South Carolina              
Administrative Law Court
Edgar A. Brown building 1205 Pendleton St., Suite 224 Columbia, SC 29201 Voice: (803) 734-0550

SC Administrative Law Court Decisions

CAPTION:
KA & VE, LLC vs. SCDOR

AGENCY:
South Carolina Department of Revenue

PARTIES:
Petitioners:
KA & VE, LLC

Respondents:
South Carolina Department of Revenue
 
DOCKET NUMBER:
09-ALJ-17-0058-CC

APPEARANCES:
For the Petitioner: Kenneth E. Allen, Esquire

For the Respondent: Elizabeth R. Hamilton, Esquire

For the Protestant: Pro Se
 

ORDERS:

FINAL ORDER AND DECISION

STATEMENT OF THE CASE

This matter comes before the Administrative Law Court (ALC or Court) pursuant to S.C. Code Ann. §§ 1-23-310 et seq. (Supp. 2008), and S.C. Code Ann. § 61-2-90 (Supp. 2008) for a contested case hearing. Petitioner is seeking a 7-day off-premises beer and wine permit for KA & VE, LLC. After proper notice, a hearing was held on March 26, 2009 at the offices of the ALC in Columbia, South Carolina.

FINDINGS OF FACT

Having observed the witnesses and exhibits presented at the hearing and closely passed upon their credibility, taking into consideration the burden of proof upon the Petitioner and the Respondent, I make the following Findings of Fact by a preponderance of the evidence:

1. Petitioner seeks a 7-day off-premises beer and wine permit for KA & VE, located at 5581 Memorial Blvd., St. George, South Carolina. Petitioner has not had a permit or license revoked within the last two (2) years and notice of the application was lawfully posted both at the location and in a newspaper of general circulation.

2. Virgil Barnwell is the owner of KA & VE. Mr. Barnwell purchased the store December 8, 2008 and has been continuously operating the convenience store and gas station since. He obtained a temporary 180-day beer and wine permit which expires on April 4, 2009. Mr. Barnwell has not had any problems or complaints since he began to operate the store. He has met with the local police department regarding a problem with loitering and the police have agreed to patrol the corner where loitering has been a problem in the past. There are also signs posted warning against loitering. There is sufficient lighting outside, including a light on the corner that stays on 24 hours a day. The store will be run by either Mr. Barnwell or his wife at all times.

3. KA & VE is located in a commercial area on a four lane road. A Piggly Wiggly, which is permitted to sell beer and wine, is located across Sears St. Furthermore, Carter’s Fast Stop, which is one block in the opposite direction, holds an off-premise beer and wine permit. The location next to Carters is licensed for the sale of liquor for off-premises consumption.

4. The primary issue for consideration is the protest to the permit.[1] Ralph James is the sole protestant to the issuance of this permit. Mr. James is concerned that the issuance of a beer and wine permit will lead to loitering in the area, specifically on the church grounds of Bethel AME Church. He testified that in the past, patrons of KA & VE have come onto church property and interrupted services. He is also concerned with beer cans littering the church parking area. The church is located approximately 445 feet from KA & VE.

The Court was struck by the sincerity of the Protestant. However, while Mr. James’s arguments appear to be based on a genuine concern for the church and community, in order to deny the permit, there must be specific evidence of an adverse impact to the community. There was no evidence of an existing criminal problem that could be exacerbated by granting the permit. There appears to be little, if any, problems with loitering at the location. Moreover, the proposed location was previously permitted to sell beer and wine under different ownership. Therefore, the Protestant must show that the location is less suitable for the sale of beer and wine than during the prior period of licensure. See Taylor v. Lewis, 261 S.C. 168, 198 S.E.2d 801 (1973).

The issue here is rather the potential that the sale of beer of wine will result in the consumption of the product upon the church’s property. However, even if this location was denied, as noted above, there are other approved locations in the immediate vicinity to purchase beer or wine. In fact, though there may have been problems with consumption of beer or wine upon the church’s property in the past, the store is now under different ownership and the new owner is willing to coordinate with the church to allay concerns about the sale of alcohol to those who loiter on the church property. More specifically, Petitioner stipulated that if the church informed Mr. Barnwell of the confirmed identity of a person who was purchasing beer or wine from his location and consuming it upon the church’s property, he would not sell any beer or wine to that person.

Therefore in light of the above evidence and Petitioner’s stipulation, I find that Petitioner’s proposed location is suitable for a 7-day off-premises beer and wine permit. However, if a significant change occurs as a result of Petitioner receiving this permit, the proposed location would no longer be suitable and the community and/or the Department could properly bring an action to prohibit the renewal of Petitioner’s permit.

CONCLUSIONS OF LAW

Based upon the above Findings of Fact, I conclude the following as a matter of law:

1. S.C. Code Ann. § 1-23-600 (Supp. 2008) grants jurisdiction to the Administrative Law Court to hear contested cases under the Administrative Procedures Act. Furthermore, S.C. Code Ann. § 61-2-260 (Supp. 2007) grants the Court the responsibilities to determine contested matters governing alcoholic beverages, beer and wine.

2. S.C. Code Ann. §§ 61-4-520 and 61-4-540 (Supp. 2006) set forth the requirements for the issuance of a beer and wine permit.

3. Although "proper location" is not statutorily defined, the Administrative Law Court is vested, as the trier of fact, with the authority to determine the fitness or suitability of a particular location. Fast Stops, Inc. v. Ingram, 276 S.C. 593, 281 S.E.2d 118 (1981). The determination of suitability of location is not necessarily a function solely of geography. It involves an infinite variety of considerations related to the nature and operation of the proposed business and its impact upon the community within which it is to be located. Kearney v. Allen, 287 S.C. 324, 338 S.E.2d 335 (1985). In determining the suitability of a location, it is proper for this Court to consider any evidence that demonstrates the adverse effect the proposed location will have on the community. Palmer v. S.C. ABC Comm'n, 282 S.C. 246, 317 S.E.2d 476 (Ct. App. 1984). It is also relevant to consider the previous history of the location. Smith v. Pratt, 258 S.C. 504, 189 S.E.2d 301 (1972); Taylor v. Lewis, et al., 261 S.C. 168, 198 S.E.2d 801 (1973). Furthermore, in considering the suitability of a location, it is relevant to consider whether the testimony in opposition to the granting of a license is based on opinions, generalities and conclusions, or whether the case is supported by facts. Smith v. Pratt, 258 S.C. 504; Taylor v. Lewis, 261 S.C. 168.

“A liquor license or permit may also be properly refused on the ground that the location of the establishment would adversely affect the public interest, that the nature of the neighborhood and of the premises is such that the establishment would be detrimental to the welfare . . . of the inhabitants, or that the manner of conducting the establishment would not be conducive to the general welfare of the community.” 48 C.J.S. Intoxicating Liquors § 121 at 501 (1981). Nevertheless, without sufficient evidence of an adverse impact on the community, the application must not be denied if the statutory criteria are satisfied. The fact that a Protestant objects to the issuance of a permit is not a sufficient reason by itself to deny the application. See 45 Am. Jur. 2d Intoxicating Liquors §162 (Supp. 1995); 48 C.J.S. Intoxicating Liquors §119 (1981).

4. Petitioner meets the statutory requirements for holding a 7-day off-premise beer and wine permit at the proposed location.

ORDER

Based upon the above Findings of Fact and Conclusions of Law,

IT IS HEREBY ORDERED that the Department resume processing Petitioner's application for an off-premise beer and wine permit.

AND IT IS SO ORDERED.

_________________________________

Ralph King Anderson, III

Administrative Law Judge

April 2, 2009

Columbia, South Carolina



[1] Respondent Department of Revenue (Department) appeared at the hearing stating that but for the protest it received this application would have been granted. Therefore, the Department offered no evidence in opposition to the Petitioner receiving the permit.


~/pdf/090058.pdf
PDF

Brown Bldg.

 

 

 

 

 

Copyright © 2024 South Carolina Administrative Law Court