Mills-Jennings of Ohio, Inc. v. Liquor Control Commission

475 N.E.2d 1321, 16 Ohio App. 3d 290, 16 Ohio B. 321, 1984 Ohio App. LEXIS 12382
CourtOhio Court of Appeals
DecidedSeptember 27, 1984
Docket84AP-197, -199, -200, -201 and -203
StatusPublished
Cited by16 cases

This text of 475 N.E.2d 1321 (Mills-Jennings of Ohio, Inc. v. 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
Mills-Jennings of Ohio, Inc. v. Liquor Control Commission, 475 N.E.2d 1321, 16 Ohio App. 3d 290, 16 Ohio B. 321, 1984 Ohio App. LEXIS 12382 (Ohio Ct. App. 1984).

Opinion

McCormac, P.J.

These cases are consolidated for appeal from the Court of Common Pleas of Franklin County and present the common issue of whether the Liquor Control Commission (hereinafter “commission”) possesses the authority to seize and destroy gambling devices found on permit premises.

The case of Mills-Jennings of Ohio, Inc. v. Liquor Control Comm, (hereinafter “Mills-Jennings”) originated when plaintiff, an owner of draw poker machines and not a permit holder, sought a declaratory judgment in the court of common pleas that these machines were not gambling devices and were not subject to removal from liquor permit premises. The trial court granted the judgment requested, where upon appeal this court reversed. (See Mills-Jennings of Ohio, Inc. v. Dept. of Liquor Control [Mar. 24, 1981], Franklin App. No. 80AP-687, unreported.) After the allowance of a motion to certify the record, the Ohio Supreme Court affirmed, stating that the draw poker machines involved were gambling devices per se. Mills-Jennings, Inc. v. Dept. of Liquor Control (1982), 70 Ohio St. 2d 95 [24 O.O.3d 181]. The Supreme Court, however, remanded for consideration of the issue now under review.

In Frederick L. Fletcher, d.b.a. Baggy Knees v. Liquor Control Comm. and Donna M. Cuiksa v. Liquor Control Comm. appeals were filed from the commission’s orders denying appellees’ motions for return of their draw poker machines after conclusion of the administrative hearing for liquor law violations.

In Maags Bar & Restaurant, Inc. v. Liquor Control Comm. (hereinafter “Maags”), the permit holder appealed from the commission’s order suspending its permit and the order denying its motion to return the gambling devices. The gambling devices involved were an inoperable antique slot machine and two electronic slot machines. The suspension was imposed for violation of Ohio Adm. Code. 4301:1-1-53(B) for possessing gambling devices on permit premises.

Finally, the plaintiff in Ohio Vending Operators Group v. Dept. of Liquor Control (hereinafter “Ohio Vending”), sought a declaratory judgment that devices known as Dwarfs Den, Roman Tallies, Castles, and Bust My Balloons were not gambling devices per se and requested an injunction preventing the commission from seizing or destroying the machines found on permit premises and from citing the permit holders for possessing or using the devices.

The trial court decided in the foregoing cases that the commission was without authority to destroy the gambling devices and ordered the machines returned to their owners. In Maags, the lower court also reversed the suspension order, stating that Ohio Adm. Code 4301:1-1-53(B) was overbroad as applied to Maags. Appellant commission has appealed these decisions, asserting three assignments of error:

“I. The court of common pleas erred in holding that the Ohio Department of Liquor Control cannot destroy gambling devices per se but must return all such machines after the administrative process has been concluded.
“II. The court of common pleas erred in holding that Section 4301:1-1-53 *292 of the Ohio Administrative Code was unconstitutional and void since it is constitutional and valid and since that matter was not before the lower court.
“HI. The court of common pleas erred in ordering the Ohio Department of Liquor Control to return the gambling machines in question since they are all gambling devices per se regardless of their name or visual display.”

The Liquor Control Commission, as part of an administrative agency, only has express or implied authority as conferred by the Ohio General Assembly. Burger Brewing Co. v. Thomas (1975), 42 Ohio St. 2d 377, 379 [71 O.O.2d 366], The initial question is whether there is an express or implied grant of power to the commission authorizing the seizure and use of gambling devices as evidence, and the destruction of them at the termination of administrative proceedings. R.C. 4301.10(A)(4) grants the Department of Liquor Control the authority to enforce R.C. Chapters 4301 and 4303, and the rules and orders of the commission. R.C. 4301.10(A)(8) states that the department may:

“Exercise all other powers expressly or by necessary implication conferred upon the department by Chapters 4301. and 4303. of the Revised Code, * *

Finally, R.C. 4301.03 authorizes the commission to issue rules for various purposes, including the “maintenance of public decency, sobriety, and good order in any place licensed under such permits.” R.C. 4301.03(B). Ohio Adm. Code 4301:1-1-53(B), enacted pursuant to R.C. 4301.03, reads as follows:

“No person authorized to sell alcoholic beverages shall have, harbor, keep, exhibit, possess or employ or allow to be kept, exhibited or used in, upon or about the premises of the permit holder of [sic] any device, machine, apparatus, book, record, forms, tickets, papers or charts which may or can be used for gaming or wagering or the recording of wagers, pools, or chances on the result of any contest, or allow or conduct gaming or wagering on such premises on any game of skill or chance.”

Considering the foregoing provisions together, the commission has demonstrated a need to seize the gambling devices found on permit premises for use as evidence to prove a violation of Ohio Adm. Code 4301:1-1-53(B). The commission’s authority for the seizure is properly implied from its express power to enforce the liquor laws. However, after the administrative hearings and subsequent appeals are concluded, the necessity to retain the devices as evidence ends and the authority for destruction of the devices must rest on some other grant of power.

The express authority of the commission to destroy property is found in R.C. 4301.29, 4301.45, and 4301.53, which relate only to the destruction of beer and intoxicating liquor and do not extend to gambling devices. Since the destruction of the gambling devices does not appear to be necessary to effectuate either proof of violations or enforcement of other duties of the commission, the power cannot be implied.

Appellant has also asserted R.C. 2933.41 as authority for the destruction of the gambling devices. This assertion is not well-taken. The Supreme Court, in State v. Lilliock (1982), 70 Ohio St. 2d 23 [24 O.O.3d 64], construed R.C. 2933.41(C) to require that the person claiming rights in the property must be the offender, accomplice, or conspirator in the commission of the offense; and, in addition, the possession of the property must be unlawful in itself.

The first part of the test is not satisfied in Mills-Jennings and Ohio Vending because the appellees are the owners of the devices and are not the permit holders who allegedly violated Ohio Adm. Code 4301:1-1-53(B).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

State v. Valdez
2017 Ohio 4260 (Ohio Court of Appeals, 2017)
Gammarino v. Smith, Unpublished Decision (8-10-2007)
2007 Ohio 4073 (Ohio Court of Appeals, 2007)
VFW Post 8586 v. Ohio Liquor Control Comm.
1998 Ohio 181 (Ohio Supreme Court, 1998)
United Auto Workers, Local Union 1112 v. Philomena
700 N.E.2d 936 (Ohio Court of Appeals, 1998)
Lavery v. Ohio Liquor Control Commission
679 N.E.2d 57 (Ohio Court of Appeals, 1996)
Gran of Akron, Inc. v. Ohio Liquor Control Commission
679 N.E.2d 53 (Ohio Court of Appeals, 1996)
VFW Post 9622 v. Liquor Control Commission
673 N.E.2d 166 (Ohio Court of Appeals, 1996)
Loyal Order of Moose Lodge No. 1473 v. Liquor Control Commission
641 N.E.2d 1182 (Ohio Court of Appeals, 1994)
BPOE Lodge 0170 Gallipolis v. Liquor Control Commission
596 N.E.2d 529 (Ohio Court of Appeals, 1991)
Ridenour v. Ivory Inc.
2 Ohio App. Unrep. 440 (Ohio Court of Appeals, 1990)
Republic Steel Corp. v. Hailey
506 N.E.2d 1215 (Ohio Court of Appeals, 1986)

Cite This Page — Counsel Stack

Bluebook (online)
475 N.E.2d 1321, 16 Ohio App. 3d 290, 16 Ohio B. 321, 1984 Ohio App. LEXIS 12382, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mills-jennings-of-ohio-inc-v-liquor-control-commission-ohioctapp-1984.