Schoop v. New Orleans Alcoholic Beverage Control Board

519 So. 2d 831, 1988 La. App. LEXIS 20, 1988 WL 2459
CourtLouisiana Court of Appeal
DecidedJanuary 14, 1988
DocketNo. CA-7862
StatusPublished
Cited by1 cases

This text of 519 So. 2d 831 (Schoop v. New Orleans Alcoholic Beverage Control Board) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schoop v. New Orleans Alcoholic Beverage Control Board, 519 So. 2d 831, 1988 La. App. LEXIS 20, 1988 WL 2459 (La. Ct. App. 1988).

Opinion

GULOTTA, Chief Judge.

This is an appeal from a judgment upholding the denial of an application to sell alcoholic beverages at a bar located in a district zoned for residential use. Because we conclude that the City Code prohibits the permit and that the bar does not enjoy a non-conforming use, we affirm the judgment.

On October 9, 1985, Chris Schoop applied for an alcoholic beverage permit for 2139 Simon Bolivar Avenue in New Orleans, a location that had been operated as a bar for several years by prior tenants. The bar was one of four separate units in a building that enjoyed a non-conforming commercial use in an area zoned for multiple residential purposes. In addition to the bar, the building housed a hotel, a restaurant, and a cleaning business. Although the pri- or alcoholic beverage permits for the location had been approved “for hotel operation only”, the bar and hotel were operated as separate businesses and had no connecting doorways.

On November 19, 1985, the Collector of Revenue of the Department of Finance denied Schoop’s application because she had failed to meet the requirements of Sec. 5-45.1 of the Code of the City of New Orleans. The letter of denial stated in pertinent part:

“Section 5-45.1 of the City Code provides that ‘no permit shall be granted for the establishment or opening of any barroom ... or other place where beverages of high alcoholic content or beer or ale are sold at retail, to be consumed on the premises, in any residential district of the City as defined in Ordinance No. 4264, M.C.S., as now or hereafter amended’. This location is zoned RM-4 residential district.
Permits were at one time issued at this location in conjunction with the operation of a hotel. It has come to our attention that this bar is not operated in conjunction with the hotel.”

Although it prohibits barrooms in residential districts, Sec. 5-45.1 further recognizes a non-conforming use in favor of properly licensed bars that were already in operation at the time the ordinance became effective. These preexisting establishments can remain in business as long as they maintain proper licenses and permits and are continuously operated as barrooms with no lapse longer than six consecutive months.

Schoop appealed the denial of her application to the New Orleans Alcoholic Beverage Control Board, which conducted a hearing on December 10, 1985. The Board heard testimony and argument on two basic issues: 1) whether or not Schoop had applied for her permit within six months of the time the prior tenant had ceased operating the premises as a bar; and 2) whether the previous bar had enjoyed a lawful nonconforming use under an alcoholic beverage permit that had been approved “for hotel operation only”. After taking these matters under advisement, the Board rendered a decision affirming the Collector of Revenue’s denial of Schoop’s application. The Board made no specific findings and gave no written reasons.

Schoop thereafter appealed to the district court. Walter R. Chevalier, Jr., the owner of the premises, intervened in the suit against the Board to assert his vested interest in maintaining the use of the premis[833]*833es as a lounge. After the parties submitted briefs, the trial court affirmed the Board’s decision to deny the application.

In written reasons for judgment, the trial judge concluded that prior liquor permits had been issued at the location in conjunction with the operation of the hotel. She further observed, however, that the bar and the hotel, though in the same building, were separate operations with no connection between them. The judge concluded that the City was “under no obligation to issue an alcoholic beverage permit as an accomodation, when the relationship between these two businesses never existed.”

Appealing, Schoop and Chevalier contend that the City should have issued an alcoholic beverage permit because the bar enjoyed a non-conforming use under Sec. 5-45.1. They allege that the location had been operated as a bar before the passage of the statute and had remained in continuous operation since then without any lapse longer than six months. Specifically, they contend: 1) that the City is estopped from arguing that the bar lacked the non-conforming use because the Collector of Revenue failed to cite this reason in his letter denying Schoop’s application; 2) that the bar’s non-conforming use was preserved because Schoop filed her application for the liquor permit within six months of the time the previous tenant had ceased operating a bar at the premises; 3) that the bar remains non-conforming within the meaning of Sec. 5-45.1 because other businesses located in the same building have retained their non-conforming commercial status in the residential neighborhood; and 4) that the Collector of Revenue must issue the permit because he failed to deny Schoop’s application within thirty-five days as required by statute. We find no merit to these contentions.

LETTER OF DENIAL

Schoop and Chevalier first argue that the Collector of Revenue’s letter denying her application failed to state the specific cause for refusing her request for a permit. According to Schoop, because the letter fails to state that the bar has lost its non-conforming use under Sec. 5-45.1, the City should not be allowed to assert this argument as a “new cause” for denying her application. We disagree.

The November 19, 1985 letter of denial informed Schoop that she had failed to meet the requirements of Sec. 5-45.1. The letter quoted the portion of this section prohibiting bars in residential areas and told the applicant that the bar at this location had not been operated in conjunction with the hotel according to the prior liquor permit. Although the letter did not expressly state that the bar lacked a “nonconforming use” within the meaning of Sec. 5-45.1, this message was implicit in the letter and, upon referring to the full text of the City Code section, Schoop could not be mistaken about the reason for the denial.

Furthermore, Schoop has failed to show any prejudice under the circumstances. At the appeal hearing before the Alcoholic Beverage Control Board, attorneys for the City and Schoop presented testimony and arguments on the issue of the bar’s nonconforming status. The matter was fully explored at the administrative hearing and is therefore properly before us in this appeal.

NON-CONFORMING USE

Schoop and Chevalier further contend that the evidence presented at the hearing failed to show that the bar has ever lost its non-conforming use. They point out that the former tenant who operated a lounge on the premises was not evicted until April 12,1985, and that Schoop applied for a new liquor permit less than six months later, on October 9, 1985. Under these circumstances, Schoop and Chevalier argue that the non-conforming use remains in effect because there has been no lapse in continuous operation of the lounge for a period in excess of six consecutive months.

The Alcoholic Beverage Control Board heard conflicting evidence on the factual issue of when the previous tenant ceased operating a bar on the premises. A representative of the Department of Finance and Revenue testified that the former bar oper[834]*834ator’s request to obtain a liquor permit at another location was denied on March 31, 1985, and she had paid no sales taxes on the bar at 2139 Simon Bolivar after that date.

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Bluebook (online)
519 So. 2d 831, 1988 La. App. LEXIS 20, 1988 WL 2459, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schoop-v-new-orleans-alcoholic-beverage-control-board-lactapp-1988.