
On appeal the City argued despite formal compliance with the 60/40 rule, the establishments in question still resembled establishments entirely dedicated to adult entertainment and have been found to cause negative secondary effects. Plaintiffs argued the trial court correctly found their establishments do not resemble exclusively adult establishments, recognizing the reduction in prominence of adult materials in-store and minimizing floor space given over to adult entertainments.
On July 21, 2015 the Appellate Division, First Department voted to uphold the trial court decision in favor of the plaintiffs. Justice Barbara Kapnick, writing for the majority, applied a four-factor test drawn from City Planning’s 1994 study of adult establishments. The Court found the City met one factor by demonstrating the establishments promoted sexually explicit materials, but did not meet the other three factors by failing to demonstrate the advertising signage was large or graphic enough, that access by minors is sufficiently restricted, or establishment layouts make it difficult to access the adult materials.
For The People Theaters of N.Y. v. The City of New York, 121080/02, NYLJ 1202732772515, at *1 (App. Div., 1st, Decided July 21, 2015) (Attorneys: Fahringer & Dubno, Herald Price Fahringer, Erica T. Dubno, Nicole Neckles of counsel, for JGJ Merchandise Corp.; Zane and Rudofsky, Edward S. Rudofsky of counsel, and Mehler & Buscemi, Martin P. Mehler of counsel, for Ten’s Cabaret et al.; Zachary W. Carter, Elizabeth S. Natrella, Leonard Koerner, Robin Binder and Sheryl Neufeld of counsel, for City).
By: Michael Twomey (Michael is a CityLaw Fellow and a New York Law School Graduate, Class of 2014).