Topless clubs again ordered to not tip cabbies

Kim Smith

Wednesday, Jan. 9, 2002 | 10:49 a.m.

Despite a judge's recent order to stop tipping cab drivers, numerous topless clubs continue to do so and could face contempt of court charges, local attorney Tony Sgro said.

On Monday District Judge Sally Loehrer granted a preliminary injunction preventing gentlemen's clubs from tipping cab drivers after Sgro filed a lawsuit in December alleging the clubs were offering the tips to divert customers from other clubs.

Sgro, who filed the lawsuit on behalf of the Olympic Garden, Club Paradise and the Crazy Horse Too Gentlemen's Club, argued that the Nevada Taxicab Authority prohibits drivers from accepting gratuities from businesses, but has not been able to stop the practice from happening.

In her written decision, Loehrer wrote that the authority "has either been unable or has chosen not to enforce the laws."

The practice amounts to diversion, and diverting passengers in Nevada is a crime, Loehrer said.

Loehrer ordered the clubs to stop tipping the cab drivers.

The judge also ordered the taxicab companies to supervise their drivers and to prohibit them from refusing to take fares to locations they request. She also said they are not to accept gratuities from clubs.

Sgro said this morning, however, that several clubs are still tipping drivers and he is in the process of drafting the documents to have them held in contempt of court.

Sgro did not specify which clubs he believes are in contempt.

Should Loehrer decide the clubs have violated her order, it is up to her how much to fine them, Sgro said.

"I believe, however, that they are making a calculated economic decision," Sgro said. "They know they are violating the judge's order and that they face monetary sanctions, but they are under the belief that they make more money by (diverting customers) than the judge can fine them."

Sgro said it will be his job to convince the judge to impose high enough fines to be a deterrent.

Attorney Allen Lichtenstein said the three clubs he represents, Tally-Ho, Talk of the Town and Babydolls, do not engage in diversion. Still, he plans to appeal Loehrer's decision, because the Legislature in 1999 and 2000 refused to pass laws that would make it illegal for anyone other than passengers to tip cabbies.

Loehrer, he said, does not have the authority to impose such a ruling.

Mace Yampolsky, who represents Pussycats, said he also is leaning toward filing an appeal. While diverting customers is illegal, there is a difference between giving cabbies tips for taking customers somewhere other than where they requested and giving them tips for recommending they go to another club, Yampolsky said.

As for Sgro filing contempt of court documents, Yampolsky said he doesn't know what clubs the attorney was referring to but, "He's got to do what he's got to do."

Loehrer is scheduled to hear a defense motion to dismiss the lawsuit on Jan. 29.