Knoob Enterprises, Inc. v. Village of Colp

832 N.E.2d 887, 358 Ill. App. 3d 832, 295 Ill. Dec. 437, 2005 Ill. App. LEXIS 618
Appellate Court of Illinois·Decided June 22, 2005·No. 5-04-0448·Published·Cited by 3 cases

Opinion

JUSTICE CHAPMAN

delivered the opinion of the court:

The plaintiff, Knoob Enterprises, Inc., doing business as HINRG and The Hot Spot, appeals the trial court’s judgment finding that The Hot Spot is a public accommodation that permits the consumption of alcoholic liquor on the premises, subject to local regulation pursuant to section 11 — 42—10.1 of the Illinois Municipal Code (the Municipal Code) (65 ILCS 5/11 — 42—10.1 (West 2002)). For the reasons that follow, we affirm.

I. BACKGROUND

The Board of Trustees of the Village of Colp adopted a liquor code in 2001. In 2002, the state legislature enacted section 11 — 42—10.1 of the Municipal Code, which allows municipalities to license and regulate businesses operating as public accommodations that permit the consumption of alcohol on the premises that are not subject to the Illinois Liquor Control Act of 1934 (235 ILCS 5/1 — 1 et seq. (West 2002)). The statute defines “public accommodation” as follows:

“a refreshment, entertainment, or recreation facility of any kind, whether licensed or not, whose goods, services, facilities, privileges, or advantages are extended, offered, sold, or otherwise made available to the public.” 65 ILCS 5/11 — 42—10.1 (West 2002).

Beginning in 2002, the Village of Colp (the Village) enacted ordinances pursuant to section 11 — 42—10.1, with the intent of regulating establishments open to the public that permit the consumption of alcohol on the premises, e.g., establishments permitting the public to bring in their own alcoholic beverages. The Village amended its liquor code over time, and in 2004 it repealed the code and replaced it with a fully amended version. Section 1 — 1 of the Village of Colp Ordinance No. 004 — 2004 defines “public accommodation” as follows:

“a refreshment, entertainment, or recreation facility of any kind, whether licensed or not, whose goods, services, facilities, privileges, or advantages are extended, offered, sold, or otherwise made available to the public[ ] or to individuals by the payment of dues.” Village of Colp Ordinance No. 004 — 2004, § 1 — 1 (2004).

The plaintiff, Knoob Enterprises, Inc., is a for-profit corporation doing business in the Village as HINRG (pronounced “high energy”) and The Hot Spot under the same roof. Knoob Enterprises, Inc., operates HINRG as a legally licensed bar in the north end of the building and The Hot Spot as an alleged private club in the south end. Knoob Enterprises, Inc., opened The Hot Spot and labeled it a private club around the time the Village changed the closing time for bars from 5 a.m. to 2 a.m.

The Village took the position that The Hot Spot was operating illegally because it had not obtained a license under the operative ordinance at the time (Village of Colp Ordinance No. 008 — 2002 (2002)) and that it was subject to local regulation because the public could bring and consume alcoholic beverages on the premises. The owner of The Hot Spot never applied for a Class C license required by ordinance No. 008 — 2002 because he believed that his club was exempt from the ordinance due to its private membership and nonretail status. The Village, not having its own police force, asked the Williamson County sheriffs department to enforce its ordinances. On January 10 and 11, 2004, Knoob Enterprises, Inc., was cited for operating The Hot Spot in violation of ordinance No. 008 — 2002, after two officers entered the building after 2 a.m. and observed people present and consuming alcoholic beverages at both ends of the establishment. For reasons not reflected by the record, HINRG was not cited for violating any liquor laws.

Knoob Enterprises, Inc., initially filed a two-count petition for a temporary restraining order against the Village. The petition sought equitable relief, including an order declaring certain ordinances invalid and preventing the enforcement of certain provisions therein. The Village filed a motion to dismiss, which the trial court allowed. Knoob Enterprises, Inc., then filed a five-count, first-amended complaint seeking a variety of forms of declaratory relief against the Village, challenging the validity of certain ordinances and requesting a judgment declaring that The Hot Spot is a private club and not a public accommodation. A bench trial was held. Regarding the issue before us, the trial court concluded that The Hot Spot is a “public accommodation” as defined in section 11 — 42—10.1 of the Municipal Code and section 1 — 1 of the Village of Colp Ordinance No. 004 — 2004 (excluding the language “or to individuals by the payment of dues”). Knoob Enterprises, Inc., appeals this judgment.

We will not disturb the trial court’s judgment following a bench trial unless it is against the manifest weight of the evidence. We will find a trial court’s judgment to be against the manifest weight of the evidence “only when an opposite conclusion is apparent or when its findings appear to be unreasonable, arbitrary, or not based on the evidence.” Cruthis v. Firstar Bank, N.A., 354 Ill. App. 3d 1122, 1134, 822 N.E.2d 454, 465-66 (2004). Having reviewed the evidence in its entirety, we find that the trial court’s judgment on the issue presented is reasonable and supported by the evidence. The following evidence was adduced at the trial.

Greg Knoob’s Testimony

The record reflects that the owner of HINRG and The Hot Spot is 35-year-old Colp resident Greg Knoob. Knoob operates both establishments under Knoob Enterprises, Inc., an Illinois, for-profit, subchapter C corporation in good standing. The corporation was issued state and local liquor licenses to permit HINRG to sell alcohol. HINRG’s hours of operation have changed over the years due to the Village’s regulations. When the Village refused to approve extended hours and required HINRG to close at 2 a.m., Knoob opened The Hot Spot. Knoob testified that The Hot Spot operates from 2 a.m. until 5 a.m., Friday through Sunday, as a private, bring-your-own-beverage club. According to Knoob, when HINRG closes at 2 a.m., patrons who are also members of The Hot Spot can walk to the other side of the building and continue to drink. The purpose of the club is to permit members to socialize and to listen to music. Knoob owns an establishment similar to The Hot Spot in Centraba, Illinois.

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Knoob Enterprises, Inc. v. Village of Colp, 832 N.E.2d 887, 358 Ill. App. 3d 832, 295 Ill. Dec. 437, 2005 Ill. App. LEXIS 618 (Ill. Ct. App. 2005).

832 N.E.2d 887 (Knoob Enterprises, Inc. v. Village of Colp) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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