Paey Associates, Inc. v. Pennsylvania Liquor Control Board

78 A.3d 1187, 2013 WL 5497771, 2013 Pa. Commw. LEXIS 396
CourtCommonwealth Court of Pennsylvania
DecidedOctober 4, 2013
StatusPublished
Cited by16 cases

This text of 78 A.3d 1187 (Paey Associates, Inc. v. Pennsylvania Liquor Control Board) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Paey Associates, Inc. v. Pennsylvania Liquor Control Board, 78 A.3d 1187, 2013 WL 5497771, 2013 Pa. Commw. LEXIS 396 (Pa. Ct. App. 2013).

Opinion

OPINION BY

Judge COVEY.

Paey Associates, Inc. t/a 40 Below (Licensee) appeals from the Northampton County Common Pleas Court’s (trial court) January 3, 2013 order denying Licensee’s appeal from the Pennsylvania Liquor Control Board’s (PLCB) refusal to renew Licensee’s Restaurant Liquor License No. R-15950 (License). The issues for this Court’s review are: (1) whether Licensee was prejudiced because it did not receive the PLCB’s April 2010 warning letter; (2) whether inadmissible hearsay was admitted at the trial court hearing; (3) whether police incidents established a pattern of illegal activity at Licensee’s premises sufficient for the PLCB to refuse to renew the License; (4) whether the evidence supporting a connection between illegal activi[1190]*1190ty and the licensed premises was sufficient for the PLCB to refuse to renew the License; and, (5) whether a single 2008 citation for a “Ladies Night” was sufficient evidence for the PLCB to refuse to renew the License.

Licensee has held its License since October 2006. In accordance with Section 470 of the Liquor Code,1 47 P.S. § 4-470, Licensee applied to renew its License for the premises located at 40 West Broad Street, Bethlehem, Pennsylvania for the period beginning May 1, 2012 and ending April 30, 2014.2 By April 18, 2012 letter (Objection Letter), the PLCB’s Bureau of Licensing (Licensing) objected to the License renewal based upon Citation No. OS-1427, and 19 police incidents at or immediately adjacent to the licensed premises occurring between May 1, 2010 and April 18, 2012 involving minors, assaults and drugs. The Objection Letter also stated:

In April 2010, the [Bureau] issued a warning ... [warning letter] to conduct properly your establishment as your license liquor (sic) and/or malt beverages is a privilege that can be rescinded
Any of the above-stated reasons is sufficient in and of itself to warrant non-renewal of your license.

Reproduced Record (R.R.) at lla-12a. By May 9, 2012 letter, Licensee was notified that a hearing would be held before a hearing examiner on May 31, 2012 relative to the Bureau’s objections. At the May 31, 2012 hearing, Licensing presented evidence of 11 incidents of misconduct at or near Licensee’s premises that included public drunkenness, assaults, fights, intoxicated minors and unconscious patrons. Licensing also presented Citation No. 08-1427, which charged Licensee with violating Section 5 of the Pennsylvania Human Relations Act4 by conducting a “Ladies Night” on April 4, 2008, whereby female patrons were admitted free of charge and were offered drinks at a reduced price, while male patrons were charged admission and full drink prices. Licensee admitted the charge and paid a $100.00 fine. Based upon the evidence presented to the hearing examiner, she recommended that the PLCB refuse to renew Licensee’s license. On August 8, 2012, the PLCB refused to renew the License.

Licensee appealed to the trial court, which held a de novo hearing on December 19, 2012, during which the PLCB’s hearing record was admitted, and Licensee’s owner/manager James D. Paey (Mr. Paey) testified about not receiving the April 2010 warning letter and about the [1191]*1191measures Licensee took before August 2012 to prevent misconduct at its premises. On January 3, 2013, the trial court denied Licensee’s appeal. Licensee appealed to this Court.5

Licensee first argues that it was prejudiced because it did not receive the April 2010 warning letter. When Licensee applied to renew its License for the licensing period May 1, 2010 through April 30, 2012, Licensing conducted a preliminary review of Licensee’s licensing history and purportedly issued an April 21, 2010 warning letter which stated:

After careful consideration of your current and prior operating history, the [PLCB] has decided to approve your application.... However, the decision to renew your license does not diminish the serious nature of the allegations of fights, an assault by bouncers and a minor reported by the Bethlehem Police Department during the time [from] May 2008 to [the] present.
This letter serves as a warning that you, as a licensee, must take affirmative steps to prevent violations of the Liquor Code and/or prevent employees and patrons from engaging in inappropriate activities in and around your premises through increased cooperation with the Bethlehem Police Department and the Bureau of Liquor Control Enforcement of the Pennsylvania State Police [BLCE] in order to retain your licensing privilege. Failure to do so could result in further action against your licensed business.

R.R. at 14a. The April 2010 warning letter also declared: “Pending issuance of a formal license, this letter constitutes your authority to dispense liquor and malt or brewed beverages ... for a period of thirty (30) days effective May 1, 2010.” R.R. at 14a.

Despite that the April 2010 warning letter was sent to “Paey Associates, Inc. Va 40 Below” at 40 West Broad Street, Bethlehem, which is the address Licensee provided to Licensing, and is the same address to which the Bureau sent Licensee’s 2012 Objection Letter and notices, the trial court found that “Licensee did not receive the April 21, 2010 [warning] letter.” R.R. at 429a. The trial court concluded, however, that “Licensee’s failure to receive the [PLCB]’s April 2010 warning letter did not prejudice him in the within matter.”6

[1192]*1192First, there exists no statutory or judicial mandate that Licensing issue a licensee a written reminder to operate lawfully. Despite the April 2010 warning letter, Licensing renewed Licensee’s May 1, 2010 License. Contrary to Licensee’s contention, no due process was required here.

Due process is a flexible concept and imposes only such safeguards warranted by the situation. Although notice is essential to due process, due process notice requirements are non-technical. Adequate notice for purposes of procedural due process consists of, at a minimum, a sufficient listing and explanation of the charges. The meaningful opportunity to be heard requirement of procedural due process entails an appropriate hearing. In assessing an alleged denial of procedural due process, demonstrable prejudice is a key factor.

Moore v. Dep’t of Transp., Bureau of Motor Vehicles, 19 A.3d 1200, 1204 (Pa.Cmwlth.2011) (citations omitted).

Section 470(a.l)(4) of the Liquor Code authorizes Licensing to object to a renewal application, inter alia, “due to the manner in which [the] ... licensed premises was operated while the licensee ... [was] involved with that license.” 47 P.S. § 4-470(a.l)(4). Under Section 470(a.2) of the Liquor Code, the PLCB may refuse to renew a license only after the Bureau gives the licensee “at least ten days’ notice, stating the basis for the objection[.]” 47 P.S. § 4-470(a.2).

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Bluebook (online)
78 A.3d 1187, 2013 WL 5497771, 2013 Pa. Commw. LEXIS 396, Counsel Stack Legal Research, https://law.counselstack.com/opinion/paey-associates-inc-v-pennsylvania-liquor-control-board-pacommwct-2013.