Hang On III, Inc. v. Gregg County – Case Brief Summary (Texas)

In Hang On III, Inc. v. Gregg County, 893 S.W.2d 724 (Tex. App.--Texarkana 1995, writ dism'd by agr.), the appellant--a restaurant featuring nude dancers--appealed the denial of a temporary injunction to stay enforcement of a new ordinance regulating sexually oriented businesses while it sought a declaration that it was not a sexually oriented business. 893 S.W.2d at 725--26.

The ordinance required permits for new and existing business, and allowed for continued operation while a permit was sought and allowed existing businesses to apply for an extension to operate if the owner demonstrated the need to recoup his investment. Id. at 726.

The court in Hang On cited City of University Park v. Benners, 485 S.W.2d 773 (Tex. 1972) for the proposition that a property owner "does not acquire a constitutionally protected right in a property use merely because it began as a conforming use later rendered nonconforming." Id. at 727.

But the court's actual holding was that, by arguing at the temporary injunction hearing only that it was not a sexually oriented business, and not presenting evidence that the ordinance was unconstitutional or that its enforcement would cause irreparable harm, the restaurant had not shown it was entitled to a temporary injunction. Id. at 727.