The Stube Chuckwagon Grill

2008 MT 165
Montana Supreme Court·Decided May 13, 2008·No. 07-0254·Published

Opinion

May 13 2008

DA 07-0254

IN THE SUPREME COURT OF THE STATE OF MONTANA 2008 MT 165

IN THE MATTER OF the Application for Transfer of Location for Montana All-Alcoholic Beverages Resort License No. 07-999-2667-009, THE MOUNTAIN MONKEY, 3842 Winter Lane, Whitefish, Flathead County, Montana

APPLICANT: The Stube & Chuckwagon Grill, LLC - Rande Hall, Sole Member (Cause No. 06-116-LQ),

Petitioner and Appellant.

APPEAL FROM: District Court of the Eleventh Judicial District, In and For the County of Flathead, Cause No. DV 2006-594A Honorable Ted O. Lympus, Presiding Judge

COUNSEL OF RECORD:

For Appellant:

Michael A. Ferrington, Attorney at Law, Whitefish, Montana For Appellee:

Derek R. Bell, Special Assistant Attorney General, Helena, Montana

Submitted on Briefs: January 29, 2008 Decided: May 13, 2008

Filed:

Clerk

Justice Patricia O. Cotter delivered the Opinion of the Court.

¶1 Rande Hall (Hall), the owner and sole member of the Stube & Chuckwagon Grill, LLC, appeals an order of the Eleventh Judicial District, Flathead County, affirming Findings of Fact, Conclusions of Law, and Order (Final Decision) as well as Supplementary Findings of Fact and Discussion (Supplemental Findings) issued by the Department of Revenue of the State of Montana (DOR). In its Final Decision and Supplemental Findings a DOR hearing examiner denied a request by Hall to transfer a resort all-beverages license owned by him in conjunction with the Stube & Chuckwagon Grill, LLC, to a new business at a different location to be known as the Mountain Monkey. We affirm.

FACTUAL AND PROCEDURAL BACKGROUND

¶2 In April 1998, resort all-beverages License No. 07-999-2667-009 (License) was transferred to Hall to be used in conjunction with an establishment he owned known as the Bierstube, located in the Big Mountain Ski Resort (BMSR), 3896 Big Mountain Road, Whitefish, Montana. In July 2000, Hall changed the name of the Bierstube to the Stube & Chuckwagon Grill, LLC (Chuckwagon Grill).

¶3 Sometime in 2003, Hall applied to the DOR to transfer the License from the Chuckwagon Grill to the proposed location of the Mountain Monkey at 3842 Winter Lane, Whitefish, Montana, in a complex known as the Kristianna Condominiums. The Kristianna Condominiums are located on Lot 24 of the Big Mountain View Subdivision, as that subdivision is recorded in Flathead County. Hall entered into an agreement to lease the facility from its owner, Wayne Womack (Womack). When Hall applied for the

transfer of the License, Winter Sports, Inc. (WSI), the corporate entity which owns BMSR, lodged an official protest of the transfer through its attorney Joseph Mazurek (Mazurek).

¶4 Under § 16-4-202(11), MCA, “a resort retail all-beverages license may not be sold or transferred for operation at a location outside of the boundaries of the resort area.” WSI protested, claiming that the proposed site of the Mountain Monkey in the Big Mountain View Subdivision was not within the boundaries of the BMSR area; thus, the License could not be transferred. In conjunction with its protest letter, WSI submitted several documents which it claimed supported its position. One was a plat of BMSR approved by DOR in 1993. This plat indicates the exterior boundaries of the BMSR area with a bold black line. Within this exterior boundary are seven parcels of property which are shaded. On the right side of the plat are legal descriptions of these shaded parcels, which state that they are “excepted” from the BMSR area. One of these shaded parcels is described as the Big Mountain View Subdivision. In other words, although located within the exterior boundaries of BMSR, the Big Mountain View Subdivision is reflected on the plat as being outside of the BMSR area. Thus, the Kristianna Condominiums located in Lot 24 of this subdivision, are outside of the BMSR area as well. In response to this protest letter, Hall withdrew the transfer application pending further investigation.

¶5 On April 13, 2004, in a wholly separate proceeding, another entity called Big Mountain Club Refreshments, LLC, filed an application with the DOR for a combined alcoholic beverage/gambling operator license at a proposed establishment to be known as the Big Mountain Club, located at 3893 Big Mountain Road, Commercial Unit 4A, in the

Morning Eagle Building. Big Mountain Club Refreshments, LLC, received protest letters from several individuals, including Hall and Womack. A hearing on the matter was held on October 21, 2004, with Howard R. Heffelfinger, hearing examiner for DOR, presiding. At the hearing, Womack protested the issuance of the license to WSI in part on the grounds that the proposed site of the Big Mountain Club in the Morning Eagle Building was outside the BMSR area. Heffelfinger rejected Womack’s protest and recommended that the application be approved in a decision issued on November 29, 2004, entitled “In the Matter of the Protests to the Issuance of One Original (new) Montana All-Alcoholic Resort License, Big Mountain Club, 3893 Big Mountain Road, Whitefish, Flathead County, Montana, No. 04-044-LQ” (Big Mountain Club Decision).

¶6 After the Big Mountain Club license was approved on July 7, 2005, Hall submitted another application to transfer his License to the Mountain Monkey. In his briefs before this Court, Hall claims that two facts which arose in conjunction with the application for the Big Mountain Club prompted him to re-file his application. First, Heffelfinger had approved the license for the Big Mountain Club in the Morning Eagle Building, which was located in one of the shaded portions of BMSR plat, just like the proposed site of the Mountain Monkey in Kristianna Condominiums on Lot 24 of the Big Mountain View Subdivision. In other words, because Heffelfinger approved a resort liquor license for a building which appeared to be located outside of the BMSR area, the site of the Mountain Monkey should be approved as well. Second, Big Mountain Club Refreshments, LLC, had submitted documents in conjunction with its application showing that it had considered the Kristianna Condominiums to be part of the BMSR

lodging facilities when WSI had submitted a resort re-determination application with the D O R in 1995. In that 1995 application, WSI represented that that Kristianna Condominiums were a part of the BMSR based on a contract between WSI and the condominium’s owner to provide lodging services. Believing these two facts would support his transfer application for the Mountain Monkey, Hall reapplied.

¶7 DOR received four protest letters after notice of the License transfer re-application was published in a local newspaper. A hearing was scheduled for December 6, 2005, with Heffelfinger presiding as the hearing examiner. One of the protest letters was from Anne Moran (Moran), a local resident who lived near the proposed site of the Mountain Monkey. Moran appeared and gave testimony concerning the site suitability and security issues. Another letter was from Mazurek, representing WSI. Mazurek also appeared at the hearing to present evidence in support of WSI’s protest. Because only Moran and Mazurek appeared at the hearing in protest, only their testimony was considered, and the other two letters were disregarded as inadmissible hearsay.

¶8 At the hearing, Heffelfinger heard testimony from a number of individuals concerning whether the proposed site of the Mountain Monkey was within the BMSR area. Jason Wood (Wood), supervisor of the liquor licensing unit for DOR, testified concerning the process for approving a resort under § 16-4-202, MCA, and specifically concerning the history of the BMSR itself. Under § 16-4-202, MCA, a resort developer files an application with DOR for a resort determination. A resort area must meet the following criteria:

(4) (a) In addition to the other requirements of this code, a resort area, for the purposes of qualification for the issuance of a resort retail all-

beverages license, must:

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