Billups v. City of Charleston

Decision Date03 August 2018
Docket NumberCivil No. 2:16-cv-00264-DCN
Parties Kimberly BILLUPS, Michael Warfield, and Michael Nolan, Plaintiffs, v. CITY OF CHARLESTON, SOUTH CAROLINA, Defendant.
CourtU.S. District Court — District of South Carolina

Arif Panju, Pro Hac Vice, Institute for Justice, Austin, TX, Robert Everett Johnson, Pro Hac Vice, Robert James McNamara, Pro Hac Vice, Institute for Justice, Arlington, VA, Sean A. O'Connor, Finkel Law Firm, Charleston, SC, for Plaintiffs.

Brian Quisenberry, Carol B. Ervin, Stephanie N. Ramia, Young Clement Rivers, Charleston, SC, for Defendant.

FINDINGS OF FACT AND CONCLUSIONS OF LAW

DAVID C. NORTON, UNITED STATES DISTRICT JUDGE

The J. Waties Waring Judicial Center in Charleston, South Carolina is on the National Register of Historic Buildings. There is a marker outside that proclaims it as the courthouse where Thurgood Marshall tried Briggs v. Elliott, one of the cases consolidated into the seminal U.S. Supreme Court case Brown v. Board of Education and heard by a three-judge panel including the courthouse's namesake J. Waties Waring. It sits at the "Four Corners of the Law," an intersection in downtown Charleston where the federal courthouse, the state courthouse, the City of Charleston City Hall, and St. Michael's Episcopal Church face each other. Every day, tour guides leading tourists from across the world in walking groups and in horse-drawn carriages pause at the Four Corners of the Law to talk about its significance. It is in this courthouse that the court heard testimony from numerous witnesses and considered voluminous evidence on the constitutionality of the City of Charleston's tour guide licensing law ("the licensing law") during a weeklong bench trial. And it is in this courthouse that the court reluctantly strikes down the licensing law as unconstitutional under the First Amendment of the United States Constitution.

I. PROCEDURAL HISTORY

On January 28, 2016, plaintiffs filed a complaint alleging that the licensing law was unconstitutional under the First Amendment, both facially and as applied. Plaintiffs moved for a preliminary injunction and the City of Charleston ("the City") moved to dismiss the complaint. The court denied both motions on July 1, 2016. ECF No. 27. On January 27, 2017, the parties filed motions for summary judgment. The court denied both motions on September 25, 2017. ECF No. 79. Thus, this matter came to a head, and the court tried this case without a jury from April 9th, 2018 until April 12, 2018. During the bench trial, the court heard from multiple witnesses and reviewed voluminous evidence. Having considered the testimony and the exhibits admitted at trial, as well as the parties' pre-trial briefs and post-trial proposed findings and conclusions, the court now makes the following findings of fact and conclusions of law in accordance with Federal Rule of Civil Procedure 52(a).

II. THE EVIDENCE AT TRIAL1
A. The City of Charleston's Licensing Law
1. The Licensing Law
a. The City's tourism ordinances regulating the tourism industry have been in place since 1983. SUMF ¶ 3.2 The stated purpose of the City's tourism ordinances is to "maintain, protect and promote the tourism industry and economy of the city." SUMF ¶ 4. It applies to all persons looking to be tour guides for hire within Charleston. SUMF ¶ 14.
b. Pursuant to Charleston City Code § 29-58, "No person shall act or offer to act as a tour guide in the city for hire unless he or she has first passed a written examination and is licensed by the city's office of tourism management as a registered tour guide." SUMF ¶ 5. Pursuant to Charleston City Code § 29-2, a "tour guide" is defined as "any person who acts or offers to act as a guide for hire through any part of" certain regulated districts of the City. SUMF ¶ 6. The definition of "tour guide" includes "pedestrians and persons within automobiles, motor vehicles or horse-drawn vehicles when the primary purpose of riding in such vehicles is not transportation, but touring the historic areas of the city." SUMF ¶ 7. The City's Code defines "tour" or "touring" as "the conducting of or the participation in sightseeing in the districts for hire or in combination with a request for donations." SUMF ¶ 8.
c. Joseph P. Riley, Jr. ("Mayor Riley") was the Mayor of Charleston from December 1975 until January 2016. Tr. 53:18–54:1. He was the Federal Rule of Civil Procedure 30(b)(6) representative of the City. Tr. 52:23–24.
d. The licensing law was passed under Mayor Riley's tenure in 1983 as part of a package of ordinances to implement Charleston's first Tourism Management Plan. Tr. 33:22–23. The City requires tour guides to pass a written examination and obtain a valid business license before the City will issue a registered tour guide license card. SUMF ¶ 12.
e. All of the questions on the written exam come from the Tour Guide Manual. Tr. 318:19–319:2.
f. To maintain their license, tour guides must take city-sanctioned continuing education courses or retake the exam. As an alternative to retaking the tour guide licensing exam, the City offers continuing education courses. Tr. 107:10–12. The City must either approve or offer the continuing education courses that tour guides must take to renew their tour guide license. Tr. 319:13–19. The City must "select or approve" the topics of those courses. Tr. 319:20–24. It is not only the City's courses that qualify as continuing education courses. Tr. 322:21–22. Other organizations such as the Preservation Society and Historic Charleston Foundation also provide courses that would qualify as continuing education courses, as does the College of Charleston. Tr. 322:5–20. However, if the City does not provide the course, the City must approve a course for it to qualify for credit towards recertification. Tr. 322:23–323:10. The City never mandated continuing education courses that compelled tour guides to discuss certain topics on their tours or required that tour guides "had to say this and they had to say that." Tr. 323:24–324:3.
g. The City conducted surveys in partnership with the Charleston Chamber of Commerce about the "constant" draw of historic sites and the history of Charleston for tourists, which was "formative" in creating the tourism management plan. Tr. 513:19–514:12. The City considered these studies to determine why tourists traveled to Charleston prior to the enactment of the licensing law. Tr. 529:24–530:8. These studies conducted by the Chamber of Commerce confirmed that the draw was history and historic sites, which was the impetus for enacting the licensing law. Tr. 516:15–7.
h. The Historic Charleston Foundation is a nonprofit foundation founded in the 1940s. Tr. 77:1–6. It is involved in "preservation and restoration," and advocates for historic preservation in Charleston. Tr. 380:21–381:11. The Historic Charleston Foundation prepared the questions on the written examination. Tr. 363:20–25. The City made no changes to the exam after it received it from the Historic Charleston Foundation. Tr. 364 6–9.
i. The licensing law is only enforced on public streets. Tour guides may conduct tours on private property without a license. Tr. 252:7–19.9.
j. The City does not dictate the type of content that tour guides talk about. Tr. 52:7–9. It does not provide tour guides with a script to follow on tours. Tr. 52:10–12. It does not force tour guides to say certain things on tours. Tr. 52:13–15. There is no provision in the licensing law that would allow the City to monitor what tour guides say on their tours. Tr. 118:16–21. The City does not review what tour guides say once they are fully licensed. Tr. 218:13–14. The City has never taken corrective action against a guide "in any way" based on the content of the tour. Tr. 365:21–24.
k. Vanessa Turner Maybank ("Maybank") is the clerk of council for the City. Tr. 294:16–22. As clerk of council, she manages the portion of the tourism management division that deals with the examination of tour guides. Tr. 294:23–295:4. Maybank was also the Director of Tourism from 1984 to 1996 and oversaw a portion of the City's Tourism Commission from 1986 to 2015. Tr. 295:5–20.
l. The Tourism Commission has an advisory role; it does not have the power to enact ordinances, change ordinances, or impose any requirement that is not contained in the ordinances. Tr. 359:21–360:5. The Tourism Commission has no authority with regard to the tourism ordinance. Tr. 412:20–413:9. The Tourism Commission met every two months, and meeting minutes from those meetings accurately encapsulate what happened during the meeting. Tr. 299:13–15.
m. Rhetta Mendelsohn ("Mendelsohn") was a member of the City's Tourism Commission from 2001 to 2009. Tr. 372:16–19. She was also the chair of the City's Tourism Subcommittee on Tour Guides. Tr. 309:1–10. As a member of the Tourism Commission, Mendelsohn was involved in putting together recertification classes for the licensing law, including suggesting subject areas for classes. Tr. 401:22–402:1.
n. Mendelsohn was also on the board of the Historic Charleston Foundation from 2006 to 2015. Tr. 380:14–18. Mendelsohn testified that the Historic Charleston Foundation was "vitally interested in tour guides knowing the city's history." Tr. 417:19–20.
2. 2015 Amendments to the Licensing Law
a. John Joseph Tecklenburg ("Mayor Tecklenburg") is the current mayor of Charleston. Tr. 203:16–20. He has held this position since early 2016. Tr. 203:21–22.
b. In the spring of 2016, the City passed a number of amendments to the licensing law. Tr. 203:23–204:1. One of the amendments was the removal of the oral examination requirement. Tr. 205:22–206:6. Another amendment removed a provision of the law pertaining to tour escorts, who escorted large groups of tourists for safety purposes. Tr. 206:16–19. The category of temporary tour guide was deleted. Tr. 222:18. The passing rate on the written exam was changed from 80 to 70. Tr. 222:21–22. Registered tour guides were able to extend
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