Town of Leo-Cedarville v. Indiana Alcoholic Beverage Commission

754 N.E.2d 1041, 2001 Ind. App. LEXIS 1603, 2001 WL 1047426
CourtIndiana Court of Appeals
DecidedSeptember 13, 2001
Docket49A05-0005-CV-201
StatusPublished
Cited by3 cases

This text of 754 N.E.2d 1041 (Town of Leo-Cedarville v. Indiana Alcoholic Beverage Commission) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Town of Leo-Cedarville v. Indiana Alcoholic Beverage Commission, 754 N.E.2d 1041, 2001 Ind. App. LEXIS 1603, 2001 WL 1047426 (Ind. Ct. App. 2001).

Opinion

OPINION

SULLIVAN, Judge.

Appellant, the Town of Leo-Cedarville (Town), appeals the trial court's ruling upholding the Indiana Alcoholic Beverage Commission's (ABC) decision to renew Pat & Larry's of Leo, Inc. (Pat & Larry's) liquor retailer's permit. The Town specifically contends that Ind.Code § 7.1-3-9-3 (Burns Code Ed. Repl.1996) prohibits the ABC from renewing an applicant's liquor retailer's permit if a town, with a population of less than 5,000, elects not to enact an enabling ordinance authorizing such permits. Because we conclude that the ABC did not have authority to renew Pat & Larry's permit once it became situated within the Town's boundaries, we reverse and remand for proceedings not inconsistent with this opinion.

Pat & Larry's is a restaurant located in Allen County. In April 1994, pursuant to Ind.Code § 7.1-3-20-12 (Burns Code Ed. Repl.1996), the ABC issued Pat & Larry's a three-way permit, allowing the restaurant to sell liquor, beer, and wine. The permit was designated a type 209 permit because at the time, Pat & Larry's was situated outside the boundaries of a town or city. Shortly before the permit was scheduled to expire on May 20, 1995, Pat & Larry's filed a renewal application which was approved in April 1995.

At about the same time, a petition to incorporate the town of Leo-Cedarville was filed in Allen County. 1 Copies of the petition were sent to the Department of Commerce and to the Plan Commission "in accordance with IC 36-5-1-4(a)" and a public hearing was held. Record at 507. The Allen County Commissioners approved the petition on June 14, 1995, and conferred upon the Town "all of the rights, powers, duties, responsibilities, and liabilities granted to an incorporated town according to applicable state law." Record at 508.

In February 1996, before Pat & Larry's permit was to expire, the clerk/treasurer of Leo-Cedarville sent the ABC correspondence, informing it that Pat & Larry's was now situated within the Town's limits. Nevertheless, after making application to renew its permit, Pat & Larry's was issued another type 209 permit on April 26, 1996. That permit was scheduled to expire May 20, 1997.

On May 21, 1996, the town council met to decide, whether it, as a town with less than 5,000 people, would enact an enabling ordinance, authorizing the ABC to issue liquor retailers' permits 2 to applicants sit *1044 uated within the town. 3 The following day, the Town's clerk/treasurer sent the ABC a letter, informing the commission that it had elected not to pass an enabling ordinance. Though the town council reconsidered passing an enabling ordinance on January 7, 1997, it again concluded that it would not do so, and communicated its decision to the ABC.

On March 3, 1997, before its 1996 permit was to expire, Pat & Larry's again filed an application for renewal. A week later, Pat & Larry's, by counsel, sent the ABC a letter, requesting that Pat & Larry's type 209 permit be renewed as a type 210 permit, issued to businesses located within town or city limits. The letter erroneously indicated that Pat & Larry's came to be included within the Town's boundaries through the process of annexation rather than incorporation.

On April 1, 1997, the ABC notified the Town that it intended to process Pat & Larry's renewal application for a type 210 permit. The ABC explained that "[in all other instances where a town or city annexes the premises of a permittee, the ABC allows the permittee to convert their type 209 to a type 210 permit, and we give them the opportunity to file renewal applications for their type 210 permit." Record at 60.

In response to the ABC's letter, the Town informed the ABC that it intended to appeal the commission's decision to renew Pat & Larry's permit and requested that the commission set the matter for hearing. On May 27, 1997, and June 23, 1997, the Allen County local board of the ABC conducted a hearing with regard to Pat & Larry's renewal application. Town council members appeared at the hearing and remonstrated against the petition. They asserted that the ABC did not have authority to renew Pat & Larry's permit because the Town, which has a population of less than 5,000, did not pass an enabling ordinance authorizing the issuance of such permits. Despite the objections, on June 283, 1997, the local board voted to renew the permit.

Thereafter, on June 26, 1997, the Town filed a Petition to Intervene and objections with the ABC. Eventually, a hearing was held on March 28, 1998. The hearing judge took administrative notice of the entire file from the local board hearing, the ABC file and Pat & Larry's file. Counsel for Larry Parrish, owner of Pat & Larry's, then proceeded to call as witnesses Parrish, town council member Tom Weaver, and former vice chair person for the ABC John Murphy. Counsel for the Town did not present witnesses but submitted as exhibits the ordinance showing that the Town had been incorporated and the most recent census establishing that the Town's population was less than 5,000.

On September 8, 1998, the hearing judge entered findings of fact and conclusions of law recommending that the ABC approve the renewal of Pat & Larry's permit, The ABC approved and adopted the hearing judge's findings and conclusions,. As a result, on December 8, 1998, the Town sought judicial review of the ABC's decision. 4 Following a hearing on March 15, *1045 2000, the trial court upheld the ABC's decision. Thereafter, the Town initiated this appeal, and this court held oral argument on May 17, 2001.

The Administrative Orders and Procedures Act governs judicial review of determinations of the ABC. Ind.Code § 4-21.5-2-6(2) (Burns Code Ed. Repl.1996). Thus, "[the validity of agency action shall be determined in accordance with the standards of review provided in [I.C. 4-21.5-5-14]...." I.C. § 4-21.5-5-14. The party challenging the agency action bears the burden of establishing the invalidity of the ageney action. - I.C. § The reviewing court may grant relief only if the court determines that the agency action is:

"(1) Arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law;
(2) Contrary to constitutional right, power, privilege, or immunity;
(8) In exeess of statutory jurisdiction, authority, or limitations, or short of statutory right;
(4) Without observance of procedure required by law; or '
(5) Unsupported by substantial evidence." I.C. § 4-21.5-5-14(d).

This court stands in the same position as the trial court. Hanley v. Eastern Indiana Inv.

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Bluebook (online)
754 N.E.2d 1041, 2001 Ind. App. LEXIS 1603, 2001 WL 1047426, Counsel Stack Legal Research, https://law.counselstack.com/opinion/town-of-leo-cedarville-v-indiana-alcoholic-beverage-commission-indctapp-2001.