Stroh v. Midway Restaurant Systems, Inc.

180 Cal. App. 3d 1040, 226 Cal. Rptr. 153, 1986 Cal. App. LEXIS 1572
CourtCalifornia Court of Appeal
DecidedMay 13, 1986
DocketD002491
StatusPublished
Cited by18 cases

This text of 180 Cal. App. 3d 1040 (Stroh v. Midway Restaurant Systems, Inc.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stroh v. Midway Restaurant Systems, Inc., 180 Cal. App. 3d 1040, 226 Cal. Rptr. 153, 1986 Cal. App. LEXIS 1572 (Cal. Ct. App. 1986).

Opinion

Opinion

BUTLER, J.

We validate a new statute empowering the superior court to enjoin violations of rules of the Department of Alcoholic Beverage Control (Department) occurring after revocation of a liquor license and pending an administrative appeal to the Alcoholic Beverage Control Appeals Board (Board).

Midway Restaurant Systems, Inc. dba A.J.’s Lounge (Midway) appeals a preliminary injunction imposed upon Midway pursuant to Business and Professions Code 1 section 23053.1 at the request of the Department.

In October of 1983 the director of the Department filed an accusation against Midway alleging 10 separate violations of California Administrative *1046 Code title 4, section 143.3, subdivision (l)(c) (rule 143.3) 2 which prohibits certain activities such as nude dancing in conjunction with the sale of alcoholic beverages. (Cal. Const., art. XX, § 22; Bus. & Prof. Code, §§ 24200, subds. (a) and (b), 25750.) The accusation was amended with additional occurrences in November of 1983.

After a hearing in January of 1984, the Department issued a decision May 10, 1984, revoking Midway’s license to serve alcoholic beverages. The violation as found by the Department consisted of 14 counts of 10 different dancers variously displaying either her pubic hair or her vulva. Pursuant to section 23081, Midway appealed the decision to the Board which also resulted in an automatic stay of the revocation (§ 23082). However, invoking a newly enacted statute, section 23053.1, 3 the Department on August 20, 1984, filed a complaint in superior court against Midway for a preliminary and permanent injunction as well as an order to show cause for a temporary restraining order alleging similar and continuous violations of Midway’s license May 15 and June 1. The complaint lists seven occurrences where six different dancers displayed pubic hair while performing on stage and one dancer displayed breasts and buttocks while not on stage and within six feet of the nearest patron in violation of rule 143.3 (l)(c), (2).

After various preliminary proceedings, the superior court granted a preliminary injunction enjoining any violations of rule 143.3. Subsequently, *1047 Midway also filed with this court a petition for writ of prohibition and for a writ of supersedeas as to the injunction. Both were denied December 12, 1984. Midway also brought the requests to the California Supreme Court but failed again to get relief on December 28, 1984 (D002509, D002511).

We now round out the picture of the various actions taken in opposition to and in attempted delay of the license revocation. After the Board upheld on April 29, 1985, the Department’s decision to revoke Midway’s license, Midway filed with this court a petition for writ of review and request for a stay which was denied on May 22, 1985. Then Midway filed a petition for review with the California Supreme Court (§ 23090; D003156) which the court denied July 11, 1985. 4

Midway now appeals the injunction which prohibited continued violations of rule 143.3 during the pendency of Midway’s appeal to the Board, and advances these contentions:

(1) The superior court both constitutionally and statutorily is without jurisdiction to entertain the action.
(2) Section 23053.1 is unconstitutional under the due process clauses of the United States and California Constitutions since it conflicts with sections 23080-23089.
(3) The application of section 23053.1 to Midway is unconstitutional under the United States and California Constitutions which prohibit ex post facto laws.
(4) It is a violation of Midway’s constitutional right of free expression to apply section 23053.1 in this context and injunctive enforcement constitutes a prior restraint on such free expression.
(5) Finally Midway contends enforcement of rule 143.3 in this case is unconstitutional because only dancing or conduct which is “grossly sexual” can be prohibited under the First Amendment of the United States Constitution.

We reject all of Midway’s contentions and find section 23053.1 constitutional on its face as well as in its application to Midway in this circumstance.

*1048 I

Preliminarily we note Midway’s license has been revoked and the circumstances which underlie this appeal no longer exist. Ordinarily this would render the appeal moot. However, the issue inevitably will recur, is one of first impression and great public interest and we consider it appropriate to entertain the appeal. (Ballard v. Anderson (1971) 4 Cal.3d 873, 876-877 [95 Cal.Rptr. 1, 484 P.2d 1345, 42 A.L.R.3d 1392]; In re William M. (1970) 3 Cal.3d 16, 23 [89 Cal.Rptr. 33, 473 P.2d 737].)

II

The Business and Professions Code lays out a comprehensive framework of powers and duties of the Department of Alcohol Beverage Control, the Alcoholic Beverage Control Appeals Board, and the role of the courts in matters concerning the manufacture and sale of alcoholic beverages. The Department has the power to issue and revoke licenses according to the specifications set out in the statutes (Cal. Const., art. XX, § 22; Bus. & Prof. Code, §§ 23052, 23053.5, 23950 et seq., 24200 et seq.; see also Gov. Code, § 11500 et seq.) and pursuant to section 25750 the Department can make reasonable rules and regulations to carry out the purposes and intent of the constitutional mandate. Rule 143.3 is such a rule. Decisions of the Department can be appealed to the Board (§ 23081) and if such an appeal is taken there is an automatic stay of the effect of the decision (§ 23082). Further, judicial review of decisions is provided exclusively in either the Court of Appeal or the California Supreme Court (§ 23090); jurisdiction for either injunction or mandamus is provided in the same courts in the proper case (§ 23090.5). (See Top Hat Liquors v. Department of Alcoholic Beverage Control (1974) 13 Cal.3d 107 [118 Cal.Rptr. 10, 529 P.2d 42]; Schenley Affiliated Brands Corp. v. Kirby (1971) 21 Cal.App.3d 177, 195-196 [98 Cal.Rptr. 609].)

Section 23053.1 was enacted as an urgency measure, to be effective immediately March 28, 1984. Previously the Department had little if any power to prevent license violations during the automatic stay after the Department decision and the final Board review. The statute authorizes the application by the Department for, and the issuance of, an injunction against continued violations but only after the Department has adopted a decision following the requisite administrative hearing.

III

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Nick v. Dept. Alcoholic Beverage Control
California Court of Appeal, 2015
Nick v. Department of Alcoholic Beverage Control
233 Cal. App. 4th 194 (California Court of Appeal, 2014)
Martin v. PacifiCare of California
198 Cal. App. 4th 1390 (California Court of Appeal, 2011)
Nunez v. Holder
594 F.3d 1124 (Ninth Circuit, 2010)
Osequeda-Nunez v. Holder
Ninth Circuit, 2010
Department of Alcoholic Beverage Control v. Alcoholic Beverage Control Appeals Board
121 Cal. Rptr. 2d 729 (California Court of Appeal, 2002)
Applications of Herrick and Irish
922 P.2d 942 (Hawaii Supreme Court, 1996)
Frankel v. Board of Dental Examiners
46 Cal. App. 4th 534 (California Court of Appeal, 1996)
Kenneally v. MEDICAL BOARD OF CA.
27 Cal. App. 4th 489 (California Court of Appeal, 1994)
Gikas v. Zolin
863 P.2d 745 (California Supreme Court, 1993)
Wilson v. City of Laguna Beach
6 Cal. App. 4th 543 (California Court of Appeal, 1992)
California Assn. of Psychology Providers v. Rank
793 P.2d 2 (California Supreme Court, 1990)
In Re Petra B.
216 Cal. App. 3d 1163 (California Court of Appeal, 1989)
San Diego County Department of Social Services v. Eric B.
216 Cal. App. 3d 1163 (California Court of Appeal, 1989)

Cite This Page — Counsel Stack

Bluebook (online)
180 Cal. App. 3d 1040, 226 Cal. Rptr. 153, 1986 Cal. App. LEXIS 1572, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stroh-v-midway-restaurant-systems-inc-calctapp-1986.