Narrative Opinion Summary

The case involves a dispute between an adult bookstore and the city of New Albany, Indiana, regarding a zoning ordinance that restricts adult businesses from operating near churches or residential areas. After purchasing land and obtaining licenses, the plaintiff was denied a certificate of occupancy due to the city's refusal to conduct a final inspection, coinciding with the enactment of a moratorium and zoning amendments targeting adult establishments. The plaintiff filed a suit under 42 U.S.C. 1983, claiming First Amendment violations due to the ordinance's content-based restrictions and inadequate justification of adverse secondary effects. The district court found the ordinance likely unconstitutional for lack of narrow tailoring and granted an injunction. On appeal, the court acknowledged the potential constitutionality of similar ordinances upheld in other cases but required New Albany to provide evidence of secondary effects specific to retail-only adult businesses. The court criticized the city's reliance on generalized studies and anecdotal evidence, emphasizing the need for quantifiable data to support claims of increased crime or property value decline. The case was remanded for further proceedings with instructions to apply intermediate scrutiny, maintaining the injunction until resolution.

Legal Issues Addressed

First Amendment and Content-Based Zoning Ordinances

Application: The plaintiff argued that the ordinance is content-based and not sufficiently justified by adverse secondary effects, thus violating the First Amendment.

Reasoning: In a lawsuit under 42 U.S.C. 1983, the plaintiff argued that the ordinance violates the First Amendment due to its content-based nature, insufficient justification for adverse secondary effects, and lack of narrow tailoring.

Intermediate Scrutiny for Zoning Ordinances

Application: The district court was directed to apply intermediate scrutiny to the ordinance, assessing the evidence provided by the city.

Reasoning: The district court is directed to gather evidence and apply intermediate scrutiny to the ordinance.

Justification for Zoning Based on Litter Concerns

Application: The court required quantifiable evidence of litter problems associated with adult bookstores to justify the zoning ordinance.

Reasoning: To strengthen its anti-litter argument, New Albany must demonstrate that the zoning effectively minimizes litter exposure to children and vulnerable groups by relocating adult businesses.

Narrow Tailoring in Zoning Laws

Application: The court considered whether New Albany's ordinance was narrowly tailored, concluding that similar regulations have been upheld in other jurisdictions.

Reasoning: The court noted that 'narrow tailoring' does not imply that the ordinance must be the least restrictive option available, granting cities significant discretion in regulatory details.

Secondary Effects of Adult Businesses

Application: The city failed to prove that adult bookstores specifically cause adverse secondary effects, necessitating an evidentiary hearing.

Reasoning: New Albany failed to present adequate evidence linking adult bookstores' proximity to churches with increased thefts, necessitating an evidentiary hearing.