Wedges/ledges of California, Inc. A California Corporation v. City of Phoenix, Arizona, a Municipality

Appellants are the manufacturer and former distributors and owners of an arcade “crane” amusement game called “The Challenger.” Soon after such games were first introduced in Phoenix, the City received numerous complaints about the games. The City responded by revoking license tags for some already approved machines and by imposing a blanket ban on new approvals for a period of roughly four and a half months. Appellants sued, claiming that the City’s actions violated their equal protection, procedural due process and substantive due process rights, and seeking declaratory, injunc-tive, and monetary relief. The district court granted summary judgment for the City on the grounds that the equal protection claim was without merit and that Appellants did not have a protected liberty or property interest in continuing to operate already approved machines or in obtaining City approval to operate new machines. We affirm in part, reverse in part, and remand for further proceedings.

FACTUAL AND PROCEDURAL BACKGROUND

In 1989, claimants P.A.L.L.S. Arizona, P.A.L.L.S. employee Lee Kellogg, Southwest Amusement, and Southwest Amusement president George Barker (collectively, “the Challenger…