Prior to enacting its original zoning ordinance in 1977, the City commissioned a comprehensive study on the effects of adult businesses on the surrounding areas. Based on the findings of the study that such businesses produce deleterious effects, the City prohibited "the establishment, substantial enlargement or transfer of ownership or control of an adult business establishment within 1,000 feet of another such business ..."

In 1983 the ordinance was amended to include the prohibition of "the establishment or maintenance of more than one adult entertainment establishment in the same building, structure or portion thereof ..."

Alameda Books, Inc. and Highland Books, Inc., two separate adult businesses operating in Los Angeles, challenged the 1983 amendment of the ordinance as it pertained to them after a city building inspector had charged them with operating in violation of the ordinance. The lower court granted summary judgment for Alameda and Highland, and issued a permanent injunction enjoining the enforcement of the ordinance against the stores. The City appealed.

The Ninth Circuit held that the City failed to support its position that the 1983 amendments were designed to combat the negative secondary effects originally relied upon in 1977. The Court reasoned that summary judgment was appropriate because the "City could not meet its burden to show that it relied on evidence supporting a reasonable belief that combination businesses ... produced harmful secondary effects of the type asserted in the 1977 Study."

The United States Supreme Court on March 5, 2001 granted the City's Petition for Certiorari. Morality in Media, Inc. plans to file an amicus curiae brief in support of the City of Los Angeles.