Milwaukee Must Pay Strip Club Owner $435K, Court Rules

Milwaukee Must Pay Strip Club Owner $435K, Court Rules

CHICAGO — The 7th U.S. Circuit Court of Appeal on Wednesday upheld an award of $435,000 in damages against the City of Milwaukee in a case involving two strip clubs.

The appeals court, 3-0, ruled that Jon Ferraro, who numerous adult entertainment businesses — Six Star Holdings and Ferol LLC — is entitled to damages for lost profits because now-repealed city licensing requirements blocked the opening of two new nude strip clubs in violation of the First Amendment.

Ferraro applied for the required liquor licenses, tavern amusement licenses, and theater licenses — but his applications stalled in City Council and later denied.

At the time, Milwaukee’s city leaders were swayed by members of the public, who complained that the clubs would produce unwanted “secondary effects” on the neighborhood, including a disorderly clientele and increased crime, and that they would drive away other businesses.

“Following this setback, Ferraro reevaluated his options. He began preparations to open a dry adult club at one of his locations,” the appeals court wrote in its opinion. “For market research, he visited several other dry clubs — one near Appleton, Wisc., and others in Las Vegas.

“He began calculating whether a Milwaukee-area dry club could be profitable based on the financial data from another Milwaukee-area club he owned. He identified managers from his other establishments who could move to his new club, and he contacted a parking service to arrange for valet parking at the new club.

“But his lawyer interrupted his preparations with more bad news: although he would not need a liquor license and tavern-amusement license, he would need either a theater license or a public-entertainment club license to operate a dry club that featured nudity.”

As Ferraro’s business plans evolved, so did his legal strategy. And he ended up filing several suits against the City of Milwaukee.

Ferraro, who owns other strip clubs elsewhere in Wisconsin, claimed that the licensing requirements violated the businesses' First Amendment rights, arguing that City Council's dislike of strip clubs was no legal reason to deny a permit.

A lower court found for the City of Milwaukee with respect to the challenges to the liquor licensing ordinance, because the city denied the license on the reasonable grounds that it would create secondary effects.

But the lower court also granted Ferraro $435,000 in damages related to the theater license application, finding that without this ordinance, he would have opened dry strip clubs in Milwaukee.

The 7th Circuit on Wednesday upheld the damages award for lost profits.

“It is fairly traceable to the unconstitutional ordinances — [Ferraro] alleged that, but for the ordinances, it would have engaged in protected speech, and a jury ultimately found this to be true,” the appeals court wrote. “Damages redress the harm that [Ferraro] suffered by replacing the lost profits [Ferraro] would have earned if it had been able to open its club at the planned time.”

In closing, the 7th Circuit judges said: “The city is fighting a losing battle over a regime whose time has passed.”

View ruling

Related:  

Copyright © 2025 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

Missouri AG Announces Age Verification Rule to Take Effect Nov. 30

Newly appointed Missouri Attorney General Catherine Hanaway announced Friday that the state's recently approved age verification regulation for adult websites will go into effect on Nov. 30.

Mag Numb Leads Latest From PlantsVsCunts

Mag Numb stars in the latest scene from Hentaied studio brand Plants Vs. Cunts, titled “The Book of Curses.”

Aylo, Woodhull Freedom Foundation to Host 'Online Censorship' Event

Aylo and Woodhull Freedom Foundation will co-host a virtual panel addressing online censorship on Sept. 30.

Connie Perignon Makes Her Debut for Parasited

Connie Perignon has made her Parasited debut in “A Lesson She Will Payback,” directed by El Pacho.

Aubrey Kate Featured in Latest From Kink.com

Aubrey Kate stars with Sage Roux in the new scene from Kink.com, titled “A Hole for the Prison Guard.”

Severe Sex Films Relaunches Site Through YourPaysitePartner

Severe Sex Films has relaunched its official website through YourPaysitePartner (YPP).

Judge Awards Plaintiffs Over $400K in Attorneys Fees in Derek Hay Civil Case

California Superior Court Judge Gail Killefer has awarded former clients of LA Direct Models over $400,000 in attorneys fees and court costs, to be paid by agency founder Derek Hay.

Stephanie Love, Elise London Topline 'Anal & MILFY' From LeWood

Stephanie Love and Elise London headline "Anal & MILFY," the latest release from directing duo LeWood (Francesca Le and Mark Wood) for Evil Angel.

ChickPass Rebrands as 'ChickPass Cinematic Universe'

ChickPass has announced that it has rebranded its network of sites as ChickPass Cinematic Universe.

Girthmasterr Makes His Brazzers Debut

Girthmasterr has made his Brazzers debut alongside Luna Star and multi-XMAs winner Angela White in the studio's latest release, titled "Welcumming Committee."

Show More