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:
GMRI, Inc., d/b/a Olive Garden vs. SCDOR

AGENCY:
South Carolina Department of Revenue

PARTIES:
Petitioner:
GMRI, Inc., d/b/a Olive Garden

Respondent:
South Carolina Department of Revenue
 
DOCKET NUMBER:
06-ALJ-17-0480-CC

APPEARANCES:
For the Petitioner: Burnett R. Maybank, III, Esquire

For Respondent Department of Revenue: Harry Hancock, Esquire

For the Protestant: pro se
 

ORDERS:

FINAL ORDER AND DECISION

This matter comes before the Administrative Law Court (ALC or Court) for a contested case hearing pursuant to S.C. Code Ann. §§ 1-23-310 et seq. (2005), 61-2-260 (Supp. 2005), 61-4-520 (Supp. 2005), 61-4-525 (Supp. 2005), 61-6-1820 (Supp. 2005) and 61-6-1825 (Supp. 2005). GMRI, Inc., d/b/a Olive Garden (Petitioner), seeks an on-premises beer and wine permit and a restaurant liquor by the drink license for its proposed location at 210 State Park Road, Greenville, South Carolina (location). R.H. Patterson, Sr. (Protestant) filed a protest to the application with the South Carolina Department of Revenue (Department). Because of the protest, the hearing was required.

An expedited hearing in this matter was held on June 27, 2006 at the offices of the Administrative Law Court in Columbia, South Carolina. Both parties and the Protestant appeared at the hearing. Evidence was introduced and testimony was given. After carefully weighing all the evidence, I find that Petitioner’s request for an on-premises beer and wine permit and restaurant liquor by the drink license should be granted.

FINDINGS OF FACT

Having observed the witnesses and reviewed the exhibits presented at the hearing and closely passed upon their credibility, and having taken into consideration the burden of persuasion by the parties, I make the following Findings of Fact by a preponderance of the evidence:

1. Notice of the time, date, place and subject matter of the hearing was timely given to all the parties and the Protestants.

2. Petitioner seeks an on-premises beer and wine permit and restaurant liquor by the drink license for its proposed location at 210 State Park Road, Greenville, South Carolina.

3. GMRI, Inc. is a corporation currently in good standing with the South Carolina Secretary of State. It is a wholly owned subsidiary of Darden Restaurants, Inc., which owns restaurants that include Olive Garden, Smokey Bones Barbeque and Grill, and Red Lobster, among others. GMRI, Inc. has a reputation for peace and good order in the community.

4. Petitioner meets all statutory requirements for the issuance of a beer and wine permit and restaurant liquor by the drink license.[1]

5.                  The proposed location will operate as an Olive Garden restaurant that will be primarily and substantially engaged in the preparation and serving of meals. Olive Garden is a family restaurant that serves Italian cuisine. A very small percentage of its sales are attributable to alcohol sales.

6.                  The proposed location sits on a 1.8 acre site at the corner of North Pleasantburg Drive and State Park Road in Greenville County. There is a traffic signal at that intersection.

7.                  The proposed location is located in a primarily commercial area and there are many other large retail businesses and restaurants in close proximity. Two of the restaurants located nearby, Ruby Tuesday and Flat Rock Grill, are family restaurants that also serve alcohol.

8.                  There are no churches, school, playgrounds, or residences in close proximity to the location.

9.                  R.H. Patterson, Sr. filed a protest to the application. Mr. Patterson concerns include the number of alcohol “outlets” in the area, the amount of traffic in the area, the increasing availability of alcohol, the possible impact that alcohol may have on the crime rate in the area, and an inadequate amount of law enforcement available to respond to alcohol related incidents.

10.              The proposed location is suitable for an on-premises beer and wine permit and restaurant liquor by the drink license.

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 (2005) grants jurisdiction to the Administrative Law Court to hear contested cases under the Administrative Procedures Act.

2. S.C. Code Ann. § 61-2-260 (Supp. 2005) grants the Administrative Law Court the responsibility to determine contested matters governing alcoholic beverages, including beer, wine and liquor.

3. S.C. Code Ann. § 61-4-520 (Supp. 2005) sets forth the requirements for the issuance of a beer and wine permit.

4. S.C. Code Ann. § 61-6-1820 (Supp. 2005) sets forth the requirements for the issuance of restaurant liquor by the drink license. Section 61-6-1820(1) provides that an applicant may receive a license upon the finding that "[t]he applicant is a bona fide nonprofit organization or the applicant conducts a business bona fide engaged primarily and substantially in the preparation and serving of meals or furnishing of lodging."

5. The factual determination of whether or not an application is granted or denied is usually the sole prerogative of the executive agency charged with rendering that decision. Palmer v. S.C. ABC Comm’n, 282 S.C. 246, 317 S.E.2d 476 (Ct. App. 1984). As the trier of fact, an administrative law judge is authorized to determine the fitness of an applicant for alcohol permits and licenses using broad but not unbridled discretion. Byers v. S.C. ABC Comm’n, 281 S.C. 566, 316 S.E.2d 705 (Ct. App. 1984).

6. The weight and credibility assigned to evidence presented at the hearing of a matter is within the province of the trier of fact. See S.C. Cable Television Ass’n v. S. Bell Tel. & Tel. Co., 308 S.C. 216, 222, 417 S.E.2d 586, 589 (1992); see also Doe v. Doe, 324 S.C. 492, 502, 478 S.E.2d 854, 859 (Ct. App. 1996) (holding that a trial judge, when acting as a finder of fact, “has the authority to determine the weight and credibility of the evidence before him”). Furthermore, a trial judge who observes a witness is in the best position to judge the witness’s demeanor and veracity and to evaluate the credibility of his testimony. See Woodall v. Woodall, 322 S.C. 7, 10, 471 S.E.2d 154, 157 (1996).

7. 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 181 (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 any adverse effect the proposed location will have on the community. Palmer, supra. 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. Id.

8. Unless there is 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).

9. Permits and licenses issued by this state for the sale of liquor, beer and wine are not property rights. Rather, they are privileges granted in the exercise of the State’s police power to be used and enjoyed only so long as the holder complies with the restrictions and conditions governing them. The Administrative Law Court, as the tribunal authorized to grant the issuance of a permit, is likewise authorized to revoke or suspend the permit for cause. See Feldman v. S.C. Tax Commission, 203 S.C. 49, 26 S.E.2d 22 (1943).

10. I find that the proposed location is suitable for the issuance of an on-premises beer and wine permit and restaurant liquor by the drink license. The location is in a commercial area with many other large retail businesses and restaurants located nearby. There are also several other family restaurants nearby that serve alcohol. In addition, no churches, school, playgrounds, or residences are in close proximity to the location. Essentially, there is no evidence in the Record that the location is unsuitable or that it would have an adverse impact on the community. Protestant’s concerns consist only of generalities and are based upon a fundamental opposition to alcohol. Furthermore, Petitioner meets all statutory criteria for holding an on-premises beer and wine permit and restaurant liquor by the drink license. Accordingly,

ORDER

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

IT IS HEREBY ORDERED that the application for an on-premises beer and wine permit and restaurant liquor by the drink license by GMRI, Inc., d/b/a Olive Garden, for its proposed location at 210 State Park Road, Greenville, South Carolina is GRANTED.

AND IT IS SO ORDERED.

__________________________________

Marvin F. Kittrell

Chief Administrative Law Judge

June 29, 2006

Columbia, South Carolina



[1] The Department previously determined that Petitioner met all statutory requirements and would have issued the permit and license but for the protest.


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