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A.H.D. Houston, Inc. v. City of Houston

This appeal concerns an ordinance that strengthened existing regulations for issuing permits to operate sexually-oriented businesses (SOBs). Appellants are 10 SOB owners who were denied, in whole in or in part, their requests for additional time to recoup their investments before being subject to the ordinance. The trial court correctly applied the substantial evidence standard of review and correctly found that substantial evidence supports the hearing officers' decisions, which were not required to be accompanied by detailed fact findings. Moreover, appellants' constitutional arguments are barred by res judicata and are otherwise without merit. For these reasons appellants' issues are overruled. 14th Court of Appeals, No. 14-08-00758-CV, 06-28-2010

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Affirmed and Opinion filed June 24, 2010.

OPINION

This appeal concerns an ordinance enacted in 1997 by appellee the City of Houston that strengthened existing regulations for issuing permits to operate sexually-oriented businesses (“SOBs”). Appellants are ten SOB owners who were denied, in whole in or in part, their requests for additional time to recoup their investments before being subject to the ordinance. They sought judicial review of these decisions, and the trial court upheld the decisions. Appellants argue that the trial court applied an incorrect standard of review and erred in refusing to require the hearing officers who denied their requests to make fact findings. They also contend that the conduct of the hearing officers violated their rights to due process and due course of law and the proceedings were violative of the separation of powers clause in the Texas Constitution. We affirm.

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