Loans For The Little Darlings? Strip Clubs Win Another Ruling For Pandemic Relief

downloadWe have been discussing litigation of strip clubs denied pandemic relief, including a recent ruling in favor of such clubs in Nevada.  I have been highly critical of such denials.  Now, another judge, has ruled correctly in favor of these businesses. District Judge Matthew Leitman in Flint, Michigan, issued a preliminary injunction barring the Small Business Administration from excluding businesses that present live performances or sell products of a “prurient sexual nature” from loans under the Paycheck Protection Program. Businessman Jason Mohney who owns various clubs including Little Darlings (left) brought the action.  The Trump Administration is dead wrong in litigating these cases to use the pandemic funds to impose a moral judgment on certain lawful businesses.

Moheny runs an array of clubs and noted that this is an $8 billion industry that includes thousands of strip clubs nationwide with more than 57,000 employees.  This is discrimination based on objections over the morality of a legal business supported by consenting adults. As many on this blog know, I have been a critic for decades of morality legislation that seeks to impose the majority’s view of proper morals on those who do not share those morals.

This is only the latest such ruling against the Administration, which deserves to lose each and every appeal.  What is interesting in this decision is the discussion of Chevron.  I have repeatedly testified on the Chevron doctrine and my objections to its expansive interpretation. (e.g,. here and here).  The court “concludes under step one of Chevron that the PPP Ineligibility Rule conflicts with the PPP and is therefore invalid.”

While the court concludes that it is not necessary to address the underlying constitutional claims (under the doctrine of avoidance), Judge Leitman rejects the threshold claims against this industry:

“Defendants are correct that it would ordinarily be absurd to conclude that Congress meant to provide financial assistance to, among others, certain sexually oriented businesses and private clubs that discriminate. But these are no ordinary times, and the PPP is no ordinary legislation. The COVID-19 pandemic has decimated the country’s economy, and the PPP is an unprecedented effort to undo that financial ruin. More importantly, the PPP is an effort to protect American workers – as noted above, it is located within a Title of the CARES Act named the “Keeping American Workers Paid and Employed Act” – and Congress could rationally have concluded that those workers need protection no matter the line of business in which they work. From this perspective, Congress’s decision to expand funding to previously ineligible businesses is not an endorsement or approval of those businesses.”

The opinion is DV Diamond Club of Flint LLC et al v U.S. Small Business Administration et al, U.S. District Court, Eastern District of Michigan, No. 20-10899. It is a solid and detached analysis that reaches the correct decision — a decision consistent with similar rulings across the country.

Here is the opinion: Diamond Club v. United States Small Business Administration

59 thoughts on “Loans For The Little Darlings? Strip Clubs Win Another Ruling For Pandemic Relief”

  1. Our laws are based upon and under-girded by principle, honesty being the first and foremost. The constitution was designed to function with a principled moral people. There is no civility without morality and self honesty. We’ve become a nation of uncivil rationalizers. It’s no wonder we’re splitting down the middle and slowly disintegrating.

    1. “It’s the vote, stupid!”

      – James Carville
      _____________

      The turnout was 11% in 1788 under the restricted vote of the American Founders. Never was the vote intended by the Founders to be diluted into anemia and extinction by a communist dictatorship . The Founders first required citizens to be “…free white person(s)…” then they generally required voters to be male, European, age 21 and worth 50 lbs. Sterling or 50 acres (normal women could influence the family vote of their fathers, brothers and husbands everyday at the dinner table).

      The devil caused the failure to codify.

  2. “Loans For The Little Darlings?”

    – Professor Turley
    ______________

    The “Little Darlings” are California, New York and Illinois.

    The communists (liberals, progressives, socialists, democrats, RINOs) in those one-party communist dictatorships have been extravagantly and unconstitutionally taxing and spending like drunken sailors for centuries now and they are broke.

    Public school administrators, fire chiefs, police chiefs, etc., make $250K in retirement with a COLA far in excess of phantom inflation. Teachers unions strike and public workers are gifted “comparable pay.” Welfare beneficiaries get rich. Public workers do less work and make more money than entrepreneurs, free enterprisers and workers in the private sector. Firemen actually put out ten fires per year. Police arrest bank robbers once a month. 80% of public school teachers merely babysit, indoctrinate enviro-wackos and produce 7/11 clerks and fork lift drivers, then repair to their Range Rovers and Mercedes Benzes in the teachers’ parking lot after the last bell. The balance of public workers monetize redundancy and incoherently and exponentially replicate/regurgitate the legitimate and gainful work of private sector developers, engineers, contractors, etc.

    Wealth creating American taxpayers have had their money extorted after suffering the dilution and debasement of the vote since the “Reign of Terror” of “Crazy Abe” Lincoln (the Lincoln Memorial was erected only because the “winners,” the “bullies,” write history and even a broken clock is correct twice a day). No person receiving a check from the government should ever be allowed to vote.

    The “Little Darlings” have taken to heart Rahm Emanuel’s admonition to take full advantage of every crisis and are pursuing federal funds due to COVID-19 in order to force federal taxpayers to satisfy their ridiculous state bills and redistribute more wealth to their favorite “prima donna” public workers.

    The “Little Darlings” are not stupid.

    The ones who are stupid are the American wealth creators, the makers not the takers in America.

    The American Founders were stupid, suffering “…taxation without representation…,” for a period of time until they resolved to “…throw off…a long train of abuses and usurpations,…and to provide new Guards for their future security.”
    _____________________________________________________________________________

    “But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security.–Such has been the patient sufferance of these Colonies; and such is now the necessity which constrains them to alter their former Systems of Government. The history of the present King of Great Britain is a history of repeated injuries and usurpations, all having in direct object the establishment of an absolute Tyranny over these States.”

    – Declaration of Independence

  3. A small business is either legal, or it’s not. That should be the qualifier for receiving any benefit available to small businesses during the pandemic. It doesn’t matter if it’s vice – a strip club, a legal brothel in Nevada, a bar, or a pot shop. Being popular or meritorious is not a question on the SBA loan forms.

    If it’s a legal business, it should receive access to the same pandemic relief funds as any other.

    I get it. Revenues have plummeted. Demand on services has skyrocketed. We need to save money where we can, but we need to be fair about it.

  4. Stupid of any Trump people to try and pick a fight with Strip clubs. If they qualify then they qualify. Give it up, fools. There is bigger game afoot. We are at war with China and we definitely want the strippers on our side.

    1. Donald Trump himself is not holding up money for exitic dancers. They will get their handouts. You have lots of kurtz people which injure with more than opinions.

  5. Professor Turley says: ” The Trump Administration is dead wrong in litigating these cases to use the pandemic funds to impose a moral judgment on certain lawful businesses.”

    Agree absolutely with respect to any lawful business.

    The same is true of Obama’s attempts with ‘Operation Choke Point” to use the power of the federal government to pressure lenders into denying credit to gun shops, payday loan businesses and the like.

    Both parties are tainted by a misplaced sense of moral superiority on these issues.

    Besides, if cat houses and strip clubs close where will the people be able to spend their covid bonuses?

  6. The “Small Business Administration” is unconstitutional.

    Congress has no constitutional authority to assure the success or mitigate the failure of any individual or enterprise, operate any private commercial enterprise, to lend money as a commercial bank or financial enterprise, to tax for or provide individual or specific welfare, charity or to redistribute wealth, to regulate banking, to establish a “Federal Reserve Board” or print money while it has the power to “coin” money.

    Regulation of industries is necessary and appropriate and must be done in the private sector by industries themselves. It is incumbent upon industries to protect themselves from injurious litigation.

    Government exists merely to facilitate, through the implementation of security and infrastructure, the maximal freedom provided to individuals by the Constitution.

  7. Some women doll up with makeup “to lure”. Others show breasts and legs and private parts. Cut the money off from CNN for showing all those dolled up anchors and guests.

  8. If we are to assume that all is evolutionary then it might behoove those so curious, to determine why we’re so driven to licence licentiousness, as we have been for the past three-quarters of a century. Is defense of family, in a society predicated on family as base economic unit, truly a matter of “morality”? Or does deficiency of language merely obfuscate? Again, everything is evolutionary. Likewise we should also note that those “engaged in teaching, instructing, counseling or indoctrinating religion or religious beliefs” are also ineligible, yet licensed, lawful, employment providing entities. Is that not too a “morality-based” determination and discriminatory? And who do we pin this one on? Should we attribute this to “Trump administration” too?

  9. If it is any help, the number of cam girls seems to have increased to the point where the word SIMP can no longer be used in unpolite company.

    1. All I found was that SIMP stood for simpleton, or a man who lets a beautiful woman take advantage of him when she has no plans whatsoever to date him. Ever.

      Is there a cool new meaning I don’t know about yet? Acronyms and new words are proliferating faster than in the military nowadays.

  10. Viewed from the only valid viewpoint as a Constitutional Centrist your correct and the cherry pickers can go find another home just like the socialists.

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