Broadwater v. Blue & Gray Patio Club

403 So. 2d 209
CourtSupreme Court of Alabama
DecidedAugust 27, 1981
Docket80-50
StatusPublished
Cited by11 cases

This text of 403 So. 2d 209 (Broadwater v. Blue & Gray Patio Club) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Broadwater v. Blue & Gray Patio Club, 403 So. 2d 209 (Ala. 1981).

Opinion

This appeal arises from a judgment adverse to the defendants, Joe Broadwater, as administrator of the Alcoholic Beverage Control Board of the State of Alabama (ABC Board), and private lounge retail liquor licensees, following the filing of a complaint for declaratory judgment by the plaintiffs who are private club licensees seeking an interpretation of the lounge and liquor retail license provisions of the new Alcoholic Beverage Control License Code, designated as Acts 1980, No. 80-529, codified as Code 1975, § 28-3A-1 et seq. In the litigation below, the ABC Board challenged the private club's licensees' standing to sue under Code 1975, § 6-6-223, and further argued that the legislative act gave to lounge liquor licensees, newcomers to the liquor business in Alabama, the right to retail liquor, wine, and beer to patrons for off-premises consumption much the same as was allowed to club licensees under the act.

The ABC Board, the agency in Alabama charged with the responsibility of administering the act, had previously interpreted it to allow lounge licensees, as well as club licensees, to sell liquor and other alcoholic beverages to patrons for off-premises consumption. The Circuit Court of Montgomery County rejected the ABC Board's contention as to standing and further ruled:

It was the intent of the legislature to confer upon club licensees but not lounge licensees the privilege to sell for off premises consumption and to do so in original containers because to do otherwise would be futile and impractical.

In ruling in favor of the club licensees, the Circuit Court drew heavily on these two factors: (1) the club license fee is twice as much as the lounge license fee; (2) by adding to the club license section the phrase "and to sell all of the above for off premises consumption except on Sunday," and not providing such language in the section dealing with lounge licensees, the legislature evinced an intention that lounge licensees were not to be allowed to sell liquor for off-premises consumption. We disagree, but a clear understanding of the legislative history of this bill is necessary to understand how we reach our final decision.

On February 12, 1980, House Bill 440 (H.B. 440) was introduced in the House of Representatives and then assigned to the Ways and Means Committee. On April 17, 1980, the Ways and Means Committee reported out a substitute H.B. 440 (S.H.B. 440), with amendments. On April 22, 1980, the House of Representatives passed S.H.B. 440 with the Ways and Means Committee amendments, along with several floor amendments. One of these floor amendments was the Cosby Amendment to S.H.B. 440, which allowed private clubs to sell alcoholic beverages for off-premises consumption, except on Sunday.

We are concerned in this case with H.B. 440, §§ 11 and 12; S.H.B. 440, §§ 11 and 12; and the Cosby Amendment to § 12 of S.H.B. 440. Section 11 of H.B. 440 reads as follows: *Page 211

SECTION 11. Lounge Retail Liquor License. Upon applicant's compliance with the provisions of this Code and the regulations made thereunder, the board shall, where the application is accompanied by a certificate from the clerk or proper officer setting out that the applicant has presented his application to the governing authority of the municipality, if the licensed premises is to be located therein, and has obtained its consent and approval, issue a retail liquor license which will authorize the licensee to purchase liquor and wine from the board or as authorized by the board and to purchase table wine, and beer, including draft or keg beer in any county or municipality in which the sale thereof is permitted, from any wholesaler licensee of the board and to sell at retail liquor and wine, dispensed from containers of any size, and beer, including draft or keg beer in any county or municipality in which the sale thereof is permitted, to patrons for on-premise[s] consumption. A lounge liquor licensee may permit dancing or provide other lawful entertainment on the licensed premises. No person under nineteen years of age shall be admitted on the premises of any lounge liquor licensee as a patron or employee, and it shall be unlawful for any such licensee to admit any minor to the premises as a patron or employee. [Emphasis added.]

Section 11 of S.H.B. 440 as passed in Act No. 80-529 reads as follows:

SECTION 11. Lounge Retail Liquor License. Upon applicant's compliance with the provisions of this Code and the regulations made thereunder, the board shall, where the application is accompanied by a certificate from the clerk or proper officer setting out that the applicant has presented his application to the governing authority of the municipality, if the licensed premises is to be located therein, and has obtained its consent and approval, issue a retail liquor license which will authorize the licensee to purchase liquor and wine from the board or as authorized by the board and to purchase table wine, and beer, including draft or keg beer in any county or municipality in which the sale thereof is permitted, from any wholesaler licensee of the board and to sell at retail liquor and wine, dispensed from containers of any size and beer, including draft or keg beer in any county or municipality in which the sale is permitted to patrons. A lounge liquor licensee may permit dancing or provide other lawful entertainment on the licensed premises. No person under nineteen years of age shall be admitted on the premises of any lounge licensee as a patron or employee, and it shall be unlawful for any such licensee to admit any minor to the premises as a patron or employee. [Emphasis added.]

The only difference in the two versions is that the wording "for on-premise[s] consumption," which was a part of § 11 of H.B. 440, was omitted from § 11 of S.H.B. 440 as the Act was finally passed.

Section 12, "Club Liquor Retail License" of H.B. 440 and § 12 of S.H.B. 440 are the same and provide the following:

SECTION 12. Club Liquor Retail License. Upon applicant's compliance with the provisions of this Code and the regulations made thereunder, the board may, where the application is accompanied by a certificate from the clerk or proper officers setting out that the applicant has presented his application to the governing authority of the municipality, if the licensed premises is to be located therein, and has obtained its consent and approval, issue a club liquor license for a club which will authorize the licensee to purchase liquor and wine from the board or as authorized by the board and to purchase table wine and beer, including draft or keg beer in any county or municipality in which the sale thereof is permitted, from any wholesale licensee of the board and to sell liquor and wine, dispensed from containers of any size, and beer, including draft or keg beer, in any county or municipality in which the sale thereof is permitted, to the members of the club or their guests for on-premise[s] consumption.

*Page 212

The Cosby Amendment added the following language after the last word in § 12: "and to sell all of the above for off premises consumption except Sunday." Section 12 was passed in its original form in both H.B. 440 and S.H.B. 440, except as amended by the Cosby Amendment.

The issues framed by the pleadings and briefs of the parties are as follows:

1. Did the club liquor retail licensees have standing to seek a declaratory judgment concerning the rights of lounge retail licensees vis-a-vis club liquor retail licensees' rights under the new Alcoholic Beverage License Code?

2.

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Bluebook (online)
403 So. 2d 209, Counsel Stack Legal Research, https://law.counselstack.com/opinion/broadwater-v-blue-gray-patio-club-ala-1981.