A.J.C. Enterprises, Inc. v. Pastore

473 A.2d 269, 1984 R.I. LEXIS 459
CourtSupreme Court of Rhode Island
DecidedFebruary 21, 1984
Docket81-162-M.P., 81-213-Appeal
StatusPublished
Cited by16 cases

This text of 473 A.2d 269 (A.J.C. Enterprises, Inc. v. Pastore) is published on Counsel Stack Legal Research, covering Supreme Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
A.J.C. Enterprises, Inc. v. Pastore, 473 A.2d 269, 1984 R.I. LEXIS 459 (R.I. 1984).

Opinion

OPINION

KELLEHER, Justice.

This litigation centers upon the refusal of the East Greenwich Town Council to renew a liquor license that it had previously issued to A.J.C. Enterprises, Inc. The propriety of the East Greenwich Town Council’s refusal comes before us by way of two appeals. One is pursuant to the provisions of the Administrative Procedures Act, namely, G.L.1956 (1977 Reenactment) § 42-35-16, and challenges the affirmance by the State Liquor Control Administrator of the town council’s refusal to renew. The other appeal comes by way of an independent civil action in which the licensee sought a declaratory judgment ruling that certain provisions of the alcoholic beverages licensing statutes were unconstitutional. In the Superior Court both the appeal and the declaratory-judgment action were consolidated for hearing before a Superior Court justice, who affirmed the State Liquor Control Administrator’s ruling and rejected the licensee’s constitutional challenge.

Since the licensee did business as the Back Street Saloon, we shall hereinafter refer to the licensee as “Back Street” or “the saloon.” We shall also refer to the East Greenwich Town Council as “the council” and the State Liquor Control Administrator as “the administrator.” Initially, we shall consider Back Street’s appeal from the administrator’s ruling and then go on to consider the questions raised in the declaratory-judgment action.

On December 1,1978, the council granted Back Street’s application for a class B liquor license. The licensed premises are situated in East Greenwich at 79 Duke Street. The premises were formerly occupied by a family restaurant called Mama Chiello’s, which held the license now in dispute. After obtaining the license, Back Street’s management group decided, in a manner of speaking, to ignore family and motherhood and operate an establishment that would attract the younger generation. Back Street was open seven days a week, offering food, drink, pinball and video games, a juke box, occasional live music, and plenty of space for the younger generation to gather and socialize. And socialize the youngsters did — because from all accounts Back Street did a thriving business. The neighbors, however, were less than thrilled with the new look. They perceived Back Street’s operation as an unwarranted and unwelcome intrusion within the neighborhood and made their feelings known to East Greenwich officialdom.

In any event, as the licensing year was about to expire, the council issued a summons to Back Street, alleging that the patrons of the saloon had become disorderly, thereby annoying and disturbing the neigh *272 bors. The summons stated that a full and public hearing would be held on December 4, 1979, “on the question of the renewal, denial, revocation or suspension of your Class B alcoholic beverage license issued for the premises at 79 Duke Street, East Greenwich, Rhode Island.”

The council held several nights of hearings and, as a result, denied Back Street’s application for renewal of its license. Over a dozen witnesses testified in opposition to the renewal. The gist of their testimony was that there were problems with excessive noise, parking congestion, public urination, unruly customers, and litter; they linked these problems to Back Street’s patrons. Back Street’s management never denied that these problems existed but instead claimed that they resulted from the fact that Back Street is only one of twenty-three establishments licensed to sell liquor in the neighborhood. The council rejected this argument.

In its appeal from the Superior Court’s affirmation of the administrator’s ruling, 1 Back Street raises a number of issues relating to (1) the council’s status as a party defendant, (2) the responsibility for paying the cost of the transcript of the proceedings held before the administrator, (3) the sufficiency of that transcript, and (4) the eviden-tiary basis for the administrator’s decision.

When Back Street’s appeal reached the Superior Court, the only named party defendant was the administrator. In its declaratory-judgment action, however, it had named both the council and the Attorney General as defendants. Subsequently, the parties filed a stipulation consolidating both cases and joining the council as a named defendant in the administrative appeal. All agreed that this joinder would not bar Back Street from later challenging its propriety.

The initial facet of Back Street’s appeal concerns the council’s status as a named defendant in its appeal made pursuant to the pertinent provisions of the Administrative Procedures Act. The council contends that it had the requisite aggrievement that would justify its intervention as a defendant. In taking this position, the council points to Matunuck Beach Hotel, Inc. v. Sheldon, 121 R.I. 386, 399 A.2d 489 (1979), where the court ruled that a municipal liquor licensing agency, as the guardian of the public interest, had the necessary standing to seek judicial review of the administrator’s overruling of the municipal agency and ordering the issuance of a liquor license. The public interest that serves as a basis for the licensing agency’s status is the concern that administrative action, with its possible arbitrariness, will go unreviewed and thereby become conclusive. Here, however, there is no such concern. The administrator has sustained the council, and with that he assumes the role as guardian of the public interest. The administrator, in seeking to sustain the position taken not only by himself but also by the council, can seek the assistance of the Department of the Attorney General, which early on in this proceeding did represent the administrator. The inclusion of the council, while erroneous, is harmless.

Parenthetically, we would point out that the council was not a party at the hearing before the administrator. The record of that hearing indicates that the attorney who now represents the council in this litigation is identified as counsel for the “remonstrants” — the sixteen witnesses who then described for the administrator how conditions in the neighborhood had deteriorated since Back Street began its operation. One witness who had lived in the neighborhood for some sixty-three years, in describing the deterioration in the quality of life in *273 the locale, told the administrator that once Back Street opened its doors, life became “hell on earth.”

Back Street next claims that the state, rather than the saloon, should have been required to pay for the cost of the transcript of the hearing before the administrator. It relies on § 42-35-15(d), which provides that when an aggrieved party seeks judicial review of an administrative decision, the agency whose actions are being reviewed shall “transmit” to the reviewing court the entire record of the agency proceedings.

The trial justice in his decision ruled that Back Street must bear the expense of the transcript. He based this on Super.R.Civ.P. 78, which states that the party requesting the transcript shall pay the cost.

We acknowledge that Rule 78 does not apply to transcripts of administrative proceedings because it applies solely to testimony taken in the Superior Court.

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Bluebook (online)
473 A.2d 269, 1984 R.I. LEXIS 459, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ajc-enterprises-inc-v-pastore-ri-1984.