A. C. Cruise Line, Inc. v. Alcoholic Beverages Control Commission

560 N.E.2d 145, 29 Mass. App. Ct. 319, 1990 Mass. App. LEXIS 536
CourtMassachusetts Appeals Court
DecidedOctober 1, 1990
DocketNo. 90-P-634
StatusPublished
Cited by2 cases

This text of 560 N.E.2d 145 (A. C. Cruise Line, Inc. v. Alcoholic Beverages Control Commission) is published on Counsel Stack Legal Research, covering Massachusetts Appeals Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
A. C. Cruise Line, Inc. v. Alcoholic Beverages Control Commission, 560 N.E.2d 145, 29 Mass. App. Ct. 319, 1990 Mass. App. LEXIS 536 (Mass. Ct. App. 1990).

Opinion

Smith, J.

A.C. Cruise Line, Inc. (Cruise), brought an action in the Superior Court pursuant to G. L. c. 30A, § 14, seeking review of a decision of the Alcoholic Beverages Control Commission (ABCC). In its decision, the ABCC had ordered Cruise’s license to sell alcoholic beverages suspended for a total of 371 days. The suspension resulted from the ABCC’s determinations that Cruise had violated G. L. c. 138, § 69, and certain ABCC regulations.

We summarize some undisputed facts as background. In that connection, we have the advantage of a careful memorandum by the Superior Court judge who heard the c. 30A appeal. Cruise holds a license for the sale of alcoholic beverages on a vessel, issued pursuant to G. L. c. 138, § 13. On the evening of June 17, 1989, Cruise’s vessel, the “Cape Ann,” was privately chartered for an evening cruise in Boston harbor. The crew of the vessel consisted of Captain Alan D. Circeo, First Mate John Circeo, Robert Gallagher, two deck hands and four bartenders. Captain Circeo was the approved manager under G. L. c. 138, § 26, and Gallagher was approved as assistant manager under ABCC’s ship regulations.

* Everett Hinnant, Jr., and a group of his friends including Kevin Estrella were members of the charter party. Prior to boarding the vessel, Hinnant and his friends attended a cookout in South Boston at which alcoholic beverages were consumed. After boarding the “Cape Ann” and prior to its departure, Hinnant jumped from the third deck of the “Cape Ann” to the pilot house of an adjacent tug boat and then jumped back to the “Cape Ann” as it was getting under way. Captain Circeo admonished Hinnant for his conduct.

The “Cape Ann” left its pier at approximately 8:00 p.m. Later in the voyage, passengers observed Hinnant balancing on a railing. At about 9:00 p.m. Hinnant was seen hanging upside down from the third deck railing. He slipped from there, fell overboard and drowned. Following an investigation, the ABCC charged Cruise with seven violations. After an evidentiary hearing, the ABCC upheld six of the charges.

[321]*321The ABCC’s charges and dispositions are as follows:

(1) Sale or delivery of alcoholic beverages to two intoxicated persons (Hinnant and Estrella), in violation of G. L. c. 138, § 69, and 204 Code Mass. Regs. § 19.12 (1989) — one-year suspension.
(2) Sale or delivery of alcoholic beverages to a minor, one Averill, in violation of G. L. c. 138, § 34, and 204 Code Mass. Regs. § 19.12 — six-day suspension to be served after the one-year suspension.
(3) Failure to have someone other than ship captain serve as manager of record in violation of 204 Code Mass. Regs. § 19.06(2) (1989) — one-year suspension concurrent with previously imposed one-year suspension.
(4) Failure of Gallagher, who had been approved as an assistant manager, to act in a managerial capacity — one-year suspension concurrent with previously imposed one-year suspension.
(5) Failure to check for proof of proper age of Averill before serving alcoholic beverages, in violation of 204 Code Mass. Regs. § 19.07(1) (1989) — six-day suspension for serving minor, concurrent with previously imposed six-day suspension.
(6) Failure to take appropriate steps to protect a passenger, who appeared intoxicated, unruly, or a danger to himself or others, in violation of 204 Code Mass. Regs. § 19.08 (1989) — one-year suspension concurrent with previously imposed one-year suspensions.
(7) Allowing passengers to bring alcoholic beverages on ship — dismissed.

After a hearing on Cruise’s petition for review of the ABCC’s decision, a Superior Court judge filed a memorandum of decision and an order for judgment. The judge found no substantial evidence to support the findings of a sale of [322]*322alcoholic beverages to Averill and failure to check for proof of his age. As a result, she struck the six-day suspensions imposed by the ABCC on the Averill-related charges. However, the judge upheld the other ABCC findings and affirmed the decision as modified.

Cruise raises three issues on appeal. They are that the ABCC (1) improperly imposed a duty on Cruise to prevent alcoholic beverages from coming into the possession of intoxicated persons, (2) lacked authority to promulgate regulations requiring ship captains to take steps to prevent intoxicated, unruly passengers from harming themselves, and (3) based its finding that Gallagher was not performing in a managerial capacity on less than substantial evidence.

1. The charge of selling or delivering alcoholic beverages to an intoxicated person. Cruise challenges the finding that, in violation of G. L. c. 138, § 69, as amended through St. 1987, c. 754, it sold or delivered alcoholic beverages to Hin-nant while he was intoxicated.1 That statute provides: “No alcoholic beverage shall be sold or delivered on any premises licensed under this chapter to an intoxicated person.” Here, there was evidence that Hinnant, while intoxicated, drank several alcoholic beverages on board the vessel. There was no evidence, however, that Cruise had sold or delivered the alcoholic beverages to Hinnant or that it was aware that anyone had purchased such beverages for him. The judge ruled that G. L. c. 138, § 69, imposed “a duty of some kind on the licensee to prevent not only direct sales and deliveries on the licensed premises, but indirect as well.”2 She concluded that “the ABCC’s ultimate finding that . . . Cruise violated § 69 [was] justified.”

[323]*323Cruise claims that the judge’s interpretation of the statute is incorrect because this interpretation requires a licensee to exercise due care to guard against a third party’s delivery of alcoholic beverages to an intoxicated person. It argues that this interpretation violates the intent of the statute and cites Tiki Hut Lounge, Inc. v. Alcoholic Bevs. Control Commn., 398 Mass. 1001 (1986), in support of its argument. In that case, the licensee was charged with a violation of G. L. c. 138, § 34, as amended through St. 1982, c. 627, § 13. At the time of the alleged violation, that statute provided in relevant part: “Whoever makes a sale or delivery of any alcoholic beverages or alcohol to any person under twenty years of age, either for his own use or for the use of his parent or any other person . . . shall be punished . . . .” The ABCC contended in that case that G. L. c. 138, § 34, required a licensee “to exercise reasonable . . . care in preventing the delivery of liquor to a minor, that Tiki Hut failed to do so, and therefore the license suspension was proper.” Ibid. The Superior Court judge set aside the decision, and the ABCC appealed. In its decision affirming the Superior Court, the Supreme Judicial Court stated that the only material subsidiary findings made by the ABCC to support its ultimate finding were that “investigators observed a youthful appearing nineteen year old female standing near the end of the bar . . . holding a half full bottle of beer that had been bought for her by an adult patron.” Ibid. The court noted that “[tjhere was no finding or evidence that the [adult] patron acted as an agent for Tiki Hut or that, when Tiki Hut sold or delivered the beverage to the patron, it knew that the patron was acting as an intermediary for the young woman.” [324]*324Ibid.

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Bluebook (online)
560 N.E.2d 145, 29 Mass. App. Ct. 319, 1990 Mass. App. LEXIS 536, Counsel Stack Legal Research, https://law.counselstack.com/opinion/a-c-cruise-line-inc-v-alcoholic-beverages-control-commission-massappct-1990.