George's Gold Coin, Inc. v. Oregon Liquor Control Commission

545 P.2d 1395, 24 Or. App. 457, 1976 Ore. App. LEXIS 2353
CourtCourt of Appeals of Oregon
DecidedFebruary 17, 1976
DocketCA 4992; CA 4991
StatusPublished

This text of 545 P.2d 1395 (George's Gold Coin, Inc. v. Oregon Liquor Control Commission) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
George's Gold Coin, Inc. v. Oregon Liquor Control Commission, 545 P.2d 1395, 24 Or. App. 457, 1976 Ore. App. LEXIS 2353 (Or. Ct. App. 1976).

Opinion

LANGTRY, J.

George Chin as a person "adversely affected or aggrieved” (ORS 183.480(1)(a)) and George’s Gold Coin, Inc., petitioner, appeal from an order of the Oregon Liquor Control Commission which denied the application of George’s Gold Coin, Inc., for a Dispenser Class "A” liquor license. George Chin is president and sole owner of George’s Gold Coin, Inc. The corporation applied for a liquor dispenser license for the location in Portland known as Bill’s Gold Coin, Inc., having made arrangements to purchase the operation and to lease the premises. Bill’s Gold Coin, Inc., had had a dispenser license and had operated a restaurant there for some time. Robert Louie was a 50 percent stockholder in Bill’s Gold Coin, Inc., and a director in George’s Gold Coin, Inc. Both Louie and Chin, by reason of their positions in George’s Gold Coin, Inc., were required to fill out and file Individual History Record forms in support of the application.

The application for license and the ensuing investigation showed that Chin’s arrangement required a total payment of $135,000 with $40,000 to be paid down, and $1,983.60 per month, including interest, on the balance. He had arranged to personally borrow $60,000, unsecured, from a Ray Kizer, at 12-1/2 percent interest repayable monthly within five years with interest, in order to get the down payment and funds to purchase the inventory. He had no other assets of any substance except an equity of $15,000 to $20,000 in his residence. He also would be obligated to pay $2,600 per month rent on the property.

On October 31, 1974 the OLCC notified petitioner by letter that its application was not approved, giving the reasons:

* * * *
"The granting of a license in the locality set out in the application is not demanded by public interest or convenience. Also taken into consideration were the apparent false statements made by George Chin concerning [460]*460his arrest and conviction record, and the apparent false statements made by Robert K. Louie on the application. In Mr. Chin’s case, the Commission expressed real concern regarding ORS 472.160 Paragraph (9).[1]
"Consideration on your application was based on ORS 472.160 and also on the criteria as set out in Oregon Administrative Rules Chapter 845, 10-700 to 10-730 which became effective 5-1-74.
* $ $ ** »

Thereafter there was a hearing before an examiner, an examiner’s findings and unfavorable recommendation, review by the OLCC, proposed findings and conclusions of the OLCC, exceptions to the same by petitioner, the final findings and conclusions, which remained unchanged after the exceptions, and the final order from which these appeals were taken. For purposes of this opinion, the last "Ultimate Findings of Fact” are all that are necessary to repeat:

"1. Applicant Corporation President George Chin made a false statement on his personal history form when he said he had not been arrested or convicted while being convicted of 'Conspiracy to Commit a Felony’ ([OAR 845] 10-725 (5)).
"2. That Corporation President George Chin is underfinanced in that he is dependent on a $60,000 loan in order to begin this transaction. (* * * [OAR 845] 10-725 (1)).)
"3. That Corporation Director Robert Louie made five false statements on his personal history form when he answered 'no’ to the questions: List the names of all relatives working in the liquor industry; Have you ever received a warning, violation notice, suspension or revocation for a liquor law violation as a licensee or permit-[461]*461tee; Have you ever held or do you hold any financial interest in any retail liquor business; Have you ever held an Oregon Liquor Control Commission license or service permit; and Have you ever been divorced. (* * * [OAR 845] (10-725(5)).)”

First, with reference to George Chin’s false statement, it is not controverted that he had in 1971 been arrested for conspiracy to commit a felony and then convicted of an included misdemeanor, involving prostitution (on the premises to which the dispenser license would apply), and had been fined and placed on bench probation, and that he had nonetheless answered "No” to the question, "Were you ever arrested for any crime, or convicted, fined, imprisoned, placed on probation * * * for any offense in criminal, civil or military court? * * *” His explanation is that he had no intent to mislead, that everyone knew about the conviction, and that he answered as his attorney indicated he should. His attorney testified that he had advised the "No” answer because "* * * I read into that question the requirement that the crime be a felony * * *” because "the statute” stating a basis for denial of a dispenser license "is the commitment of a felony.”

ORS 471.295(4)(b), (d), (i) and (j) provide:

"The commission may refuse to license any applicant if it has reasonable ground to believe any of the following to be true:
* * * *
"(4) That the applicant:
«ijc sfc ?{e *
"(b) Has made false statements to the commission.
* ¿¡i * *
"(d) Has been convicted of violating any of the alcoholic liquor laws of this state, general or local, or has been convicted at any time of a felony.
«if: * * * sfc
"(i) Is not possessed of or has not demonstrated financial responsibility sufficient to adequately meet the requirements of the business proposed to be licensed.
[462]*462"(j) Is unable to read or write the English language or to understand the Liquor Control Act or regulations of the commission.”

In some aspects of these cases, all of these paragraphs have some relevance. With reference to Mr. Chin’s false statement, paragraph (b) is applicable and his attorney’s explanation based on paragraph (d) is insufficient for reversal of the Commission on this appeal. We may not reverse or remand an order based on a finding of fact unless we find that it is not supported by substantial evidence. ORS 183.480(7)(d). The clear language of the question that was falsely answered left the Commission in a position where it was reasonable as a fact finder for it to doubt the witnesses’ protestations of innocent intent.

Second, with reference to George’s Gold Coin, Inc.’s appeal based on the same question and answer, and also on Mr. Louie’s false answers to other questions, we are in the position again of not substituting what we might have found for what'the Commission did find. Mr. Louie admitted some five misstatements of fact among his answers. Singly, they do not seem to amount to much.

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Related

Grog House, Inc. v. Oregon Liquor Control Commission
507 P.2d 419 (Court of Appeals of Oregon, 1973)
Von Weidlein International, Inc. v. Young
517 P.2d 295 (Court of Appeals of Oregon, 1973)
Von Weidlein International, Inc. v. Young
514 P.2d 560 (Court of Appeals of Oregon, 1973)

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Bluebook (online)
545 P.2d 1395, 24 Or. App. 457, 1976 Ore. App. LEXIS 2353, Counsel Stack Legal Research, https://law.counselstack.com/opinion/georges-gold-coin-inc-v-oregon-liquor-control-commission-orctapp-1976.