Vallaroutto v. Alcoholic Beverage Control Board

101 S.W.3d 836, 81 Ark. App. 318, 2003 Ark. App. LEXIS 246
CourtCourt of Appeals of Arkansas
DecidedApril 2, 2003
DocketCA 02-556
StatusPublished
Cited by7 cases

This text of 101 S.W.3d 836 (Vallaroutto v. Alcoholic Beverage Control Board) is published on Counsel Stack Legal Research, covering Court of Appeals of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vallaroutto v. Alcoholic Beverage Control Board, 101 S.W.3d 836, 81 Ark. App. 318, 2003 Ark. App. LEXIS 246 (Ark. Ct. App. 2003).

Opinions

John B. Robbins, Judge.

Appellant David Vallaroutto d/b/a Albertson’s Liquor appeals the denial of an application to transfer an existing liquor permit to a new location. The Alcoholic Beverage Control Board denied the application on the ground that the public convenience and advantage would not be served by the transfer. The Pulaski County Circuit Court affirmed the Board’s decision, and this appeal followed. We affirm the Board, and our holding renders the Board’s cross-appeal moot.

Albertson’s operates a large retail grocery store in Texarkana. The store sits on a lot that is bound on the north by Arkansas Boulevard; on the east by Laurel Street; on the south by East 37th Street; and on the west by State Line Avenue, the street that serves as the border between Texarkana, Arkansas, and Texarkana, Texas. In December 1998, Albertson’s purchased an existing retail liquor permit from Margaret Gleason with the goal of constructing and operating a liquor store on the northwest corner of its lot, near the intersection of Arkansas Boulevard and State Line Avenue. Gleason had held the permit since 1968, and thus it was not subject to the present-day prohibition against transferring liquor permits to the operators of grocery stores. See Ark. Code Ann. § 3-4-218(a) and (b) (Supp. 2001).

On September 15, 1999, Albertson’s filed an application with the Alcoholic Beverage Control Director, seeking permission to transfer the location of the Gleason permit to the proposed construction site on its lot. The application was rejected on October 20, 1999, based on objections from local officials and area businesses and residents, primarily due to concerns over traffic congestion. Thereafter, Albertson’s re-filed its application and proposed that the liquor store be located at the south end of the property, facing 37th Street. Albertson’s hoped that, by moving the store away from the Arkansas/State Line intersection, its application would meet with greater favor.

On March 16, 2000, the Director again denied the application. Albertson’s appealed the Director’s decision to the Board, and a hearing was held on September 20, 2000, during which the Board heard the testimony of over a dozen witnesses and received petitions both for and against the transfer. Following the hearing, the Board denied Albertson’s application, concluding that:

Based on the existing number of retail liquor stores in this immediate market area, [and on] the probability that if the outlet transfer is approved that there will be additional traffic problems and additional vehicular accidents, the Board finds that the public convenience and advantage will not be served by granting the transfer. . . .

Albertson’s appealed the Board’s ruling to the Pulaski County Circuit Court. The court affirmed the Board’s decision, and this appeal was brought by Albertson’s.

Albertson’s argues first that the Board failed to make sufficient findings of fact as required by the Administrative Procedure Act. See Ark. Code Ann. § 25-15-210(b)(2) (Repl. 2002). Whether sufficient findings of fact have been made is a threshold question in an appeal from an administrative board. See Olsten Health Servs. Inc. v. Arkansas Health Servs. Comm’n, 69 Ark. App. 313, 12 S.W.3d 656 (2000).

Albertson’s relies on Green House, Inc. v. Arkansas Alcoholic Beverage Control Div., 29 Ark. App. 229, 780 S.W.2d 347 (1989), to support its argument that this case should be remanded for additional findings of fact. In Green House, the Board’s “findings” consisted of a narrative account of the proceedings and the witnesses’ testimony, followed by the conclusion that the permit applied for was not in the public interest. In remanding the case for further proceedings, we said:

Because the Board has merely recited the testimony rather than translating that testimony into findings of fact, we are unable to determine the Board’s view of the facts, or the theory of law on which the denial of the permit was based. We addressed a similar situation in Wright v. American Transportation, 18 Ark. App. 18, 709 S.W.2d 107 (1986), where we quoted the following language from Whispering Pines Home for Senior Citizens v. Nicalek, 48 Ind. Dec. 568, 333 N.E.2d 324 (1975):
Once again, therefore, we attempt to tell the Board what a satisfactory specific finding of fact is.
It is a simple, straightforward statement of what happened. A statement of what the Board finds has happened; not a statement that a witness, or witnesses, testified thus and so. It is stated in sufficient relevant detail to make it mentally graphic, i.e., it enables the reader to picture in his mind’s eye what happened. And when the reader is a reviewing court the statement must contain all the specific facts relevant to the contested issue or issues so that the court may determine whether the Board has resolved those issues in conformity with the law.

Green House, 29 Ark. App. at 232-33, 780 S.W.2d at 349-50. We recently quoted this same passage in Nesterenko v. Arkansas Bd. of Chiropractic Examiners, 76 Ark. App. 561, 69 S.W.3d 459 (2002), in which we remanded for further findings from an administrative board.

The Board’s decision in this case is a five-page document that, for fourteen paragraphs, merely recites the substance of witness testimony, the very type of evidentiary recapitulation that the Green House case cautioned against. However, that part of the document that follows the recitation of evidence reveals the pertinent facts found by the Board as the basis for its decision. The Board found that (1) based on the testimony of law enforcement officers, approval of the permit would likely increase traffic and traffic accidents in an area that already suffers a large number of accidents; and (2) based on witness testimony that there are six liquor stores within approximately a quarter of a mile of the proposed site, the area is already adequately served. The Board then concluded that the public convenience and advantage would not be served by transfer of the permit to the proposed location.

We believe that the Board’s findings and conclusions go beyond a mere recitation of evidence and are thus adequate to permit us to undertake a proper review of the Board’s ruling. We therefore proceed to the merits of the case.

Albertson’s contends that the Board’s denial of its transfer application is not supported by substantial evidence and is arbitrary and capricious. On appeal from circuit court, our review of administrative decisions is directed to the decision of the administrative agency, rather than the decision of the circuit court. Arkansas Bd. of Registration for Professional Geologists v. Ackley, 64 Ark. App. 325, 984 S.W.2d 67 (1998).

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Vallaroutto v. Alcoholic Beverage Control Board
101 S.W.3d 836 (Court of Appeals of Arkansas, 2003)

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Bluebook (online)
101 S.W.3d 836, 81 Ark. App. 318, 2003 Ark. App. LEXIS 246, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vallaroutto-v-alcoholic-beverage-control-board-arkctapp-2003.