We discussed lawsuits in strip clubs that were denied a pandemic, including recent decision in favor of such clubs in Nevada, I was very critical of such denials. Now another judge correctly ruled in favor of these enterprises. District Judge Matthew Leytman in Flint, Michigan, issued a preliminary injunction prohibiting Small Business Administration from excluding businesses that perform live or selling products of a “sexually hazardous nature” from payroll loans. Businessman Jason Mokhni, who owns various clubs, including Little darlings (left) brought a lawsuit.
The Trump administration is completely wrong in litigating these cases using pandemic means to make moral judgments on some legitimate businesses.
Moheny runs many clubs and noted that this is an $ 8 billion industry that includes thousands of strip clubs across the country with more than 57,000 employees. This is discrimination based on objections to the morality of legal business, supported by mutual consent. As many on this blog know, I have been a critic of decades of moral laws that seek to impose a majority opinion on the right moral for those who do not share this moral.
This is only the last such decision against the administration, which deserves the loss of each appeal. What’s interesting about this solution is the discussion. Chevron I have repeatedly testified about chevron The doctrine and my objections to its broad interpretation. (eg,. Here and Here) The court “concludes at the first stage chevron that the PPP Rule of Conformity is contrary to the PPP and therefore invalid. ”
Although the court concludes that there is no need to consider fundamental constitutional requirements (according to the doctrine of evasion), Judge Leytman rejects threshold requirements against this industry:
“The defendants are right that, as a rule, it would be absurd to conclude that Congress wanted to provide financial assistance, inter alia, to certain sexually oriented enterprises and private clubs that discriminate. But these are not ordinary times, and PPP is not ordinary legislation. The COVID-19 pandemic destroyed the country’s economy, and the PPP is an unprecedented attempt to eliminate this financial collapse. More importantly, PPP is an attempt to protect American workers — as noted above, it falls within the title of the CARES Act under the “American Pay and Employment Retention Act” – and Congress could rationally conclude that these workers need in defense no matter in which direction they work. From this perspective, Congress’s decision to expand funding for previously non-compliant enterprises is not an endorsement or endorsement of these enterprises. ”
Opinion DV Diamond Club of Flint LLC and US Small Business Administration et al., United States District Court, Eastern District of Michigan, No. 20-10899. This is a solid and independent analysis that allows you to make the right decision – a decision that is consistent with similar decisions throughout the country.
Here is an opinion: Diamond Club v. US Small Business Administration