Bali Hai', Inc. v. Nebraska Liquor Control Commission

236 N.W.2d 614, 195 Neb. 1, 1975 Neb. LEXIS 725
CourtNebraska Supreme Court
DecidedDecember 18, 1975
Docket39862
StatusPublished
Cited by13 cases

This text of 236 N.W.2d 614 (Bali Hai', Inc. v. Nebraska Liquor Control Commission) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bali Hai', Inc. v. Nebraska Liquor Control Commission, 236 N.W.2d 614, 195 Neb. 1, 1975 Neb. LEXIS 725 (Neb. 1975).

Opinion

White, C. J.

The appellant appeals from a District Court judgment affirming an order of the Nebraska Liquor Control Commission, which in turn affirmed the order of the City of Lincoln revoking appellant’s retail Class C liquor license because of the failure to operate as a retail liquor licensee. We affirm the judgment and the order of the District Court.

The assignments of error assert that section 6.08.280 of the Lincoln municipal code, authorizing such a revocation as herein ordered, is in conflict with the state statute and an invalid exercise of the police power by the City of Lincoln; and that the appellant was deprived of due process by the procedures used and the provisions followed in the revocation of its license.

The appellant was issued a Class C liquor license for premises in Lincoln, Nebraska, for the license year commencing May 1, 1971. The appellant remained voluntarily closed and never opened for business as a retail liquor licensee from May 1, 1971, through December 6, 1971. On June 1, 1971, the appellant, through its attorney, made a written request to remain voluntarily closed for an indefinite period of time. On June 28, 1971, the Lincoln city council adopted a resolution denying the request of the appellant and directed the police *3 chief to take up the appellant’s license. The appellant’s liquor license was not taken up by the police chief.

At the request of the appellant, through its attorney, a special meeting of the city council was held on July 26, 1971, to conduct a hearing on the appellant’s request to remain closed for a definite period of time. During the course of the hearing, the appellant, speaking through its president, appeared and presented evidence. The appellant was also represented by its attorney who requested an extension of time, expressed in a specific number of days, for the appellant to remain closed. At this hearing the city council by unanimous vote rescinded its previous action and granted the request of the appellant’s attorney, giving the appellant the right to be closed for 90 days from July 26, 1971.

The appellant failed to operate as a retail liquor licensee within the 90-day period, and on December 6, 1971, another hearing was granted by the city council at a special meeting convened for that purpose. At this hearing, the appellant appeared, presented evidence, and was granted the right to cross-examine witnesses. The appellant’s president testified that the reason she remained closed was her failure to locate a suitable lessee to help her run the business. The city council found that the appellant had remained voluntarily closed as a liquor licensee from the date of the last hearing until December 6, 1971, and adopted a resolution revoking the appellant’s liquor license under the authority of section 53-134(1), R. R. S. 1943, for failure to comply with section 6.08.280 of the Lincoln municipal code.

Section 6.08.280 of the Lincoln municipal code provides that: “Any liquor licensee whose licensed premises shall be and remain voluntarily closed for ten consecutive days shall be deemed to have elected to discontinue his business under such license and the chief of police shall obtain and take up such license and deliver it to the city clerk of the city of Lincoln for- cancellation, or recommend its cancellation by the State *4 Liquor Control Commission; provided, however, this shall not apply if the licensee shall make application to the city council within such ten day period for permission, for good cause, to remain closed for a definite period, and provided the city council shall grant such permission; and provided further, that this section shall not apply in case the licensee’s place of business remains closed as a result of the licensee’s physical disability or as a result of closing for necessary alterations or repairs.”

The contention of the appellant is that the City of Lincoln in enacting and enforcing in this case, section 6.08.280 of the Lincoln municipal code as set out above, went beyond its powers under the Liquor Control Act, therefore, the ordinance was invalid and the action thereunder is void.

The appellant argues the broad sweep of the language of section 53-116, R. R. S. 1943, which provides: “The power to regulate all phases of the control of the manufacture, distribution, sale, and traffic in alcoholic liquors, except as specifically delegated in this act, is hereby vested exclusively in the commission.” Section 53-118(4), R. R. S. 1943, grants to the Liquor Control Commission authority to make rules and regulations determining for what violations of the rules or regulations licenses shall be suspended or revoked. The appellant’s argument, if carried to its logical conclusion, would clearly prohibit any and all regulatory ordinances of the liquor business by a municipality. This argument and this question have been before this court before, and an extensive review of the rationale of our previous holdings will not be indulged in. The question was laid to rest in Phelps, Inc. v. City of Hastings, 152 Neb. 651, 42 N. W. 2d 300. Our holding in that case affirmed the power of a municipal corporation to enact regulatory ordinances of the liquor traffic so long as they were not in direct conflict with a state statute, in which case, the statute is the superior law. In Phelps, Inc. v. City *5 of Hastings, supra, this court held: “ ‘The mere fact that the state, in the exercise of the police power, has made certain regulations does not prohibit a municipality from exacting additional requirements. So long as there is no conflict between the two, and the requirements of the municipal bylaw are not in themselves pernicious, as being unreasonable or discriminatory, both will stand.’ ”

It must be conceded that nowhere in the Liquor Control Act is there a provision that failure to actively use a liquor license for a prescribed period shall not be a cause for a license forfeiture. It is apparent, therefore, under the holding in the Phelps case, that the additional regulation as to nonuse and forfeiture were additional requirements, not in conflict with the state statute, and therefore the City of Lincoln was not precluded from enacting and enforcing section 6.08.280.

We agree with the appellant that exclusive power in this area is granted to the Liquor Control Commission under the sections of the state statute above referred to. But, not having exercised its power in the area covered by the city ordinance, the state has not preempted the field and it is left open to local regulatory legislation. The appellant argues that the Liquor Control Act is only concerned with regulating “traffic in alcoholic liquors” while the particular ordinance under attack deals with the “non-traffic” of alcoholic beverages. Such a simplistic and restrictive reading of the term “traffic in alcoholic liquors” will not stand against the obvious intent of these terms as they are used in the Liquor Control Act. Regulating the traffic in liquors involves not just prescribing who may sell liquor and under what conditions, but conversely, who may not, and under what circumstances the right to sell liquors may be forfeited.

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Bluebook (online)
236 N.W.2d 614, 195 Neb. 1, 1975 Neb. LEXIS 725, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bali-hai-inc-v-nebraska-liquor-control-commission-neb-1975.