Oklahoma Alcoholic Beverage Control Board v. Parkhill Restaurants, Inc.

1983 OK 77, 669 P.2d 265, 1983 Okla. LEXIS 211
CourtSupreme Court of Oklahoma
DecidedJuly 5, 1983
Docket52566
StatusPublished
Cited by15 cases

This text of 1983 OK 77 (Oklahoma Alcoholic Beverage Control Board v. Parkhill Restaurants, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Oklahoma Alcoholic Beverage Control Board v. Parkhill Restaurants, Inc., 1983 OK 77, 669 P.2d 265, 1983 Okla. LEXIS 211 (Okla. 1983).

Opinion

PER CURIAM:

This is an appeal from a judgment of the District Court determining certain portions of Sections 539 and 568 of Title 37 to be unconstitutional and directing alcoholic beverages seized thereunder to be returned. We consider the constitutionality only of those portions of Sections 539 and 568 which were determined by the trial court to be unconstitutional, 1 necessarily limiting our discussion to the validity of the statutes as applied.

On May 11,1978, agents of the Oklahoma Alcoholic Control Board (ABC), assisted by members of the Tulsa Police Department, entered premises owned by Appellee, Park-hill Restaurants, Inc. (Parkhill), in Tulsa, Oklahoma. The agents purchased and were served liquor by the drink by two of Park-hill’s employees, resulting in the arrest of *268 the two employees and the assistant manager for open saloon violations. Incident to the arrest, a warrantless search of the premises was conducted and approximately 400 bottles of alcoholic beverages were seized. The seized bottles, both sealed and unsealed, are subject to a wide range of purported ownership. Some of the bottles belonged to individual patrons or “members” of the “club” and were so labeled. A number of the sealed bottles had been purchased by the manager of the premises shortly prior to seizure for use during weekend private parties. These particular bottles were acquired by the manager for the hosts of the parties from inventories prepared by the hosts and with funds prepaid by the hosts. Other bottles, both sealed and unsealed, were purchased by the management from an initial $15 “membership fee” for “members” who had specifically instructed the management what to purchase for them. Still other bottles, both sealed and unsealed, were purchased at random by the management from a similar initial fee paid by “members” who had not specifically instructed management what to purchase for them. Bottles purchased for the private parties and those available for “members” were not labeled. They were kept in the same area of the establishment, although the bottles for the private parties were segregated from the balance of the stock. Upon confiscation, the bottles were intermingled so that only those which were labeled were clearly identifiable.

The assistant manager and the two employees who had been arrested pleaded guilty to violation of the open saloon act under Section 538(h) of Title 37. The assistant manager was fined $150 and costs and each employee arrested was fined $100 and costs.

Parkhill moved for an immediate hearing at which the District Court held that the bottles were not subject to forfeiture and should be returned. At a subsequent hearing following ABC’s Motion for a New Hearing and Application to Stay Execution of Order, the District Court sustained the Motion with regard to the unlabeled bottles and overruled the Motion as to the labeled bottles. The labeled bottles were ordered returned to Parkhill. The District Court rendered judgment determining portion of Sections 539 and 568 to be unconstitutional, and ordered the return of all of the liquor seized. ABC’s appeal is perfected only as to the order to return of the unlabeled bottles and the issue of the constitutionality of these provisions.

I

The threshold question to be addressed is whether Parkhill had justiciable status to challenge the constitutionality of the state statutes under which liquor was seized as contraband. A party generally must assert his own legal rights and interests and cannot rest his claim to relief on the rights or interests of third parties. 2 In the case before us, Parkhill was a bailee of all of the liquor seized whether it be characterized as a part of a liquor “pool”, liquor purchased for anticipated weekend parties to be held on the club premises, or liquor owned for the private exclusive use of a patron with the bottles so labeled. A bailee has a temporary, qualified interest in the bailed property which he may vindicate in his own right against any stranger or third person, and an unlawful invasion of that right by a stranger is actionable. 3 ABC had no right to seize the liquor in possession of Parkhill as bailee in the absence of a constitutionally valid statute authorizing the seizure. We therefore hold that Parkhill had justiciable status to challenge the constitutionality of the statutes in question.

II

That the State has the power and right to provide that intoxicating liquor kept or transported in violation of law may be seized, condemned, and destroyed upon *269 order of a judge of a court haying jurisdiction in which it is rendered and pursuant to proceedings provided by law for the forfeiture and condemnation of such liquors, is no longer subject to question. 4 And, seizure under a state law making liquor possession unlawful and providing for its destruction without according the owner a hearing before the seizure does not deprive the owner of his property without due process of law. 5 Such was once the statutory status of liquor in Oklahoma. 6

Under the provisions of the Oklahoma statutes here under attack, liquor becomes unlawful only when used in violation of the Oklahoma Alcoholic Beverage Control Act. 7 Thus its status may be either lawful or malum prohibitum. As the United States Supreme Court stated in Ziffrin, Inc. v. Reeves, 8 “[pjroperty rights in intoxicants depend on state laws and cease if the liquor becomes contraband.” It is clear that a part of the liquor seized was malum prohib-itum under a “pool system” condemned in Harrell v. State. 9 It is, however, primarily the inclusion in the seizure of liquor which was arguably “lawful” that gives rise to the constitutional challenge.

The District Court held that the statutes were “overbroad” in that they reached constitutionally protected rights and activities since they permitted seizure of all alcoholic beverages in the possession of one who had violated the open saloon law, rather than limiting seizure to alcoholic beverages which constitute contraband and/or those seized as evidence. The District Court reasoned that bottles belonging to third parties such as club patrons, innocent of violating the law, were subject to seizure and ultimate sale. This, it concluded, infringed on rights granted in Section 505 of Title 37, which provides that nothing in the Intoxicating Liquors Act shall prevent an individual from possessing and transporting alcoholic beverages for the personal use of that individual, his family and guests.

The District Court also found that due process under the 14th Amendment to the United States Constitution and under Okla. Const. Art. 2, § 7, was violated where alcohol was seized without a warrant and without a prior adversary hearing.

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1983 OK 77, 669 P.2d 265, 1983 Okla. LEXIS 211, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oklahoma-alcoholic-beverage-control-board-v-parkhill-restaurants-inc-okla-1983.