MCJS, Inc. v. Kansas Department of Revenue

311 P.3d 1147, 49 Kan. App. 2d 549, 2013 WL 5763202, 2013 Kan. App. LEXIS 90
CourtCourt of Appeals of Kansas
DecidedOctober 25, 2013
DocketNo. 108,788
StatusPublished

This text of 311 P.3d 1147 (MCJS, Inc. v. Kansas Department of Revenue) is published on Counsel Stack Legal Research, covering Court of Appeals of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
MCJS, Inc. v. Kansas Department of Revenue, 311 P.3d 1147, 49 Kan. App. 2d 549, 2013 WL 5763202, 2013 Kan. App. LEXIS 90 (kanctapp 2013).

Opinion

Malone, C.J.:

This is a civil regulatory proceeding in which the Kansas Department of Revenue Division of Alcoholic Beverage Control (ABC) fined MCJS, Inc., dba Reed’s Ringside Sports Bar and Grill (Reed’s) $500 for violating K.S.A. 41-2615 by permitting a minor to possess or consume alcohol on its premises. The Director of the ABC (Director) found that Reed’s is responsible for ensuring that minors do not possess or consume alcoholic beverages on its premises and that K.S.A. 41-2615 creates absolute civil liability on a licensee for any violation of the statute. Reed’s appealed without success to the Secretary of the Department of Revenue (Secretary) and then to the district court.

Reed’s now appeals to this court, claiming that the agency and the district court erred in finding that K.S.A. 41-2615 imposes strict liability on a licensee and in finding that the minor possessed or consumed alcohol on its premises. In the context of a civil regulatory proceeding, we conclude that the agency and foe district court did not err in finding that K.S.A. 41-2615 imposes strict liability on a licensee such that foe statute is violated whenever a minor possesses or consumes alcohol on its premises. We also conclude that the evidence was sufficient to support a finding that the minor possessed or consumed alcohol on Reed’s premises. Thus, we affirm foe district court’s judgment.

Factual and Procedural Background

On July 3, 2010, Potawatomi Tribe Police Officer Darrel Chapman was involved in a high-speed pursuit of Kipp Shupe, who was 17 years old at the time. After Chapman took Shupe into custody, he learned that Shupe had been with his friend, Jonathan Bourdon, earlier that night drinking beer at Reed’s. Bourdon confirmed this information.

On July 28, 2010, foe ABC issued an administrative citation to Reed’s, asserting that Reed’s violated K.S.A. 41-2615 by permitting [551]*551an underage person to possess or consume alcohol on its premises. Reed’s timely requested an evidentiary hearing before the Director. At the evidentiaiy hearing, the ABC called Chapman who testified about Shupe’s arrest on July 3, 2010, and Shupe’s statement that he had been drinking beer at Reed’s earlier that night. Next, Bourdon testified that on the night in question, he was at Reed’s with Shupe. Bourdon testified that he and Shupe played games and drank beer together. Bourdon further testified that Shupe purchased some of the beer that night. However, Bourdon later clarified that he did not see Shupe purchase the beer; rather, he saw Shupe come back from the general direction of the bar with a pitcher of beer in his hand. Bourdon also stated that Reed’s employees would come around periodically to clear their table. Bour-don testified that no employee asked him for identification when he purchased the beer or asked Shupe for identification while he was drinking at the table.

When Shupe testified, he admitted being at Reed’s with Bour-don on the night in question and that, while driving to Reed’s, he had drunk four beers in his vehicle. Once at Reed’s, Shupe stated that he bought two pitchers of beer, one from the bartender and one from a waitress, and he was not asked for identification either time. Further, Shupe testified that there were always employees walking around the bar and, aldiough he was clearly drinking beer, no one asked him for identification. On cross-examination, Shupe admitted that his first written statement to the police said nothing about him purchasing beer, although his second written statement mentioned purchasing one pitcher of beer. On redirect, Shupe stated that he believed the difference in the statements stemmed from the fact that he was still intoxicated when he wrote the first statement.

Damon Reed, half-owner of MCJS, Inc., which did business as Reed’s, testified that tire first he knew of the allegation that Reed’s had violated the statute regarding alcohol consumption by a minor was when he received something in the mail. Damon stated that there was video footage of the inside of the bar taken by multiple cameras, but the footage was only stored for 14 days. Damon testified that it was Reed’s policy that everyone purchasing beer [552]*552should be asked for identification. Derrick Reed, the other half-owner of Reed’s, testified that there was no longer video of the night in question because he did not become aware of the incident until over 30 days later.

After the hearing, both parties filed written closing comments. In its closing, Reed’s emphasized the inconsistencies in Shupe’s and Bourdon’s stories and the unfairness of the delayed notification of Reed’s, stating that if Reed’s had known of the allegation sooner, it could have preserved the videotapes of the night in question. Reed’s also argued that there was insufficient evidence to prove the violation, claiming that Reed’s had no criminal intent and that K.S.A. 41-2615 does not create a strict liability offense. Finally, Reed’s contended that none of its employees had “permitted” Shupe to consume alcohol. The ABC’s written closing arguments, on the other hand, asserted that K.S.A. 41-2615(a) imposes absolute liability on the licensee. The ABC contended that the evidence clearly established that Shupe consumed alcohol at Reed’s on the night in question and the evidence was sufficient to justify a civil penalty.

The Director issued written findings and an order dated August 9, 2011. The Director found that “[t]he fact that Shupe had consumed beer at the licensed premises was established during the hearing. Reed’s employees delivered pitchers and cups to the table where Shupe was obviously in possession of and consuming beer.” The Director noted that K.S.A. 41-2615 provides that a licensee may not knowingly or unknowingly permit possession or consumption of alcohol by a minor on the licensed premises. The Director stated that “[i]f knowledge or intent were a required element for an administrative violation, compliance with underage laws would deteriorate because the motivation to proactively check IDs would disappear.” The Director determined that “Reed’s is responsible for ensuring that minors do not possess or consume alcoholic beverages [on the premises] and that K.S.A. 41-2615 creates absolute civil liability on a licensee for any violation of the statute.” Accordingly, the Director concluded that Reed’s had violated the statute and imposed a $500 fine as a civil penalty for the violation.

[553]*553Reed’s appealed to the Secretary, and both parties submitted their appellate arguments in writing.

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Bluebook (online)
311 P.3d 1147, 49 Kan. App. 2d 549, 2013 WL 5763202, 2013 Kan. App. LEXIS 90, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcjs-inc-v-kansas-department-of-revenue-kanctapp-2013.