Tenn. Supreme Court Rules Anti-Adult Law Unconstitutional

KNOXVILLE, Tenn. — Tennessee’s Supreme Court has struck down an ordinance designed to restrict adult-oriented businesses, saying it was overly broad and vague.

For Nashville-based Entertainment Resources, the owner of Fantasy Video, the adult retailer that challenged the law, the decision came a little late because the store had long since lost its lease and gone out of business.

But the case isn’t quite over just yet because the court said in its ruling that Entertainment Resources is “entitled to a determination of damages” including lost revenue and attorneys fees that could cost taxpayers hundreds of thousands of dollars to cover the city’s blunder.

When Fantasy Video opened in August 1998, its inventory was said to consist of 80 percent adult material and 20 percent general-interest videos.

Claiming that the ratio classified Fantasy Video as an adult business and, as such, was in violation of an ordinance, local police began inspecting the store and issuing citations on an almost daily basis.

In response, Entertainment Resources actively sought out guidance from city officials and implemented significant changes — including stocking 70 percent general interest videos — in an attempt to avoid the reach of the ordinance.

These efforts were ignored, and police continued to cite the store to the point of making the business unprofitable. Ultimately, the city won an injunction against the store, effectively shutting it down.

The move set off a seven-year legal battle that ended recently in the state’s Supreme Court, which ruled that since even city officials and police officers called to testify could not explain certain aspects of the law, it was unconstitutionally vague. What’s more, the court said, the city had failed to meet Fantasy Video halfway in its efforts to come into compliance with the law.

In the meantime, Fantasy Video had closed its doors and the city had replaced the ordinance with one that was more clearly worded.

“It’s been a long road of litigation,” Richard Gaines, attorney for Entertainment Resources, said. “It’s cost my clients a lot of money to fight this.”

Now, however, Entertainments Resources will have an opportunity to recoup some of that money. While the company has not yet filed a motion, Gaines said such an action is likely.

The city, meanwhile, may attempt to petition the case to the U.S. Supreme Court, but that scenario is less likely, given the small number of cases the court hears each year.

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

XBIZ Expo Wraps With Final Day of Networking and Sales

The 2026 edition of XBIZ Expo wrapped up on Sunday afternoon on the mezzanine level of the Loews Hollywood Hotel, where prominent buyers and sellers celebrated a raft of new deals and promising connections.

XR Brands Taps Josh Ortiz for Director of Education and Outreach

XR Brands has promoted sex educator Josh Ortiz to director of education and outreach.

Agatha Vega Returns to Dorcel for 'Agatha's Secrets'

2024 Euro XMAs Performer of the Year Agatha Vega stars in the new Dorcel title “Agatha’s Secrets.”

XBIZ Expo Day 2: Education, Dialogue, Community

Day 2 of XBIZ Expo continued the event’s focus on education, collaboration and industry insights, with a packed schedule that balanced business-driven discussions with innumerable opportunities to network.

Sarah Arabic, Ashlyn Peaks & Cali Sweets Star in Latest 'All-Girl Massage'

Sarah Arabic, Ashlyn Peaks, and Cali Sweets star in the latest installment of Adult Time series "All-Girl Massage."

Alexis James Makes Her Elegant Angel Debut

Alexis James has made her debut for Elegant Angel in a new scene titled “Fit For Anal.”

Clara Mia Leads Dorcel's 'Climax #5'

Multi-Euro XMAs winner Clara Mia headlines the latest release from Dorcel, titled “Climax #5.”

Pjur Rolls Out 2026 Marketing Campaign

Pjur has launched its multi-phase, integrated marketing campaign for 2026.

FirmTech Expands Global Distribution

FirmTech has expanded its global distribution across the U.K., Europe, and Asia.

XBIZ Expo Kicks Off With Buzz-Filled Show Floor

The 2026 edition of XBIZ Expo officially kicked off Friday morning on the mezzanine level of the Loews Hollywood Hotel, where prominent buyers and sellers mingled in the hopes of closing deals.

Show More