Federal judge orders Nye to restore Hof’s licenses

In a ruling that Dennis Hof is hailing as a win over Nye County, U.S. District Court Judge Richard Boulware issued a preliminary injunction on Monday ordering the county to reinstate his brothel and liquor licenses.

The related businesses, the Love Ranch South brothel and Crystal Watering Hole, were ordered to be reopened by 8 a.m. the next morning. The judge went farther, also restricting Nye County Commissioners Dan Schinhofen and Butch Borasky from participating in any votes related to Hof’s brothel business in the future.

Federal hearing

Just after 9:30 a.m. on Aug. 27 in Las Vegas, Judge Boulware called the hearing to order and Nye County’s POOL/PACT legal representative, Rebecca Bruch, was invited to begin presenting testimony. Bruch called Nye County Commissioner Lorinda Wichman to the witness stand, where she proceeded to go over myriad details regarding Wichman’s experience with past licensing practices.

Boulware had specifically asked to hear information about a previous revocation of Hof’s license, which occurred in February and was followed by his license being reinstated in March. He said he desired to understand what had changed between the March decision to reinstate the license and the August decision to once again revoke it, as First Amendment retaliation claims by Hof made that distinction important. Therefore, Bruch focused on that line of thought.

She asked Wichman why the county had voted to reinstate Hof’s brothel license in March, to which Wichman replied that she never had any intention of restoring it at that time. However, with Schinhofen, Borasky and Nye County Sheriff Sharon Wehrly advised to abstain from voting by county legal counsel, there were only three remaining board members who participated in the March vote, tallied at 2-1 with Wichman the sole voice against.

Wichman remarked that the March action came with conditions, which she believed had not been fully met. Boulware quickly jumped in to inquire how Wichman knew that and whether she had any documentation to show that Hof was out of compliance. Wichman said she had two emails indicating problems, which were sent to her by Schinhofen, and stated she had not seen any documentation to show that Hof was now in compliance.

Pressing further, Boulware asked what the county’s counsel had to say on the matter. Wichman responded that the district attorney’s office had not offered any opinion on Hof’s compliance or lack thereof.

When Hof’s attorney, Mark Randazza of Randazza Legal Group, cross-examined Wichman, he too honed in on the subject of compliance. Recalling her assertion that she had not seen anything to indicate Hof was back in compliance, Randazza called attention a copy of the August agenda item for license renewal, which started the lawsuit. The item stated, “These facilities have been inspected and are in compliance with the Nye County codes.” Randazza asked if Wichman recollected seeing that agenda page before.

Wichman explained that she did not place much weight on the statement, causing Boulware to interject and ask who performs the inspections. Nye County Code Compliance and the sheriff’s office do, Wichman said, remarking that all agenda items of that type always said the same thing. Boulware then asked, “Are you saying that even if the sheriff said it was in compliance, you don’t necessarily believe that?”

“That is exactly what I am saying,” Wichman said.

Honing in on her belief that Hof is not a good community partner, Wichman also said she had found Hof to display a lack of respect for county codes and stated that she felt he “thumbed his nose” at the county. Bruch added onto this thinking, stating that Hof seemed to feel that as a political person, he could do whatever he pleased and would simply call “retaliation” and file a lawsuit if he did not like an action by the county.

Randazza appeared to scoff at this, closing his own testimony by asserting that all he had heard from Wichman that morning was that she did not like Hof’s behavior. The only “data point that shifted” between the county’s March and August decisions, Randazza stated, was the lack of recusal by Schinhofen and Borasky and Hof’s choice to engage in political discourse, which Randazza declared was a clear indication of retaliation.

After two and a half hours of argument by both sides in which no other witnesses were called, Boulware concluded that he was inclined to issue a preliminary injunction to reopen Hof’s businesses and return his licenses. He said there was a serious question of retaliatory motive by Schinhofen and Borasky and due to this fact, he felt the preliminary injunction would be appropriate.

Reaction to result

“The federal judge is the best and the brightest, he saw through Nye County’s lies,” Hof stated following the decision. “This is another example of how the county abuses its power. I feel sad for the people that don’t have the money and legal teams to fight the county. Everyone needs to get loud and not tolerate the county commissioners’ abuse of power.”

This is far from the end of the matter, however.

Nye County Public Information Officer Arnold Knightly pointed out that the order is a preliminary injunction and as such, is only a temporary measure, not a final action. “It is important to note that today’s ruling was a temporary injunction and not a ruling on the entirety of the lawsuit brought by Mr. Hof. The county will be dealing with the substantive issues of the case as it goes through court,” Knightly stated when reached for comment.

The lawsuit will continue through the judicial process but in the meantime, the preliminary injunction allows Hof to reopen his business establishments and proceed with normal operations until an ultimate ruling is made.

Knightly also touched on the fact that judge Boulware did not tie the county’s hands with his order either and that the liquor and licensing board retains its authority over licensing. “Today’s ruling, the judge made clear, does not prevent the county from continuing with oversight of Dennis Hof’s business or taking any action on any current or future violations,” Knightly said. “The county will continue to enforce its county codes regarding these privileged licenses.”

In conclusion, Hof made it clear he does not hold any anger toward the other members of the Nye County Liquor and Licensing Board, noting, “Donna Cox and John Koenig are both honorable, good people, along with the sheriff, Sharon Wehrly.”

Contact reporter Robin Hebrock at rhebrock@pvtimes.com