Why a judge moved to side with strip club in legal battle with this SC town
Amid ongoing legal contention, a judge has moved to side with an Atlantic Beach strip club over the South Carolina town where its located.
Judge B. Alex Hyman granted a motion for temporary injunction brought by Crazy Horse Inc., which owns and operates Thee Dollhouse, while denying Atlantic Beach temporary injunctive relief.
Mayor Pro Tem John David declined to comment on the ruling and a message to The Dollhouse from The Sun News wasn’t returned as of 11:15 a.m. Wednesday.
The order is the latest update in the legal drama between Atlantic Beach and Thee Dollhouse, which alleges that an ordinance the town passed last fall restricting sexually oriented businesses seeks to force the club to shut down.
According to Hyman, the judge, the ordinance is “null and void” because Councilman Edward Lamar Campbell was serving illegally. The court found that Campbell, who has been on council since 2022, pleaded guilty to a felony in 2001, making him ineligible for public office in South Carolina until 2024.
Because Campbell wasn’t serving on the council legally, the 23-page ordinance limiting hours of operations, alcohol sales, customer interactions with semi-nude performers and more, isn’t valid. The ordinance also requires the town manager and his or her agents to occasionally inspect the business to ensure compliance. Violations could result in fines, suspension or even license revocation.
In response, Crazy Horse sued the town last September. The lawsuit claimed the new restrictions would “destroy” the club which allegedly paid Atlantic Beach more than $20 million in “excessive” licensing fees over the last decade with the understanding that Thee Dollhouse would be allowed to continue operating under the same business model.
Freedom of speech lawsuit
Crazy Horse sought $2 million back from Atlantic Beach and alleged the town adopted the ordinance without sufficient legal notice, used legal advice from an attorney unlicensed in South Carolina and exercised police intimidation.
The next month, Crazy Horse filed a freedom of speech lawsuit with two of the club’s performers and Atlantic Beach’s former police chief. The second lawsuit seeks to overturn the sexually oriented business ordinance, which it claims was adopted without proper notice, arguing Atlantic Beach wants to force Thee Dollhouse to close to benefit local development interests.
Former Chief Carlos Castillo alleged he was directed to target the club without probable cause and was wrongfully terminated after refusing to fabricate evidence at the behest of Town Manager Adrian Jones. Performers Samantha Christian and Melissa Ferguson also filed the lawsuit, which claims the ordinance violates dancers’ freedom of speech rights.
Another lawsuit filed by Crazy Horse
The lawsuit is still pending, but a temporary injunction was granted in light of the ongoing legal proceedings. When the Atlantic Beach Town Council raised the ordinance in a special meeting session, Crazy Horse argued it violated the injunction and filed a new lawsuit.
In that suit, Crazy Horse also claimed Campbell was unable to hold office during his term because of his felony conviction and Atlantic Beach violated state law in allowing him to serve.
Although Crazy Horse voluntarily dismissed the latest lawsuit, the club is still awaiting a decision on its case against Atlantic Beach for the sexually oriented business ordinance.