South Carolina              
Administrative Law Court
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SC Administrative Law Court Decisions

CAPTION:
SCDOR vs. Club Rio, Inc., d/b/a Club Rio

AGENCY:
South Carolina Department of Revenue

PARTIES:
Petitioners:
South Carolina Department of Revenue

Respondents:
Club Rio, Inc., d/b/a Club Rio
 
DOCKET NUMBER:
06-ALJ-17-0647-IJ

APPEARANCES:
For the Department of Revenue:
Dana Krajack, Esquire

For the Respondent:
John Mobley, Esquire
 

ORDERS:

ORDER OF SUMMARY SUSPENSION

STATEMENT OF THE CASE

This matter is before me pursuant to the Motion of the South Carolina Department of Revenue (Department) for an emergency order pursuant to S.C. Code Ann. § 1-23-370(c) (2005). The Department seeks to summarily suspend the beer and wine permit and restaurant liquor by the drink license of Club Rio, Inc., d/b/a Club Rio (Respondent), pending a hearing on the merits for the permanent revocation of Respondent’s permit and license. After reviewing the Department’s Motion for Emergency Suspension, the Department’s motion is granted.

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. Notice of the time, date, place and subject matter of the hearing was given to the Petitioner and the Respondent.

2. Club Rio has seen a sharp increase in the number of incidents requiring police assistance within the past six (6) months. Such incidents have included assault, public drunkenness, disorderly conduct and resisting arrest. The two most serious incidents include a riot outside of the club in which three police officers were injured[1] on June 16, 2006 and a shooting[2] inside of the club which eventually lead to an alleged lynching of the alleged shooter on July 28, 2006. All of the witnesses, including Club Rio’s vice president, Richard Gibson, agreed that the club’s recent transition to “hip-hop” and rap music has attracted patrons who are much more likely to create a nuisance.

3. As a result of the June 16, 2006 incident, Captain Dodson of the Columbia Police Department requested that Michael Gibson, Manager of Club Rio, come in to meet with him as soon as possible. Mr. Gibson promptly met with Captain Dodson the morning after the incident and was told that the Columbia Police Department had classified Club Rio as a nuisance. They discussed possible ways to alleviate the current problem, including replacing glass beer bottles with plastic bottles, hiring more security and moving away from the Thursday night “hip-hop” format. Since that meeting the club no longer used glass bottles, instead opting for paper cups 99% of the time.[3]

Nevertheless, though Respondent may have somewhat modified their musical format, the changes have clearly not lessened the problem of unlawful conduct in the area. Furthermore, though the owners have made an attempt to increase the security presence at the club in the past year, their measures have not reduced the danger to the public created by their operation of this business.[4] In fact, Respondent contends that the Columbia Police Department has exacerbated the problems resulting from the operation of Club Rio by not properly policing the loitering in the area. However, that loitering and the ensuing criminal activity of the individuals loitering emanates from the operation of Club Rio. In other words, Club Rio has created a threat to the public safety or welfare both within the Club and in the area surrounding the Club.

Additionally, Captain Michael Johnson who oversees the downtown metropolitan area of Columbia testified to the impact of Club Rio upon local law enforcement. His testimony elucidated that the Columbia Police Department routinely receives a call every Thursday night or Friday morning reporting a fight in progress at the location. There have been two instances in which an “all call”[5] was issued, which required police officers to travel at high speeds to Club Rio and abandon their normal patrol area. The speed at which the officers must travel to the scene, coupled with the removal of needed law enforcement presence from normal patrol areas, further compounds the threat to the public safety or welfare created by the operation of Club Rio.

Finally, though this Club closes at 3:00 a.m. on Thursday and Friday and 2:00 a.m. on Saturday, traffic in the area has become a problem when the club closes at night. Many patrons loiter in the streets for up to forty-five (45) minutes after closing. Some drive their cars continuously around the block, stopping in the road to talk with pedestrians. Often fights and other criminal activity occur. On numerous occasions, this has forced the police to block off portions of the road and direct traffic out of the area. This also compounds threat to the public safety or welfare created by the operation of Club Rio.

DISCUSSION

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. Furthermore, S.C. Code Ann. § 1-23-370(c) (Rev. 1986) provides, in pertinent part:

If [an] agency finds that public health, safety or welfare imperatively requires emergency action, and incorporates a finding to that effect in its order, summary suspension of a license may be ordered pending proceedings for revocation or other action. These proceedings shall be promptly instituted and determined.

I find that the evidence sufficiently establishes a threat to the public health, safety, and welfare by the continued operation of Club Rio pending a hearing on the merits of the revocation of Respondent's permit and license. It is clear that in the past few months alone, numerous criminal incidents have allegedly occurred at the location. These incidents have escalated in both frequency and seriousness. In particular, several of the alleged incidents have involved the discharge of firearms. Moreover, the problems associated with the operation of Club Rio have required officers to travel at high speed to the location and has resulted in the removal of needed law enforcement presence from normal patrol area. For these reasons, I find that emergency action is warranted, and that the Respondent's beer and wine permit and restaurant liquor by the drink license must be immediately and summarily suspended pending a hearing on the merits of the revocation action.

ORDER

Therefore, based on the foregoing reasons:

IT IS HEREBY ORDERED that both the beer and wine permit and the liquor by the drink license issued to Club Rio are hereby suspended pending a hearing on the merits of the permanent revocation of the permit and license.

IT IS FURTHER ORDERED that a SLED agent shall take possession of the permit and license cited above. The Respondent is also ordered to post a copy of this Order at a visible location at the licensed premises.

AND IT IS SO ORDERED.

________________________________

Ralph King Anderson, III

Administrative Law Judge

August 11, 2006

Columbia, South Carolina



[1] Officer Mitchum suffered a bite mark on his arm from a female he was attempting to subdue. Officer Fields was struck with a bottle on his forehead while trying to break up a fight. He required stitches from one cut and had several other lacerations on his forehead, including one laceration on his eye. Officer Curvan suffered a hairline ankle fracture while dealing with the crowd.

[2] The suspect shot a round from a .380 automatic handgun into the floor after an argument with another person inside of the club. The shooter then fled the building and was chased down by other patrons, who then beat him, causing such serious injuries that required hospitalization for five days.

[3] It is unclear whether security has been increased since their meeting with the Police Department.

[4] The Department also offered testimony relating to whether a member of Club Rio was a member of the Gangster Killer Bloods sect of the Bloods gang. I took the admission of that testimony under advisement and now rule that the testimony is inadmissible. See State v. Price, 368 S.C. 494, 629 S.E.2d 363 (2006).

[5] An “all call” is a call that goes out over the police radio requesting that all law enforcement respond to a specific location. Chief Dean Crisp testified that when an “all call” is sent out, it is assumed that another officer has been injured or is in immediate danger and needs urgent help.


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