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Administrative Law Court
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SC Administrative Law Court Decisions

SCDOR vs. D.J. Karavann and Jamey Kennedy

South Carolina Department of Revenue

South Carolina Department of Revenue

D.J. Karavann and Jamey Kennedy




This matter came before the Court from an appeal of the Respondents D.J. Karavann and Jamey Kennedy, 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. § 12-21-2804 (A) on April 16, 1997. The citation issued to Respondents on that date was for violations of that provision of Regs. 117-190 which mandates the presence of an employee in each "business". The Regulatory Violation and Assessment Report sought the imposition of a $5,000.00 monetary penalty against each Respondent for these violations. A Final Agency Determination was issued by the Department sustaining the imposition of the penalty assessed in the violation report.

Prior to the hearing, an agreement was reached between the parties resolving this matter on the following terms and conditions:

1. Respondents agree to revocation of five (5) licenses and to close one (1) room (Room 1) for six months from the date of this order. As licenses are expired, Respondents need not physically return them to the Department.

2. Respondents agree to pay a fine of $500.00 fine for single place or premises violation.

3. Respondents also agree to payment of a $2,000 fine for license violation bringing the total fines to $2,500.00, the sum of which must be paid within 30 days from the date of this order.

4. 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.

5. The parties further agree and understand that this a compromise and settlement of a contested penalty and is entered by the Department under the authority provided it in S.C. Code Ann.

Section 12-4-320(3) to compromise such matters.

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.

S// S//

Jeffrey M. Nelson D.J. Karavann

Counsel for Regulatory Litigation 4723 Highway 17 South

P.O. Box 125 N. Myrtle Beach, SC 29583

Columbia, SC 29214

(803) 737-4426


Jamey Kennedy

212 29th Avenue N.

N. Myrtle Beach, SC 29582




Administrative Law Judge

July 22, 1998

Columbia, South Carolina

Brown Bldg.






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