City of Chattanooga v. Tennessee Alcoholic Beverage Commission

525 S.W.2d 470, 1975 Tenn. LEXIS 658
CourtTennessee Supreme Court
DecidedJune 9, 1975
StatusPublished
Cited by13 cases

This text of 525 S.W.2d 470 (City of Chattanooga v. Tennessee Alcoholic Beverage Commission) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Chattanooga v. Tennessee Alcoholic Beverage Commission, 525 S.W.2d 470, 1975 Tenn. LEXIS 658 (Tenn. 1975).

Opinions

HENRY, Justice.

This suit involves the issuance of a certificate of good moral character to operate a retail liquor store. The City of Chattanooga declined to grant the certificate. The Alcoholic Beverage Commission (ABC) overruled the City and granted the certificate. On review by the Circuit Court of Davidson County, the action of the ABC was upheld. The City of Chattanooga has appealed.

There are two controlling questions, viz.:

a. The respective powers of Tennessee municipalities and The State Alcoholic Beverage Board in connection with the issuance of certificates of good moral character as a condition precedent to the issuance of a [472]*472license to sell intoxicating liquors in package stores.

b. Whether the ABC exceeded its jurisdiction, or acted illegally, arbitrarily or fraudulently in granting the certificate of good moral character to the applicant.

We discuss these questions seriatim.

I.

A determination of the basic and principal question of the respective powers of the municipalities of Tennessee and the ABC can only be made after giving consideration to the history of liquor control legislation and judicial decisions relating thereto. In our extensive investigation into the matter, we have found no reported decision of this Court wherein this vital, historical consideration has been given.

Prior to the adoption of the Eighteenth Amendment to the Constitution of the United States, the right to sell intoxicating liquor in Tennessee was a taxable privilege, with licenses being issued by the clerks of the county courts of the various counties.1 State regulation was yet to come. The prohibition amendment was ratified and became effective on 29 January 1919.2 After the dismal failure of “the great experiment”, and the era of lawlessness and official corruption it produced, the Eighteenth Amendment was repealed by the Twenty-first Amendment, which became effective on 5 December 1933.3 The various states, after this Amendment, had full right to regulate traffic in intoxicating liquors, to include the right to enforce outright prohibition. Ziffrin, Inc. v. Beeves, 308 U.S. 132, 60 S.Ct. 163, 84 L.Ed. 128 (1939).

The sale of intoxicating liquors continued to be unlawful in Tennessee.4 By Chapter 49 of the Public Acts of 1939, the sale of intoxicating liquors became legal in Tennessee, on a local option basis. This enactment was carried forward- into the Code as Section 6648.4 et seq.; however, it was not a local option law in the sense of being passed for the benefit of a particular county only. It was a general, state-wide law applicable to the entire state, but effective for its general purposes only in such counties as adopted it. Vickers v. State, 176 Tenn. 415, 142 S.W.2d 188, 145 S.W.2d 768 (1940). The “bone dry law” continued in effect in counties not electing to come under the provisions of the local option law. Renfro v. State, 176 Tenn. 638, 144 S.W.2d 793 (1940).

At this time, and for the first time, state regulation came into being.

The Commissioner of Finance and Taxation (now Commissioner' of Revenue) was given broad powers, including the right to enforce and administer the provisions of the Act, to make and enforce rules and regulations, and to issue all licenses, and revoke the same. (See Sec. 6648.7, Michie’s Code of 1934, 1941 Replacement Volume). Sec. 6648.11 (Sec. 8, Ch. 49, Acts of 1939) related to retailer’s licenses and provided that as a condition precedent to the right to issue a license, the applicant must first:

. obtain and file with said application a certificate from the Mayor, or a majority of the Commission, City Council, or the legislative council of said municipality by whatever named designated Said certificate must state that the applicant is of good moral character and is personally known to the official signing the certificate, or that such official has made a careful investigation of the applicant’s general character and from such investigation it is found to be good, and that in his opinion the applicant will refrain from a violation of this Act and is entitled to the license applied for. Pro[473]*473vided further, that no such officer shall arbitrarily refuse to issue such certificate to an applicant, and in the event of such arbitrary refusal the remedy is hereby given to the applicant to compel said official bv writ of mandamus to issue said certificate. In the event the commissioner shall arbitrarily refuse to issue said license, he may likewise bv mandamus be compelled to do so.5 (emphasis supplied)

Thus it will be seen that the sole power of the city was to issue a certificate of good moral character, or to withhold the same, acting in good faith.

There the law stood when there came before this Court the case of State ex rel. Saperstein v. Bass, 177 Tenn. 609, 152 S.W.2d 286 (1941). This, the first pertinent case to be decided under the 1939 law, was a mandamus action seeking to compel the Mayor of Chattanooga to issue a certificate of good moral character. Relator was granted a permit to sell intoxicating liquors and issued a license after having obtained a certificate. On the same day his license was issued, the city amended its liquor ordinance with the result that relator’s business location was one block outside the permissible retail zone. Notwithstanding the amendment he operated for the remainder of the year, but when he applied for a renewal of his certificate of good character it was denied him on the ground that his place of business was in an impermissible location.

The Court did not discuss the issues in the context of the exclusivity of the State’s power to control the issuance of liquor licenses. It held that as a general rule a municipality has the right to limit the number of “saloons” (the case dealt with a package store); that under its charter, the City of Chattanooga might create areas in which liquor might be sold and that the manner and extent of the regulation rested within the judgment and discretion of the City. The Court did not construe the 1939 Act; in fact, it was only mentioned in passing and generally was ignored. For these reasons and others hereinafter pointed out, the holding of Saperstein has no bearing on the issues presented in the instant suit.

In State ex rel. Major v. Cummings, 178 Tenn. 378, 158 S.W.2d 713 (1942), a case wherein an applicant had been denied a certificate of good moral character because his business was located in a prohibited area, the Court followed Saperstein, supra. The Court held that “the fact that a license has been granted by the State does not preclude the municipal authorities from making reasonable regulations pertaining to the sale of liquor,” and “a license does not protect the holder from such police regulations affecting the trade as are not unreasonable or oppressive.” Again the Court does not construe the 1939 act or analyze the respective powers of the City and the Commission.

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

Related

Coffee County Board of Education v. City of Tullahoma
574 S.W.3d 832 (Tennessee Supreme Court, 2019)
Blount County Board of Education v. City of Maryville, Tennessee
574 S.W.3d 849 (Tennessee Supreme Court, 2019)
Sullivan County, Tennessee v. The City of Bristol, Tennessee
575 S.W.3d 324 (Tennessee Supreme Court, 2019)
Bradley County School System v. The City of Cleveland, Tennessee
575 S.W.3d 515 (Tennessee Supreme Court, 2019)
State v. Kirk
868 S.W.2d 739 (Court of Criminal Appeals of Tennessee, 1993)
Claiborne Country Club, Inc. v. City of Tazewell
872 S.W.2d 685 (Court of Appeals of Tennessee, 1993)
State ex rel. Amvets Post 27 v. Beer Board of Jellico
717 S.W.2d 878 (Tennessee Supreme Court, 1986)
Pantry, Inc. v. City of Pigeon Forge
681 S.W.2d 23 (Tennessee Supreme Court, 1984)
Templeton v. Metropolitan Government of Nashville & Davidson County
650 S.W.2d 743 (Court of Appeals of Tennessee, 1983)
Metropolitan Government of Nashville & Davidson County v. Shacklett
554 S.W.2d 601 (Tennessee Supreme Court, 1977)
METRO. GOV'T OF NASHVILLE, ETC. v. Shacklett
554 S.W.2d 601 (Tennessee Supreme Court, 1977)
Seagram Distillers Co. v. Jones
548 S.W.2d 667 (Court of Appeals of Tennessee, 1976)

Cite This Page — Counsel Stack

Bluebook (online)
525 S.W.2d 470, 1975 Tenn. LEXIS 658, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-chattanooga-v-tennessee-alcoholic-beverage-commission-tenn-1975.