Seaman v. State, Department of Revenue

2002 MT 34, 42 P.3d 790, 308 Mont. 307, 2002 Mont. LEXIS 46
CourtMontana Supreme Court
DecidedFebruary 26, 2002
Docket01-182
StatusPublished
Cited by5 cases

This text of 2002 MT 34 (Seaman v. State, Department of Revenue) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Seaman v. State, Department of Revenue, 2002 MT 34, 42 P.3d 790, 308 Mont. 307, 2002 Mont. LEXIS 46 (Mo. 2002).

Opinions

JUSTICE RICE

delivered the Opinion of the Court.

¶1 The Appellant, State of Montana, Department of Revenue (DOR), appeals from an order entered by the Fifteenth Judicial District Court, Roosevelt County, reversing DOR’s order revoking Jerry Seaman’s (Seaman) All-Alcoholic Beverage License. We affirm.

¶2 The following issues were presented for review:

¶3 1. Whether the District Court properly determined that the DOR failed to comply with the requirements of § 16-6-303, MCA.

¶4 2. Whether the DOR violated Seaman’s due process rights.

FACTUAL AND PROCEDURAL BACKGROUND

¶5 Seaman is the holder of a Montana Al-Acoholic Beverage License and the operator of the Depot Bar and Casino in Poplar, Montana. On April 17, 1996, after a lengthy investigation by the Montana Department of Justice (DOJ), DOJ issued criminal citations charging Seaman with violating §§ 16-6-301 and 16-6-303, MCA, by selling liquor not purchased from an agency liquor store. Seaman was found guilty of both charges on January 14, 1997, in Justice Court. On September 19,1997, DOR advised Seaman that it intended to revoke his license, and after a hearing, DOR issued an order revoking Seaman’s license on March 24, 2000.

¶6 The investigation leading to the charges against Seaman began in December 1995, when Roosevelt County Sheriff John Granger, while shopping in Williston, North Dakota, noticed Seaman’s pickup truck parked outside the Rough Rider Liquor Store. He observed Seaman exit the liquor store pushing a cart loaded with three or four cases of alcohol and place the cases into his truck. After observing Seaman, Sheriff Granger advised the Gambling Division of the DOJ of his observations and requested investigative assistance. DOJ investigators attempted over the next few months to observe Seaman purchasing liquor in North Dakota and transporting it into Montana.

¶7 On January 3,1996, the DOJ investigators traveled to Williston, North Dakota, where they made application for, and were granted, a search warrant to seize records and documents pertaining to sales of alcohol from the Rough Rider Liquor Store to Seaman during the calendar year 1995. The records indicated that Seaman had purchased liquor from the store at least nineteen times during that year. DOJ investigators were able to correlate Seaman’s purchases as indicated on sales tax exemption forms with cash register tapes from the store.

[309]*309¶8 After obtaining evidence of Seaman’s North Dakota liquor purchases, the investigators interviewed Seaman and performed an inspection of his bar on April 17,1996. At that time, the investigators seized fifteen bottles of rum and two bottles of vodka that had been purchased in North Dakota. The same day, the DOJ investigators issued two citations to Seaman, charging him with violating § 16-6-303, MCA, which prohibits a Montana licensee from selling, keeping for sale, or having on the licensee’s premises for any reason, any liquor except that purchased from a Montana state agency liquor store, and violating § 16-6-301, MCA, which prohibits any person from possessing in excess of three gallons of an alcoholic beverage purchased in another state or foreign country.

¶9 Seaman was convicted of both charges on January 14, 1997, in Roosevelt County Justice Court. On January 22, 1997, the DOJ investigation report regarding Seaman’s out-of-state liquor purchases was received by DOR. The report did not reference Seaman’s Justice Court conviction. Following DOR operating procedures, Amber Carpenter (Carpenter), a Liquor Licensing Compliance Specialist, prepared and submitted a draft notice of license revocation to DOR legal counsel for approval in February 1997. After learning of Seaman’s conviction, legal counsel instructed Carpenter to revise the notice of revocation. Carpenter prepared a second draft, which was approved by DOR legal counsel and sent to Seaman on September 19, 1997.

¶10 On October 3, 1997, Seaman filed a request for a hearing on the license revocation, and a hearing was ultimately held on October 5 and 6, 1999. The hearing examiner held that Seaman’s license was properly revoked by DOR, and that holding was affirmed in the final agency decision issued by the director of DOR on March 24, 2000.

¶11 Seaman then filed a petition for judicial review in the Fifteenth Judicial District Court, which reversed the agency decision. The District Court concluded that DOR failed to comply with the mandate of § 16-6-303, MCA, to “immediately” revoke the license, and that the process of revocation violated Seaman’s due process rights. The DOR appeals the District Court’s order.

STANDARD OF REVIEW

¶12 A district court reviews an administrative decision in a contested case to determine whether the findings of fact are clearly erroneous and whether the agency correctly interpreted the law. Laudert v. Richland County Sheriff’s Dept., 2000 MT 218, ¶ 14, 301 Mont. 114, ¶ [310]*31014, 7 P.3d 386, ¶ 14. We employ the same standards when reviewing a district court order .affirming or reversing an administrative decision. Langager v. Crazy Creek Prod., Inc., 1998 MT 44, ¶ 13, 287 Mont. 445, ¶ 13, 954 P.2d 1169, ¶ 13.

DISCUSSION

¶13 Did the District Court properly determine that the DOR failed to comply with the requirements of § 16-6-303, MCA?

¶14 Section 16-6-303, MCA, states in relevant part:

It is unlawful for any licensee to sell or keep for sale or have on the licensee’s premises for any purpose whatever any liquor except that purchased from an agency liquor store.... If the department is satisfied that the liquor was knowingly sold or kept for sale within the licensed premises by the licensed or by the licensee’s agents, servants, or employees, the department shall immediately revoke the license. [Emphasis supplied.]

¶15 Pursuant to this provision, DOR must “immediately” revoke a license when it is “satisfied” that the license holder has violated the statute. DOR argues that it was not satisfied that a violation of the statute had occurred until it received the investigative report from the DOJ on January 22, 1997. Seaman argues that DOR was satisfied a violation had occurred on April 17,1996, when the DOJ investigators issued Seaman the two citations, imputing the knowledge of the DOJ investigators onto the DOR, a sister agency in the enforcement of this statute.

¶16 The District Court agreed with Seaman, finding that DOR was “satisfied” a violation of the statute had occurred at the time the citations were issued, but also determining that, at the very latest, DOR was “satisfied” a violation of the statute had occurred on January 14,1997, when Seaman was convicted of the charges in Justice Court. The District Court reasoned that, using either date, DOR failed to act “immediately” as required by the statute.

¶17 Our decision does not require that we resolve the question of whether the DOR was satisfied for purposes of § 16-6-303, MCA, that a violation of the statute occurred on April 17,1996, by virtue of DOJ’s issuance of the citations to Seaman and imputation of that action to DOR. DOR admittedly was satisfied of the violation when it received the investigative report on January 22,1997. Seaman’s conviction on January 14, 1997, was also sufficient to place DOR on notice and therefore satisfy DOR of the violation for purposes of § 16-6-303, MCA. Our analysis here addresses whether DOR complied with the statute

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Related

Shelby Distributors, LLC v. Montana Department of Revenue
2009 MT 80 (Montana Supreme Court, 2009)
Seaman v. State, Department of Revenue
2002 MT 34 (Montana Supreme Court, 2002)

Cite This Page — Counsel Stack

Bluebook (online)
2002 MT 34, 42 P.3d 790, 308 Mont. 307, 2002 Mont. LEXIS 46, Counsel Stack Legal Research, https://law.counselstack.com/opinion/seaman-v-state-department-of-revenue-mont-2002.