Applicants for Retail Package Liquor Licenses in Floyd County v. Gulley

674 S.W.2d 22, 1984 Ky. App. LEXIS 474
CourtCourt of Appeals of Kentucky
DecidedMarch 16, 1984
StatusPublished
Cited by4 cases

This text of 674 S.W.2d 22 (Applicants for Retail Package Liquor Licenses in Floyd County v. Gulley) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Applicants for Retail Package Liquor Licenses in Floyd County v. Gulley, 674 S.W.2d 22, 1984 Ky. App. LEXIS 474 (Ky. Ct. App. 1984).

Opinion

HAYES, Chief Judge:

The appellants unsuccessfully sought relief in Franklin Circuit Court from the denial by the Alcoholic Beverage Control Board of a hearing concerning the denial and issuance of retail package liquor licenses in Floyd County. The appellants constitute two classes — those who applied unsuccessfully for licenses and those who never applied for a license but claim to be citizens concerned with the procedure utilized in granting licenses to the successful candidates. The appellees, obviously, are the successful applicants plus the Distilled Spirits Administrator (Administrator) and the Alcohol Beverage Control Board (Board).

The trial court ruled against the applicant appellants for failure to state a claim or cause upon which relief could be granted. He ruled against the nonapplicant appellants for want of standing as parties. We hold the trial court correctly ruled in both instances.

In June, 1982 the citizens of Floyd County, after a local option election held pursuant to Chapter 242 of the Kentucky Revised Statutes, voted to legalize the sale of alcoholic beverages. Pursuant to this election and the quota standards as set forth in 804 K.A.R. 9:010, Floyd County was alloted twenty-one (21) retail package liquor licenses.

Problems began when instead of twenty-one (21) there were 137 applications for licenses. The Administrator, who by authority of KRS 241.080 has the power to issue the licenses and whose office is under the Board, reviewed the applications and ordered a field investigation on both the applicants and the proposed premises.

In their complaint for declaratory judgment and injunctive relief filed in circuit court, the appellant applicants alleged they were entitled to a full evidentiary hearing before the Board because their applications were denied and because the appellee appli[24]*24cants were successful; that all appellants were entitled to an appeal of the Administrator’s actions by virtue of KRS 243.470 and that a timely appeal was taken to the Board; that the successful applicants received their licenses by the unlawful and arbitrary actions of the Board and as a result of misconduct by the Board and Administrator as there were no applicable criteria or guidelines for the fair selection of the successful applicants.

The appellants demanded: (1) a declaratory judgment that the actions of the Board, its members and the Administrator in selecting the 21 successful applicants were unlawful and arbitrary and therefore null and void; (2) the Board be ordered to establish standards and criteria for the selection of applicants to receive licenses; (3) that all applicants receive licenses; and (4) that the 21 successful applicants be restrained from exercising their rights under their licenses.

The appellants read KRS 243.560 to mean: any order of the Board refusing, revoking or suspending a license may be appealed from by ... any citizen feeling himself aggrieved. It doesn’t say that.

KRS 243.560 says: applicants or licensees may appeal from a Board order refusing, revoking or suspending a license. A nonapplicant, nonlicensee “aggrieved citizen” may appeal from a Board order which grants or refuses a revocation or suspension of a license.

If an “aggrieved citizen” has the same right to appeal any Board order as a licensee or applicant, then there was no need to add the last part of subsection (1) of the statute. It would have read: any order of the Board refusing, revoking or suspending a license may be appealed from by the applicant or licensee or any citizen feeling himself aggrieved.

It may be necessary in some instances for an aggrieved citizen, who is not an applicant or licensee, to be permitted to appeal from a Board order refusing or granting the revocation or suspension of a license. That person may be a neighbor to a bar which is rowdy, a hangout for ex-convicts, or he may feel as a neighbor that to grant the revocation or suspension is too harsh a penalty under the circumstances. The legislature has made provisions for such an appeal. It is our belief, and we so hold, that the legislature never intended an appeal under KRS 243.560 by an aggrieved citizen, who is not an applicant, from an order of the Board granting the application for a liquor license. The citizen is heard by filing a “protest” under the provision of KRS 243.360 on the granting of a license.

The only way the so-called aggrieved citizen could appeal the Board’s order granting an application is by relying on Foster v. Goodpaster, 290 Ky. 410, 161 S.W.2d 626 (1942), which held that an order of an administrative body may be attacked by independent suit where no appeal is provided, particularily upon an assertion of arbitrariness by the administrative body. But as Commissioner Clay stated in Lexington R.B.D. Ass’n v. Dept. of A.B.C. Board, Ky., 303 S.W.2d 268 (1957) at 269:

It is fundamental that a person may attack a proceeding of this nature by independent suit only if he can show that his legal rights have been violated. A public wrong or neglect or breach of a public duty cannot be redressed in a suit in the name of an individual whose interest in the right asserted does not differ from that of the public generally, or who suffers injury only in common with the general public.

In the instant case the nonapplicant aggrieved citizens allege no violation of any private property rights and thus the trial court was correct in holding they had no “standing” to complain against the actions of the Board or Administrator.

A nonsuccessful applicant does have a right to an appeal from a Board order refusing his or her application. KRS 243.-560(1). The unsuccessful applicant has ten (10) days after the entry of the order with which he is dissatisfied to appeal to Franklin Circuit Court.

[25]*25Apparently the trial court first decided the nonsuccessful applicants had not “appealed” the refusal to grant their licenses within the mandated 10 days. The trial court later changed his decision and held these were timely appeals, but the appeals were, as a practical matter, still untimely as, to use his words, “the barrel was already empty, leaving nothing for the Board to hear.” The quota of 21 licenses had already been filled.

In accordance with KRS 243.470

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Bluebook (online)
674 S.W.2d 22, 1984 Ky. App. LEXIS 474, Counsel Stack Legal Research, https://law.counselstack.com/opinion/applicants-for-retail-package-liquor-licenses-in-floyd-county-v-gulley-kyctapp-1984.