M & W Restaurants, Inc. v. Oklahoma Alcoholic Beverage Laws Enforcement Commission

2003 OK CIV APP 12, 63 P.3d 559, 74 O.B.A.J. 677, 2002 Okla. Civ. App. LEXIS 126, 2002 WL 31991563
CourtCourt of Civil Appeals of Oklahoma
DecidedOctober 25, 2002
Docket96,849
StatusPublished
Cited by2 cases

This text of 2003 OK CIV APP 12 (M & W Restaurants, Inc. v. Oklahoma Alcoholic Beverage Laws Enforcement Commission) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
M & W Restaurants, Inc. v. Oklahoma Alcoholic Beverage Laws Enforcement Commission, 2003 OK CIV APP 12, 63 P.3d 559, 74 O.B.A.J. 677, 2002 Okla. Civ. App. LEXIS 126, 2002 WL 31991563 (Okla. Ct. App. 2002).

Opinion

Opinion by

KENNETH L. BUETTNER, Judge.

¶ 1 The trial court granted a declaratory judgment in favor of M & W Restaurants, Inc. (Tapwerks) and the Oklahoma Malt Beverage Association (OMBA) finding that the Oklahoma Constitution’s authorization to the Alcoholic Beverage Laws Enforcement Commission (the ABLE Commission) did not include or apply to 3.2 beer or cereal malt beverage. It held that 37 O.S. Supp.1997 § 598, and the ABLE Commission’s rule *561 based thereon, which attempted to grant authority to the ABLE Commission to regulate 3.2 (low-point beer), were unconstitutional. We affirm.

¶ 2 The parties stipulated to these facts:
1. Plaintiff is a corporation that owns and operates an establishment known as Tap-werks Ale House and Cafe located in Briektown, Oklahoma City, Oklahoma.
2. Plaintiff holds a license to sell alcoholic beverages by the individual drink for consumption on the premises issued by the Oklahoma Alcoholic Beverage Laws Enforcement Commission (“ABLE”).
3. Plaintiff on its ABLE license application stated that the “main purpose” of Tapwerks Ale House and Cafe was to be a restaurant.
4. ABLE permitted Plaintiff to establish on the licensed premises of the restaurant known as Tapwerks Ale House and Cafe a “designated bar area”, which permits persons under the age of twenty-one (21) years to enter the licensed premises of the restaurant other than the designated bar area.
5. ABLE on August 23, 2000, issued a notice to Plaintiff (Exhibit “1”) that an audit of Tapwerks Ale House and Cafe had been completed and that it had been determined that the total income from the restaurant’s sale of food did not exceed the income derived from the sale of alcoholic beverages and 3.2 beer.
6. Sales of food and 3.2 beer did, however, exceed the sale of alcoholic beverages for the audit period.
7. ABLE’s notice (Exhibit “1”) informed Plaintiff that because the total income from the restaurant’s sale of food did not exceed the income derived from the sale of alcoholic beverages and 3.2 beer, the premises of Tapwerks Ale House and Cafe would be posted “21 only” at the door on September 7, 2000 unless a hearing was requested.
8. Owners of Tapwerks have provided an Affidavit and would testify at trial that Tapwerks Ale House and Cafe is a family restaurant and that denying entry to patrons under twenty-one (21) years of age would destroy the business as it is presently operated.
9. Counsel for Plaintiff on September 6, 2000 sent a letter to ABLE contesting the redesignation and requesting a hearing on the matter. A hearing was set for September 20, 2000. Counsel for Plaintiff on September 18, 2000 filed a Motion for Continuance and a Motion to Dismiss based on the contention that Article 1, Section 32 of the ABLE Commission Rules and Regulations was unconstitutional. The case was continued until November 7, 2000. The ABLE Commission Hearing Officer denied the Motion to Dismiss on November 2, 2000.
10. This declaratory judgment action was commenced by Plaintiff on November 6, 2000 to challenge the constitutionality of ABLE Commission Rule 32; ABLE, on November 28, 2000, filed a Motion to Dismiss for failure to exhaust administrative remedies. The Oklahoma Malt Beverage Association on January 17, 2001 filed a Motion to Intervene and sought to challenge not only ABLE Commission Rule 32, but also 37 O.S. § 598.
11. The trial court on February 15, 2001, granted the Motion to Intervene filed by the Oklahoma Malt Beverage Association. The trial court on that same day denied the Motion to Dismiss filed by ABLE finding:
a. The presence of a constitutional question;
b. That administrative relief was inadequate; and
c. Irreparable injury would occur to Plaintiff without judicial intervention.
12. Thereafter ABLE has filed an Answer and all parties have submitted briefs which identify the legal issue at the center of this controversy to be:
Whether Title 37 O.S. § 598 and Article 1, Section 32, ABLE Rules and Regulations (copies are attached as Exhibits “2” and “3”) are unconstitutional under the provisions of Article XXVIII of the Oklahoma Constitution.
13. All parties stipulate that there is no further need for evidence and the Court can make its legal determination of consti *562 tutionality based upon this stipulation, the pleadings, and the legal briefs submitted by the parties.

¶ 3 The Stipulation was dated August 1, 2001 and accepted by the trial court in lieu of a pretrial order.

1Í 4 Based on the Stipulation, the trial court found that declaratory judgment was proper and that the statute, 37 O.S. Supp.1997 § 598, and the ABLE Commission’s implementing rule were unconstitutional to the extent that they include and apply to any beer or cereal malt beverage containing not more than 3.2% of alcohol by weight.

¶ 5 The ABLE Commission contends that the trial court did not have jurisdiction to issue a declaratory judgment because the administrative proceeding was still in progress. It also claims that the statute and rule are constitutional.

¶ 6 With respect to the jurisdiction issue, it is settled that an administrative agency is “... powerless to strike down a statute for constitutional repugnancy.” Dow Jones & Company, Inc. v. State ex rel. Oklahoma Tax Commission, 1990 OK 6, ¶ 6, 787 P.2d 843, 845. Consequently, a challenge to the constitutionality of the law and rule in an administrative proceeding would be futile. If a party believes that the administrative agency lacks authority to make a determination of the matter, then it should seek judicial review of that question. Although generally judicial review should not take place until administrative remedies are exhausted, “... premature judicial review is permissible when administrative remedies are inadequate. Remedies are inadequate when unavailable, ineffective or futile to pursue.” Double “LL” Contractors, Inc. v. State ex rel. Oklahoma Department of Transportation, 1996 OK 30, ¶ 17, 918 P.2d 34, 39. Declaratory judgments may be sought before the issuance of an administrative final order. Conoco, Inc. v. State Department of Health, 1982 OK 94, ¶ 15, 651 P.2d 125, 130. “Such relief [declaratory judgment] is especially useful in a case where a justiciable controversy between the parties exists and the plaintiff would be required to do or refrain from doing some action at his legal peril.” Id. at ¶ 18, p. 131. In this case, the parties were in a legal proceeding but no final order had issued. The facts were not in dispute and absent a declaration of unconstitutionality, there is no reason to believe that the ABLE Commission would not enforce the statute and its rale.

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2003 OK CIV APP 12, 63 P.3d 559, 74 O.B.A.J. 677, 2002 Okla. Civ. App. LEXIS 126, 2002 WL 31991563, Counsel Stack Legal Research, https://law.counselstack.com/opinion/m-w-restaurants-inc-v-oklahoma-alcoholic-beverage-laws-enforcement-oklacivapp-2002.