Government of the Virgin Islands v. MT Retailers, Inc.

31 V.I. 62, 1995 V.I. LEXIS 6
CourtSupreme Court of The Virgin Islands
DecidedFebruary 28, 1995
DocketCivil No. 1095/1993
StatusPublished
Cited by1 cases

This text of 31 V.I. 62 (Government of the Virgin Islands v. MT Retailers, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of The Virgin Islands primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Government of the Virgin Islands v. MT Retailers, Inc., 31 V.I. 62, 1995 V.I. LEXIS 6 (virginislands 1995).

Opinion

DIASE, Judge

MEMORANDUM OPINION

On December 21,1993, Petitioner MT Retailers, Inc. ("Mountain Top") filed a Petition for Review of the Respondent Department of Licensing and Consumer Affairs' ("DLCA") final order in which the Commissioner held that Mountain Top had engaged in night club activities without the appropriate nightclub license; levied a fine; and denied Mountain Top's application for a night club license. The Commissioner, however, permitted Mountain Top to maintain its tavernkeeper liquor license (A), which allows the sale and consumption of alcoholic beverages on its premises. Based on the following, the final order of the Commissioner is affirmed.

I. FACTS

Since the 1950's, Mountain Top has operated on St. Thomas as a tourist oriented restaurant, bar and retail center. On October 1, 1972, the Virgin Islands Zoning and Subdivision Law, 29 V.I.C. Chapter 3, Subchapter I, became effective. The area in which Mountain Top is located was zoned R-l (residential, low density) upon the enactment of the zoning law. Mountain Top continued its operation in that area as a prior nonconforming use pursuant to 29 V.I.C. § 234.1 In 1993, Mountain Top held a valid tavernkeeper liquor license (A)2 and a restaurant license.

[65]*65In May of 1993, in an attempt to generate additional revenues, Mountain Top engaged the service of the Starlites, a live local band, to perform every Friday evening. In June of 1993, Mountain Top applied to DLCA for a night club license and a "restaurant A" license.3 Prior to DLCA reviewing the merits of the application, it was submitted to the Department of Planning and Natural Resources ("DPNR") for zoning recommendations. DPNR recommended that the night club license be denied because Mountain Top was located in an R-l, low density, residential district.

After Mountain Top initiated the Friday evening dances, a group of residents in the Mountain Top area formed a community group named the Mountain Top Community Residential Group and filed a formal complaint with the Virgin Islands Police Department regarding the noise, litter and parking problems generated from the activities. Raymond L. Hyndman, the former V.I. Chief of Police, along with an official from DLCA, met with some residents to discuss the complaint. During this same time, Mountain Top hired a consultant, more security and a shuttle bus service to alleviate the parking congestion and noise.

In response to the complaints, DLCA conducted an inspection of the premises on August 16, 1993. On September 2, 1993, it issued an Administrative Complaint charging Mountain Top with the unlawful operation of a night club without a valid night club license and ordered it to cease and desist all night club operations. On October 12, 1993, DLCA issued an Amended Administrative Complaint seeking, additionally, the revocation of Mountain Top's tavernkeeper liquor license (A). Mountain Top denied any violations.

On December 17, 1993, after a full hearing had been conducted on December 8,1993, the blearing Officer issued a final order in the form of a Memorandum Opinion and Order ("Order") from which Mountain Top now seeks relief. This Order was approved and signed by the Commissioner of DLCA on the same day.4 The Hearing Officer found the following pertinent facts in the Order:

[66]*661. Mountain Top currently holds a tavernkeeper liquor license (A) and a restaurant license.
2. Mountain Top's business has more than 30 seats; has bartender and waitress service; and has dancing and live entertainment.
3. Mountain Top has operated a night club since May, 1993.
4. DLCA cited Mountain Top for operating a night club without a license.
5. Mountain Top applied to DLCA for a night club license which was subsequently recommended for denial by the Commissioner of the Department of Planning and Natural Resources.
6. Mountain Top's business is located in an R-l zoning district.

Moreover, the Hearing Officer reached the following conclusions of law, in pertinent part:

1. Mountain Top has operated a night club without the proper license since May, 1993 in violation of 27 V.I.C. § 301 et seq.
2. Mountain Top's application for a night club license would be denied pursuant to 29 V.I.C. § 228.
3. The zoning laws of the Virgin Islands, pursuant to 29 V.I.C. § 228, prohibit night club activities in R-l zones.
4. In addition to penalties prescribed under 27 V.I.C. 307(d), an administrative fine not more than 25% per month of the license fee can be assessed by the Commissioner, for businesses operating without first obtaining a license.
5. Pursuant to 27 V.I.C. § 304, the Commissioner of DLCA has the authority to order a defendant to cease and desist from conducting business after a proper hearing.

The Hearing Officer also held, in pertinent part, that:

1. Mountain Top's application for a night club license would be denied; and
2. Mountain Top's tavernkeeper liquor license (A) should not be revoked.

On appeal, Mountain Top asserts that the Hearing Officer erred on the following grounds:

1. The Hearing Officer's determination that it operated a "night club" without the proper license was arbitrary, capricious or without any rational basis.

[67]*672. The Hearing Officer acted arbitrarily, capriciously and without any rational basis by determining that:

a. Mountain Top's application for a night club license should be denied because of a recommendation by DPNR that the area in which Mountain Top is located is zoned for residential use; and
b. a recommendation from DPNR, with respect to the issuance of a night club license, is binding upon DLCA.

3. Its Motion to Dismiss at the conclusion of DLCA's case in chief should have been granted because of DLCA's failure to present affirmative evidence that Mountain Top was operating a night club without a license or allowing wrongful behavior of a substantial character upon its premises.5

II. DISCUSSION

A. Standard of Review of Administrative Orders

27 V.I.C. § 304(i), the governing statute for DLCA, provides that:

[a]ny person adversely affected by any order of the Commissioner may obtain a review thereof by filing a written petition for review with the Territorial Court within 30 days after the entry of said order.... Upon such review the findings of the Commissioner, if supported by substantial evidence, shall be conclusive.

In reviewing the actions of DLCA, this Court must determine the following:

1) Whether the agency acted within the limits of the statutory powers;
2) Whether the agency's factual findings are supported by substantial evidence on the record;

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Related

People v. Wells
53 V.I. 236 (Superior Court of The Virgin Islands, 2010)

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Bluebook (online)
31 V.I. 62, 1995 V.I. LEXIS 6, Counsel Stack Legal Research, https://law.counselstack.com/opinion/government-of-the-virgin-islands-v-mt-retailers-inc-virginislands-1995.