Sprenger Brewery Ltd. v. Pa. Liquor Control Board

27 Pa. D. & C.3d 19, 1983 Pa. Dist. & Cnty. Dec. LEXIS 268

This text of 27 Pa. D. & C.3d 19 (Sprenger Brewery Ltd. v. Pa. Liquor Control Board) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Lancaster County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sprenger Brewery Ltd. v. Pa. Liquor Control Board, 27 Pa. D. & C.3d 19, 1983 Pa. Dist. & Cnty. Dec. LEXIS 268 (Pa. Super. Ct. 1983).

Opinion

MUELLER, J.,

On April 6, 1981, Sprenger Brewery, Ltd. (hereinafter referred to as Sprenger Brewery), filed a written application with the Pennsylvania Liquor Control Board for a new restáurantliquor license and amusement permit on a prior approval basis for premises located at 125 East King Street, Lancaster, Pa. On September 10, 1981, a full day hearing was held upon Sprenger Brewery’s application before a hearing examiner designated by the Pa. Liquor Control Board.1 This hearing was attended by several protestants who were represented by an attorney, several witnesses on behalf of the applicant and the applicant’s attorney.

The Liquor Control Board filed an opinion and order on April 30, 1982 refusing Sprenger Brewery’s application. The board rendered conclu-sionary findings of fact including:

2. The board is not satisfied that the establishment proposed to be licensed is located within a Resort Area.

3. It has not been established that there is a necessity for an additional retail liquor license in the City of Lancaster, Lancaster County.

4. The premises proposed to be licensed are located within 200 feet of other establishments licensed by this board.

5. The premises proposed to be licensed are located within 300 feet of the First Presbyterian Church and Trinity Lutheran Church.

On May 10, 1982, an order of this court was is^ sued allowing Sprenger Brewery to appeal the order [21]*21of the Pa. Liquor Control Board. On July 22,1982, a petition to intervene filed by the Lancaster County Tavern Owners Association was granted. After several continuances a de novo hearing was held on February 16, 1983. Briefs have been filed by Sprenger Brewery and by the intervenor. The Pennsylvania Liquor Control Board did not file a brief. The court, with consent of counsel for all parties, is rendering a decision without the benefit of a transcript of the de novo hearing. The court does have extensive notes which were used in ruling on this appeal.

This court has jurisdiction under Section 464 of the Liquor Code2 which provides, inter alia:

Any applicant who has appeared before the board or any agent thereof at any hearing, as above provided, who is aggrieved by the refusal of the board to issue any such license or to renew or transfer any such license may appeal. . . . The court shall hear the application de novo on question of fact, administrative discretion and such other matters as áre involved, at such time as it shall fix, of which notice shall.be given to the board. The court shall either sustain or overrule the action of the board and either order or deny the issuance of a new license or the removal or transfer of the license to the applicant.

The record established the City of Lancaster has a quota of 27 retail licenses for the sale of alcoholic beverages. There are presently 63 restaurant liquor licenses and seven retail dispenser eating place licenses in effect which are counted against the quota. Obviously the quota in the City of Lancaster is exceeded. There are also eight hotel liquor licenses, 20 club licenses, four catering club liquor [22]*22licenses and three club retail dispenser licenses in effect which are not counted against the quota. Since the quota was exceeded, Sprenger Brewery’s initial application was pursuant to Section 461(b) of the Liquor Code3 which provides:

(b) The board shall have the power to increase the number of licenses in any municipality which in the opinion of the board is located within a resort area.

Case law has made clear that Sprenger Brewery, as the appellant, has the burden under. Section 461(b) to show that the premises sought to be licensed axe in the resort area and that there is an actual need for the license in area. Aiello Liquor License Case, 41 Pa. Commw. 345, 399 A. 2d 154 (1979).

The legislature has not given the Liquor Control Board or the courts any guidance in defining a “resort area” except through its silence.4 See: Willowbrook Country Club, Inc., Liquor License Case, 409 Pa. 370 (1962); Application of El Rancho Grande, Inc., 496 Pa. 496 (1981). The definition which was developed through case law was most recently enunciated in Myers v. Pennsylvania Liquor Control Board, 499 Pa. 76, 451 A. 2d 1000 (1982). The Pennsylvania Supreme Court in Myers, quoting from Bierman Liquor License Case, 188 Pa. Super. 200 (1958), explained that the “resort area” exception was intended to render:.

[23]*23[A]n equitable distribution of licenses in areas wherein, at certain seasons, the ‘population’ is greatly increased, ‘making it quite obvious that the . usual number of licenses would not be adequate to serve the people.’ It is apparent that the legislature contemplated the seasonal influx of a large number of temporary inhabitants and the presence of suitable accommodations for this ‘transient population.’ At 1001.

An applicant which seeks a new license under the “resort area” exception has the burden to further establish that there is an actual need for the granting of the additional license. Some factors in considering the actual necessity are: (1) the number and types of establishments already operating in the area; (2) the clientele served by the existing licenses; and (3) the clientele intended to be served by the applicant. Petition of Springdale District Sportsmen’s Association, 20 Pa. Commw. 479, 342 A. 2d 802 (1975); also see: Appeal of Brandywine Valley Inn, Inc., 53 Pa. Commw. 203, 417 A. 2d 823 (1980); Application of Dorothy R. Hohl, 20 Pa. Commw. 490, 342 A. 2d 493 (1975). The primary question as stated by the Commonwealth Court in Appeal of Brandywine, supra, at 208, “is whether the applicant can add a service where and when the present licensees cannot.” (Citation omitted.) This court finds Sprenger Brewery did not meet its burden in showing “need” and finds this dispositive of the appeal.

The evidence introduced at the Liquor Control Board hearing held September 10, 19815 indicated that tavern and restaurant owners in the City of Lancaster are not turning individuals away be[24]*24cause of lack of space. There was also testimony at the board hearing that there are several restaurants in the City of Lancaster which can adequately cater to the daily workers, the city’s residents and tourists who may be attracted to the city. At the board’s hearing and at the appeal hearing before this court there was testimony that at least two liquor licenses were outstanding and available for purchase.6 Jon B. Tremellen, president and sole shareholder of Sprenger Brewery, Ltd., testified at the board’s hearing that those issued and outstanding licenses were too expensive and one had a “stigma.” Sprenger Brewery has cited no authority that “need” can be established due to an unwillingness to pay the market price or to buy a liquor license which has a subjectively perceived “stigma” attached to it.

Mr. Tremellen’s ambition and efforts to restore the Sprenger Brewery are commendable. The project is unique. However, the requisite “need” element has not been shown, and the Pa. Liquor Control Board did not abuse its discretion in refusing Sprenger Brewery’s application.

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Related

Larkin v. Grendel's Den, Inc.
459 U.S. 116 (Supreme Court, 1982)
Bierman Liquor License Case
145 A.2d 876 (Superior Court of Pennsylvania, 1958)
In Re Granting of Request for the Transfer of a Restaurant Liquor License
452 A.2d 289 (Commonwealth Court of Pennsylvania, 1982)
Application of Dorothy R. Hohl.
342 A.2d 493 (Commonwealth Court of Pennsylvania, 1975)
Hibbert v. Hollywood Park, Inc.
457 A.2d 339 (Supreme Court of Delaware, 1983)
Application of El Rancho Grande, Inc.
437 A.2d 1150 (Supreme Court of Pennsylvania, 1981)
Myers v. Pennsylvania Liquor Control Board
451 A.2d 1000 (Supreme Court of Pennsylvania, 1982)
Willowbrook Country Club, Inc. Liquor License Case
187 A.2d 154 (Supreme Court of Pennsylvania, 1962)
In re the Springdale District Sportsmen's Ass'n
342 A.2d 802 (Commonwealth Court of Pennsylvania, 1975)
In re Brandywine Valley Inn, Inc.
417 A.2d 823 (Commonwealth Court of Pennsylvania, 1980)
Centrum Prime Meats, Inc. v. Commonwealth, Pennsylvania Liquor Control Board
455 A.2d 742 (Commonwealth Court of Pennsylvania, 1983)

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27 Pa. D. & C.3d 19, 1983 Pa. Dist. & Cnty. Dec. LEXIS 268, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sprenger-brewery-ltd-v-pa-liquor-control-board-pactcompllancas-1983.