Pennsylvania Liquor Control Board v. Richard E. Craft American Legion Home Corp.

686 A.2d 437, 1996 Pa. Commw. LEXIS 516
CourtCommonwealth Court of Pennsylvania
DecidedDecember 12, 1996
StatusPublished
Cited by2 cases

This text of 686 A.2d 437 (Pennsylvania Liquor Control Board v. Richard E. Craft American Legion Home Corp.) 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
Pennsylvania Liquor Control Board v. Richard E. Craft American Legion Home Corp., 686 A.2d 437, 1996 Pa. Commw. LEXIS 516 (Pa. Ct. App. 1996).

Opinion

PELLEGRINI, Judge.

The Pennsylvania Liquor Control Board (Board) appeals from the May 30, 1996 order of the Court of Common Pleas of Mercer County (trial court) reversing its January 26, 1996 order refusing an application for a Club Liquor License submitted by the Richard E. Craft American Legion Home Corporation (Home Corporation).

The Home Corporation is an association owning property that is located in Springfield Township, Mercer County. Its purpose is to maintain a lodge, club or quarters for the Richard E. Craft American Legion Post 584 (Post) for public gatherings and other social purposes, and to maintain a physical structure for the Post. The Home Corporation was granted its Articles of Incorporation pursuant to the Post’s Charter in 1954. The Liquor Code grants an exception to incorporated units of national veterans’ associations to enable them to obtain a liquor license, even where the municipality’s quota has been filled. Because under Section 461 of the Liquor Code1 (Code), Springfield Township already had in excess of its quota for liquor licensees, in 1995, the Home Corporation applied for a Club Liquor License under Section 461.1 of the Liquor Code2 as a “subordinate unit of a national veteran’s organization”.

Before the Board, the Home Corporation presented the testimony of its then President, Andrew Homza. Homza testified that the Home Corporation could not operate in-[439]*439dependency of the Post, that the Home Corporation and the Post hold separate elections, that the voting members of the Home Corporation and the Post are identical, and that, though a person who had not served in active war duty could be a member of the Home Corporation as a social member only, he could not be a member of the Post.

Also testifying on behalf of the Home Corporation before the Board was the Post Adjutant, William Whenry. At the time of that hearing, Whenry held no position in the Home Corporation. Whenry testified that the Home Corporation finances the affairs for the Post, and is responsible for its grounds, upkeep and any social events held by the Post. Whenry identified the American Legion Department of Pennsylvania Directory, a publication of the American Legion, which listed both the Post, as well as the Home Corporation. Whenry stated that the Home Corporation has no authority to act independently of the Post and is recognized by the national organization as a subordinate unit. He testified that all Posts have home associations such as the Home Corporation. He described the difference between social and voting members of the Home Corporation, defining regular voting members as those persons who served in the military during wartime conflict. Social members need not have served in the military, but have no vote in the Home Corporation and are not permitted to be members of the Post.

The Home Corporation also entered into evidence Exhibit A-9, a memo from the Legion’s State Adjutant’s office to all post commanders, adjutants and judge advocates. That memo dictates the classes of membership that may exist in home corporations, and requires that where a home corporation holds a liquor license, it can have no social members. The memo further states that where any post has real estate and a club that dispenses alcohol, the real estate should be owned by the post and the liquor license owned by the home corporation so that the post and real estate would be insulated from liability in the result of an alcohol-related tragedy.

Determining that the Home Corporation is separate and distinct from the Post, the Board denied the Home Corporation’s application for a liquor license as an incorporated unit of a national veteran’s organization. Relying on Exhibit A-9, the memo advising the Post and Home Corporation of liability, it reasoned that the Home Corporation could not be a subordinate unit of the national organization when it was created as a separate entity so as to be a barrier to liability for the Post and national organization in the event of alcohol-related incidents. It also found that just because the national organization included a listing for the Home Corporation in a directory book signed by the National Commanders, that was insufficient to establish that the Home Corporation was a direct subordinate of a national veteran’s organization.

The Home Corporation appealed from the Board’s order to the trial court and a de novo hearing was held. The sole witness testifying before the trial court was William When-ry, now the President of the Board of the Home Corporation. He testified that the former President of the Board of the Home Corporation, Andrew Homza, who had testified before the Board, did not have a full understanding of how the Home Corporation and Post work. Whenry testified that all Post members are also members of the Home Corporation. He testified that the Home Corporation had approximately 250 members, about half of which were regular members and half of which were social, nonvoting members. He explained the difference between regular members, those members who served during wartime conflict, and social members, those members who need not have been in the military. Whenry testified that only regular members, not social members, had the right to vote and hold positions on the Board of the Home Corporation. Whenry further testified that if the Post was disbanded or its charter revoked, the Home Corporation would cease to exist.

The trial court reversed the order of the Board and held that the Home Corporation was entitled to a liquor license pursuant to 47 P.S. § 461.1. Because it found that Whenry’s testimony was substantially different than that which was presented by the Home Corporation at the hearing before the Board, the [440]*440trial court made its own findings of fact. It found that the Home Corporation was created to maintain physical quarters and to provide financial support for the Post, and also represented an attempt to provide a legal buffer between the Post and the activities of the Home Corporation. The court found that “the existence of a home corporation within the structure of American Legion Posts is recognized by the state and national organization; and, in fact, home corporations are listed in the state directory of the American Legion.” The court further found that the state and national organizations exercise control over the Post and Home Corporation at each step of the hierarchy of the organization, and that direct control over the Post and Home Corporation is exercised through the Charter. The court noted that the Home Corporation was incorporated in 1954 for the benefit of the Post, and that it is limited to acting only in furtherance of the Post. The court held that the Home Corporation, to qualify for the exception under 47 P.S. § 461.1, need only be a subordinate unit, not a “direct” subordinate unit, as the Board contended. This appeal by the Board follows.3

The Board initially challenges the trial court’s ability to make its own findings of fact. It contends that because the evidence presented before the trial court was not substantially different from that presented before the Board, the trial court erred by substituting its own findings of fact for those of the Board.

In appeals from licensing decisions made by the Board, a trial court is prohibited from reversing a decision of the Board unless the Board committed some manifest abuse of discretion or unless the trial court makes findings of fact that vary from those made by the Board. Pennsylvania Liquor Control Board v. Can, Inc.,

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Bluebook (online)
686 A.2d 437, 1996 Pa. Commw. LEXIS 516, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pennsylvania-liquor-control-board-v-richard-e-craft-american-legion-home-pacommwct-1996.