Jupiter Tavern, Inc. v. Pennsylvania Liquor Control Board

171 A.3d 921
CourtCommonwealth Court of Pennsylvania
DecidedJuly 12, 2017
DocketJupiter Tavern, Inc. v. PA LCB - 1243 C.D. 2016
StatusPublished
Cited by1 cases

This text of 171 A.3d 921 (Jupiter Tavern, Inc. v. Pennsylvania Liquor Control Board) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jupiter Tavern, Inc. v. Pennsylvania Liquor Control Board, 171 A.3d 921 (Pa. Ct. App. 2017).

Opinion

*922 OPINION BY

JUDGE COHN JUBELIRER

Gretchen G. Pettit (Pettit), who claims she is successor in interest to Jupiter Tavern, Inc. (Licensee), appeals from the June 20, 2016 Order of the Court of Common Pleas of Monroe County (common pleas) that denied Pettit’s appeal from the Decision of the Pennsylvania Liquor Control Board (Board) denying her nunc pro tunc applications for renewal and validation of Hotel Liquor License No. H-1212 (License) for the premises located at Rural Route 3, Kunkletown Road, P.O. Box 615, Kunkletown, Pennsylvania. On appeal, Pet-tit argues that common pleas erred by: (1) finding that Pettit did not have standing to appeal the Board’s Decision; (2) applying the incorrect legal standard regarding nunc pro tunc relief under Cook v. Unemployment Compensation Board of Review, 543 Pa. 381, 671 A.2d 1130 (1996), instead of the standard set forth in Eathome v. State Ethics Commission, 960 A.2d 206 (Pa. Cmwlth. 2008); and (3) disregarding substantial evidence that nunc pro tunc relief was warranted in this case. 1 Pettit wants the Board to accept the renewal and validation applications nunc pro tune so the License can be transferred to Kunkle-town Pub, LLC, which belongs to Pettit. However, because Pettit provided no credited evidence that she has an interest in the License, which could support her nunc pro tunc Applications, and therefore does not have standing in this case, we are constrained to affirm.

I. Background

A. History

The facts of this case are somewhat confusing as a result of multiple errors with regard to the License, and so our recitation will chronologically describe what occurred, based on testimony and documentation presented throughout the course of the hearings and appeal. The License was last listed as owned by Licensee, which, although listed as a party in the proceedings, has not participated in any of the proceedings. (See Common Pleas Opinion (Op.) at 1.) The License expired on either September 30, 2010, or September 30, 2011. 2 By letter dated October 19, 2010, TD Bank informed the Bureau of Licensing (Bureau) that TD Bank was the holder of a note for $215,000 from Licensee that was secured by a perfected lien on Licensee’s rights in the License, and that Licensee had defaulted on its obligations to TD Bank.. In response, the Board’s Chief Counsel advised TD Bank that the Board “does not recognize security interests in licenses that it issues” given that licenses are “not recognized as property between the Board and the licensee,” 3 and that it “recognizes only the *923 named licensee as having an interest therein.” (R.R. at 81a.) The Board explained that a licensee retains the privileges of a license unless and until the Board receives

a Court Order, a Writ of Execution together with a Sheriffs Bill of Sale, or a sworn affidavit, executed by counsel, representing that the licensee is subject to an agreement which authorizes a third party to act on behalf of a licensee in the event of a default, that licensee is in default, that all necessary and required procedures have been followed pursuant to any underlying agreements and all applicable laws.

(Id. at 81a-82a.) The Board explained that TD Bank could acquire the right to sell or apply for a transfer of the License if it submitted a sworn affidavit. However, TD Bank has apparently never complied with these requirements.

By letter dated April 1, 2012, the Bureau informed Licensee that it did not receive a renewal application for the term beginning October 1, 2011. (Board Decision, Findings of Fact (FOF) ¶5.) The letter also explained that Licensee could file the application late pursuant to Section 470 of the Liquor Code (Code), 47 P.S. § 4-470, 4 but that it must be submitted on or before September 30, 2013. No renewal application was submitted by September 30, 2013.

A Sheriffs sale of Licensee’s property was held in March 2013, after which St. Matthew’s U.C.C. (St. Matthew’s) received a deed for the real property. According to Pettit, she had an agreement with St. Matthew’s that she would receive a Bill of Sale for Licensee’s hotel, pub, and the License, and St. Matthew’s would retain a half-acre of land abutting its property. A document titled “Bill of Sale,” 5 dated October 15, 2013, purports to certify that, in March 2013, the Sheriff

sold the personal property of ... [Licensee] in accordance with the Court Order dated December 22, 2010, including “(A) all business assets of either defendant used in association with the restaurant/bar operation at the subject property; and (B) the rights to Pennsylvania liquor license H-1212, a copy of which is attached hereto.[”]
The purchaser is St. Matthew’s U.C.C. by [Pettit’s former attorney], who has authorized Kunkletown Pub, LLC as its designee in accordance with the Court Order dated December 22, 2010 for the bid price of $118,751.85.

(R.R. at 180a.) The Court Order dated December 22, 2010, is not in the record.

Sometime in March 2014, Pettit’s counsel filed a license transfer application, which was denied because the License had expired. According to Pettit, she then applied for a new hotel liquor license at the advice of state officials, which was also denied because the premises did not meet the current room requirements. Pettit then contacted the Board and was informed that she would need to file renewal and validation applications and request a nunc pro tunc hearing.

On April 23, 2015, Pettit filed a renewal application for the licensing period effective October 1, 2013, and ending September 30, 2015, and a validation application for the validation period beginning October 1, 2014, and ending September 30, 2015, and on July 20, 2015, she filed a renewal application for the licensing period effective October 1, 2011, and ending Septem *924 ber 30, 2013, and a validation application for the validation period effective October 1, 2012, and ending September 30, 2013. (FOF ¶¶6-9) (collectively, Applications). Pettit filed the Applications on behalf of Licensee, listing herself as “owner” and “owner/manager.” (R.R. at 71a-76a.) By letter dated September 28, 2015, the Bureau notified Pettit’s counsel that it objected to the Applications based on their untimely submission and informed him that the License had expired on September 30, 2011, and that a hearing would be held. (Objection Letter, Board’s Br., App. B; FOF ¶¶ 10-11.)

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Bluebook (online)
171 A.3d 921, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jupiter-tavern-inc-v-pennsylvania-liquor-control-board-pacommwct-2017.