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BACK
NEVADA
DAVID
BURGESS, INDIVIDUALLY, AND DAVID BURGESS, D/B/A OLDBRIDGE
RANCH, Appellant, vs. STOREY COUNTY BOARD OF COMMISSIONERS;
STOREY COUNTYLICENSING BOARD; AND STOREY COUNTY SHERIFF,
Respondents.
No. 32634
SUPREME COURT OF NEVADA
992 P.2d 856; 2000 Nev. LEXIS 12
February 2, 2000, Decided
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SUBSEQUENT
HISTORY: [**1]
Rehearing Denied March 23, 2000.
PRIOR HISTORY: Appeal from an order denying appellant's
petition for a writ of mandamus. First Judicial District
Court, Storey County; Michael E. Fondi, Judge.
DISPOSITION: Reversed and remanded with instructions.
CASE SUMMARY
PROCEDURAL
POSTURE: Appellant challenged an order of the First Judicial
District Court, Storey County (Nevada) denying his petition
for writ of mandamus claiming respondent county licensing
board denied him due process of law by revoking his brothel
license without proper notification and violating his free
association rights for his alleged Hell's Angels membership.
OVERVIEW: Appellant was a licensed brothel operator. Respondent
board held a hearing focused almost entirely on appellant's
association with the Hell's Angels. Respondent board voted
to revoke appellant's license. The court held that: (1) because
the revocation of a brothel license required a hearing and
a showing of good cause, appellant had a reasonable expectation
of entitlement to his brothel license, and therefore had a
protected property interest in the license; (2) respondent
board failed to provide appellant with proper notice of what
was to be discussed at the license revocation hearing; (3)
therefore, respondent deprived appellant of his due process
right to receive proper notice; and (4) because respondent
failed to demonstrate a compelling state interest to justify
a restriction on appellant's right to associate, it violated
the U.S. Const. amend. I when it revoked appellant's brothel
license because of his association with the Hell's Angels.
OUTCOME: Order reversed; respondent deprived appellant of
his due process rights by failing to notify him that his association
with the Hell's Angels would be discussed at license revocation
hearing; respondent violated appellant's associational rights
by revoking his brothel license because of his association
with the Hell's Angels.
CORE TERMS: license, brothel, First Amendment, license revocation,
writ of mandamus, revoked, duck, property interest, deprived,
proper notice, baseball bat, license fee, revoking, abused,
revoke, reasonable expectation, process right, entitlement,
illegal activities, hearing transcript, failed to provide,
organized crime, motorcycle, involvement, revocation, reinstate,
carrying, walked
CORE CONCEPTS -
Civil Procedure: Appeals: Appellate Jurisdiction: Extraordinary
Writs
A writ of mandamus is available to compel the performance
of an act that the law requires as a duty resulting from an
office, trust or station, or to control an arbitrary or capricious
exercise of discretion. Nev. Rev. Stat. § 34.160.
Civil Procedure: Appeals: Appellate Jurisdiction: Extraordinary
Writs
Civil Procedure: Appeals: Standards of Review: Abuse of Discretion
The appellate court reviews a district court's denial of a
petition for a writ of mandamus under the abuse of discretion
standard.
Constitutional Law: Procedural Due Process: Scope of Protection
The protections of due process attach only to deprivations
of property or liberty interests. A protected property interest
exists when an individual has a reasonable expectation of
entitlement derived from existing rules or understandings
that stem from an independent source such as state law.
Governments: Local Governments: Licenses
Storey County's code provides that the board of county commissioners
shall have the power to cancel the brothel license after hearing
and good cause shown. Storey County, Nevada, Code ch. 5.16.130(B).
Constitutional Law: Procedural Due Process: Scope of Protection
Basic concepts of fairness and due process require that one
who is charged with a wrongdoing be put on notice as to what
conduct constitutes the wrong.
Constitutional Law: Fundamental Freedoms: Freedom of Association
The United States Supreme Court has stated that all Americans
have a right to associate for the purposes of engaging in
those activities protected by the U.S. Const. amend. I-- speech,
assembly, petition for the redress of grievances, and the
exercise of religion. The Constitution guarantees freedom
of association of this kind as an indispensable means of preserving
other individual liberties. The Ninth Circuit Court of Appeals
has recognized an individual's U.S. Const. amend. I right
to associate with the Hell's Angels.
Constitutional Law: Fundamental Freedoms: Freedom of Association
Infringements on the right of association may be justified
by regulations adopted to serve compelling state interests,
unrelated to the suppression of ideas, that cannot be achieved
through means significantly less restrictive of associational
freedoms.
COUNSEL: Roderic A. Carucci and Terry J. Thomas, Reno, for
Appellant.
Janet Hess, District Attorney, Storey County, for Respondents.
JUDGES: BEFORE YOUNG, AGOSTI and LEAVITT, JJ.
OPINION: [*857] PER CURIAM: Appellant David Burgess argues
that the Storey County Licensing Board ("Board")
denied him due process of law when it revoked his brothel
license without properly notifying him that his association
with the Hell's Angels Motorcycle Club ("Hell's Angels")
would be discussed at the license revocation hearing. Burgess
also argues that the Board violated the First Amendment by
revoking his brothel license because of his association with
the Hell's Angels. We agree with Burgess's contentions and
conclude that the district court abused its discretion by
denying Burgess's petition for a writ of mandamus requiring
the Board to reinstate his license. FACTS Burgess has been
licensed since 1983 to operate a brothel known as the Old
Bridge Ranch in Storey County. In May of 1998, the Board served
Burgess[**2] with an order to show cause ("OSC")
why his brothel license should not be revoked. The OSC ordered
Burgess to appear before the Board on June 2, 1998, to respond
to complaints which "include, but are not limited to"
motorcycle noise, harassment of local residents and failure
to pay the applicable license fee. n1
n1 Although the OSC alleged that Burgess failed to pay a license
fee, this statement was a clerical mistake, as respondents
do not dispute that the license fee was paid prior to the
license revocation hearing.
On June 2, 1998, Burgess and his attorney appeared before
the Board. The hearing focused almost entirely on Burgess's
association with the Hell's Angels. Board Commissioner Charles
Haynes admitted that concerns regarding the Hell's Angels
were not included in the OSC. Both Burgess's counsel and the
Storey County District Attorney requested a continuance so
that Burgess could respond to the accusations concerning the
Hell's Angels. The Board ignored the request, and the hearing
continued. Throughout[**3] the hearing, Storey County Sheriff
and Board Commissioner Robert Del Carlo testified that he
was concerned with the Hell's Angels' possible involvement
with the Old Bridge Ranch. Haynes stated that the Hell's Angels
are "known to be involved in organized crime, and anybody
who does not realize that needs to wake up and come into the
20th century." Del Carlo and Haynes introduced several
pieces of evidence, including downloaded internet articles
describing illegal activities by the Hell's Angels; three
unsigned criminal informations regarding illegal activities
by members of the Hell's Angels; a work permit application
for Troy Regas, a manager at Old Bridge Ranch; a letter detailing
Troy Regas's prior conviction of possession of cocaine with
intent to distribute and Regas's association with the [*858]
Hell's Angels. The only evidence directly concerning Burgess
was that on one occasion Burgess walked to a competing brothel
while carrying a baseball bat. When Haynes was asked what
evidence existed to show that organized crime was involved
with Old Bridge Ranch, he replied, "If it looks like
a duck and smells like a duck and it walks like a duck, it's
a duck." Burgess testified that he was[**4] not a member
of the Hell's Angels, but would like to be. Burgess is a member
of a Reno-based motorcycle club, which is attempting to "patch
over" to the Hell's Angels. Burgess also testified that
the Hell's Angels did not meet at the Old Bridge Ranch, and
that the Hell's Angels had no influence over the operation
of his business. At the close of the hearing, the Board voted
to revoke Burgess's brothel license. Burgess filed an emergency
petition for a writ of mandamus in district court, which was
denied. n2 We determine that the district court abused its
discretion when it denied Burgess's petition for a writ of
mandamus.
n2 After the state district court denied Burgess's petition
for a writ of mandamus, Burgess filed a complaint in United
States District Court pursuant to 42 U.S.C. sections 1983
and 1988, alleging that the Board deprived him of his constitutional
rights. Based upon a determination that Burgess would likely
succeed on his freedom of association claim, the federal district
court judge granted Burgess's motion for a preliminary injunction
and enjoined the enforcement of the license revocation pending
a final resolution of the matter.
[**5] DISCUSSION A writ of mandamus is available to compel
the performance of an act that the law requires as a duty
resulting from an office, trust or station, or to control
an arbitrary or capricious exercise of discretion. See NRS
34.160; Round Hill Gen. Imp. Dist. v. Newman, 97 Nev. 601,
603-604, 637 P.2d 534, 536 (1981). We review a district court's
denial of a petition for a writ of mandamus under the abuse
of discretion standard. County of Clark v. Doumani, 114 Nev.
46, 53, 952 P.2d 13, 17 (1998). Procedural Due Process Burgess
contends that the OSC failed to provide proper notice that
his association with the Hell's Angels would be discussed
at the hearing.
"The protections of due process attach only to deprivations
of property or liberty interests." Tarkanian v. Nat'l
Collegiate Athletic Ass'n, 103 Nev. 331, 337, 741 P.2d 1345,
1349 (1987); Wedges/Ledges of California, Inc. v. City of
Phoenix, Arizona, 24 F.3d 56, 62 (9th Cir. 1994). A protected
property interest exists when an individual has a reasonable
expectation of entitlement derived from "existing rules
or understandings[**6] that stem from an independent source
such as state law." Bd. of Regents v. Roth, 408 U.S.
564, 577, 33 L. Ed. 2d 548, 92 S. Ct. 2701 (1972). Burgess
argues that he has a property interest in his brothel license.
We agree. Storey County's code provides that "the board
of county commissioners shall have the power to cancel the
[brothel] license after hearing and good cause shown."
Storey County, Nevada, Code ch. 5.16.130(B). Because the revocation
of a brothel license in Storey County requires a hearing and
a showing of good cause, Burgess had a reasonable expectation
of entitlement to his brothel license. Therefore, we conclude
that Burgess had a protected property interest in the license.
Having determined that the protections of due process attached
to Burgess's brothel license, our next inquiry is whether
Burgess received notice that his alleged association with
the Hell's Angels would be discussed at the hearing and used
as a basis to revoke his license. See Whitney v. State, Employment
Security Dep't, 105 Nev. 810, 813, 783 P.2d 459, 460 (1989)
("Basic concepts of fairness and due process require
that one who is charged with a wrongdoing be[**7] put on notice
as to what conduct constitutes the wrong."). The Board
admits that the OSC does not mention Burgess's involvement
with the Hell's Angels. We conclude that the Board failed
to provide Burgess with proper notice of what was to be discussed
at the license revocation hearing. Therefore, the [*859] Board
deprived Burgess of his due process right to receive proper
notice. First Amendment Burgess also contends that the Board
violated the First Amendment by revoking his brothel license
because of his association with the Hell's Angels. The United
States Supreme Court has stated that all Americans have a
"right to associate for the purposes of engaging in those
activities protected by the First Amendment -- speech, assembly,
petition for the redress of grievances, and the exercise of
religion. The Constitution guarantees freedom of association
of this kind as an indispensable means of preserving other
individual liberties." Roberts v. United States Jaycees,
468 U.S. 609, 618, 82 L. Ed. 2d 462, 104 S. Ct. 3244 (1984).
The Ninth Circuit Court of Appeals has recognized an individual's
First Amendment right to associate with the Hell's Angels.
United States v. Rubio, 727 F.2d 786, 791 (9th Cir. 1983).[**8]
We recognize that Burgess's right to associate with the Hell's
Angels is not absolute, however. "Infringements on that
right may be justified by regulations adopted to serve compelling
state interests, unrelated to the suppression of ideas, that
cannot be achieved through means significantly less restrictive
of associational freedoms." Roberts, 468 U.S. at 623.
The Board has the burden to show a compelling governmental
interest to justify a restriction on Burgess's right to associate
with the Hell's Angels. See Elrod v. Burns, 427 U.S. 347,
362, 49 L. Ed. 2d 547, 96 S. Ct. 2673 (1976). Our review of
the license revocation hearing transcript reveals that the
Board revoked Burgess's brothel license because of his association
with the Hell's Angels. None of the evidence introduced at
the hearing had anything to do with the criminal activities
of Burgess or the Old Bridge Ranch. n3 The Board failed to
demonstrate a compelling state interest to justify a restriction
on Burgess's right to associate. Therefore, we conclude that
the Board violated the First Amendment when it revoked Burgess's
brothel license because of his association with the[**9] Hell's
Angels.
n3 The Board also contends that the revocation of the license
was justified because on one occasion Burgess walked to a
competing brothel while carrying a baseball bat. Our review
of the license revocation hearing transcript, which is almost
entirely dedicated to Burgess's association with the Hell's
Angels, indicates that the Board did not revoke Burgess's
license on the basis of the baseball bat incident.
CONCLUSION We conclude that the Board deprived Burgess of
his due process right to receive sufficient notice by failing
to notify Burgess that his association with the Hell's Angels
would be discussed at the license revocation hearing. The
Board also violated the First Amendment by revoking Burgess's
brothel license because of his association with the Hell's
Angels. For these reasons, we conclude that the district court
abused its discretion by denying Burgess's petition for a
writ of mandamus. We reverse and remand this case to the district
court so that it may issue a writ of mandamus[**10] ordering
the Board to reinstate Burgess's brothel license.