Scotty Quixx owners sue Norfolk for $2M in damages, aim to reverse closure
The owners of Scotty Quixx, a popular nightclub on Granby Street, filed a lawsuit last week against the city of Norfolk and the City Council, seeking to reverse an “arbitrary” decision to close the club and to be awarded at least $2 million in damages.
The City Council voted 5-2 to close Scotty Quixx in September, citing “significant” discrepancies between the nightclub’s meals tax reporting and the amounts it reported to the Virginia Alcoholic Beverage Control Authority between October 2019 to September 2021.
In their complaint and petition for appeal, the club owners accuse multiple city officials of making false or misleading statements that created a prejudice against them — including the accusation that someone was shot and killed inside the club in 2019. The owners further allege that the city failed to follow its own policies by making a “draconian” decision in response to what they say is a first offense on meals tax reporting when neither the Norfolk Commissioner of the Revenue nor the ABC found the club in violation.
“What is really going on here is that the City and City Council are targeting all nightlife bars and restaurants in the Downtown Norfolk area and searching for any technical noncompliance to use as a pretext to enable them to act on their misguided animus and stereotypes against businesses like Scotty Quixx and their clienteles,” the complaint reads.
In a separate filing, the club’s attorneys also asked that all judges on the Norfolk Circuit Court recuse themselves from the case. The attorneys cite the fact that Norfolk Councilwoman Courtney Doyle would likely be a witness in the case, given past statements she has made about the need to rein in downtown nightlife and that she is married to Norfolk Circuit Judge John R. Doyle.
City spokesman Chris Jones declined to comment on pending litigation.
City Attorney Bernard Pishko explained in an email Thursday that the club was not closed because of the discrepancies in meals tax reporting, rather Scotty Quixx was closed because the city found that they did not sell enough food to meet the state’s definition of a restaurant.
Scotty Quixx was the scene of a late-night, non-fatal shooting more than three years ago. A Norfolk police news release issued about the Jan. 21, 2019 shooting states that a man discharged a firearm “into a crowd at Scotty Quixx” and that the man who was injured was expected to recover.
“Shootings like the one outside of Scotty Quixx are not common but one is too many. Zero is our goal,” Pishko wrote. “Council had good if not compelling reason to revoke this [conditional use permit]. Ancillary issues raised by Scottie Quixx like whether the Norfolk Circuit judges can be impartial should not overshadow the question on appeal.”
Scotty Quixx is one of four downtown businesses closed since the city launched a campaign to increase scrutiny on conditional use permits in the area following a shooting outside Legacy Restaurant and Lounge on Aug. 5. The others closed by the city were Legacy, California Burrito and Culture Restaurant & Lounge.
Each of these other bars has appealed the actions against them, but Scotty Quixx is the first to seek damages to cover lost rental income and diminished property value. The LLC behind Scotty Quixx, Oates Food Services, and its parent company, Oates Enterprises, are each seeking “at least” $1 million, for a total of at least $2 million, though the exact amount would be determined at trial.
Gavin Stone, 757-712-4806, gavin.stone@virginiamedia.com
