Jayhawk Cafe v. Colorado Springs Liquor & Beer Licensing Board

165 P.3d 821, 2006 Colo. App. LEXIS 2129, 2006 WL 3803286
CourtColorado Court of Appeals
DecidedDecember 28, 2006
Docket05CA0508
StatusPublished
Cited by2 cases

This text of 165 P.3d 821 (Jayhawk Cafe v. Colorado Springs Liquor & Beer Licensing Board) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jayhawk Cafe v. Colorado Springs Liquor & Beer Licensing Board, 165 P.3d 821, 2006 Colo. App. LEXIS 2129, 2006 WL 3803286 (Colo. Ct. App. 2006).

Opinion

Opinion by

Judge CARPARELLLI

In this action for judicial review pursuant to C.R.C.P. 106(a)(4) concerning denial of an application to transfer a liquor license, the Colorado Springs Liquor and Beer Licensing Board appeals the district court's judgment vacating the Board's decision and remanding the matter to the Board for the appointment of a special hearing officer. The applicant, Jayhawk Cafe, LLC, cross-appeals the district court's judgment denying its remaining contentions. We reverse the district court's judgment and remand for reinstatement of the Board's decision.

I. Background

Jayhawk applied to the Board for a transfer of a hotel and restaurant liquor license in October 2003. The City Clerk conducted an investigation into the application. The results of this investigation were stated in a report titled "Amended Notice of Objection and Proposed Denial" (amended notice). Both the Board and Jayhawk received a copy of the amended notice prior to the March 2004 hearing on the transfer application.

Several motions were made at the hearing. Jayhawk requested that an unbiased hearing officer be appointed to hear its transfer request and that the matter be set over until the City Attorney and the City Clerk complied with its discovery request. Jayhawk's landlord asked to participate in the hearing as an interested party. The Board heard argument and denied each motion.

Evidence was presented both in support of and in opposition to the transfer of the liquor license to Jayhawk. At the conclusion of the hearing, the Board denied Jayhawk's application because it found that Jayhawk's owner was not capable of conducting her business according to law.

Following the Board's denial of the application, Jayhawk filed a complaint seeking review by the district court pursuant to C.RC.P. 106(a)(d). The district court reversed the Board's decision, finding that the transmission of the amended notice to the Board before the hearing violated Local Rule 4. 10, which provides that "no member [of the Board] shall receive or solicit comments from any persons regarding an agenda item prior to the public hearing at which the item is discussed." The district court remanded the matter for a new hearing on the transfer application before a special hearing officer. This appeal and cross-appeal followed.

II. Standard of Review

In an appeal of a C.R.C.P. 106(a)(4) proceeding, we review the decision of the administrative body, rather than the decision of the district court. Woods v. City & County of Denver, 122 P.3d 1050, 1053 (Colo.App.2005).

*824 C.R.C.P. 106(a)(4) provides for judicial review of a decision of an administrative body exercising judicial or quasi-judicial functions for the limited purpose of determining whether the body exceeded its jurisdiction or abused its discretion. Widder v. Durango Sch. Dist. No. 9-R, 85 P.3d 518, 526 (Colo.2004); see Brass Monkey, Inc. v. Louisville City Council, 870 P.2d 636, 639 (Colo.App.1994) (reviewing decision of local liquor licensing authority under C.R.C.P. 106(a)(4) ). In accordance with this rule, we must uphold the administrative body's exercise of discretion unless its decision is "so devoid of evidentiary support that it can only be explained as an arbitrary and capricious exercise of authority." Ross v. Fire & Police Pension Ass'n, 713 P.2d 1304, 1309 (Colo.1986); Woods v. City & County of Denver, supra.

Generally, the administrative body's interpretation of its own rules is given deference and will be "accepted if it has a reasonable basis in law and is warranted by the record." Regents of Univ. of Colo. v. City & County of Denver, 929 P.2d 58, 61 (Colo.App.1996). However, deference is not given when the administrative body's interpretation is inconsistent with its own rules. Regents of Univ. of Colo. v. City & County of Denver, supra.

When interpreting an agency rule, we give words their plain meaning and construe the rule as a whole to give harmonious effect to all provisions. See Int'l Paper Co. v. Cohen, 126 P.3d 222, 226 (Colo.App.2005)(discussing principles of interpretation of city ordinance); Halverstadt v. Dep't of Corr., 911 P.2d 654, 657 (Colo.App.1995)(applying principles of statutory interpretation to agency rule).

The Board argues that, contrary to the district court's ruling, it afforded Jayhawk due process and, thus, did not exceed its jurisdiction or abuse its discretion. We agree.

In its cross-appeal, Jayhawk argues that the district court erred when it ruled that the landlord was not a party in interest and when it concluded that the Board made sufficient findings of fact. We will construe these contentions as asserting that the Board exceeded its jurisdiction or abused its discretion. We agree with the Board.

III. Special Hearing Officer

The Board contends that it afforded Jay-hawk due process when the application was decided by the Board rather than by a special hearing officer. Jayhawk, however, argues that the Board did not follow the correct procedure for the investigatory, prehearing stage of the transfer application as required by the Board's own Local Rules and the Colorado Liquor Code. Jay-hawk also argues that the Board was predisposed to deny its application because of the failure to follow the correct procedure. We conclude that Jayhawk was afforded due process.

A. Conflict Between Local Rules and Colorado Liquor Code

We first reject Jayhawk's contention that the procedure mandated by the Local Rules is contrary to that mandated by the Colorado Liquor Code.

Applications for the issuance or transfer of liquor licenses must be approved by both state and local liquor licensing authorities. Moschetti v. Liquor Licensing Auth., 176 Colo. 281, 285, 490 P.2d 299, 301 (1971) (discussing the Colorado Liquor Code). The Board is the local liquor licensing authority for the City of Colorado Springs. Local Rule 2.01. However, the City Clerk may also act as the local licensing authority or as its agent. Local Rule 2.01. The Colorado Springs licensing authority is bound by both the applicable state statutes and its own Local Rules of procedure. Local Rule 1.00.

Section 12-47-312(1), C.R.S.2006, states that "[nlot less than five days prior to the date of the hearing, the local licensing authority shall make known its findings based on its investigation in writing to the applicant and other interested parties." Under Local Rule 2.05, the City Clerk receives applications and investigates their merits.

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165 P.3d 821, 2006 Colo. App. LEXIS 2129, 2006 WL 3803286, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jayhawk-cafe-v-colorado-springs-liquor-beer-licensing-board-coloctapp-2006.