Thanner Enterprises, LLC v. Baltimore County

995 A.2d 257, 414 Md. 265, 2010 Md. LEXIS 195
CourtCourt of Appeals of Maryland
DecidedMay 14, 2010
Docket113 Sept.Term, 2008
StatusPublished
Cited by18 cases

This text of 995 A.2d 257 (Thanner Enterprises, LLC v. Baltimore County) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thanner Enterprises, LLC v. Baltimore County, 995 A.2d 257, 414 Md. 265, 2010 Md. LEXIS 195 (Md. 2010).

Opinions

BARBERA, Judge.

In this case we must determine whether the Board of Liquor License Commissioners for Baltimore County (“the Board”) acted outside the scope of its statutory authority when it imposed a sanction on Thanner Enterprises, LLC, an alcoholic beverages license holder, prohibiting any outdoor music at its establishment. We hold that the sanction was outside the scope of the Board’s authority. We therefore reverse the judgment of the Circuit Court and remand the case to that court with directions to reverse the Board’s imposition of that sanction.

I.

Appellant, Thanner Enterprises, LLC, holds a Class D alcoholic beverages license for the benefit of its establishment, a bar and restaurant named Dock of the Bay, which is located in Baltimore County, Maryland. Appellant provided live and recorded music and other entertainment to its patrons at the establishment. Some of that entertainment took place outside of the building.

In July 2007, four people who lived in the neighborhood of Dock of the Bay lodged complaints with the Board, asserting [270]*270that on July 1, 2007, outside music at Dock of the Bay was unduly loud. Based on these complaints, the Board sent Appellant a Notice of a Show Cause Hearing alleging violations of Article 2B, § 10-401 of the Maryland Code1 and several Liquor Board Rules and Regulations (the “Board Rules”). See §§ 10-401 & 10-403 (dictating the process by which a liquor license board may revoke or suspend a license).2 [271]*271Specifically, the notice alleged that Appellant violated the following Board Rules: Rule 2, entitled “Prohibited Practices,” which prohibits a licensee from violating any laws or from committing actions that are contrary to the “public peace, safety, health, welfare, quiet, or morals”;3 Rule 3, entitled, “Noise and Music,” which regulates “mechanical music boxes, live music and sound-making devices” and precludes a licensee from “disturbing the peace, tranquility, safety, health, and quiet of the neighborhood”;4 and Rule 16, entitled [272]*272“Cooperation,” which requires that a licensee cooperate with certain government officials conducting official business at the licensee’s establishment.5

The Board held the Show Cause Hearing on August 6, 2007. At the hearing, several of the neighbors who initiated the complaint testified, alleging that on July 1, 2007, the outside music was unduly loud between 4:00 p.m. and 8:00 p.m. The Board also heard testimony from a neighbor in the area who, contrary to the complaints, asserted that the music on that day was not too loud. In addition, several Dock of the Bay employees testified that on the date in question they received a complaint about the music and, in response, turned the music down. At the conclusion of the hearing, the Board sustained the violations set forth in the hearing notice, finding that Appellant had violated §§ 10-401 and 10-403 and Rules 2, 3, and 16. Consequently, the Board imposed a $1,000 fine on Appellant and indefinitely prohibited Appellant from playing outdoor music.

Appellant sought judicial review of the Board’s decision in the Circuit Court for Baltimore County. Appellant contested the Board’s authority to impose a sanction prohibiting Appellant from playing outdoor music but did not contest the $1,000 fine. The Circuit Court held oral arguments on April 22, 2008. On May 7, 2008, the Circuit Court issued a Memorandum Opinion and Order affirming the Board’s decision. The Cir[273]*273cuit Court determined that the Board “acted within the scope of its express statutory authority in prohibiting [Appellant] from playing outside music at their licensed establishment.” The court reasoned that the Board’s express authority was derived from § 9-201(a)(2), which provides that, “by regulation,” a local liquor board may “[r]egulate and limit the use of mechanical music boxes and other sound-making devices.” Further, the court reviewed the record of the Board’s hearing and determined that the Board’s findings that Appellant had violated Rules 2 and 3 were supported by “substantial evidence.”

On May 28, 2008, Appellant appealed to the Court of Special Appeals. Prior to consideration by that court, we issued a writ of certiorari on our own motion and ordered that the case be docketed for consideration. Thanner Enterprises, LLC v. Baltimore County, 406 Md. 443, 959 A.2d 793 (2008). Appellant presents two questions:

Whether the Board of Liquor License Commissioners exceeded its authority by prohibiting the Appellant from having outside music at the licensed premises?
Whether the Board of Liquor License Commissioners’ decision was arbitrary and unreasonable?[6]

II.

The lawfulness of the Board’s prohibition of outside music at Appellant’s establishment turns on whether the General Assembly has granted the Board the authority to impose such a sanction. Appellant, relying on a trilogy of cases, Board of Liquor License Commissioners v. Hollywood Productions, Inc., 344 Md. 2, 684 A.2d 837 (1996), Board of Liquor License Commissioners, v. Fells Point Café, Inc., 344 Md. 120, 685 A.2d 772, (1996), and Board of Liquor License Commissioners v. J.R. Brothers, Inc., 119 Md.App. 308, 705 A.2d 16 (1998), submits that liquor boards may only impose sanctions that are [274]*274either expressly or impliedly authorized by Article 2B, or to which a licensee has consented.7 Appellant contends that no provision of Article 2B expressly or impliedly authorizes the sanction imposed by the Board. Consequently, Appellant maintains, the sanction is illegal.

Appellee does not dispute that the liquor boards are restricted to the powers the General Assembly set forth in Article 2B. Appellee submits, however, that § 9-201(a)(2) grants the Board the express authority to prohibit Appellant from playing outdoor music. Appellee maintains that, because § 9-201(a)(2) grants liquor boards the power to “[r]egulate and limit the use of mechanical music boxes and other sound-making devices,” the Board may limit licensees’ use of such devices as it “deem[s] appropriate.” Appellee points out that, pursuant to that provision, the Board promulgated Rule 3 of its Rules and Regulations, which “expressly prohibit[s] licensed establishments from disturbing the peace.” Appellee contends that the sanction was authorized pursuant to the Board’s authority to determine that Appellant had “disturbed the peace and tranquility of the neighborhood” and therefore violated Rule 3.

III.

The scope of our review of a local liquor licensing board’s decision is limited under § 16—101(e)(l)(i), which provides, in relevant part:

Upon the hearing of such appeal, the action of the local licensing board shall be presumed by the court to be proper and to best serve the public interest.

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Thanner Enterprises, LLC v. Baltimore County
995 A.2d 257 (Court of Appeals of Maryland, 2010)

Cite This Page — Counsel Stack

Bluebook (online)
995 A.2d 257, 414 Md. 265, 2010 Md. LEXIS 195, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thanner-enterprises-llc-v-baltimore-county-md-2010.