Lake Forest Is Out $500,000 in Massage Parlor Shutdown, Court Rules

Appellate court justices ruled Thursday that Lake Forest had the right to shut down a massage parlor, where a lower court judge ruled three undercover stings revealed a pattern of prostitution, but said city officials cannot recover the nearly $500,000 in attorney fees spent on the years-long battle.

Orange County Superior Court Judge David Chaffee ordered the in February 2010.

The city moved to shut down the massage parlor, citing violations of state and local nuisance laws that prohibit lewd conduct at massage parlors.

"We're happy the court of appeal upheld the judgment, but, obviously, we're disappointed and disagree with the decision on attorney fees," said Jeff Dunn, who represented the city on the appeal.

Attorney Roger Diamond, who represented the Body Centre's owners, was pleased with the court's ruling on the fees, the prime motivation for the appeal, he said.

"I have mixed emotions,'' Diamond told City News Service. "I'm very happy about the attorneys' fee award."

The city's attorneys submitted an initial bill of slightly more than $777,000, which was eventually reduced by Chaffee to about $457,000.

"So we finally, through various efforts, got it down to zero,'' Diamond said. Diamond said his clients would have had trouble paying the legal bills otherwise.

"It would have been a blow they could not absorb," Diamond said. "That was what motivated the appeal. My clients will definitely survive financially now that it's over."

Dunn called Diamond's claim that the legal bills were the prime motivation for the appeal "nonsense revisionist history."

Dunn said his office "provided so much information [on the billing] that it's ridiculous." Still, Dunn was happy that the city's attempts to shut down the massage parlor were finally legally vindicated.

"This was the biggest battle with these people,'' Dunn said. "They fought everything. They appealed everything every step of the way. We're finally glad that it's over."

Former owner Charlie Abujudeh lost an appeal earlier last year revoking his city license to operate a massage parlor, Dunn said. Abujudeh, his mother-in-law Christine Vo, and Vo's daughter, Julie Ho, —all owners at one point or another—will have to pay $25,000 fines and legal costs, which amount to just about $2,000, Diamond said.

Diamond's defense involved a legal principle barring plaintiffs from bringing similar claims when they failed the first time. Diamond argued that when the landlord of the business at 23331 El Toro Road failed to get a court ruling evicting Lake Forest Body Centre then that prevented the city from pursuing the nuisance claim.

The city's attorneys argued they had nothing to do with the eviction attempt. Orange County sheriff's investigators held three stings over the past few years at the Body Centre and the officers testified they were solicited for prostitution.

--City News Service