Martin v. Alcoholic Beverage Control Appeals Board

362 P.2d 337, 55 Cal. 2d 867, 13 Cal. Rptr. 513, 1961 Cal. LEXIS 268
CourtCalifornia Supreme Court
DecidedMay 25, 1961
DocketS. F. No. 20640
StatusPublished
Cited by40 cases

This text of 362 P.2d 337 (Martin v. Alcoholic Beverage Control Appeals Board) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Martin v. Alcoholic Beverage Control Appeals Board, 362 P.2d 337, 55 Cal. 2d 867, 13 Cal. Rptr. 513, 1961 Cal. LEXIS 268 (Cal. 1961).

Opinion

SCHAUER, J.

— The Department of Alcoholic Beverage Control (hereinafter called the department) denied an on-sale beer and wine license to applicants Hayes, who thereupon appealed to the Alcoholic Beverage Control Appeals Board (hereinafter called the appeals board). The appeals board reversed the decision of the department. The department, through its director, then brought this mandamus proceeding seeking to compel the appeals board to reverse that board’s decision and to affirm the decision of the department. The trial court entered judgment denying the relief sought, and this appeal by the department followed. We have concluded, for reasons hereinafter stated, that the judgment should be affirmed.

In September 1958 respondents Hayes applied for transfer of an on-sale beer and wine license to their restaurant premises known as “The Den,’’ located at 2506 Fillmore Street in San Francisco. In January 1959 a hearing was had on the application. Thereafter the hearing officer issued his proposed decision finding that the applicants' premises are located within the “immediate vicinity of a church, for which reason issuance of the license would be contrary to public welfare and morals.’’ (Italics added.) In February 1959 the department adopted the proposed decision as its decision, and denied transfer of the license. Mr. and Mrs. Hayes appealed to the appeals board. That board reversed the decision of the department, stating as grounds for the reversal that in addidition to establishing proximity of the premises to a church, the record should contain some evidence “demonstrating the ‘good cause’ upon which the Department’s exercise of its constitutional discretion is based.’’ Such ruling, as hereinafter more fully shown, follows the law. (See Cal. Const., art. XX, § 22.) This mandamus proceeding followed.

As grounds for reversal of the judgment the department contends that the appeals board is without authority to limit or control the “discretion’’ herein assertedly exercised by the department in denying transfer of the license; that the department’s determination is supported by substantial evi[871]*871donee; that such evidence is provided by the showing of the close proximity of the premises to the church, without more, as well as by other evidence in the record.

Section 22 of article XX of the California Constitution declares, so far as here material, that “The Department . . . shall have the exclusive power, except as herein provided and in accordance with laws enacted by the Legislature, to license the . . . sale of alcoholic beverages in this State . . . The department shall have the power, in its discretion, to deny, suspend or revoke any specific alcoholic beverage license if it shall determine for good cause that the granting or continuance of such license would be contrary to public welfare and morals . . .

“When any person aggrieved thereby appeals from a decision of the department . . . denying . . . any license for the . . . sale of alcoholic beverages, the [Alcoholic Beverage Control Appeals] board shall review the decision subject to such limitations as may be imposed by the Legislature. In such cases, the board shall not receive evidence in addition to that considered by the department. Review by the board of a decision of the department shall be limited to the questions whether the department has proceeded without or in excess of its jurisdiction, whether the department has proceeded in the manner required by law, whether the decision is supported by the findings, and whether the findings are supported by substantial evidence in the light of the whole record. . . . When the [board’s] order reverses the decision of the department, the board may direct the reconsideration of the matter . . . hut the order shall not limit or control in any way the discretion vested by law in the department. Orders of the board shall be subject to judicial review upon petition of the director or any party aggrieved by such order. ’ ’ (Italics added.) (See also Bus. & Prof. Code, §§ 23080-23087.)

These constitutional provisions were construed in Martin v. Alcoholic Bev. etc. Appeals Board (and Richards) (1959), 52 Cal.2d 238 [340 P.2d 1]. We there held (pp. 244-245 [3]) that “in cases such as the present one in which the Appeals Board has reversed the Department, the judicial review is necessarily directed at the decision of the Appeals Board, . . . [but] any judicial determination of whether the Appeals Board had exceeded its ‘limited’ powers would incidentally require a review of the decision of the Department [872]*872and of the record upon which the Department’s decision had been based.”

As to the respective powers and functions of the department and the appeals board, the court declared to be (p. 246 [4]) “wholly untenable the applicant’s claim” that the appeals board is “empowered to exercise full discretion” and to exercise “its independent judgment’’ on conflicting evidence. (Rather (pp. 246-257 [5]) the appeals board is limited by the “substantial evidence” rule. “ [P. 248 [6] ] As the Department was vested with ‘power, in its discretion, to deny’ the license upon its determination ‘for good cause that the granting . . . would be contrary to public welfare, . . .’ the broad range of its power and discretion is at once apparent. The Department made a finding here of the ultimate fact that the granting ‘would be contrary to public welfare, ’ and such finding was unassailable on appeal to the Appeals Board if there was substantial evidence in the record to show that such determination was made ‘for good cause. ’ ” (See also Martin v. Alcoholic Bev. etc. Appeals Board (and Chaney) (1959), 52 Cal.2d 259, 265 [4b] [341 P.2d 291].)

The appeals board urges in the ease at bench that despite the “broad range” of the power and discretion of the department as announced in the above-cited Bichards case, such discretion is nevertheless not unbounded but instead must be confined within the same rules and principles as those observed by a court in the exercise of judicial discretion, and that the action of the department here claimed to have been an exercise of discretion was so arbitrary and capricious as to amount to no legal or proper exercise thereof. Further, it is emphasized, the constitutional provision empowers the department to “in its discretion” deny a license only “if it shall determine for good cause” (italics added) that the granting thereof would be contrary to public welfare or morals.

The record upon which both the department and the board reached their respective determinations in the present case shows that the Hayes restaurant premises at 2506 Fillmore Street for which an on-sale beer and wine license is sought are located on Fillmore Street some 25 feet north of its intersection with Jackson Street. Within a 600-foot radius of such premises there already exist eight premises licensed by the department (one on-sale beer and wine license and seven off-sale general licenses). Immediately adjacent to the Hayes premises, to the south, and on the corner of Fillmore and [873]*873Jackson Streets is a grocery store licensed by the department as an off-sale general licensee, whose advertising of alcoholic beverages is clearly visible from the sidewalk.

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Bluebook (online)
362 P.2d 337, 55 Cal. 2d 867, 13 Cal. Rptr. 513, 1961 Cal. LEXIS 268, Counsel Stack Legal Research, https://law.counselstack.com/opinion/martin-v-alcoholic-beverage-control-appeals-board-cal-1961.