Lavery v. Ohio Liquor Control Commission

679 N.E.2d 57, 112 Ohio App. 3d 494, 1996 Ohio App. LEXIS 3022
CourtOhio Court of Appeals
DecidedJuly 10, 1996
DocketNo. 17541.
StatusPublished
Cited by2 cases

This text of 679 N.E.2d 57 (Lavery v. Ohio Liquor Control Commission) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lavery v. Ohio Liquor Control Commission, 679 N.E.2d 57, 112 Ohio App. 3d 494, 1996 Ohio App. LEXIS 3022 (Ohio Ct. App. 1996).

Opinions

Baird, Judge.

Plaintiff-appellant, Ramon Lavery, d.b.a Lavery’s Pub (“Lavery”), presents this appeal from the judgment rendered in the Summit County Court of Common Pleas in favor of defendant-appellee, the Ohio Liquor Control Commission (the “OLCC”). We reverse.

Lavery was cited by agents of the OLCC for violating Ohio Adm.Code 4301:1-1-53. According to the record, on November 12, 1993, the agents entered Lavery’s Pub, an establishment licensed by the OLCC to sell alcoholic beverages. The agents noticed customers purchasing and playing “tip tickets,” which have been described as scratch-off or perforated game tickets, similar in many respects to “instant-winner” games sponsored by the Ohio Lottery Commission. A batch of tickets is printed, only some of which entitle the purchaser to cash or other prizes; the value of all prizes combined is less than the cost of purchasing every ticket in a batch. The agents purchased and played five such tickets from a vending machine. One of the tickets yielded a prize of $1, which the agents redeemed. 1 The agents then confiscated tickets, money, and records, alleging *497 that the sale, playing, and payment of tip tickets was in violation of Ohio Adm.Code 4301:1-1-53 and, therefore, contrary to the terms of the license issued by OLCC to Lavery.

Lavery denied the allegations, contending that the tip ticket games were promoted and sold by, and all profit from them was remitted to, the Freedom Road Foundation (“Freedom Road”), a charitable nonprofit organization. Therefore, Lavery contends, there was no violation. The OLCC found that Lavery had violated Ohio Adm.Code 4301:1-1-53, and imposed a penalty of either a $1,000 fine or a ten-day liquor license suspension. Lavery appealed that decision to the trial court, which affirmed the decision of the OLCC. Lavery now presents this appeal, asserting three assignments of error, which we will consider together.

I

“The Summit County Common Pleas Court erred when it found that the decision of the Liquor Control Commission was supported by reliable, probative and substantial evidence and was in accordance with law because the sale of a scheme of chance conducted by a charitable organization is specifically allowed by R.C. 2915.02 and Liquor Control Commission Regulation 4301:1-1-53.”

II

“The Summit County Common Pleas Court erred when it affirmed the order of the Liquor Control Commission because R.C. 2915.02 and Liquor Control Commission Regulation 4301:1-1-53 requir[e] proof that the scheme of chance was conducted for profit.”

Ill

“The Summit County Common Pleas Court erred when it affirmed the order of the Liquor Control Commission because the Liquor Control Commission found that appellant did. permit or allow gaming or wagering on a game of skill or chance.”

In reviewing an order of an administrative agency under R.C. 119.12, the common pleas court must affirm the agency’s order unless it finds that the order is not supported by reliable, probative, and substantial evidence and is not in accordance with the law. Bottoms Up, Inc. v. Ohio Liquor Control Comm. (1991), 72 Ohio App.3d 726, 728, 596 N.E.2d 475, 476; Hall v. Ohio Bd. of *498 Landscape Architect Examiners (1993), 91 Ohio App.3d 401, 403, 632 N.E.2d 954, 955.

In reviewing the decision of the trial court, we must determine whether the trial court abused its discretion.

“In reviewing an order of an administrative agency, an appellate court’s role is more limited than that of a trial court reviewing the same order. It is incumbent on the trial court to examine the evidence. Such is not the charge of the appellate court. The appellate court is to determine only if the trial court has abused its discretion.” Lorain Cty. Bd. of Edn. v. State Emp. Relations Bd. (1988), 40 Ohio St.3d 257, 260-261, 533 N.E.2d 264, 267.

“Abuse of discretion” connotes more than an error of law or judgment as it implies that the court’s attitude is unreasonable, arbitrary, or unconscionable. Cedar Bay Constr., Inc. v. Fremont (1990), 50 Ohio St.3d 19, 22, 552 N.E.2d 202, 205. In determining whether an abuse of discretion exists, a reviewing court should be guided by a presumption that the trial court was correct. In re Jane Doe I (1991), 57 Ohio St.3d 135, 138, 566 N.E.2d 1181, 1184-1185.

In its brief, the OLCC contends (A) that there is no need to demonstrate that a gambling offense as defined in the Revised Code occurred in order to find a violation of Ohio Adm.Code 4301:1-1-53, (B) that, even if it is necessary to show the occurrence of a gambling offense, there is evidence in the record to support a conclusion that such an offense was committed, and (C) that Lavery has not demonstrated that the sale of the tip tickets complied with the Revised Code’s requirements for a scheme of chance conducted by a charitable organization and, thus, he cannot invoke such a defense. We reverse the trial court’s judgment because (A) Ohio Adm.Code 4301:1-1-53 clearly requires the OLCC to show that a gambling offense occurred, (B) the record does not support a conclusion that all the elements of any gambling offense, as defined by the Revised Code, have been proven, and (C) the record supports Lavery’s contention that the sale of the tip tickets was undertaken in conformity with the “charitable organization” exception.

In considering the issues raised by the parties, several distinctions become significant. One distinction is made throughout the relevant portions of the Revised Code between “schemes” of chance and “games” of chance. R.C. 2915.01(C) states that a “ ‘[sjcheme of chance’ means a lottery, numbers game, pool, or other scheme in which a participant gives a valuable consideration for a chance to win a prize.” R.C. 2915.01(D) defines a “game of chance” as “poker, craps, roulette, a slot machine, a punch board, or other game in which a player gives anything of value in the hope of gain, the outcome of which is determined largely or wholly by chance.”

*499 The essential difference appears to be that in a “scheme of chance,” such as a raffle or lottery, there is a definite prize which will be awarded and the question of chance is which participant will win the prize; contestants in a “game of chance,” like roulette or craps, are not guaranteed that any prize will be won by anyone. In addition, there are at least some elements of skill involved in most games of chance, whereas schemes of chance typically involve a blind choice by the purchaser. The two categories are treated separately throughout the Revised Code (see, e.g., R.C. 2915.02[D][1] and [D][2]; R.C. 2915.04).

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679 N.E.2d 57, 112 Ohio App. 3d 494, 1996 Ohio App. LEXIS 3022, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lavery-v-ohio-liquor-control-commission-ohioctapp-1996.