Darling Apartment Co. v. Springer

15 A.2d 670, 25 Del. Ch. 98, 1940 Del. Ch. LEXIS 45
CourtCourt of Chancery of Delaware
DecidedJune 22, 1940
StatusPublished
Cited by5 cases

This text of 15 A.2d 670 (Darling Apartment Co. v. Springer) is published on Counsel Stack Legal Research, covering Court of Chancery of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Darling Apartment Co. v. Springer, 15 A.2d 670, 25 Del. Ch. 98, 1940 Del. Ch. LEXIS 45 (Del. Ct. App. 1940).

Opinion

The Chancellor :

This case is before this court on a demurrer to the complainant’s bill.

The bill, in substance, alleges that the complainant, “Darling Apartment Company,” a corporation doing business in the City of Wilmington, holds two several licenses, issued by the Delaware Liquor Commission, which permit it to sell alcoholic liquors on its premises in that city. One of these licenses permits it to sell such liquors by the glass or by the bottle, for consumption in any dining room, taproom or bedroom, authorized by the Commission, and on the premises where sold, pursuant to. the provisions of “The Liquor Control Act.” The other license permits the “Darling Apartment Company” to sell alcoholic liquors in certain specified quantities, not for consumption on the premises where sold, and, also, as provided in the same act. Both of these licenses were issued May 31st, 1939, and will expire June 30th, 1940. Prior to the filing of the bill, Willard Springer, Jr., constituting the “Delaware Liquor Commission,” had notified the Darling Apartment Company that such licenses to sell liquor would be suspended or revoked for a period of one week because that company had knowingly permitted the consumption of alcoholic liquors upon its premises after 12:30 o’clock A. M. on January 21st, 1940, in violation of the provisions of a rule which had been prom[101]*101ulgated by the Liquor Commission September 22nd, 1938. The right of the defendant to revoke or suspend the licenses in question is challenged by the complainant, and injunctive relief is prayed for. The bill does not allege that the complainant operated a hotel, or that it knowingly permitted alcoholic liquors to be consumed on its premises after 12:30 o’clock A. M. on January 21st, 1940. In fact, it denies any such charge, but, by agreement of counsel, the case has been argued both orally and on briefs as though the complainant had specifically alleged those facts. The right of the defendant to suspend the licenses in question under that state of facts will, therefore, be considered and determined regardless of whether, in strictness, that question is raised by the demurrer to the bill.

The liquor licenses issued to the complainant were issued pursuant to the provisions of Chapter 18, Volume 38, Laws of Delaware. That act is entitled “An Act Creating a Commission for the Control of the Manufacture, Distribution, Sale and Transportation of Alcoholic Liquor, Wines and Beer.” It is incorporated in Chapter 176 of the Revised Code of 1935, which includes Sections 6130 to 6205 inclusive of that volume.

Section 6134 of the Code of 1935 provides:

“The functions, duties and powers of the Commission shall be the following :
“(l)To adopt and promulgate rules and regulations not inconsistent with the provisions of this Chapter or of the laws of the State of Delaware. All such rules and regulations shall have the force and effect of law;
“(2) To establish by such rules and regulations an effective control of the business of manufacture, sale, dispensation, distribution and importation of ‘alcoholic liquors’ within and into the State of Delaware, including the time, place and manner in which ‘alcoholic liquors’ shall be sold and dispensed, not inconsistent with the provisions a>f this chapter; * * *
“(5)1 To control the ‘manufacture,’ ‘possession,’ ‘sale’ and ‘delivery’ of ‘alcoholic liquors’ in accordance with the provisions of this Chapter; and to control the purchase, possession, transportation and ‘sale’ of ‘alcoholic liquors’ by those licensed to ‘manufacture’ or to ‘sell’;
[102]*102“(6) To grant, to refuse, or to cancel licenses for the ‘manufacture’ or ‘sale’ of ‘alcoholic liquor,’ or other licenses in regard thereto, and to transfer any license granted;
“(7) To investigate and to prevent every violation of this Chapter, make every seizure of ‘alcoholic liquor,’ ‘manufactured,’ ‘sold,’ kept or transported in contravention thereof and to confiscate such ‘alcoholic liquor’ whenever required by this Chapter;
“(8) To act for the purposes of this Chapter, as the competent authority in connection with other matters pertinent thereto.”

Section 6158 provides:

“(1) The Commission may cancel or suspend any such license for the sale of alcoholic liquor, if it has reasonable ground to believe:
“a. That the licensee has violated any provisions of this Chapter or Acts amendatory hereof or any regulation of the Commission pursuant hereto.”

Section 6162 provides:

“* * * (4) It is forbidden for any holder of a license for the sale of 'alcoholic liquor’ in a ‘hotel,’ in a ‘restaurant,’ in a ‘club’ or in a ‘tavern,’ to sell the same between twelve o’clock midnight of any day and nine o’clock in the forenoon of the following day, provided that the closing hour may be made earlier in any Municipality by ordinance of the Municipal Corporation.

It is not denied that under the police powers of the State, the Legislature has broad, regulatory powers over the manufacture, distribution, sale and transportation of alcoholic liquors. See Meehan v. Board of Excise Commissioners, 73 N. J. L. 382, 64 A. 689; 15 R. C. L. 255. Exercising that right, the Act in question prohibits the sale of any such liquor in a hotel, restaurant, club or tavern “between 12 o’clock midnight of any day and 9 o’clock in the forenoon of the following day.” One of the declared powers and duties of the Commission, created by that Act, is, also, to adopt such rules and regulations, not inconsistent with its provisions, as will bring about “an effective control of the business of manufacture, sale, dispensation, distribution and importation of ‘alcoholic liquors’ within and into the State of Delaware, including the time, place and manner in which ‘alcoholic liquors’ shall be sold and dispensed.”

[103]*103Pursuant to the power given it by the statute, the Liquor Commission promulgated a rule, which forbids “any holder of a license for the sale of ‘alcoholic liquors’ other than the holder of a ‘Gathering License’, to knowingly permit the consumption of any ‘Alcoholic Liquor’ on the premises to which such license pertains between 12:30 o’clock in the forenoon and 9:00 o’clock in the forenoon, except on the First day of January in each year.”

Perhaps the most important question to determine is whether this rule is of an administrative nature and within the scope of the act, or whether it is purely of a legislative nature and, therefore, illegal. The Legislature had the undoubted power to authorize the Liquor Commission to make such reasonable, administrative rules and regulations, clearly within the general purpose and scope of the Act, as would aid in its complete enforcement; but that power is distinctly of a limited nature, and cannot be used merely to supply omissions in the provisions of any such Act. State v. Re-towski, 6 W. W. Harr. (36 Del.) 330, 172 A. 257; Hoff v. State, 9 W. W. Harr. (39 Del.) 134, 197 A. 75, 79.

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

Related

Betts v. Zeller
263 A.2d 290 (Supreme Court of Delaware, 1970)
Carroll v. Tarburton
209 A.2d 86 (Superior Court of Delaware, 1965)
Mitchell v. Delaware Alcoholic Beverage Control Commission
193 A.2d 294 (Superior Court of Delaware, 1963)
Opinion of the Justices of the Supreme Court
177 A.2d 205 (Supreme Court of Delaware, 1962)
Ajax Distributors, Inc. v. Springer
22 A.2d 838 (Court of Chancery of Delaware, 1941)

Cite This Page — Counsel Stack

Bluebook (online)
15 A.2d 670, 25 Del. Ch. 98, 1940 Del. Ch. LEXIS 45, Counsel Stack Legal Research, https://law.counselstack.com/opinion/darling-apartment-co-v-springer-delch-1940.