ORDERS:
ORDER AND DECISION
STATEMENT OF THE CASE
This matter comes before me pursuant to S.C. Code Ann. §§ 61-1-55 (Supp. 1995), the
Administrative Procedures Act, §§ 1-23-310, et seq. (Rev. 1986 & Supp. 1995), and S.C. Code Ann.
§ 12-60-1320 (Supp. 1995) of the Revenue Procedures Act, upon the application of Terry Tadlock
and Paradise Lounge Inc., for an on-premises beer and wine permit and sale and consumption mini-bottle license at Paradise Lounge located at 90 Hillside Drive in North Myrtle Beach, Horry County,
South Carolina. After notice to the parties and protestors, a contested case hearing was conducted
on April 29, 1997. Based upon the evidence presented, the application is granted. Any issues raised
or presented in the proceeding of this matter and not specifically addressed in this Order are deemed
denied. ALJD Rule 29.
FINDINGS OF FACT
I make the following findings of fact, taking into consideration the burden on the parties to
establish their respective cases by a preponderance of the evidence, and taking into account the
credibility of the witnesses:
1. The applicants, Terry Tadlock and Paradise Lounge, Inc., d/b/a Paradise Lounge,
filed an application for an on-premises beer and wine permit and a sale and consumption mini-bottle
license which was received by the Department of Revenue on September 12, 1996.
2. Terry Tadlock is over the age of twenty-one and has been a resident of South Carolina
since 1986. He is also a legal resident of the United States.
3. Tadlock has no criminal record and is a person of good moral character.
4. Terry Tadlock has held a permit for the sale of beer and wine and alcoholic liquors
and has never had a permit or license revoked or suspended.
5. Paradise Lounge, Inc. is a South Carolina Corporation in which Keith Brannon, Terry
Tadlock and Kenneth Phillips are the principals. Brannon has three convictions relating to public
intoxication; one in 1976 and two in 1985. In December, 1995 he was convicted of driving under
the influence of drugs or alcohol and paid a fine. Phillips has a 1986 conviction for driving under
the influence of drugs or alcohol and a 1995 conviction for criminal domestic violence.
6. An alcoholic liquor bond was provided by Terry Tadlock.
7. Notice of the application was published in the Sun News during the weeks of May 23,
May 30 and June 6, 1996, and posted at the location for the time period required by law.
8. The Paradise Lounge is located at 90 Hillside Drive in North Myrtle Beach, South
Carolina. It is operating under the trade name "Bar Flys," which is a restaurant and lounge. The
proposed hours of operation are 10:00 a.m. until 2:00 a.m., Monday through Friday and 10:00 a.m.
until midnight Saturdays. The location will be closed on Sunday.
9. The Paradise Lounge Inc. has been issued a Grade A health certificate by the
Department of Health and Environmental Control for the operation of the restaurant.
10. The proposed business is located in a mixed residential and commercial area
containing small businesses. An apartment complex is adjacent to the proposed business and is
separated by a wooden fence. The business is currently licensed to sell beer and wine.
11. The Bright Beginner's Daycare is located approximately 277 feet from the proposed
location. A retail liquor store and another store selling beer and wine for off-premises consumption
are the only alcohol licensed businesses in the immediate vicinity.
12. The location had been found to be suitable previously because sale and consumption
and beer and wine permits were issued. It has operated as a licensed location since 1987.
13. Three persons protested the issuance of the permit, Trina Carter, Patrick Connors and
Patricia Donnelley. Patrick Connors was not able to be present at the hearing. The other two
protestors were present and objected primarily on the basis of a dispute involving ownership of the
corporation.
14. The protestors furnished an agreement dated March 21, 1994 for the purchase of
Paradise Lounge, Inc. by Michelle Carter and Howard Randall Adams from Patrick Connors.
According to the agreement, 999 shares of the corporation were sold. Michelle Carter owned 333
shares and Randall Adams owned 666 shares. Ms. Trina Carter states that Adams then sold the
corporation without the knowledge of Michelle Carter to Brannon and Phillips on March 17, 1995.
15. The primary complaint by the protestors was that Tadlock is not really a principal
involved in the business, but that he is associated with the business for the purpose of obtaining the
mini-bottle license and beer and wine permit in his name. Minutes of the Board of Directors
Meeting and the annual meeting of shareholders show that Tadlock is the Treasurer and owns one
share of stock with the remaining shares being owned by Brannon and Phillips.
16. The March 17, 1995 agreement of sales executed by Adams shows Terry Tadlock was
the alcohol licensee for Paradise Lounge prior to its purchase. Tadlock agreed to continue to be the
party responsible for holding the permits and licenses after purchase by Brannon and Phillips.
17. The protestors are also concerned because they have seen both Brannon and Phillips
publicly intoxicated or intoxicated during the operation of the business.
18. The Protestors also believe that Michelle Carter has been cheated because she did not
receive any money from the sale of the corporation to Brannon and Phillips.
19. None of the protests related to the suitability of the location.
CONCLUSIONS OF LAW
Based upon the Findings of Fact, I conclude as a matter of law, the following:
1. The Administrative Law Judge is vested with the powers, duties and responsibilities
of hearing officers of the former Alcoholic Beverage Control Commission pursuant to Chapter 23,
of Title 1. S.C. Code Ann. § 61-1-55 (Supp. 1995).
2. S.C. Code Regs. 7-19(A) provides that a business establishment that applies for a sale
and consumption license pursuant to Section 61-5-20(4) and is not engaged in furnishing lodging
must be equipped with a kitchen that is utilized for the cooking, preparation, and serving of meals;
have readily available to its guests and patrons menus containing a list of various meals and prices;
and prepare for service to customers hot meals at least once each business day. S.C. Code Regs. 7-19 (1983). The regulation provides definitions of "meals" and "kitchen."
3. S.C. Code Ann. § 61-5-20(4) (Supp. 1995) prohibits the sale and consumption of
alcoholic liquors and beverages sold in mini-bottles between certain hours unless the establishment
is a business bona fide engaged primarily and substantially in the preparation and serving of meals
or furnishing of lodging and the business has a license from the Department.
4. "Bona fide engaged primarily and substantially in the preparation and serving of
meals" refers only to businesses which have a Class A restaurant license and provides facilities for
seating not less that forty persons simultaneously at tables for the service of meals. S.C. Code Ann.
§ 61-5-10(1) (Supp. 1995).
5. S.C. Code Ann. § 61-5-50 (Supp. 1995) provides the requirements for the issuance
of the mini-bottle license. Section 61-5-50(1) requires that the applicant conduct business as a bona
fide nonprofit organization or as a business bona fide engaged primarily and substantially in the
preparation and serving of meals. In addition, the applicant if an individual must be of good moral
character or if a corporation, have a "reputation for peace and good order in its community, and its
principals are of good moral character." S.C. Code Ann. § 61-5-50 (2) (Supp. 1995) (emphasis
added).
6. The location of the business must not be within 300 feet of any churches, schools,
playgrounds situated within a municipality or 500 feet if situated outside of a municipality. S.C.
Code Ann. §§ 61-5-50(3) (Supp. 1995) and 61-3-440 (Supp. 1995). The proposed location meets
these requirements.
7. Paradise Lounge, doing business as Bar Flys, meets the requirements of a restaurant
under the regulation and statute for the issuance of a sale and consumption (mini-bottle) license. No
evidence was produced to indicate that the corporation does not have a reputation for peace and good
order in the community.
8. There is no single criterion in South Carolina by which to judge "good moral
character" and the licensing authority must determine in each instance whether one possesses it or
not. The licensing authority would not be justified in refusing a license simply upon a "moral
appraisal," or either because previous misconduct which is not relevant to the conduct of the
business for which the license is sought or because of a remote conviction of a minor offense, or
because of an unproved accusation of a crime. Op. Atty Gen. 2709, p. 159, August 4, 1969.
Conviction of a crime does not constitute ineligibility for a license, especially where the offense is
not a crime involving moral turpitude. In evaluating an applicant's fitness, consideration must be
given to the circumstances of any conviction record as well as to the extent which rehabilitation has
occurred. 48 C.J.S. Intoxicating Liquors § 105 at 471 (1981).
9. Public drunkenness and driving under the influence are not crimes of moral turpitude.
See State v. Labarge, 275 S.C. 168, 268 S.E.2d 278 (1980); State v. Hall, 306 S.C. 293, 411 S.E.2d
441 (Ct. App. 1991). Criminal domestic violence as defined in S.C. Code Ann. § 16-25-20 (Supp.
1996) is a misdemeanor for which the penalty is a fine of not more than $500 or imprisonment for
not more than 30 days. The elements of this offense do not fall within the parameters of an offense
involving moral turpitude. Brannon and Phillips, principals within the corporation, possess the
requisite moral character for the issuance of a mini-bottle license to the corporation for the operation
of the restaurant.
10. Terry Tadlock, the applicant, meets the statutory qualifications for the issuance of a
beer and wine permit and a sale and consumption (mini-bottle) license.
11. The remaining allegations by the protestors relating to the sale of the corporation are
not within the purview of this tribunal. On its face, the document evidencing the sale was proper as
Adams, the majority shareholder owning two-thirds of the shares, authorized the sale. Any
allegations of fraud relating to the sale must be addressed in another forum.
ORDER
Based upon the foregoing Findings of Fact and Conclusions of Law, it is hereby ORDERED,
that the Department of Revenue shall issue an on-premises beer and wine permit and sale and
consumption mini-bottle permit to Terry Tadlock, Paradise Lounge, d/b/a Paradise Lounge, Inc.,
located at 90 Hillside Drive in North Myrtle Beach, South Carolina, upon the payment of the
appropriate fees.
AND IT IS SO ORDERED.
___________________________
ALISON RENEE LEE
Administrative Law Judge
July 30, 1997
Columbia, South Carolina |