STARSHIP ENTERPRISES OF ATLANTA, INC., Plaintiff-Appellant, versus COWETA COUNTY, GEORGIA, EVA WAGNER, in her individual and official capacity,
No. 11-11287
United States Court of Appeals for the Eleventh Circuit
February 14, 2013
D.C. Docket No. 3:09-cv-00123-WBH
TJOFLAT, Circuit Judge:
Starship Enterprises of Atlanta, Inc. (“Starship“), a purveyor of various novelty items including sexually explicit materials, appeals the judgment of the District Court dismissing under
Starship‘s claims stem from the County‘s decision to uphold Wagner‘s denial of its application for a business license to operate a retail bookstore. Starship promptly challenged that decision in two courts. First, Starship petitioned the Superior Court of Coweta County for a writ of mandamus directing the County and Wagner to grant its license application. Then, four months later, it brought in the United States District Court for the Northern District of Georgia the action now before us on appeal. While this action was still in the pleading stage, the Superior Court granted Starship a writ of mandamus, and Wagner issued the business license at issue. The District Court then dismissed Starship‘s complaint, concluding that the
I.
We begin with a recitation of the relevant facts, which, for the most part, are not in dispute.4 Starship describes itself as a commercial business that sells a wide variety of items, including tobacco products, clothing, and novelty items. In addition, it sells some sexually explicit videos, DVDs, and magazines. Starship‘s stores vary their inventory, use of floor space, and sales of sexually explicit material to
In April 2008, Starship leased an empty building in an unincorporated area of Coweta County; it had been used as a gym. Starship planned to renovate the building and turn it into a retail store. On May 12, 2008, Starship‘s attorney wrote a letter advising the County Attorney that, pursuant to Chapter 18, Art. II, of the Coweta County Ordinances (the “Business License Ordinance“), Starship planned to apply for a general business license to operate the store. He was aware that if the store sold a certain amount of adult material, the county would consider it a sexually oriented business and Starship would not be able to obtain a general business license. Instead, it would have to obtain a license pursuant to Chapter 18, Art. VII, of the Coweta County Ordinances (the “Sexually Oriented Business Ordinance“). Anticipating this situation, Starship‘s attorney represented that Starship would not be operating a facility that met the ordinance‘s definition of a sexually oriented business.5
On July 17, 2008, Starship‘s chief executive officer and its attorney met with Coweta County officials, including the County Attorney, to explain Starship‘s business plan and to affirm that it would limit the sexually explicit material the store sold so as to eliminate the need for a license for a sexually oriented business. Starship needed a general business license because if it were to operate a sexually oriented business, it could not obtain a permit to operate its store at the location under lease, which was not zoned to allow a sexually oriented business. Nor could it obtain a building permit to renovate the building it had leased.
Despite the County‘s doubt that Starship‘s store could qualify for a general business license, the County Attorney wrote Starship‘s counsel on November 18, 2008, stating that if Starship was not going to operate a sexually oriented business, the County could not deny Starship the building permit it needed. In late November, the County issued the permit.
Starship thereafter contacted Eva Wagner, the Coweta County Business License Director, about applying for a general business license. She said that an application would not be accepted until the renovations to the premises were complete and a Certificate of Occupancy issued. Within two months, the renovation was completed, at a cost of $150,000, and on January 19, 2009, a Certificate of Occupancy was issued.
Meanwhile, on January 15, Starship‘s attorney met with the County Attorney, Wagner, and other county officials. Counsel presented the officials with a diagram of the store, which showed where the adult material would be located on the premises. Wagner informed the attorney that a general business license would issue after Starship fully stocked the store in accordance with the diagram. On January 20, Starship filed its application for a general business license, and by January 28, it had completed stocking the store. Wagner was scheduled to visit the store on January
On January 26, the Coweta County Board of Commissioners repealed the Sexually Oriented Business Ordinance, Coweta County, Ga., Code of Ordinances Ch. 18, art. VII (2000), and adopted a Sexually Oriented Business Ordinance containing a new definition of a sexually oriented business, Coweta County, Ga., Code of Ordinances Ch. 18, art. VII (2009). As described by Starship‘s attorney at his July 17 and January 15 meetings with county officials, Starship‘s store would not have been a sexually oriented business under the repealed ordinance. If operated as stocked on January 26, however, the store would qualify as a sexually oriented business under the new ordinance and, as such, would not qualify for a general business license.
On February 2, Starship‘s attorney wrote the County Commissioners a letter stating that Starship planned to rearrange the store‘s inventory so that it would not constitute a sexually oriented business under the new Sexually Oriented Business Ordinance and thus would qualify for a general business license. On February 6, Wagner, applying the new Sexually Oriented Business Ordinance, denied Starship‘s application for a general business license; she concluded that even though the inventory had been arranged in accordance with the diagram shown earlier, the store would be operating as a sexually oriented business under the new ordinance.
On February 18, Starship appealed denial of its business license application to the Coweta County Business and Occupational Tax Rate Review and Appeals Committee (the “Appeals Committee“). The Appeals Committee held a series of hearings concerning the denial. On May 20, the committee issued findings of fact and voted 4 to 1 to recommend that the Board of County Commissioners reverse the denial of Starship‘s application. The Appeals Committee assumed that the store would be operated as depicted in Starship‘s attorney‘s letter of February 2, and found that the store would not constitute a sexually oriented business as defined in the new ordinance; thus, the store could function as a regular business. The Board of County Commissioners, however, voted unanimously on June 16 to uphold Wagner‘s denial of Starship‘s application.
On July 13, 2009, Starship petitioned the Superior Court of Coweta County for a writ of mandamus. The court granted the writ on April 19, 2010. Adopting the Appeals Committee‘s finding as to how Starship planned to operate the store, the court reversed the Board of Commissioners’ decision affirming Wagner‘s denial of the business license and ordered that the license issue.
At the time the Superior Court concluded the mandamus proceeding, Starship‘s lawsuit in the District Court against the County and Wagner, which had been pending since November 16, 2009, was still in the pleading stage, awaiting the court‘s ruling on Starship‘s motion for leave to file a first amended complaint. On April 28, 2010, the court granted its motion. Starship‘s first amended complaint, as amended, contained ten causes of action;6 eight
equitable relief under
convenience, we recast the ten causes of action into seven separate counts, as follows:8
Count 1, Substantive Due Process. The County and Wagner deprived Starship of the use of its store property between the date it filed its application for a business license, January 20, 2009, and the date the Superior Court issued the writ of mandamus, April 19, 2010, in violation of the substantive component of the Due Process Clause of the Fourteenth Amendment.
Count 2, Bill of Attainder. The County enacted two ordinances on January 26, 2009, for the purpose of punishing Starship because it sold adult materials in its stores, in violation of
U.S. Const. Art. 1, § 10 .Count 3, Equal Protection. The County and Wagner denied Starship the equal protection of the laws in violation of the Fourteenth Amendment in denying its application for a business license when, at the same time, it would have granted a business license to a similarly situated applicant.
Count 4, First Amendment. The Business License Ordinance is invalid on its face, in violation of the First Amendment, because it does not prescribe a limit of time in which the County must approve or reject an application for a business license.9
Count 5, First Amendment. The amount of time Wagner took to pass on Starship‘s application for a business license under the Business License Ordinance deprived Starship of its First Amendment right to speech in displaying for sale and selling adult materials at its store.
Count 6, First Amendment. The Sexually Oriented Business Ordinance is invalid on its face because its regulation of adult bookstores regulates speech of a specific content.
Count 7, First Amendment. Wagner denied Starship‘s application for a business license for the purpose of preventing Starship from exercising speech in displaying for sale and selling adult materials at its bookstore.10
The defendants moved the District Court to dismiss Starship‘s complaint on two alternative grounds. First, the complaint
filed and litigated in the Superior Court of Coweta County. The court granted the defendants’ motion. It held that Counts 1, 3, 4, 5 and 7 were barred by the doctrine of res judicata and that Counts 2 and 6 failed to state a claim for relief. The court dismissed Count 2 on the ground that the ordinances cited in the complaint did not constitute a Bill of Attainder because the ordinances did not single out Starship for punishment. The court dismissed Count 6, which alleged that the Business License Ordinance is facially invalid, on the ground that Count 6‘s “conclusory allegations” failed to state a claim for relief. The court then declined to exercise supplemental jurisdiction over the remaining state law claims, dismissing them without prejudice. Starship thereafter took this appeal.
II.
We review de novo a district court‘s dismissal of a complaint, under
III.
The District Court found that Counts 1, 3, 4, 5, and 7 were barred by the doctrine of res judicata.13 When deciding whether claims are barred by res
judicata,
“Three prerequisites must be met before res judicata will apply: (1)
Starship did not present this argument to the District Court; rather, it presents the argument for the first time in its brief on appeal. Thus, we will not consider Starship‘s point, unless Starship can invoke one of the five exceptions to the rule that “appellate courts generally will not consider an issue or theory that was not raised in the district court,” FDIC v. Verex Assurance, Inc., 3 F.3d 391, 395 (11th Cir. 1993) (citation omitted). The five exceptions to the rule are: “the refusal to consider the pure question of law would result in a miscarriage of justice; the appellant had no opportunity to raise it below; there is at stake ‘a substantial interest of justice;’ the proper resolution is beyond any doubt; or the issue presents significant questions of great public concern.” Id. Starship argues that the miscarriage-of-justice exception applies. We do not consider the argument because Starship failed to present the argument in its opening brief. That it raised it in its reply brief will not suffice. See United States v. Nealy, 232 F.3d 825, 830 (11th Cir. 2000) (declining to decide an issue raised for the first time in supplemental briefing). We assume then, as the District Court did (because Starship did not contest the point), that, notwithstanding the fact that Wagner was not sued in her individual capacity in the mandamus proceeding, there is identity of parties. Whether res judicata bars Starship‘s claims therefore turns on whether an identity as to causes of action is present as well.
When resolving that issue, Georgia courts look to see whether the claims arise from the same subject matter. Fowler v. Vineyard, 261 Ga. 454, 458 (1991). “[O]ne must assert all claims for relief concerning the same subject matter in one lawsuit and any claims for relief concerning that same subject matter which are not raised will be res judicata pursuant to
As we set out in part II, supra, Starship claimed that rejection of its business license application deprived it of the use of its property between the date it filed its application for a business license and the date the writ of mandamus issued, in violation of the substantive component of the
In its mandamus petition, Starship alleged that the County‘s ordinances “provide no guidelines on how the Board of Commissioners shall treat a recommendation from the Appeals Committee” and that the Board of Commissioners “exercised unbridled discretion“; that the County‘s “business license procedures included numerous errors of law … as applied to Starship“; that Starship met all requirements of the ordinances, including the 25 percent threshold; that Wagner “committed error by ruling that Starships’ [sic] application must be considered pursuant to amendments to the County‘s ordinances enacted two months after a building permit issued“; and that Wagner erred in denying its application for a business license based on the “prospective possibility of unlawful conduct.” Record, vol. 2, no. 21-2.
In the case at hand, Starship asserted the same factual basis in support of its claims. Starship maintained that the ordinances vest the County with unfettered discretion and impose no time limit for its approval or rejection of a license application; that the County applied its ordinances to Starship in violation of the
Starship could have presented these additional claims in its mandamus petition, but it did not. In Georgia, res judicata applies not only to claims that were actually litigated, but to claims that could have been litigated in a prior action.15
See
IV.
For the foregoing reasons, the judgment of the District Court is
AFFIRMED
