City Of El Paso Fights Nude Clubs In Federal Court

Testimony has wrapped up in a case over whether two El Paso nude clubs are operating legally under an agreement with El Paso after a shareholder in one of the club’s changed.

The bench trial in the case which pits the the city of El Paso versus the owners of Foxy’s and Lamplighter nude clubs lasted from about 11:30 a.m. to 8:30 p.m. Friday.

The suit in question involves a 1995 agreement between the city and the clubs. The issue is over the term ‘owner and operator.’

In 1995, the city settled with the corporate owners of Foxy’s and the Lamplighter regarding nude live entertainment operating within 1,000 feet of certain land uses, like churches and schools.

Under the settlement, the clubs would be legal as long as they stayed at the same locations and maintained the same owners and operators.

In 2007, when the city passed a new sexually oriented business ordinance, it deemed the clubs violated the 1995 agreement because a shareholder of one of the corporations changed.

A former and a current shareholder testified in court on Friday, as did the corporation’s corporate attorney.

They all said it was their understanding that as long as CR&R, Inc. maintained ownership of the clubs, nothing would change, even if the shareholders changed.

Laura Gordon, who was the city attorney in 1995, testified it was her understanding that ‘owner and operator’ referred to the corporation and the individuals involved.

But the defense said the city filed the lawsuit to compel the clubs to conform to the new ordinance.

“While that lawsuit was going on, (the city’s) attorneys came up with the bright idea of ‘Why don’t we try and invalidate the agreement.’ But the point is, from 1995 to 2008 the city did nothing to invalidate the agreement even though we maintain that it could have learned that the shareholders had changed,” said defense attorney Gil Levy.

It will now be up to federal Judge Kathleen Cardone to decide if the clubs violated the terms of the 1995 agreement.