Judge sides with city in Limelight ruling Judge sides with city in Limelight ruling (July 29, 2005)

Former owners suffer setback in $13M suit against Mountain View

By Jon Wiener

Two brothers who are suing City Hall for forcing their Castro Street club out of business lost a round in court last week when a federal judge threw out several of their allegations.

U.S. District Judge James Ware sided with the city by dismissing many of the claims that the restrictions placed on the Limelight's operations in 2002 were unconstitutional.

City attorney Michael Martello called the rulings "the death knell" for the plaintiffs. Monday, the judge ruled against the club owners again, this time upholding the city's motion to disqualify their financial expert.

Kareem and Andrew Nahas had owned the Limelight for less than a year when nearby residents began calling the police about the patrons of the 18-and-over club -- littering, fighting and urinating in backyards were among the most common complaints. The city responded with a series of restrictions on the club. One requirement prevented the club from admitting minors, and another limited its hours.

Unable to operate under the new rules, the Limelight closed for good in July 2003.

Eric Sidebotham, attorney for the Nahas brothers, said that city staff crafted restrictions specifically for the Limelight, knowing that it would force his clients out of business. He disputed the city's claim that high rents were the cause of the Limelight's financial problems.

"But for the institution of the restrictions, we were doing quite well," said Sidebotham. "The reason why they had to impose the additional restrictions on us was that we were attracting too many people to the downtown area."

Sidebotham also said that city staff members revealed their true colors when they told his clients that their building -- formerly a theater -- would be better off as a restaurant. Sidebotham added that his clients' case could be stronger if the Monte Carlo, the restaurant now at the site, also struggles to survive.

"It's cavernous -- it's just not the right size for a restaurant, it's too big," said Sidebotham.

The Monte Carlo has already been through one small flap with the city, paying a $250 fine for advertising male strippers without a permit.

Ware ruled that, according to the facts alleged by the plaintiffs, there was enough evidence to go to trial over whether the city violated free speech rights by trying to regulate the content of the Limelight's fliers. He also gave the brothers a month to file another suit based on additional information.

Martello said he is confident that the city will ultimately prevail.

"They've kind of made up the facts so far," said Martello. "They were two kids that tried to run a nightclub, and they thought they were in San Francisco."

E-mail Jon Wiener at jwiener@mv-voice.com

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