OSJ, Inc. v. Work

180 Misc. 2d 804, 691 N.Y.S.2d 302, 1999 N.Y. Misc. LEXIS 152
CourtNew York Supreme Court
DecidedApril 12, 1999
StatusPublished
Cited by3 cases

This text of 180 Misc. 2d 804 (OSJ, Inc. v. Work) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
OSJ, Inc. v. Work, 180 Misc. 2d 804, 691 N.Y.S.2d 302, 1999 N.Y. Misc. LEXIS 152 (N.Y. Super. Ct. 1999).

Opinion

OPINION OF THE COURT

William F. O’Brien, III, J.

INTRODUCTION

This case, now before the court upon defendant Work’s motion for summary judgment or to dismiss plaintiffs’ complaint for failure to state a cause of action, is one of first impression in New York State. It involves Alcoholic Beverage Control Law § 65, concerning underage drinking, the public policy concerns and legislative intent in the drafting of such statute and whether a tavern owner may plead a cause of action in common-law trespass and fraud seeking civil damages from an underage patron who gains access to the tavern by presenting false identification. Defendant Work alleges that there is no issue of fact by which he may be held liable to the plaintiffs and that no legitimate cause of action has been set forth in the [807]*807plaintiffs’ complaint. Plaintiffs oppose defendant Work’s motion, alleging that they plead a cognizable common-law cause of action, and cross-move to amend their complaint.

STATEMENT OF THE FACTS

The relevant facts of this case are straightforward and largely not in dispute. Plaintiff OSJ, Inc. is a New York corporation doing business as The Old Stone Jug, a tavern located in Hamilton, New York (County of Madison). Plaintiff John M. Koen is the long-time president of the plaintiff corporation, owner of The Old Stone Jug and regularly employed by the tavern. The Old Stone Jug is licensed by the State of New York to offer alcoholic beverages for sale on its premises and for consumption of such alcoholic beverages on its premises by patrons over the age of 21 years. Defendant Work, at the time of the incidents giving rise to this action, was a 19-year-old student at a local college, and under the legal drinking age of 21 years.

On May 20, 1995, defendant Work was stopped by the Hamilton police early in the morning while walking back to campus in an intoxicated state. Defendant Work was brought to the police station on an unrelated matter and told the police officers that he was underage and had been drinking at The Old Stone Jug earlier in the evening. He further told the officers that he had gained access to The Old Stone Jug by use of a false New Hampshire driver’s license and that he purchased and was served alcoholic beverages by plaintiff Koen, in his capacity as an employee of The Old Stone Jug.

The police officers then accompanied defendant Work to The Old Stone Jug, where he identified plaintiff Koen as the person who had served him alcoholic beverages. Subsequently, plaintiff Koen was charged with the Penal Law crime of unlawfully dealing with a child (§ 260.20) for, inter alia, allegedly selling alcoholic beverages to defendant Work. In addition, alcoholic beverage administrative proceedings were commenced against the plaintiff corporation for the revocation of its liquor license because of the alleged sales of alcoholic beverages to defendant Work and several other underage college students.1

Defendant Work was never criminally charged for his actions on the evening and/or early morning in question. Defen[808]*808dant Work was granted immunity from prosecution by the Madison County District Attorney in exchange for his testimony against plaintiff Koen in the criminal proceedings and he testified accordingly in the criminal proceedings against plaintiff Koen. Ultimately, however, plaintiffs were successful in defending themselves in both the criminal and administrative proceedings and The Old Stone Jug retained its liquor license. All parties stipulated at oral argument that there are no pending criminal or administrative proceedings against plaintiffs concerning the defendants in this action.

Plaintiffs commenced this action by summons and complaint dated January 2, 1997. Plaintiffs allege for their first cause of action that defendant Work trespassed by interfering with plaintiffs’ possessory interest in the business premises and by unlawfully entering the premises by presenting fraudulent identification. For their second cause of action, plaintiffs allege that defendant Work fraudulently and intentionally deceived plaintiffs by his actions and that they justifiably relied on defendant Work’s presentation of false identification. Plaintiffs seek $250,000 in damages on each of their first and second causes of action alleging that, as a direct result of defendant Work’s trespass and fraud, they suffered investigation and possible suspension, cancellation and/or revocation of their liquor license, suffered criminal charges and prosecution, lost profits and incurred unnecessary legal expenses.2

In defendant Work’s motion, addressing the allegations in plaintiffs’ complaint, the gravamen of defendant Work’s argument is that plaintiffs seek damages against defendant Work (and the other underage drinkers plaintiffs commenced similar actions against) for providing testimony against plaintiffs in exchange for immunity in relation to the underlying incident. Defendant Work alleges that summary judgment or dismissal is appropriate in his favor because: (1) plaintiffs’ lawsuit constitutes a SLAPP suit (strategic lawsuit against public participation) pursuant to CPLR 3211 (g) and/or 3212 (h); (2) violations of the relevant provisions of the Alcoholic Beverage Control Law, by defendant Work, provide plaintiffs with no [809]*809basis for a civil cause of action; and (3) public policy precludes this sort of civil suit as against an adverse witness in a prosecution and as against an underage person whom the State Legislature was trying to protect by enacting such criminal and regulatory laws.

Plaintiffs, in opposition to defendant Work’s motion for summary judgment, allege that the instant action is not a SLAPP suit or an uncognizable cause of action but, rather, a legitimate legal proceeding which has a valid basis in fact and law, the purpose of which is to hold accountable defendant Work who engaged in unlawful and fraudulent conduct for his own benefit and amusement. Plaintiffs further allege that their intent is not to punish or deter individuals who cooperate in the prosecution of such criminal actions and that several of the six defendants in the similar companion action had declined to cooperate with the District Attorney against plaintiffs.

Plaintiffs submit, in support of their opposition to defendant Work’s motion, inter alia, an affidavit of Scott Wexler, the executive director of the Empire State Restaurant and Tavern Association and two affidavits of plaintiff John Koen. Executive director Wexler testifies in his affidavit that there is a significant problem among the Association’s members with enforcement of the legal drinking age because of false identifications presented by underage drinkers. Executive director Wexler proceeds to opine that the Legislature, by its recent amendments to sections 65-b and 65-c of the Alcoholic Beverage Control Law, has shown an intent to sanction underage individuals who acquire alcoholic beverages by the use of false identification and that, therefore, public policy supports the continuation of this form of litigation to sanction such underage drinkers.

In plaintiff Koen’s first affidavit, he alleges that in Madison County the law pertaining to the underage drinking age is selectively and inequitably enforced.

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Bluebook (online)
180 Misc. 2d 804, 691 N.Y.S.2d 302, 1999 N.Y. Misc. LEXIS 152, Counsel Stack Legal Research, https://law.counselstack.com/opinion/osj-inc-v-work-nysupct-1999.