Needham v. Beer Board of Blount County

647 S.W.2d 226, 1983 Tenn. LEXIS 622
CourtTennessee Supreme Court
DecidedMarch 14, 1983
StatusPublished
Cited by12 cases

This text of 647 S.W.2d 226 (Needham v. Beer Board of Blount County) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Needham v. Beer Board of Blount County, 647 S.W.2d 226, 1983 Tenn. LEXIS 622 (Tenn. 1983).

Opinions

[227]*227OPINION

DROWOTA, Justice.

This case is one of a series of cases involving the validity of Blount County’s “2,000 foot rule” adopted in July of 1939, by the Quarterly County Court of Blount County, pursuant to T.C.A. § 57-205, now T.C.A. § 57-5-105(a)(3). The “rule” prohibits the storage, sale or manufacture of beer within 2,000 feet of schools, churches or other places of public gathering.

In 1980, Michael and Vera Henry were refused a beer permit by the Blount County Beer Board because their premises were located within 2,000 feet of a church. They filed a petition for writ of certiorari in the Circuit Court of Blount County seeking a declaration that the 2,000 foot rule had been invalidated by the action of the Beer Board in issuing permits for the sale of beer to other applicants whose premises were located less than 2,000 feet from a church or school. It is well settled that the discriminatory enforcement of the 2,000 foot rule invalidates the rule. City of Murfreesboro v. Davis, 569 S.W.2d 805, 807 (Tenn.1978). At trial the Henry’s introduced evidence that several businesses held permits in violation of the county’s 2,000 foot rule. These businesses are the Plaintiffs in this cause. On learning of these permits being issued to Plaintiffs businesses located within 2,000 feet of a church or school, the Defendant, Blount County Beer Board, scheduled a hearing for November 6, 1980, to determine if Plaintiffs’ permits should be revoked. After the introduction of evidence showing the businesses to be within 2,000 feet of a church or school, and in order to comply with the “rule” and have a valid ordinance, the Beer Board revoked the permits of the Plaintiffs Aubrey K. Needham, Jr., South-land Corporation and Dean William Hum-phreys, d/b/a Jolly Giant, effective December 6, 1980.

In Henry v. Blount Co. Beer Bd., 617 S.W.2d 888, 889 (Tenn.1981), this Court held that:

Once there has been discrimination in the enforcement of the beer permit distance ordinance, its validity can be restored only “by revocation or other elimination, such as attrition, of the discrimi-natorily-issued permits and licenses.” City of Murfreesboro v. Davis, 569 S.W.2d 805, 808 (Tenn.1978).

We then held that since all discriminatorily-issued beer permits had been revoked, the 2,000 foot rule was valid and in force in Blount County. We accordingly affirmed the actions of the trial judge in dismissing the Henry’s petition.

The Plaintiffs, Needham, Southland Corporation, and Humphreys, filed separate petitions for writ of certiorari on December 1, 1980. The petitions are almost identical, each alleging that they relied on the license to sell beer and expended considerable sums of money for the purpose of creating a proper facility. Plaintiffs further alleged: that the distance ordinance is of no force and effect because of discriminatory application and enforcement; that the revocation action is barred by laches; and that Plaintiffs relied upon the representations of members of the Beer Board before incurring the expense of initial operation and that the Defendants are estopped to deny that the Plaintiffs detrimentally relied on such representations.

The Defendants in their answer aver that the beer permits were wrongfully issued because Plaintiffs’ places of business, measured in a straight line distance, are closer than 2,000 feet to a church or school. Defendants further aver that the permits were issued either through misrepresentation by the Plaintiffs at the time of the hearings on the applications or by mutual mistake of fact and/or law with regard to the issuance of the permits and the proximity of Plaintiffs’ place of business to a school, or church; and that the permits were illegally and improperly issued from their inception because compliance with the 2,000 foot rule was a condition precedent to the issuance of a permit.

These three cases were consolidated for trial and after a trial de novo the Chancellor phrased the determinative issue as follows: “When a beer board has issued retail [228]*228beer permits in violation of its own adopted Two-thousand Foot Rule, can it later revoke said permits on the sole ground that the establishments are in violation of said rule?” In granting Plaintiffs relief, the Chancellor held that the Beer Board, in issuing the permits in direct violation of its own 2,000 foot rule, waived the provisions of the rule as to the Plaintiffs and therefore could not now rescind its action by revoking the permits. He further found that the Beer Board was guilty of laches and was, therefore, precluded from revoking the permits. The final judgment set aside the revocation of the Plaintiffs’ beer permits, and Defendants contend this leaves in doubt the continuing validity of Blount County’s 2,000 foot rule.1 It is from this adverse judgment that the Defendant Beer Board appeals.

Because of the nature of the parties’ arguments, and because the parties invoke our equity jurisdiction, we set out the facts as they relate to each Plaintiff. Plaintiff Needham applied in May of 1970 to the Beer Board for a permit to sell beer. At the first hearing on his application, Need-ham presented to the Board a blueprint of a building which he proposed to build on his property. He showed the Board the building site and indicated exactly where his package store would sit on the property. Apparently discussion concerning the proximity of the store site to the nearby Alcoa-Way Baptist Church was put off until the second hearing.

At the second hearing, testimony of persons opposed to the package store location was heard. Most of those testifying were from churches in the county. The record reveals that the testimony of most of those opposed to the permit concerned the distance of the store from the Baptist church and the method by which that distance should be determined. During the course of the second and third hearings on Need-ham’s application, at least two witnesses stated that the proposed package store would be within 2,000 feet of the Baptist church when measured by a “straight line” between the closest corners of the buildings. But also, at those hearings, Needham apprised the Board of the fact that he had measured the distance between his site and the church by driving his car on the road between the two places and noting the distance traveled as indicated by his odometer was in excess of 2,000 feet. Moreover, members of the Board investigated the proposed site and determined for themselves the distance between the church and Need-ham’s store. The former chairman of the Beer Board testified as follows:

Q. And did you take your automobile and drive in your automobile from the location of the building to the Alcoa-Way Baptist Church?
A. I drove it on the highway parallel to the proposed building — to the driveway of the church.
Q. Did you find that distance to be more or less than two thousand feet?
A. Quite a bit over two thousand feet.

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Bluebook (online)
647 S.W.2d 226, 1983 Tenn. LEXIS 622, Counsel Stack Legal Research, https://law.counselstack.com/opinion/needham-v-beer-board-of-blount-county-tenn-1983.