E & J Lounge Operating Co. v. Liquor Commission of Honolulu

189 P.3d 432, 118 Haw. 320, 2008 Haw. LEXIS 166
CourtHawaii Supreme Court
DecidedJuly 29, 2008
DocketNo. 27940
StatusPublished
Cited by37 cases

This text of 189 P.3d 432 (E & J Lounge Operating Co. v. Liquor Commission of Honolulu) is published on Counsel Stack Legal Research, covering Hawaii Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
E & J Lounge Operating Co. v. Liquor Commission of Honolulu, 189 P.3d 432, 118 Haw. 320, 2008 Haw. LEXIS 166 (haw 2008).

Opinion

Opinion of the Court by

ACOBA, J.

Petitioner/Appellant-Appellee/Cross-Ap-pellee E & J Lounge Operating Company, Inc., a Hawai'i corporation (Petitioner), seeks review of the judgment of the Intermediate Court of Appeals (the ICA)1 filed on January 8, 2008, pursuant to its December 24, 2007 published opinion vacating the April 20, 2006(1) Findings of Fact (FOF), Conclusions of Law (COL) and Decision and Order and (2) Judgment of the Circuit Court of the First Circuit2 (the court), and remanding the case to the court to determine Petitioner’s appeal on the merits. See E & J Lounge Operating Co. v. Liquor Comm’n, City & County of Honolulu, 116 Hawai'i 528, 556, 174 P.3d 367, 395 (App.2007).

We hold that (1) public hearings on liquor license applications held by the liquor commission are contested case hearings such that Hawai'i Revised Statutes (HRS) § 91-11 (1993)3 requires any commissioner who is not present at any stage of the public hearing to become familiar with the record before voting on a liquor license application, unless the application is automatically rejected pursuant to HRS § 281-59(a) (2007),4 (2) Re[323]*323spondent/Appellee-AppellanVCross-Appellee Liquor Commission of the City & County of Honolulu (the Commission) did not comply with HRS § 91-11 in this case, (3) HRS § 91-13.5 (Supp.2004)5 does not require automatic approval of Petitioner’s liquor license application, and (4) the court’s finding, that it is unclear from the present state of the record whether the Commission complied with the notice requirements of HRS § 281-57 (Supp.2006),6 because it was not challenged on secondary appeal to the ICA or this court, is affirmed. Thus, we vacate the ICA’s judgment, affirm the court’s decision and order as clarified below, and remand the case to the court with instructions to (1) vacate the Commission’s decision and order and (2) remand the application to the Commission for decision-making in compliance with the court’s order and this opinion, specifically, (a) to determine whether the notices sent by Petitioner complied with HRS § 281-57 and, if so, (b) to rule on the application after all voting commissioners have reviewed the entire agency record in accordance with HRS § 91-11.

I.

Petitioner submitted an Application for Liquor License to the Commission for a General Dispenser License for the Island Colony condominium located at 445 Seaside Avenue in Waikiki. On February 24, 2005, pursuant to HRS § 281-57(a),7 the Commission held a preliminary hearing to determine whether Petitioner’s application should be scheduled for a public hearing or denied. The Commission voted three-to-one in favor of scheduling a public hearing for Petitioner’s application.

On April 21, 2005, the first of what would be three public hearing-dates pursuant to HRS § 281—57(b),8 the public hearing on Petitioner’s application commenced and the Commission received substantial testimony and evidence. At that hearing, only three of the five Commissioners were present: Dennis Enomoto (Enomoto), Danny Kim (Kim), and Chu Lan Shubert Kwoek (Kwock). E & J Lounge, 116 Hawai'i at 541, 174 P.3d at 380.

The hearing was continued to April 28, 2005, at which time the Commission received additional testimony and evidence. Four out of five Commissioners were in attendance at that hearing: Enomoto, Kim, Kwock, and Danny Auyoung (Auyoung). Id.

The hearing was again continued to May 12, 2005. Three out of the five Commissioners were in attendance at the meeting: Au-young, Enomoto, and Kwoek. Id. at 542, 174 P.3d at 381. On that date, the Commission voted to deny Petitioner’s license application.

[324]*324On July 14, 2005, the Commission served Petitioner’s attorney a certified copy of its June 16, 2005 written FOP, COL, and Decision and Order. Id.

On August 11, 2005, Petitioner filed a notice of appeal to the court pursuant to HRS § 91-14 (1993 & Supp.2004), alleging that the Commission violated HRS chapter 91.9 Petitioner argued, among other things, that because Auyoung was to render a decision on May 12, 2005 but did not hear all the evidence because he was absent from the first hearing on April 21, 2005, the Commission was required under HRS § 91-1110 to issue a proposed decision and provide an opportunity for Petitioner to file exceptions and present arguments on the proposed decision prior to issuance of a final decision. Petitioner therefore contended that the Commission violated HRS § 91-11 in failing to follow this procedure prior to issuing its final decision.11

[325]*325The court ruled that the public hearing required pursuant to HRS § 281-52 (1993) was a contested case hearing and that “the Commission was required to comply with the contested case procedures” in HRS chapter 91, but that the Commission “did not comply with HRS § 91-11.” On April 20, 2006, the court entered its FOF, COL, and Decision and Order. The court found as follows:

1. [Petitioner] filed a Liquor License application for a Dispenser General License (Category 3-Live Entertainment, Recorded Music, and Dancing) with the Commission on January 10, 2005 (herein “Application”).
2. On February 24, 2005, the Commission held a preliminary hearing to review the Application. Commissioners were provided with the investigation report and [Petitioner] did not object to the contents of the investigation report, the Commission approved the setting of a Public Hearing for the Application.
3. The Commission is composed of five members, who are appointed for terms of five yeai-s. HRS § 281-11. At the February 24, 2005 preliminary hearing, four Commissioners attended the hearing; Chair [Enomoto], Co-Vice Chairs Clyde J. Eugenio [ (Eugenio) ] and [Kwock] and Commissioner [Kim].

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Bluebook (online)
189 P.3d 432, 118 Haw. 320, 2008 Haw. LEXIS 166, Counsel Stack Legal Research, https://law.counselstack.com/opinion/e-j-lounge-operating-co-v-liquor-commission-of-honolulu-haw-2008.