SHE-KEV, INC. v. TOWNSHIP OF ROXBURY (DIVISION OF ALCOHOLIC BEVERAGE CONTROL)

New Jersey Superior Court Appellate Division·Decided January 21, 2022·No. A-2702-19·Unpublished

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court." Although it is posted on the internet, this opinion is binding only on the parties in the case and its use in other cases is limited. R. 1:36-3.

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION

DOCKET NO. A-2702-19

SHE-KEV, INC., Petitioner-Appellant,

v. TOWNSHIP OF ROXBURY,

Respondent-Respondent.

Submitted January 3, 2022 – Decided January 21, 2022 Before Judges Vernoia and Firko.

On appeal from the New Jersey Department of Law and Public Safety, Division of Alcoholic Beverage Control, Agency Docket No. 134.

Jeffrey S. Mandel, attorney for appellant.

Murphy Schiller & Wilkes, LLP, attorneys for respondent Township of Roxbury (Thomas S. Dolan, on the brief).

PER CURIAM

Petitioner She-Kev, Inc. appeals from an October 15, 2019 Final Conclusion and Order of the Division of Alcohol Beverage Control (the ABC) dismissing as moot petitioner's verified petition for a special ruling allowing renewal of petitioner's inactive liquor license and a person-to-person transfer of the license. 1 Petitioner sought the relief from the ABC based on its claim respondent Township of Roxbury's (Roxbury) failure to timely act on its applications for the renewal and transfer constituted de facto denial of the applications. Petitioner also appeals from the ABC's February 12, 2020 Order denying its motion for reconsideration. Petitioner argues the orders were erroneously entered based on insufficient evidence, in violation of its due process rights, and in reliance on disputed facts that can only be decided in a plenary hearing. Unpersuaded by petitioner's claims, we affirm.

I.

In June 2018, petitioner filed a verified petition with the ABC claiming Roxbury had failed to take timely action on its applications for renewal of its

1 The proposed "person-to-person" transfer of the liquor license was between petitioner and "She-Kev, LLC."

liquor license for the "2016-2017 and the 2017-2018 licensing years" 2 and the person-to-person transfer of the liquor license, asserting the failure constituted a de facto denial of the applications under N.J.A.C. 13:2-2.10(b), and requesting a special ruling pursuant to N.J.S.A. 33:1-12.39. The ABC referred the matter to the Office of Administrative Law (OAL) as a contested case.

Roxbury subsequently filed an answer to the verified petition, asserting:

it did not consider petitioner's renewal application because it was incomplete; petitioner, the corporate owner of the license, "had been dissolved and was no longer a going concern"; and the State was unable to provide the tax clearance letter required for approval of the application because petitioner was a "dissolved entity." Roxbury's answer further stated that after it resolved a "myriad of errors" in the renewal application, it scheduled a June 26, 2018 hearing on that application and the application to transfer the license. 3 Roxbury later decided to adjourn the hearing to allow its police department to complete criminal investigations into petitioner's business and

2 N.J.S.A. 33:1-26 provides that the term of a liquor license runs from July 1 of one year until June 30 of the next, and automatically expires on June 30 each year. 3 It is unnecessary to the resolution of the issues presented on appeal to address the myriad of issues with petitioner's application Roxbury contends resulted in the delay in its consideration of the application on the merits.

because the New Jersey Division of Criminal Justice informed Roxbury it was in the process of presenting evidence to a grand jury concerning the operation of petitioner's business and petitioner's owners, Kevin Lipka and Shelly Lipka.

In its answer, Roxbury further asserted that before it could inform petitioner the hearing was to be adjourned, petitioner filed its verified petition for a special ruling with the ABC claiming Roxbury's alleged failure to timely decide the applications for the license renewal and transfer resulted in a de facto denial of the applications.

Following the filing of Roxbury's answer, petitioner's counsel withdrew, and one of petitioner's owners, Kevin Lipka (Lipka), thereafter represented petitioner in the OAL proceedings before the administrative law judges (ALJ) assigned to the matter, and before the ABC.

In a January 15, 2019 letter to the ABC director, Lipka disputed the claims made in Roxbury's answer to the verified petition and requested a "review and immediate[] approv[al]" of the license renewal and transfer applications. On February 14, 2019, the Deputy Attorney General representing the ABC informed Lipka the ABC Director would not take any action on petitioner's verified petition for a special ruling while the petition was pending in the OAL.

The OAL issued a February 27, 2019 notice scheduling a March 5, 2019 telephone conference before ALJ Robert J. Giordano. In its brief on appeal, petitioner acknowledges Judge Giordano conducted the conference and then a follow-up call. As result of the initial telephone conference and call, the parties agreed to a remand of petitioner's applications for the license renewal and transfer – that were the subject of its verified petition for a special ruling – to Roxbury for a hearing and its decision on the merits of the applications. 4 On appeal, the parties dispute the precise parameters of the agreement concerning the remand. However, it is undisputed they agreed to submit petitioner's applications for the license renewal and transfer to Roxbury for a decision on the merits of the applications. Indeed, Lipka represented to the ABC Director that he "agreed to the remand back to Roxbury for [its] decision . . . because Judge Giordano assured [him] that this route would be

4 The record does not include a transcript of the conference or call, and it appears none was prepared. It also appears the parties' remand agreement was not memorialized in a writing and was not the product of an order entered by the ALJ. In any event, as we explain there is no dispute the parties agreed to a remand to Roxbury for its determination of the merits of petitioner's applications.

quicker than having the OAL decide this matter." 5 Lipka explained he agreed to the remand to allow Roxbury to decide the merits of petitioner's applications because "Roxbury would have a decision in [forty-five] days and the OAL could take as long as six months." According to Lipka, "[e]xpediting any decision was [his] only reason [for] consenting [to] the remand" to Roxbury.

Lipka obtained the result he sought by agreeing to submit petitioner's applications to Roxbury for its decision on the merits. On April 15, 2019, Roxbury held a hearing on petitioner's applications at which Lipka represented petitioner, presented evidence, and testified on petitioner's behalf. Eight days later, on April 23, 2019, petitioner obtained Roxbury's decision: it issued a resolution denying petitioner's applications for the license renewal and transfer, and detailing the reasons for its denial. 6

5 Lipka's statements concerning his agreement to the remand for Roxbury to decide the merits of petitioner's applications are included in an October 4, 2019 letter he sent to the ABC Director. 6 Roxbury's stated reasons for the denial of the application included: (1) the application was incomplete and did not include an original affidavit and appropriate background investigation with "appropriate fingerprints"; (2) Lipka's testimony at the hearing was not credible because he claimed a completed application was submitted to Roxbury and that was not the case; (3) petitioner She-Kev, Inc. is not a corporation in good standing with the State; (4) during the term of the liquor license's suspension, petitioner received "delivery of alcoholic beverages on and within the licensed premises in violation of the

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