United Distributors v. Department of Public Safety, Division of Liquor Control

31 S.W.3d 49, 2000 Mo. App. LEXIS 1208, 2000 WL 1097150
CourtMissouri Court of Appeals
DecidedAugust 8, 2000
DocketNo. WD 57320
StatusPublished
Cited by3 cases

This text of 31 S.W.3d 49 (United Distributors v. Department of Public Safety, Division of Liquor Control) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United Distributors v. Department of Public Safety, Division of Liquor Control, 31 S.W.3d 49, 2000 Mo. App. LEXIS 1208, 2000 WL 1097150 (Mo. Ct. App. 2000).

Opinion

PATRICIA BRECKENRIDGE, Judge.

The Department of Public Safety, Division of Liquor Control appeals from a judgment ordering it to return a “Top the Score” machine owned by United Distributors that it seized from the Fraternal Order of Eagles (Eagles), and enjoining it from seizing four other “Top the Score” machines located at the Eagles. Because this court finds that Liquor Control has no authority to seize gambling devices and Liquor Control based its seizure of the “Top the Score” machines on its assertion that they are gambling devices, the judgment of the trial court is affirmed.

Factual and Procedural History

On December 17, 1998, Liquor Control Special Agents Keith Hendrickson and Steve Shimmens inspected the Eagles, a licensed liquor establishment located in Jefferson City. Upon entering the Eagles, the agents discovered several “Top the Score” machines. The agents determined that the machines were illegal gambling [51]*51devices and seized one of the machines. The agents informed an employee at the Eagles that the remaining “Top the Score” machines would be seized if they were not removed from the premises before December 21, 1998. The machines, owned by United Distributors, are leased to the Eagles under an oral profit-sharing arrangement, in which United agreed to install, service and maintain the machines, and share half the revenue taken in by them.

The day after the seizure of the one machine, United Distributors filed a petition for a temporary restraining order and preliminary and permanent injunction against Liquor Control. In its petition, United Distributors sought the return of the “Top the Score” machine that was seized and the entry of an injunction preventing Liquor Control from seizing the other four “Top the Score” machines from the Eagles. In its answer, Liquor Control admitted that its seizure was based upon 11 C.S.R. 70-2.140(10) which provides, in pertinent part, that, “No licensee shall have any gambling devices upon his/her licensed premises where money, trade checks, prizes, merchandise or property or any other consideration whatsoever may be won or lost.” At a brief hearing before the trial court, the parties stipulated that no further action would take place pending an evidentiary hearing.

In January of 1999, an evidentiary hearing was held. At the hearing, a “Top the Score” machine was brought into the courtroom and both parties demonstrated how the machine operates. At the end of the hearing, the trial court ordered that all further action be held in abeyance until the parties filed briefs and the court rendered its decision. In May of 1999, the trial court granted United Distributor’s petition for preliminary and permanent injunctions, finding that the “Top the Score” machines ai'e “gaming devices,” but that there was no evidence that the machines were being used “in the furtherance of gaming or gambling activities at the Fraternal Order of Eagles.” The judgment enjoined Liquor Control from seizing the remaining “Top the Score” machines from the Eagles and ordered the return of the machine that Liquor Control had already seized. Liquor Control appeals.

Standard of Review

Appellate review of judgments granting injunctive relief is the same as in any court-tried case. Home Shopping Club, Inc. v. Roberts Broadcasting Co., 989 S.W.2d 174, 177 (Mo.App.1998). The trial court’s judgment will be sustained unless there is no substantial evidence to support it, it is against the weight of the evidence, or it erroneously declares or applies the law. Murphy v. Carron, 536 S.W.2d 30, 32 (Mo. banc 1976).

Trial Court Did Not Enjoin Enforcement of a Criminal Law

Liquor Control argues that the trial court erred in granting equitable relief because it did not have jurisdiction to enjoin the enforcement of criminal laws. Liquor Control is responsible for enforcing Missouri’s liquor control laws set out in Chapters 311 and 312 and the regulations promulgated thereunder. Cocktail Fortune, Inc. v. Supervisor of Liquor Control, 994 S.W.2d 955, 956 (Mo. banc 1999). Liquor Control argues that the enforcement of its regulations amounts to the enforcement of criminal law, and that, generally, a court of equity is without jurisdiction to interfere with the enforcement of the criminal law. We do not agree. The proceedings in this case that were based upon a violation of 11 C.S.R. 70-2.140(10) were not criminal in nature as Liquor Control suggests.

As stated supra, 11 C.S.R. 70-2.140(10) provides, in pertinent part, that, “No licensee shall have any gambling devices upon his/her licensed premises where money, trade checks, prizes, merchandise or property or any other consideration whatsoever may be won or lost.” In State ex rel. Glendinning Companies of Con[52]*52necticut Inc. v. Letz, 591 S.W.2d 92, 96 (Mo.App.1979), this court determined that 11 C.S.R. 70-2.140(12)1 is not “aimed at gambling, per se,” but rather “at the control of the licensed alcoholic beverage-selling business.” Id. This court stated:

It does not purport to make the activity defined in the regulation either lawful or unlawful nor to attach any penalty thereto. The regulation is aimed rather at the control of the licensed alcoholic beverage-selling business. The privilege of selling alcoholic beverage is conditional, and one of those conditions is that a certain activity, which has a demonstrated attraction to draw people into the licensed premises where they are likely to purchase the merchandise offered therein, shall not be allowed by the licensee upon the licensed premises.... That the activity may be gambling, or may resemble gambling, whether lawful or unlawful, is merely incidental. The activity which is described in the regulation may be conducted without interdiction by the Supervisor’s regulation but the business of alcoholic beverage sales cannot be conducted on the same premises. It was not the legislature’s intent by the Criminal Code to reduce the Supervisor’s regulatory powers over the licensed business of alcoholic beverage sales.

Id. (citations and footnote omitted).

This analysis makes clear that the purpose of Liquor Control’s enforcement of 11 C.S.R. 70-2.140(10) is to control licensed alcoholic beverage-selling businesses, not to determine whether gambling activities are unlawful and assess criminal punishment. Therefore, this court finds that the proceedings in this case were not criminal in nature and, as such, the trial court did not enjoin the enforcement of a criminal law.

Liquor Control Has No Authority Under Chapter 311 To Seize Gambling Devices

Liquor Control also argues that United Distributors did not demonstrate that it lacked an adequate remedy at law so it was not entitled to injunctive relief. Liquor Control claims that § 311.840, RSMo 1994,2 provided an adequate remedy at law for United Distributors to litigate its right to recover the “Top the Score” machine that had been seized.3 Section 311.840 provides, in pertinent part:

1.

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Bluebook (online)
31 S.W.3d 49, 2000 Mo. App. LEXIS 1208, 2000 WL 1097150, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-distributors-v-department-of-public-safety-division-of-liquor-moctapp-2000.