NORFOLK, Va. (WAVY) — Scotty Quixx nightclub owners and the city of Norfolk have reached a $200,000 settlement, according to court documents.

The city and Scotty Quixx restaurant owners agreed to a settlement Jan. 4 that “resulted in [the] dismissal of all pending claims the restaurant had against the city. As a result, the federal case was dismissed, and a dismissal order was entered on Jan. 8, 2024.”

Previously: Scotty Quixx owners sue Norfolk City Council

The owners of the shuttered Scotty Quixx nightclub sued Norfolk City Council members in U.S. District Court in June 2023, claiming council singled out the downtown business because of its largely African-American clientele. The owners had demanded compensation for money lost when the city revoked the business’ special use permit.

Scotty Quixx had originally filed a $2 million lawsuit against the city in November 2022 in Norfolk Circuit Court, accusing the city, at the time of “unreasonable, arbitrary and capricious” behavior when it revoked Quixx’s special exception permit that September. The complaint stated that “the city and City Council’s goal was not to remedy a possible reporting error, but instead to effectively put Scotty Quixx out of business.” They felt all nightlife and bars in the downtown Norfolk area were being targeted following shootings in the area.

The settlement noted that both sides “desire[d] to avoid the necessity, expense, inconvenience and uncertainty of litigation and to resolve and settle all claims and disagreements between them, known or unknown, arising out of, or in any way, related directly or indirectly to the dispute.”

According to the settlement, the city agreed to pay Scotty Quixx $200,000 on-or-before Jan. 20, and that they agreed to move to dismiss, with prejudice, both the federal case and the defamation case no later than Jan. 5 of this year.

The settlement notes that the agreement “is a compromise” and is not “an admission of liability, wrongdoing or responsibility on the part of any party.”

Each side will pay their own, respective attorneys’ fees and costs related to the lawsuit.

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