Case Name: Frank M. WRIGHT, Jr., and Jakie D. Wright, Appellants, v. J. Miller CADE, Appellee
Court: Florida District Court of Appeal
Jurisdiction: Florida
Decision Date: 1977-09-16
Citations: 349 So. 2d 833
Docket Number: No. CC-481
Parties: Frank M. WRIGHT, Jr., and Jakie D. Wright, Appellants, v. J. Miller CADE, Appellee.
Judges: SMITH, J., concurs.
Reporter: Southern Reporter, Second Series
Volume: 349
Pages: 833–837

Head Matter:
Frank M. WRIGHT, Jr., and Jakie D. Wright, Appellants, v. J. Miller CADE, Appellee.
No. CC-481.
District Court of Appeal of Florida, First District.
Sept. 16, 1977.
Rehearing Denied Oct. 4, 1977.
Dale K. Bohner of Coble, McKinnon, Reynolds & Rothert, Daytona Beach, for appellants.
Joseph D. Krol of Ossinsky & Krol, Day-tona Beach, for appellee.

Opinion:
RAWLS, Judge.
This appeal is from a summary final judgment granting a mandatory injunction directing appellants Wright to file an application with the State of Florida Department of Business Regulation, Division of Beverage, to transfer Alcoholic Beverage License No. 74-507 to appellee Cade.
The legal confusion as to who owns the beverage license today arises out of "statutory" transfers of the license pursuant to Section 561.32(1), Florida Statutes, and "property right" transfers of same arising from its sale, lease or assignment.
In the year 1953, the Grants owned and operated a bar upon real property that they owned. At this point in time, the Grants owned the beverage license that is the subject matter of this suit.
On December 1, 1953, the Grants conveyed the real property upon which the beverage license was utilized in operating a bar known as the Hollywood Bar & Grill to Halifax Finance Company and retained title to the beverage license. Subsequently, the license was transferred by the Grants to one Grace Gelman on September 16, 1955, who in turn statutorily transferred the license to Mrs. Willie Carden on October 26, 1955. On December 9, 1955, Halifax leased the real property to Mrs. Carden (the record holder of the license for 44 days) for a term of five years. A second five-year lease of the real property was entered into between Mrs. Carden and Halifax, and during this term, it appears that Mrs. Carden held the license in her name and operated the bar under lease from Halifax until December 26, 1963.
On May 15,1962, while Mrs. Carden was operating the bar, the Grants sold the beverage license to Halifax, although Mrs. Carden was reflected as the owner, pursuant to the statute, with the Beverage Department. On December 26, 1963, it appears that Mrs. Carden terminated her second five-year lease with Halifax, because on this date Halifax executed a ten-year lease with Hollywood Bar Incorporation (HBI). This is a critical transaction in determining the rightful owner of the license. The lease agreement between HBI and Halifax not only included the real property but also provided:
"22. The Lessee thoroughly understands and agrees that the Liquor and Beverage Licenses under which the premises are being operated are the sole and exclusive property of the Lessor and that beyond giving the Lessee the right to operate under the same, Lessor does not give, transfer or assign the Lessee any right, title or interest in such licenses. Should it ever become necessary to transfer such licenses to the name of the Lessee, then Lessee agrees to hold such Licenses In Trust for Lessor and at least 30 days before the termination of this Lease will assign back such licenses to Lessor. That Lessor, in case of refusal so to do by Lessee, shall have the right to a mandatory injunction without notice to Lessee from a Court of competent jurisdiction as well as all other legal and equitable remedies . . . Lessee, if required, will sign all necessary applications . During the term of this Lease or any renewal hereof, the Lessor shall not sell or dispose of the aforesaid licenses."
So, on December 26, 1963, the subject beverage license was acknowledged to be owned by Halifax and HBI's sole interest in same was derived from Halifax. The statutory transfer of the license by Mrs. Carden (who apparently claimed no title in the license) on January 9, 1964, to HBI did not vest any title in HBI which had, some 14 days prior thereto by its lease of the property, acknowledged Halifax's ownership of the license.
The next critical transaction occurred on April 30, 1965, when HBI assigned its lease for the real property and beverage license to the Wrights. By this assignment, with Halifax's approval, the Wrights agreed to be bound by the terms of the lease which, as stated above, acknowledged Halifax's ownership of the license. The Wrights' sole basis of any proprietary interest in the license is that of a bill of sale from HBI dated May 15, 1965, which purported to sell the business, goodwill and beverage license. Of course, HBI could not convey any more than it owned, that being only the right to use the license during the term of its lease. And the Wrights, having agreed to abide by the terms of their lease with Halifax, acquired no greater interest in the license than as granted to them by Halifax. So, as of December, 1973, Halifax owned the subject license which it subsequently transferred to appellee Cade.
It cannot be disputed that a property right exists as to a beverage license. House v. Cotton, 52 So.2d 340 (Fla.1951). On all fours is the case of Rosamond v. Mann, 80 So.2d 317 (Fla.1955). Rosamond owned a package store and secured a license from the Beverage Department to operate same. He then leased the premises and license (with a covenant to reassign the license) to Proctor, who obtained a transfer of the license from the Beverage Department to his name. Proctor assigned his leasehold interest to Ogilvie, who later executed a new lease with Rosamond. Ogilvie, who had transferred the license to his name, assigned, with Rosamond's approval, the lease to Mann. At the termination of the lease, Mann held over on Rosamond's premises for five months. Prior to vacating Rosamond's premises, Mann procured from the Beverage Department a transfer of the license to a new location. Rosamond demanded the return of the license, but Mann refused on the basis that the terms of the lease relating to the reassignment of the license were no longer binding since the terms of the lease had expired. The Supreme Court held that a covenant to reassign the license was specifically enforceable.
Section 561.32(1), Florida Statutes, does not, as a matter of law, vest title of a beverage license to the purchaser of a business. Rather, the purpose of the statute is to apprise the Beverage Department of the ownership and management of the business in order that same may be regulated pursuant to the beverage laws of Florida. A covenant to reassign a beverage license is valid, may be specifically enforced, and is not contrary to the public policy of this state. Harnish v. Carbonell, 328 So.2d 489 (Fla. 3rd DCA 1976).
The judgment appealed is AFFIRMED.
SMITH, J., concurs.
McCORD, C. J., dissents.