5216 Operations, LLC D/B/A 5216 Table and Taps Versus State of Louisiana, Department of Revenue, Office of Alcohol and Tobacco Control

CourtLouisiana Court of Appeal
DecidedApril 6, 2022
Docket21-CA-520
StatusUnknown

This text of 5216 Operations, LLC D/B/A 5216 Table and Taps Versus State of Louisiana, Department of Revenue, Office of Alcohol and Tobacco Control (5216 Operations, LLC D/B/A 5216 Table and Taps Versus State of Louisiana, Department of Revenue, Office of Alcohol and Tobacco Control) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
5216 Operations, LLC D/B/A 5216 Table and Taps Versus State of Louisiana, Department of Revenue, Office of Alcohol and Tobacco Control, (La. Ct. App. 2022).

Opinion

5216 OPERATIONS, LLC D/B/A NO. 21-CA-520 5216 TABLE AND TAPS FIFTH CIRCUIT VERSUS COURT OF APPEAL STATE OF LOUISIANA, DEPARTMENT OF REVENUE, OFFICE OF ALCOHOL AND STATE OF LOUISIANA TOBACCO CONTROL

ON APPEAL FROM THE TWENTY-FOURTH JUDICIAL DISTRICT COURT PARISH OF JEFFERSON, STATE OF LOUISIANA NO. 816-089, DIVISION "M" HONORABLE SHAYNA BEEVERS MORVANT, JUDGE PRESIDING

April 06, 2022

JOHN J. MOLAISON, JR. JUDGE

Panel composed of Judges Jude G. Gravois, Marc E. Johnson, and John J. Molaison, Jr.

AFFIRMED JJM JGG

DISSENTS WITH REASONS MEJ COUNSEL FOR PLAINTIFF/APPELLEE, 5216 OPERATIONS, LLC D/B/A 5216 TABLE AND TAPS Jill A. Gautreaux

COUNSEL FOR DEFENDANT/APPELLANT, STATE OF LOUISIANA, DEPARTMENT OF REVENUE, OFFICE OF ALCOHOL AND TOBACCO CONTROL Jon Francis Carmer, Jr. Linda Pham-Kokinos Heather M. Royer

AMICUS CURIAE, STATE OF LOUISIANA, DEPARTMENT OF JUSTICE Jeffrey M. Landry Benjamin W. Wallace Elizabeth B. Murrill MOLAISON, J.

In this matter, the appellant, State of Louisiana Department of Revenue,

Office of Alcohol and Tobacco Control, appeals the granting of a preliminary

injunction in favor of the appellee, 5216 Operations, LLC. For the reasons that

follow, we affirm the district court’s ruling.

FACTS AND PROCEDURAL HISTORY

In March of 2020, after declaring a statewide public health emergency,

Governor John Bel Edwards began to establish a series of executive orders which

rendered business restrictions in the state related to the SARS-CoV-2 (“COVID”)

virus global pandemic.1 Relevant to the instant matter, Executive Department

Proclamation Number 17 JBE 2021 “COVID-19 Public Health Emergency Phase 2

of Resilient Louisiana” was issued on February 10, 2021, directing measures

“necessary to protect the health and safety of the people of Louisiana,” including

limitations on nonessential and other businesses, a face covering order, and an

authorization to the Board of Elementary and Secondary Education to issue a

policy for following requirements for reopening school facilities. More

specifically, bars were restricted from selling or serving alcohol after 11:00 p.m.,

and those establishments, at limited capacity, could only serve socially-distanced

patrons seated at tables while appropriately masked. 17 JBE 2021 §2(C)(4) and §3.

The appellee, 5216 Operations, LLC d/b/a 5216 Table and Taps (“Table and

Taps”), is the owner of a bar located within Jefferson Parish, which held an alcohol

permit issued by the appellant, the Louisiana Department of Revenue, Office of

Alcohol and Tobacco Control (“ATC”), and operated under a “conditional

1 The Governor declared a public health emergency on March 11, 2020 in Proclamation Number 25 JBE 2020. The authority for these executive orders originates under the Louisiana Constitution of 1974, the Louisiana Homeland Security and Emergency Assistance and Disaster Act (La. R.S. 29:721, et seq.), and the Louisiana Health Emergency Powers Act (La. R.S. 29:760, et seq.).

21-CA-520 1 restaurant” license for “on premises consumption” while Governor Edwards’

executive orders were in effect.

The record before us indicates that on February 16, 2021, two agents from

the ATC entered into Table and Taps for the purpose of conducting a “compliance

check.” The ATC agents observed “an absence of table side service on Business’s

premises, with Business allowing bar service, with Business at overcapacity, with

Business’s patrons standing and congregating while consuming alcohol, with some

of its patrons dancing and with its patrons and employees not practicing social

distancing and not wearing mandated face covering.” Accordingly, the ATC

issued a Notice of Suspension to Table and Taps on February 17, 2021, which

summarily suspended2 Table and Taps’ alcoholic beverage permits pending an

administrative hearing set for February 25, 2021.3

Waiving the administrative hearing, on March 1, 2021, Table and Taps

entered into a “Commissioner’s Order”/consent decree with the ATC in which

Table and Taps pled no contest to the charges. The terms of the consent decree

imposed a 45-day suspension, with 30 days deferred, and a probationary period

which extended for “as long as businesses under ATC’s jurisdiction are subject to

state/local emergency COVID restrictions issued pursuant to either the Louisiana

Homeland Security and Emergency Assistance and Disaster Act and/or Louisiana

Heath Emergency Powers Act.” A violation of any mandate contained within an

2 La. R.S. 26:93(E) allows the commissioner to order a summary suspension of a permit in accordance with La. R.S. 49:961(C) which provides for an exception to the requirement for “notice by mail to the licensee of facts or conduct which warrant the intended action, and the licensee is given an opportunity to show compliance with all lawful requirements for the retention of the license[, i]f the agency finds that public health, safety, or welfare imperatively requires emergency action, and incorporates a finding to that effect in its order. . . These proceedings shall be promptly instituted and determined.” 3 The Notice claims that Table and Taps violated the following statutes: La. R.S. 26:90(A) (13) and R.S. 26:286(A)(13)(f) “for permitting ... improper conduct or practices on the licensed premises;” La. R.S. 26:90(A)(9) “for having unclean and unsanitary conditions on the premises” ; and La. R.S. 26:91(A)(l) and R.S. 26:287(A)(8) “for failing [to] maintain qualifications required in R.S.26:80 and 26:280.”

21-CA-520 2 Executive Order and/or Proclamation would be considered a probation violation.

A monetary penalty of $1000 was also imposed.4

On March 26, 2021, Table and Taps filed the underlying Petition for

Declaratory Judgment and Motion for Temporary Restraining Order, Preliminary

Injunction and Permanent Injunction at the Twenty-Fourth Judicial District Court.

Following a hearing on April 15, 2021, the trial court granted Table and Taps’

petition for a preliminary injunction.5 The court thereafter granted the ATC’s

timely motion for appeal.

ASSIGNMENTS OF ERROR

On appeal, the ATC sets forth the following assignments of error:

1) The trial court erred in issuing the preliminary injunction without Table and Taps having to demonstrate irreparable harm under the Jurisich jurisprudential exception;

2) The trial court erred in finding that the ATC did not have the authority to enforce the governor’s proclamations under La. R.S. 26:792(3);

3) The trial court erred in ruling that the specific statute applicable to this matter was La. R.S. 29:721, et seq. and the concomitant governor’s proclamations, and that Title 26’s provisions were the general ones, and;

4) The trial court erred in ruling that the exclusive penalty for violations of COVID related executive orders and/or proclamations issued by the Governor’s Office is contained within La. R.S. 29:724(E).

LAW AND ANALYSIS

Under La. C.C.P. art. 3601, “[a]n injunction shall issue in cases where

irreparable injury, loss or damage may otherwise result to the applicant, or in other

cases specifically provided by law.” Richard v. Bourgeois, 19-494 (La. App. 5 Cir.

3/18/20), 293 So.3d 790, 793-94. The appellate court reviews the granting or

4 We note that the terms of the consent decree did not restrict Table and Taps’ right to subsequently challenge the legality of the ATC’s action against it. 5 A written judgment granting the preliminary injunction was rendered on May 5, 2021.

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