Inglewood Warehouse Liquors v. Tennessee Alcoholic Beverage Commission

692 S.W.2d 858, 1985 Tenn. App. LEXIS 2719
CourtCourt of Appeals of Tennessee
DecidedMarch 8, 1985
StatusPublished

This text of 692 S.W.2d 858 (Inglewood Warehouse Liquors v. Tennessee Alcoholic Beverage Commission) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Inglewood Warehouse Liquors v. Tennessee Alcoholic Beverage Commission, 692 S.W.2d 858, 1985 Tenn. App. LEXIS 2719 (Tenn. Ct. App. 1985).

Opinion

OPINION

LEWIS, Judge.

On November 6,1981, the Director of the Tennessee Alcoholic Beverage Commission (Commission) notified the petitioner Inglewood Warehouse Liquors (Inglewood) that a hearing would be held to determine if Inglewood’s retail liquor license should be revoked. The grounds for the proposed revocation were set forth in the letter from the Commission.

On December 18, 1981, and January 8, 1982, a revocation hearing was had before William N. Bates, an Administrative Law Judge (ALJ). On August 20,1982, the ALJ filed his findings of fact, conclusions of law, and order revoking Inglewood’s retail liquor license. The findings of fact and order was adopted by the Commission as its own on October 7, 1982.

Inglewood then petitioned the Chancery Court for Davidson County, Tennessee, to review the Commission’s final order. The Chancellor, pursuant to the Uniform Administrative Procedures Act, Tenn.Code Ann. § 4-5-101, et seq., reviewed the Commission’s decision and, thereafter, filed a Memorandum in which he held that the decision of the Commission should be affirmed. On May 25, 1984, the Chancellor entered an order which incorporated the Memorandum Opinion affirming the decision of the Commission.

Our review of the record shows that the findings of fact and order of the ALJ, which were approved and entered as the order of the Commission, are supported by substantial and material evidence. Following in pertinent part are the findings of fact of the ALT which were adopted by the Commission and concurred in by the Chancellor:

2. Inglewood is the holder of Tennessee Retailer’s License to Sell Alcoholic Beverages Permit #885. The application by Mark Burén Nicholson was approved for a retail liquor license by the ABC on April 23, 1982. Dottie Townes and Emily Townes later were approved by the ABC as part owners of Inglewood.
3. The records of the ABC reflect that Dottie Townes, Emily Townes, and Mark Burén Nicholson are the owners of Inglewood.
4. Application forms were submitted to the ABC by the owners of Inglewood on December 1, 1976, December 3, 1978, November 11, 1978, and December 23, 1979. Each form was signed by each Dottie Townes, Emily Townes, and Mark Van Burén. Each application contained question number 14 which reads, “Give the name and addresses of all persons other than those shown on application who share in the profits from your business and state their interest.” Each time the question was answered, “None.”
5. When the above applications were signed Dottie Townes, Emily Townes, and Mark Van Burén each knew the answer “None” to question 14 was false, and that Charles S. Rollins had a hidden interest in Inglewood.
6. S.J. King was the chairman of the ABC before January, 1976 and served in such capacity through December, 1978.
7. Robert E. Townes is the husband of Dottie Townes. Sometime in the early part of 1976, probably February, March, or April, Robert E. Townes met with one James Allen to discuss the application of Dottie Townes, Emily Townes and Mark Burén Nicholson for a retail liquor license. Allen advised Robert E. Townes the only way the approval of the applica[860]*860tion could be assured was if the applicants agreed to take on as a partner the person to be designated by Allen. Allen mentioned the name S.J. King as a potential partner, and Robert E. Townes agreed King would be acceptable to Townes. Robert Townes then told Allen that he would have to discuss the matter with his partners, meaning his brother (the husband of Emily Townes) and Mark Burén Nicholson. Robert E. Townes did later discuss this with his brother.
8. Robert E. Townes met with S.J. King about a week or ten days later at the Continental Inn (owned by the Townes family) ... Robert E. Townes approached King about King becoming a partner in the liquor store. King stated he could not be a partner in the liquor store. King stated he could not be a partner since he was chairman of the ABC and that would be illegal. Sometime later King and Robert E. Townes agreed on Charles S. Rollins to be a partner as King’s designee. Robert E. Townes testified he later talked to Dottie Townes, Emily Townes and her husband concerning this arrangement, and Emily Townes and Dottie Townes signed contracts transferring 25% interest in the liquor store to Charles S. Rollins. Robert E. Townes admitted he prepared one of these contracts.
9. As a result of the arrangement between King and Robert Townes, Charles E. Rollins, who later became King’s son-in-law, received a share of the profits equal to that of Dottie Townes, Emily Townes, and Mark Nicholson for four years. For the year 1977, Rollins received $18,499.84. For the year 1978, Rollins received $21,165.12. For the year 1979, Rollins received $15,983.79. For the year 1980, Rollins received $26,-483.04. The total profits for the four years was $82,131.79 received by Rollins (the same as Dottie Townes, Emily Townes, and Mark Burén Nicholson each received).
10. All of the agreements, payments, and contracts between Inglewood’s other owners and Rollins were handled either by one of the owners giving the instrument to Robert Townes who in turn normally would give the instrument to S.J. King, who in turn would furnish the contract, paper, or check to Rollins.
11. Charles S. Rollins never met Mark Burén Nicholson, Dottie Townes, and Emily Townes before he became a hidden owner in Inglewood. Rollins never contributed anything for his interest, either by financial means or by working in the liquor store, and never met or contacted Nicholson, Emily Townes or Dottie Townes concerning the operation of Inglewood.
12. Robert E. Townes was acting as the agent for owners Dottie Townes and Emily Townes during his discussions and agreements with King and Allen.
13. Mark Burén Nicholson has been involved in the retail liquor business since 1939 and has held four (4) different licenses since that date for retail liquor licenses in Tennessee.
14. Robert E. Townes advised Nicholson of the ownership interest of Rollins sometime after Inglewood opened for business, possibly in 1977.
15. Nicholson made the original agreement to enter a business partnership with Dottie Townes and Emily Townes in 1976 through their husbands, Robert Townes and Ronnie Townes.
16. S.J. King testified he was involved in a meeting with Nicholson, and others regarding who would be the desig-nee of King and receive part of the profits of Inglewood. This was denied by Nicholson.
17. Nicholson always signed the Inglewood checks made payable to Rollins, and always furnished such check to Dot-tie Townes, who in turn furnished the check to Robert Townes, who in turn furnished the checks to S.J. King, who in turn furnished the checks to Rollins.
18. Charles S. Rollins, while holding an interest in Inglewood, never applied to Metro Nashville for a Certificate of Good Moral Character.
[861]*86119. Charles S. Rollins received profits from Inglewood for the calendar years 1977-1978 as the designee of S.J.

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Related

§ 4-5-101
Tennessee § 4-5-101
§ 57
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§ 57-1-101
Tennessee § 57-1-101
§ 57-1-110
Tennessee § 57-1-110
§ 57-l-109
Tennessee § 57-l-109

Cite This Page — Counsel Stack

Bluebook (online)
692 S.W.2d 858, 1985 Tenn. App. LEXIS 2719, Counsel Stack Legal Research, https://law.counselstack.com/opinion/inglewood-warehouse-liquors-v-tennessee-alcoholic-beverage-commission-tennctapp-1985.