City News & Novelty, Inc. v. City of Waukesha
Headline: Court dismisses challenge to a city’s adult-business license denial as moot, leaving the local denial in place and declining to decide how quickly courts must resolve such permit fights.
Holding: The Court dismissed the petition as moot because the adult business withdrew its renewal application and ceased operating, leaving the state-court denial intact and declining to resolve the circuit split.
- Leaves the Wisconsin court’s denial of the license in place.
- Does not resolve whether courts must decide license denials quickly on the merits.
- Businesses that stop operating risk their appeals becoming moot.
Summary
Background
The dispute began when a downtown adult shop that had operated under a city license since 1989 applied in 1995 to renew its license. The city council refused renewal, citing violations such as minors loitering, obstructed booth views, and patrons’ sexual activity. Administrative and state courts upheld the denial. The shop asked the Supreme Court to decide whether a rule requiring “prompt judicial review” for adult-business licensing means courts must quickly decide the case on the merits or simply allow quick access to court filings.
Reasoning
The Court explained that lower courts disagree about the meaning of prompt judicial review, but found the question is not properly before it here. After filing for review, the shop told the city it would withdraw its renewal application and close once the city licensed a competitor. The shop then stopped operating and no longer sought renewal, so the Court concluded there was no live dispute to decide. The Court distinguished this case from others where the business had prevailed below or still intended to reopen, and noted the shop’s situation did not present the specific procedural concerns earlier cases addressed.
Real world impact
Because the Court dismissed the petition as moot, the Wisconsin court’s judgment stands and the national circuit split over the meaning of “prompt judicial review” remains unsettled. This ruling is not a decision on the merits, so future businesses that continue operating or that reapply can raise the issue again. Voluntary cessation of operations can make a challenge non-justiciable.
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