Court Opinion

ID: 9584544
Source: CourtListenerOpinion
Date Created: 2023-08-21 22:49:47.945052+00
Date Added: 2024-06-11T15:08:24.180662
License: Public Domain

Mr. Justice Holland
dissenting.
This action involves the denial by the city licensing authority of a license to sell 3.2% beer, and the trial court found the denial to be arbitrary and capricious and ordered the issuance of a license. The defendant in error Sierota, the owner and operator of a grocery and meat market at 1610 E. 27th Avenue in the city and county of Denver, in the early part of 1948, applied to the plaintiff in error, Manager of Safety and Excise of the City and County of Denver, for the issuance of a license to sell beer containing not more than 3.2% *122alcohol at his place of business. All preliminary requirements were met by the applicant and his application was accompanied by petitions signed by 170 residents and property owners residing within a radius of six blocks from the applicant place of business. No objections or remonstrances were filed. Approximately six months lapsed without action on the part of the licensing authority. Finally a hearing was had before the Manager of Safety and the application was denied on the ground that the requirements of the neighborhood were served in that there were nine liquor outlets within the area. However, there was only one outlet for 3.2% beer. Not being satisfied, the applicant applied to the district court for relief and the matter was remanded to the Manager of Safety to permit the applicant an opportunity to present additional evidence as to the requirements of the-neighborhood. After further delay, a second hearing was held before the manager, at which it developed that the applicant’s place of business was only 176 feet from the Manual Training High school. The application was again denied with the additional reason of the proximity to the school. In due course, this ruling of the Manager of Safety was submitted to the district court for review, resulting in a finding that his action in denying the application for license was arbitrary and capricious.
It is the contention of the applicant, defendant in error, that where the statutory qualifications and conditions exist for the issuance of a 3.2% beer license under article 1, chapter 89, ’35 C.S.A., the licensing authority must issue such license; also that the proximity of the school is not ground for refusal. For a reversal of the judgment, the Manager of Safety, plaintiff in error, insists that in refusing to grant the license, he exercised the sound judicial discretion vested in him and says that the fact that the neighborhood was adequately supplied by existing outlets, and further that the location of the premises on which the license was *123sought being within 176 feet of a public school, were proper grounds for refusing to grant the license.
A determination of the questions presented positively turn on the matter of whether or not the Manager of Safety has the discretionary power exercised when it pertains to a 3.2% beer license. No successful argument could be presented against such discretionary power in the consideration of the issuance of a so-called hard liquor license.
If uncertainty exists upon this question, it is due to the indirect relationship, and possible confusion between the two separate and distinct acts of the legislature, namely, House Bill No. 953 for regulating the sale and manufacture of 3.2% beer, to be found as chapter 82 of the Session Laws of 1935, and House Bill No. 192, regulating the manufacture and sale of intoxicating liquors to be found as chapter 142 of the Session Laws of 1935.
The Act regulating intoxicating liquors is, by section 1 thereof, declared to be an exercise of the police powers of the state for the protection of the economic and social welfare, the health and peace and morals of the people of the state, and in considering the issuance of a license for the sale of intoxicating liquors, including beer containing more than 3.2% alcohol by weight, the Manager of Safety, plaintiff in error, and the licensing authority here involved, is charged with the duty of trying to preserve the morals and safety of the public and in doing so has a free exercise of the police power of the state not to be used arbitrarily or capriciously. Among other restrictions, the Act specifically provides that no license provided for under the Act shall be issued to or held by any person who will operate any place where liquor is sold or to be sold by the drink within 500 feet from any public or parochial school. It is at once clear that liad the application here been made for a license to sell intoxicating liquor, the action of the Manager of Safety would be unassailable because *124it was within the terms of the statute, and a proper exercise of his discretion.
The application, being for license to sell 3.2% beer, which is controlled by the act of the legislature specifically dealing with this subject, and separate and apart from the legislative act controlling the manufacture and sale of intoxicating liquors, creates a different question, the delicacy of which leaves the proper determination thereof not without difficulties. No doubt that in the administration of the 3.2% beer or malt beverage act, some confusion has existed, largely growing out of the indirect relationship of the administration of the Act controlling intoxicating liquor. If malt beverage containing not more than 3.2% alcohol is considered intoxicating, the legislature has failed to so classify it. It is true that by section 2 of the original act, it is declared that fermented malt beverages containing not more than 3.2% alcohol by weight were not intoxicating. It also is true that the legislature in 1945 amended this section by omitting “and such fermented malt beverage is hereby declared to be nonintoxicating” from the Act. It is equally significant that to date, the legislature has not so classified such malt beverage as intoxicating liquor, the manufacture and sale of which is to be controlled by the Act hereinbefore referred to and now appearing as article 2, chapter 89, ’35 C.S.A.
Further clarifying the intent of the legislature that the control of malt beverage containing not more than 3.2% alcohol is separate and apart from malt beverages containing more than 3.2%, and spiritous and vinous liquors, is the specific provision in section 6, chapter 82, S.L. ’35, where it is stated, “All licenses granted and issued under this Act are separate and distinct licenses from any licenses to be granted and issued under any other Act pertaining to malt, vinous and spiritous liquors containing more than 3.2% of alcohol by weight.” The Act does not specify to whom or where 3.2% beer shall not be sold except by the 1945 amend*125ment which provides that it is not to be sold to any person under the age of eighteen years. The same legislature in the same year by an Act approved one day later than the Act under discussion, wisely prohibited the sale of intoxicating liquors and malt beverages containing more than 3.2% alcohol to certain persons, and within 500 feet of a public or parochial school. In the Act controlling the manufacture and sale of the 3.2% beer, no such prohibitions are found except as above noted.
Section 4 of the Act, in which the word “shall” is used, seems to be mandatory under certain requirements and is, “Licenses shall be granted to any person or persons, partnership, association, organization or corporation desiring to manufacture, import and sell said fermented malt beverage as defined in this Act, upon the following qualifications and conditions:
“(a) Said licensee shall be a citizen of the United States and a resident of the State of Colorado, and if a corporation must be incorporated under the laws of the state of Colorado or duly qualified to do business in the State of Colorado;
“(b) Licensee shall be of good character and reputation and shall never have been convicted of a felony or crime in any court of the United States or any court of record of any state or territory of the United States, and if the licensee is an association, organization or corporation, then the officers, directors and the stockholders and members of such association, organization or corporation owning more than a 10% interest therein shall be of good character and reputation and shall never have been so convicted.
“(c) In considering the issuance of licenses the licensing authority, either state or local, shall consider the reasonable requirements of the neighborhood and the desires of the inhabitants as evidenced by petitions, remonstrances or otherwise.”
It would seem that if these requirements exist, the *126licensing authority is obliged to issue such license after considering only the reasonable requirements of the neighborhood and the desires of the inhabitants as evidenced by petitions, remonstrances or otherwise. In the case before us, plaintiff in error, the Manager of Safety, admits the existence of these qualifications of the applicant. 170 residents of the neighborhood signed a petition which accompanied the application for the license. No remonstrance or objections appeared from any source. The word “requirement” as used in the section is awkward and misleading. It may be difficult for many people to believe that the sale of any beverage, alcoholic or not, is a requirement. It certainly is not a necessity. Therefore, in considering the requirements as mentioned in the Act, it would seem that the desires of the residents, when considered without any objections, should be controlling. In the absence of statutory inhibitions, the requirements of the neighborhood should be determined by the desires of the inhabitants in a case such as this where they have expressed a desire and, without any opposing voice. When the licensing authority has determined that the statutory requirements exist, and then turns a deaf ear on the desires of a sizeable number of the residents immediately involved and denies the license for the sale of a commodity not under the ban surrounding the sale and dispensation of intoxicating liquor, it would seem to be arbitrary and without good cause. The evidence established the existence of the statutory requirements and the Manager heard no evidence to the contrary.
No doubt the Manager believed he was exercising his powers under his duty to preserve the morals and safety of the public under the police power in refusing the license, due to its close proximity to the public school. If in good faith, and exercised under proper conditions, his action is laudable. However, the legislature, having primary power in such matters, did not see fit to classify the control of malt beverages containing no more than *1273.2% alcohol, as an exercise of the police powers of the state for the protection of the welfare, health, peace and morals of the people as it did in the companion act controlling intoxicating liquors.
It appears > from the evidence that in the vicinity involved, a radius of six blocks, there is only one other outlet for 3.2% beer. It may be contended by some that the wording of the section relating to the consideration of the issuance of licenses, where it is provided that the reasonable requirements of the neighborhood and the desires of the inhabitants as evidenced by petitions, remonstrances or otherwise, that the word “otherwise” is an open field to consider many other factors. I believe that the word “otherwise” is so definitely connected with the matter of the subject of requirement that it relates to information in that regard only. It does not include other conditions or factors that might control a determination in the mind of the licensing authority, except as to hard liquor licenses.
While the finding of the trial court was direct that the action of the Manager of Safety was arbitrary and capricious, I am inclined to believe the judgment of the trial court should be sustained on a surer and more reasonable ground, namely, that the license was refused without good cause; therefore, I dissent from the majority opinion.