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SC Administrative Law Court Decisions

SCDOR vs. Jesters, LLC d/b/a Jesters on White Horse A, et al

South Carolina Department of Revenue

South Carolina Department of Revenue

Jesters, LLC d/b/a Jesters on White Horse A, and Jesters on White Horse D, and Stephen E. Lipscomb d/b/a American Amusement




This matter came before the Court from an appeal of the Respondents Jesters, LLC and Stephen E. Lipscomb of a citation issued by the Petitioner South Carolina Department of Revenue ("Department") against the Respondents for a violation of the Video Games Machines Act ("Act"), S.C. Code Ann. Sec. 12-21-2804(A) (Supp. 1997) on July 31, 1997. The citation issued to Respondents on that date was for a violation of the "single place or premise" provision of Section 12-21 -2804(A) and South Carolina Code of Regulations Reg. 117-190. The Regulatory Violation and Assessment Report sought the revocation of 10 Class III video game machine licenses, a corresponding closure of the two cited establishments for a period of six months, and the imposition of $5,000.00 monetary penalties against the Respondents. A Final Agency Determination was issued by the Department sustaining the imposition of the aforestated fines and penalties.

A hearing was scheduled in this matter before the Court on May 27, 1998. Prior to the hearing, an agreement was reached between the parties resolving this matter on the following

terms and conditions:

1. The Respondent Jesters, LLC agrees to pay a fine of $500.00 and to make payment of the fine to the Department within 30 days of the date of this Order.

2. The Department agrees, pursuant to S.C. Code Ann. Section 12-4-320(3) (Supp. 1996) to waive the remaining monetary penalties sought for this violation from the Respondents.

3. The Respondent Jesters, LLC further agrees to refrain from the placement, use, or operation of any Class III video game machines on the premises of "Jesters on White Horse D" (as further indicated on the attached diagram; Exhibit-. A hereto) for the period June 1, 1998 through November 30, 1998.

4. The Respondent Stephen E. Lipscomb agrees to surrender COD license numbers 3815347, 3815348, 3815349, and 3815350 within 30 days of the signing of this Order.

5. The parties further agree and understand that this is a compromise and settlement of a contested penalty and is entered by the Department under the authority provided it in S.C. Code Ann. 12-4-320(3) to compromise such matters. Further, that as a compromise of a disputed issue this agreement shall not be construed to be an admission of wrongdoing or liability by the Respondent Stephen E. Lipscomb.

Having reviewed this agreement and settlement in compromise, and having questioned

the parties or their respective counsel regarding the terms thereof, I hereby ORDER its adoption

and dismiss the Petition in this matter with prejudice.

Jeffrey M. Nelson, Esq. Ronnie Pitts

Counsel for Regulatory Litigation Pro Se, President of Jester's, LLC

P.O. Box 125 540 White Horse Rd.

Columbia, SC 29214 Greenville, SC 29605

(803) 898-5172 (803) 299-3850

Zoe Sanders Nettles, Esq.

Nelson, Mullins, Riley & Scarborough

Attorney for Respondent Stephen Lipscomb

PO Box 11070

Columbia, SC 29211

(803) 799-2000


Marvin F. Kittrell

Chief Administrative Law Judge

Columbia, South Carolina

June 10, 1998

Brown Bldg.






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