Professional Documents
Culture Documents
11 DISTRICT OF NEVADA
300 S. 4th Street, Suite 1550
12
Las Vegas, NV 89101
19
20 Plaintiff Spencer Gifts LLC, by and through its attorneys the law firm of Gordon Rees
21 Scully Mansukhani, LLP, hereby files this Complaint for declaratory and injunctive Relief. This
22 is an action under 42 U.S.C § 1983 to address violations of Plaintiff’s rights protected by the
23 contract Clause and the First and Fourteenth Amendments of the United States Constitution.
24 I.
27 injunction to restrain and enjoin the Defendants, as well as their agents, employees, and
28 representatives, from acting under the color of law to deprive Plaintiff of its rights, privileges,
-1-
Case 2:18-cv-00349-GMN-CWH Document 5 Filed 02/26/18 Page 4 of 17
3 Codes which infringe upon Plaintiff’s continuing ability to sell products which Defendants have
4 deemed to be “Adult Use” and categorized Plaintiff as operating a “Sex Novelty Shop.”
7 4. Spencer’s is informed and believes and thereon alleges that Defendant County of
9 5. Spencer’s is informed and believes and thereon alleges that Defendant Clark
10 County Board of Commissioners is a governmental entity that oversees the enforcement of the
Gordon Rees Scully Mansukhani, LLP
11 Clark County Codes, including zoning requirements codified as Title 30 as the Clark County
300 S. 4th Street, Suite 1550
13 6. This Court has original subject matter jurisdiction pursuant to 42 U.S.C. § 1983,
14 28 U.S.C. § 1331 and § 1343 as this action arose out of Defendants’ violations of the United
15 States Constitution. This Court has supplemental jurisdiction over state-law-based claims under
16 28 U.S.C. § 1367. This Court further has authority to issue injunctive and declaratory relief
19 Nevada, and all actions pertinent to this Complaint occurred in Clark County, Nevada.
20 II.
21 GENERAL ALLEGATIONS
22 A. Spencer’s History and Operation in Southern Nevada
23 8. Spencer’s is principally a mall-based retailer that sells gag gifts and product
24 inspired by humor and irreverence in approximately 700 stores across the United States and
25 Canada.
26 9. Spencer’s has continuously operated its business in southern Nevada since
27 approximately 1971.
28 10. Currently, Spencer’s has two stores located in un-incorporated Clark County,
-2-
Case 2:18-cv-00349-GMN-CWH Document 5 Filed 02/26/18 Page 5 of 17
1 specifically at 7400 S. Las Vegas Boulevard #70, Las Vegas, NV 89123 (“Outlet location”) and
3 11. In 2016, Spencer’s executed a ten year lease for the Outlet location, which will
5 12. In 2015, Spencer’s executed its lease for the Summerlin location, which will not
7 13. Since at least the early 1970s, Spencer’s has sold adult-themed products in its
8 stores nationwide, including among other items vibrators and massagers. However, Spencer’s
10 14. The sale of the products at issue comprises less than 5% of Spencer’s annual sales
Gordon Rees Scully Mansukhani, LLP
11 and inventory.
300 S. 4th Street, Suite 1550
12 15. The display of the products at issue account for less than 5% of Spencer’s retail
Las Vegas, NV 89101
13 floor space.
14 16. The products are restricted to the back half of the store and therefore are only
16 17. Additionally, Spencer’s posts advisory signs at the front entrance of the stores and
17 in the areas where the products are located, informing guests that the stores sell items of adult
19 18. Furthermore, Spencer’s stores are designed with its cash wrap/register located in
20 the center of the stores to ensure that sales associates have constant visibility into the areas of the
21 stores where the products are located to ensure that no children are in the areas unattended by a
22 parent or guardian.
25 the following geographical restrictions as part of the definition of “Sex Novelty Shop”:
26
6. “Sex Novelty Shop” means an establishment selling sex articles, materials,
27 items, or devices which are neither books, films or pictures, tapes or discs
which are designed or sold for the stimulation of human genital organs or
28 sexual gratification including, but not limited to, dildos, vibrators, material
-3-
Case 2:18-cv-00349-GMN-CWH Document 5 Filed 02/26/18 Page 6 of 17
1 aids and artificial vagina. The definition of a Sex Novelty Shop shall not
include any retail establishment located within the interior of a resort hotel
2 located between Sahara Avenue and St. Rose Parkway and Cameron
Street and its alignment and Swenson Street/Pollock Drive and its
3 alignment that:
11
300 S. 4th Street, Suite 1550
13 20. In 2017, Clark County and the Board of Commissioners, through the Business
14 License Department cited Spencer’s at the Outlet location and Summerlin location for violation
15 of Section 12.14.025.
16 21. On or about July 20, 2017, Clark County and the Board of Commissioners issued
17 a Notice of Violation, stating that the Outlet location was in violation of Section 30.44.010 b 7 A
19 22. The Notice of Violation caused the landlord of the Outlet location to claim that
21 23. On or about August 17, 2017, Clark County and the Board of Commissioners
22 issued a Final Notice of Violation, stating that the Outlet location was in violation of Section
24 24. This time, Clark County’s Final Notice of Violation threatened criminal
26 25. On September 18, 2017, Clark County’s Zoning Administrator issued a letter
27 determining that Spencer’s sale of the products “constitutes an Adult Use of the property,
28 specifically a ‘Sex Novelty Shop’.”
-4-
Case 2:18-cv-00349-GMN-CWH Document 5 Filed 02/26/18 Page 7 of 17
2 27. On or about October 17, 2017, Clark County issued a “Notice and Declaration of
3 Chronic Nuisance” (“Chronic Nuisance Notice”) to Spencer’s for the Outlet location and
4 Summerlin location. The “chronic nuisance” in each the Chronic Nuisance Notice was described
5 as follows:
8 28. Upon information and belief, numerous other companies and stores including
9 national retailers such as Walmart, Target, Walgreens, Smith’s, Albertson, and CVS are selling
10 substantially similar and/or the same adult use products within the same unincorporated Clark
Gordon Rees Scully Mansukhani, LLP
11 County areas.
300 S. 4th Street, Suite 1550
12 29. For example, based on belief and information, the Walmart located at 5200 South
Las Vegas, NV 89101
13 Fort Apache Road, which is approximately 6.1 miles from the Summerlin location and
14 approximately 10 miles from the Outlet location, sells the same type of adult use products.
15 30. Upon information and belief, the Target located at 4155 South Grand Canyon
16 Drive, which is approximately 3.6 miles from the Summerlin location, sells the same types of
17 adult use products. Upon information and belief, the Target located at 3550 South Rainbow
18 Boulevard, which is approximately 9.1 miles from the Outlet location, sells the same types of
19 adult use products. Upon information and belief, the Target located at 4100 Blue Diamond
20 Road, which is approximately 2.3 miles from the Outlet location, sells the same types of adult
21 use products.
22 31. Upon information and belief, the Walgreens located at 6865 West Tropicana
23 Avenue, which is approximately 5.6 miles from the Outlet location and 7.7 miles from the
24 Summerlin location, sells the same types of adult use products. Upon information and belief, the
25 Walgreens located at 2389 E. Windmill Lane, which is approximately 3.6 miles from the Outlet
27 32. Upon information and belief, the Smith’s located at 9350 W. Flamingo Rd., which
28 is approximately 4.6 miles from the Summerlin location, sells the same types of adult use
-5-
Case 2:18-cv-00349-GMN-CWH Document 5 Filed 02/26/18 Page 8 of 17
1 products. Upon information and belief, the Smith’s located at 8180 Las Vegas Blvd. S., which is
2 approximately 1 mile from the Outlet location, sells the same types of adult use products. Upon
3 information and belief, the Smith’s located at 2385 E. Windmill Ln., which is approximately 4.3
4 miles from the Outlet location, sells the same types of adult use products.
5 33. Upon information and belief, the Albertson’s located at 10140 W. Flamingo Rd.,
6 which is approximately 4.4 miles from the Summerlin location, sells the same types of adult use
7 products.
8 34. Upon information and belief, the CVS located at 8116 S. Las Vegas Boulevard,
9 which is approximately 1 mile from the Outlet location, sells the same types of adult use
10 products.
Gordon Rees Scully Mansukhani, LLP
11 35. Upon information and belief, discovery will reveal that numerous other similarly
300 S. 4th Street, Suite 1550
12 situated retailers doing business in the unincorporated sections of Clark County, Nevada are also
Las Vegas, NV 89101
14 36. Based on belief and information, Clark County and the Board of Commissioners
15 have not taken any enforcement action against these other companies and stores.
16 37. During discussions with Clark County Code Enforcement and Zoning, Spencer’s
17 identified several retailers which were selling the same type of products as sold by Spencer’s that
18 the Zoning Administrator determined were “Adult Use” resulting in Spencer’s being classified as
20 38. Spencer’s provided pictures and receipts for those “Adult Use” items purchased at
22 39. Upon information and belief, representatives of Clark County visited at least one
23 of the other national retailers to determine whether such “Adult Use” products were in fact being
24 sold.
25 40. In discussions with Spencer’s staff of Clark County acknowledged that such
27 41. Upon information and belief, after receiving specific factual information that
28 many other retailers at several different locations were selling similar “Adult Use” products,
-6-
Case 2:18-cv-00349-GMN-CWH Document 5 Filed 02/26/18 Page 9 of 17
1 Clark County and the Board have not taken any enforcement action against these other
3 42. On October 4, 2017, a hearing was held before the Clark County Board of
5 43. During the hearing, the County acknowledged that these other companies were
7 44. At the hearing, one of the County’s attorneys, Robert Warhola, explicitly admitted
8 that the County felt it had the prosecutorial discretion to select the entities against which to
9 enforce the Code. Mr. Warhola also admitted that the enforcement action against Spencer’s was
10 taken in part due to the amount of products displayed and what the County determined to be the
Gordon Rees Scully Mansukhani, LLP
12 45. The Code does not allow any enforcement differentiation based on the number of
Las Vegas, NV 89101
14 46. Instead, Clark Count Code 30.44.005 et seq. expressly states that zoning
16 47. In effect, as described by its own attorney Mr. Warhola, the enforcement of the
17 Code is completely within Clark County’s subjective discretion, and the County’s enforcement
19 48. The Code, as written and enforced by Defendants, is so vague and ambiguous that
21 49. Additionally, the Code, as written on its face allows certain types of businesses—
22 resort hotels and stores located within those hotels—to operate Sex Novelty Shops while
24 50. One its face and as applied, the Code improperly treats resort hotels and stores
25 located within those hotels differently than other businesses like Spencer’s in similar conditions
26 and circumstances.
27 51. All of the actions taken by Defendants and those acting on their behalf, including
28 the citation of Spencer’s, were done by Defendants while acting under the color of the law of
-7-
Case 2:18-cv-00349-GMN-CWH Document 5 Filed 02/26/18 Page 10 of 17
2 52. Defendants’ conduct, unless enjoined, will cause impact Spencer’s business and
4 53. The Code, facially and as-applied, is vague and overbroad, effectively limiting Spencer’s
6 III.
7 FIRST CLAIM FOR RELIEF
8 (Violation of the Equal Protection Clause of the Fourteenth Amendment to the United
9 States Constitution)
10 54. Spencer’s repeats and realleges all prior and subsequent paragraphs as though
Gordon Rees Scully Mansukhani, LLP
12 55. The Fourteenth Amendment to the United States Constitution guarantees equal
Las Vegas, NV 89101
14 56. Spencer’s was unlawfully discriminated against because of its status as a “gag
15 gift” store and a business operating on a smaller scale in relation to other companies carrying
17 57. Upon information and belief, Spencer’s has been singled out for unequal
18 treatment due to its relatively small size, classification as a “gag gift” retailer and other bases
20 58. Spencer’s was similarly situated in all relevant respects as these other entities
22 59. Based on information and belief, Defendants never took any enforcement actions
23 against the larger national entities, despite the fact that these entities are engaged in the same or
24 similar conduct.
-8-
Case 2:18-cv-00349-GMN-CWH Document 5 Filed 02/26/18 Page 11 of 17
1 resort hotels and larger national entities located within resort hotels differently than other
3 63. The Code’s favoritism for resort hotels and stores located within those hotels does
6 governmental interests.
7 65. All of the actions taken by Defendants and those acting on their behalf, including
8 the citation of Spencer’s, were done by Defendants while acting under the color of state law.
9 66. Defendants denied Spencer’s an equal opportunity to sell the products at issue,
10 solely on the basis of Spencer’s scale of operation and the fact that Spencer’s is not a resort hotel
Gordon Rees Scully Mansukhani, LLP
12 67. Defendants’ action deprived Spencer’s of rights secured by the United States
Las Vegas, NV 89101
14 III.
15 SECOND CLAIM FOR RELIEF
16 (Violation of the First Amendment the U.S. Constitution)
17 68. Spencer’s repeats and realleges all prior and subsequent paragraphs as though
19 69. The Code, facially and as-applied, is unconstitutional under the First Amendment
21 70. The Code, facially and as-applied, creates an impermissible prior restraint on
23 71. Spencer’s business model centers on its sale of items that evoke irreverent, edgy,
24 and potentially outrageous humor, including products that may be used as props, costumes, or
26 72. The Code unconstitutionally restricts the ability of businesses to engage in First
-9-
Case 2:18-cv-00349-GMN-CWH Document 5 Filed 02/26/18 Page 12 of 17
2 III.
3 THIRD CLAIM FOR RELIEF
4 (Violation of the Contracts Clause and the Fourteenth Amendment of the U.S.
5 Constitution)
6 74. Spencer’s repeats and realleges all prior and subsequent paragraphs as though
8 75. The Code was amended to include the geographical limitation in 2014.
9 76. Prior to 2014, Spencer’s had been operating stores in Clark County for forty-three
10 years and had been offering the same or similar merchandise in its Clark County stores during
Gordon Rees Scully Mansukhani, LLP
11 its decades of operation. s Prior to 2014, Spencer’s had existing contracts with its manufacturers
300 S. 4th Street, Suite 1550
12 and vendors of the products at issue. The Clark County Business License office issued Business
Las Vegas, NV 89101
13 Licenses to Spencer’s for the Summerlin location and the Outlet location, prior to their openings
14 in 2015 and 2016, respectively, just as it had done for all Spencer’s stores operating in Clark
15 County since 1971. The Clark County Business License office did not assert that the new
16 Spencer’s locations were “Sex Novelty Shops” as defined under the Code. Rather, the Clark
17 County Business License office issued, as it has continued to issue each year, a “Retail-2”
18 Business License for both the Summerlin location and Summerlin location.
19 77. The 2014 amendment of the Code severely limits Spencer’s ability to sell its
20 existing inventory, impacting Spencer’s revenue and ability to perform pursuant to the leasing
21 contracts.
22 78. The Code substantially impairs Spencer’s existing contracts with its landlords at
23 the Summerlin location and the Outlet location, as well as its existing contracts with its
25 79. The Code’s geographical limitation does not serve any important or legitimate
26 public interest.
27 80. The Code’s geographical limitation is not reasonable or narrowly tailed means of
28 promoting any purported public interest.
-10-
Case 2:18-cv-00349-GMN-CWH Document 5 Filed 02/26/18 Page 13 of 17
3 a. An order declaring that the Code, facially and as-applied, violates the Equal
5 b. An order declaring that the Code, facially and as-applied, violates the First
7 c. An order declaring that the Code, as applied, violates the Contracts Clause of the
10 employees, and attorneys from implementing or enforcing the Code against Spencer’s;
Gordon Rees Scully Mansukhani, LLP
12 f. Such other and further relief as this Court may deem necessary or proper.
Las Vegas, NV 89101
13
17
By: Robert S. Larsen
18 Robert S. Larsen, Esq.
Nevada Bar No. 7785
19 Brian K. Walters, Esq.
Nevada Bar No. 9711
20 Wing Yan Wong, Esq.
Nevada Bar No. 13622
21 300 S. 4th Street, Suite 1550
Las Vegas, NV 89101
22 Attorneys for Plaintiff
23
24
25
26
27
8011106/36966251v.1 28
-11-
Case 2:18-cv-00349-GMN-CWH Document 5 Filed 02/26/18 Page 14 of 17
Within 21 days after service of this summons on you (not counting the day you received it) — or 60 days if you
are the United States or a United States agency, or an officer or employee of the United States described in Fed. R. Civ.
P. 12 (a)(2) or (3) — you must serve on the plaintiff an answer to the attached complaint or a motion under Rule 12 of
the Federal Rules of Civil Procedure. The answer or motion must be served on the plaintiff or plaintiff’s attorney,
whose name and address are:
Robert S. Larsen, Esq.; Wing Yan Wong, Esq.; Brian K. Walters, Esq.
GORDON REES SCULLY MANSUKHANI, LLP
300 S. 4th St., Ste. 1550, LV, NV 89101
If you fail to respond, judgment by default will be entered against you for the relief demanded in the complaint.
You also must file your answer or motion with the court.
CLERK OF COURT
Date:
Signature of Clerk or Deputy Clerk
Case 2:18-cv-00349-GMN-CWH Document 5 Filed 02/26/18 Page 15 of 17
PROOF OF SERVICE
(This section should not be filed with the court unless required by Fed. R. Civ. P. 4 (l))
u I left the summons at the individual’s residence or usual place of abode with (name)
, a person of suitable age and discretion who resides there,
on (date) , and mailed a copy to the individual’s last known address; or
u Other (specify):
.
My fees are $ for travel and $ for services, for a total of $ 0.00 .
Date:
Server’s signature
Server’s address
Within 21 days after service of this summons on you (not counting the day you received it) — or 60 days if you
are the United States or a United States agency, or an officer or employee of the United States described in Fed. R. Civ.
P. 12 (a)(2) or (3) — you must serve on the plaintiff an answer to the attached complaint or a motion under Rule 12 of
the Federal Rules of Civil Procedure. The answer or motion must be served on the plaintiff or plaintiff’s attorney,
whose name and address are:
Robert S. Larsen, Esq.; Wing Yan Wong, Esq.; Brian K. Walters, Esq.
GORDON REES SCULLY MANSUKHANI, LLP
300 S. 4th St., Ste. 1550, LV, NV 89101
If you fail to respond, judgment by default will be entered against you for the relief demanded in the complaint.
You also must file your answer or motion with the court.
CLERK OF COURT
Date:
Signature of Clerk or Deputy Clerk
Case 2:18-cv-00349-GMN-CWH Document 5 Filed 02/26/18 Page 17 of 17
PROOF OF SERVICE
(This section should not be filed with the court unless required by Fed. R. Civ. P. 4 (l))
u I left the summons at the individual’s residence or usual place of abode with (name)
, a person of suitable age and discretion who resides there,
on (date) , and mailed a copy to the individual’s last known address; or
u Other (specify):
.
My fees are $ for travel and $ for services, for a total of $ 0.00 .
Date:
Server’s signature
Server’s address