Kwik Shop, Inc. v. City of Lincoln

498 N.W.2d 102, 243 Neb. 178, 1993 Neb. LEXIS 124
CourtNebraska Supreme Court
DecidedApril 9, 1993
DocketS-91-012 through S-91-021
StatusPublished
Cited by31 cases

This text of 498 N.W.2d 102 (Kwik Shop, Inc. v. City of Lincoln) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kwik Shop, Inc. v. City of Lincoln, 498 N.W.2d 102, 243 Neb. 178, 1993 Neb. LEXIS 124 (Neb. 1993).

Opinion

Lanphier, J.

Acting in accordance with the recommendation of the appellees, the City of Lincoln, Mothers Against Drunk Driving, the Lincoln Package Beverage Association, the Culler Neighborhood Association, and Joe Quattrocchi, and pursuant to the Nebraska Liquor Control Act, Neb. Rev. Stat. §§ 53-101 to 53-1,121 (Reissue 1988 & Cum. Supp. 1990), the Lincoln City Council (Council) denied 10 applications for class B liquor licenses filed by the appellant, Kwik Shop, Inc. (Kwik Shop). These licenses would allow Kwik Shop to sell beer at retail outlets within the City of Lincoln’s corporate limits for consumption away from the existing convenience store premises sought to be licensed. Upon appeal by Kwik Shop, the Lancaster County District Court affirmed the actions of the Council based upon § 53-134 (Cum. Supp. 1990). Kwik Shop challenged the constitutionality of that version of § 53-134, contending that the statutory standards were arbitrary and analogous to the prior version of § 53-134 which was declared unconstitutional by this court. After the district court’s affirmance, Kwik Shop timely appealed to this court. It asks that we reverse the judgment of the district court, declare the statute unconstitutional, and order the Council to issue the licenses. We reverse, and remand with directions.

BACKGROUND

On December 12, 1989, Kwik Shop filed with the Nebraska Liquor Control Commission (Commission) two applications for class B liquor licenses for two of its convenience stores. A class B license permits the retailer to sell beer only, in the *180 original package, for consumption off the premises. § 53-124(5)(B) (Cum. Supp. 1990). On December 14, the Commission gave notice to the City of Lincoln of the filing of the applications, and on January 15, 1990, a hearing was held before the Council regarding these first two applications.

On February 23, 1990, Kwik Shop filed with the Commission an additional eight applications for class B liquor licenses for eight different retail establishments. On February 28, the Commission gave notice to the City of Lincoln of these applications, and on March 19, a hearing was held regarding the eight applications.

Each of the hearings was conducted pursuant to the procedures set forth in § 53-134 (as amended by 1989 Neb. Laws, L.B. 781). At the outset of each hearing, Kwik Shop filed a written objection to proceeding in conformance with the procedures established by L.B. 781. After Kwik Shop offered evidence addressing each of the 20 criteria to be considered by the licensing body as set forth in § 53-134, evidence relating to the applications was presented by the City of Lincoln. Three persons also appeared in opposition to the applications, representing the appellees Mothers Against Drunk Driving, the Lincoln Package Beverage Association, the Culler Neighborhood Association, and Joe Quattrocchi, the owner of an established liquor store.

At the conclusion of each hearing, a motion to deny was made with respect to each application. The motions passed, and resolutions denying each application were adopted.

On appeal, the district court affirmed the Council’s denial of all 10 of Kwik Shop’s applications, finding that pursuant to L.B. 781, there was some competent evidence supporting the Council’s decision. The district court also found that the Council, in denying these applications, was acting within its jurisdiction and authority. This appeal followed.

ASSIGNMENTS OF ERROR

Kwik Shop assigns a number of errors, contending in summary that the district court erred in failing to find that (1) Kwik Shop had standing to challenge L.B. 781’s constitutionality, (2) L.B. 781 is unconstitutional on its face and *181 as applied, (3) the Council failed to act in an unbiased fashion, (4) the Council failed to note the issues to be considered at the hearings and failed to make findings of fact upon each contested issue as required by § 53-134(3), (5) the Council failed to provide notice to appellant in conformance with § 53-134(3), (6) the Council acted in excess of its statutory authority, (7) the Council failed to approve appellant’s applications based upon the unconstitutional procedures set forth in L.B. 781, and (8) the Council based its decisions on grounds that are unsupported in view qf the record.

THE CONSTITUTIONALITY OF L.B. 781

As a threshold question to the determination of this case, we must first address the question of whether, as Kwik Shop asserts, L.B. 781 unconstitutionally delegates legislative power to local governing bodies. Kwik Shop launches a broad constitutional attack against L.B. 781, encompassing no less than 11 provisions of the Nebraska Constitution and 4 provisions of the U.S. Constitution. Before the analysis of those constitutional issues can proceed, however, we must determine whether Kwik Shop has standing to mount such an attack.

Kwik Shop’s Standing

To have standing to challenge the federal or state constitutionality of a statute, the contestant must be one who is, or is about to be, adversely affected by the language in question and must show that as a consequence of the alleged unconstitutionality, the contestant is deprived of a constitutionally protected right. State v. Fellman, 236 Neb. 850, 464 N.W.2d 181 (1991); State v. Crowdell, 234 Neb. 469, 451 N.W.2d 695 (1990); State v. Monastero, 228 Neb. 818, 424 N.W.2d 837 (1988). As Kwik Shop challenges a number of provisions within the Nebraska Liquor Control Act, this standard must be applied to each challenge individually.

Kwik Shop’s constitutional challenges can be divided into two groups: those which challenge the standards used by local governing bodies in determining whether to grant licenses and those which challenge the local governing bodies’ authority as to existing licenses and licensed premises. Kwik Shop’s *182 challenges on the latter are premature and made without standing. As stated above, to have standing, a contestant must show that he or she is, or is about to be, adversely affected by the language in question. Kwik Shop’s challenges are made as an applicant only; consequently, it lacks standing to challenge provisions which apply only to licensed premises. As such, we will not address these attacks to the statute.

As to Kwik Shop’s challenges concerning the constitutionality of the standards used by local governing bodies in determining whether to grant licenses, standing is established. To have standing, as stated above, one must be adversely affected by the language in question and must show that as a consequence of the alleged unconstitutionality, the contestant is deprived of a constitutionally protected right. Kwik Shop has been adversely affected by the relevant provisions of the Nebraska Liquor Control Act by the Council’s denial of its applications. Thus, Kwik Shop has standing to challenge only those provisions of the Nebraska Liquor Control Act which relate to license applicants.

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Bluebook (online)
498 N.W.2d 102, 243 Neb. 178, 1993 Neb. LEXIS 124, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kwik-shop-inc-v-city-of-lincoln-neb-1993.