SAN FRANCISCO – The 9th Circuit dismissed a lawsuit brought by a gay club in Phoenix challenging the city’s ban on “live sex act businesses.” An ordinance banned businesses “in which one or more persons may view, or may participate in, a live sex act for consideration.”

Fleck and Associates operate Flex, a gay social club that admits adults who buy yearly, monthly or daily memberships. For an additional fee, customers can rent private dressing rooms where “sexual activities take place,” the ruling states. In January 2004, police officers searched the club, questioned two employees and held them overnight. Fleck claimed the raid violated the privacy of its club members. But the circuit found that Fleck “lacked standing to assert the rights of its customers” and “failed to allege any cognizable corporate right.” It dismissed for lack of jurisdiction.