BarFreeBedford v. New York State Liquor Authority

130 A.D.3d 71, 11 N.Y.S.3d 66

This text of 130 A.D.3d 71 (BarFreeBedford v. New York State Liquor Authority) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
BarFreeBedford v. New York State Liquor Authority, 130 A.D.3d 71, 11 N.Y.S.3d 66 (N.Y. Ct. App. 2015).

Opinion

OPINION OF THE COURT

Acosta, J.

At issue in this appeal is whether Supreme Court properly denied the CPLR article 78 petition to annul the State Liquor Authority’s conditional grant of a liquor license to Chumley’s 86 LLC. Chumley’s is located at 86 Bedford Street in the West Village of Manhattan. Petitioners are BarFreeBedford, a community association of residents who live near 86 Bedford Street, and 47 individual residents of the area. We affirm the denial of the petition since the record demonstrates that the State Liquor Authority’s determination has a rational basis and is not arbitrary and capricious.

Respondent Chumley’s, a bar and restaurant in the West Village, has a storied history. “The place on Bedford,” as it was known then, first opened as one of Manhattan’s original speakeasies in the 1920s. Simone de Beauvoir, one of the many literary luminaries who frequented Chumley’s, wrote, “[I]t has [73]*73that rare thing in America: an atmosphere” (Jef Klein, The History and Stories of the Best Bars of New York 58 [2006]). It was housed in an obscure location befitting the age of the roaring, prohibition-period 20s, and just getting into Chumley’s, with its multiple front, side, back, and trap doors, was an adventure.

The roster of regulars reads like the syllabus of a course on great American literature: Hemingway, O’Neill, Fitzgerald, Faulkner, Steinbeck, and Salinger. So prominent were the brilliant wordsmiths of the day at Chumley’s that in a 1930s review, restaurant critic Rian James wrote, “[I]t is quite definitely the headquarters of New York’s choosier literati” (Rian James, Dining in New York 203 [1930]). As a tribute to past patrons, Chumley’s walls were decorated with old book jackets. In 2000, the venerable watering hole was added to the National List of Literary Landmarks by the Friends of Libraries USA.

More recently, Chumley’s has become a home to firefighters from FDNY Ladder Company 5 and Engine Company 24, a firehouse that lost 11 men on 9/11. The firehouse is just a few blocks away from Chumley’s, and many of the firefighters work there part-time. In recent years, memorials for fallen firefighters have been held there. Laddermen have come from as far away as Oklahoma and Toronto to pay homage and carve their names in the restaurant’s treasured wooden tables. In a memo to the owner of Chumley’s dated October 1, 2008, the local Bedford Barrow Commerce Block Association recognized that the bar has become “[a] community memorial to our own heroic fallen firefighters.”

In 2007, Chumley’s closed temporarily for the repair of structural defects in the landmark-designated building. On May 10, 2012, Chumley’s notified Community Board 2 (the Board) of its intention to apply for a liquor license for the reopened premises. On June 21, 2012, Chumley’s appeared at a full Board meeting and presented its application for a license to operate, in a mixed-use building, a 2,000-square-foot restaurant with 58 table seats, a standing bar (no bar seats), and a maximum legal capacity of 74 people. There would be no sidewalk café or backyard garden, and it would play only recorded music at “background levels.” Chumley’s also submitted a petition, signed by roughly 250 neighboring residents, that states that granting the license would be in the public’s best interest.

[74]*74The Board and Chumley’s then negotiated certain stipulations regarding operation of the establishment. On the same date, June 21, 2012, the 39-member Board unanimously adopted a resolution recommending denial of Chumley’s application unless the stipulations were incorporated into its “Method of Operation” on the license. Specifically, Chumley’s agreed to close at 1:00 a.m. Sunday through Wednesday, and 2:00 a.m. Thursday through Saturday, and to obtain all required certificates, permits and related documents, including a revised and approved certificate of occupancy upon completion of its renovations. Chumley’s also agreed to keep the windows and doors closed at all times, to keep the kitchen open until one hour before closing, and to maintain security in front of the premises and a doorman inside. The Board notified the State Liquor Authority of its resolution.

On or about January 3, 2013, Chumley’s filed its application with the Authority. Chumley’s acknowledged that 86 Bedford Street is within 500 feet of at least three other establishments that serve liquor. Although, in such cases, the applicant must provide a written statement explaining why issuance of the license would be in the public interest, Chumley’s did not provide such a statement at that time.

When the 500-foot rule is implicated, the Authority must hold a hearing to determine whether issuance of the license is in the public interest (see Alcoholic Beverage Control Law § 64 [7] [i]). The Authority scheduled a hearing for January 24, 2013. By letter dated January 4, 2013, the Authority notified the Board of the hearing, and advised the Board that it could testify through an officer, or submit a written statement of its position, if desired.

At the January 24, 2013 hearing, Chumley’s submitted an affidavit by its manager, James Miller, who stated that granting the liquor license “promotes public convenience and advantage and is in the public interest” because: “the neighborhood is not saturated with liquor licenses,” Chumley’s would have all of its necessary permits and licenses, there would be no noticeable effect on traffic or parking in the area, existing noise levels would not increase, and there was no history of violations of the liquor law or reported crime on the premises. In a separate affidavit, Miller reaffirmed that he would adopt the previously described stipulations.

No one appeared on the Board’s behalf, and no opposition to the application was raised at the hearing. By letter dated [75]*75October 24, 2013, the Authority informed Chumley’s that its application was conditionally approved, i.e., that it would be approved upon Chumley’s compliance with the stipulations, inter alia.

By petition dated February 21, 2014, petitioners commenced the instant proceeding to annul the Authority’s conditional approval of the license. They alleged that there were at least 21 other licensed establishments within 500 feet of the premises and that the relevant statute recognizes that even three bars within 500 feet is over-saturation. Petitioners further noted that the other bars were on more commercial neighboring streets, such as Seventh Avenue South, but there were no bars on Bedford Street itself, and that the five restaurants on Bed-ford Street closed by 11:00 p.m. during the week and midnight on weekends. Thus, they alleged, if Chumley’s stayed open later, it would undermine the peace and quiet on the block. In addition, they alleged that before Chumley’s closed, it was a “major destination for tourists, undergraduates and barhopping bridge-and-tunnel partygoers,” resulting in “unruly, drunk and extremely loud” crowds on the street.

Petitioners alleged that the Authority violated the Alcoholic Beverage Control Law by issuing the license without finding that it would further the public interest, and by failing to state and file the reasons for its determination. Thus, they argued, the determination was the result of an error of law, and was arbitrary and capricious and an abuse of discretion.

In its answer, the Authority admitted that it failed to state and file the reasons for its determination before issuing the conditional approval.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Soho Alliance v. New York State Liquor Authority
32 A.D.3d 363 (Appellate Division of the Supreme Court of New York, 2006)
Cleveland Place Neighborhood Ass'n v. New York State Liquor Authority
268 A.D.2d 6 (Appellate Division of the Supreme Court of New York, 2000)
Waldman v. New York State Liquor Authority
281 A.D.2d 286 (Appellate Division of the Supreme Court of New York, 2001)

Cite This Page — Counsel Stack

Bluebook (online)
130 A.D.3d 71, 11 N.Y.S.3d 66, Counsel Stack Legal Research, https://law.counselstack.com/opinion/barfreebedford-v-new-york-state-liquor-authority-nyappdiv-2015.