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P.L.C.B. v. Kayden Corp.

Commonwealth Court of Pennsylvania
Feb 27, 1986
505 A.2d 393 (Pa. Cmmw. Ct. 1986)

Opinion

Argued October 8, 1985

February 27, 1986.

Liquor — License application — Scope of appellate review — Findings of fact — Substantial evidence — Error of law — Abuse of discretion — Post-trial motions — Pa. R.C.P. No. 227.1 — Pa. R.A.P. 301(a) — Resort area — Burden of proof.

1. Review by the Commonwealth Court of Pennsylvania of an order of a lower court sustaining an appeal from the Pennsylvania Liquor Control Board is to determine whether findings of fact were unsupported by substantial evidence or an error of law or abuse of discretion was committed. [308]

2. A requirement that post-trial motions be filed to preserve issues for appeal under Pa. R.C.P. No. 227.1 is inapplicable to cases within the statutory appeal jurisdiction of courts of common pleas, and the court order in such an appeal is appealable to a higher court once the final order is entered on the docket, as provided by Pa. R.A.P. 301(a). [308]

3. An applicant seeking a liquor license under the resort area exception must prove that a seasonal influx of transients causes a need for service which existing licensees cannot provide, and an assertion that the regular customers of the establishment would like to drink on the premises without evidence of any anticipated influx of tourists does not establish such need. [309]

Argued October 8, 1985, before President Judge CRUMLISH, JR., Judge COLINS, and Senior Judge KALISH, sitting as a panel of three.

Appeal, No. 2625 C.D. 1984, from the Order of the Court of Common Pleas of Washington County in case of Kayden Corporation v. Pennsylvania Liquor Control Board No. 44 Misc. Docket 84.

Request for restaurant liquor license denied by Pennsylvania Liquor Control Board. Applicants appealed to the Court of Common Pleas of Washington County. Appeal sustained. Board action reversed. RODGERS, J. Board appealed to the Commonwealth Court of Pennsylvania. Held: Reversed. Board order reinstated.

Eileen Maunus, with her, Felix Thau, Deputy Chief Counsel, and Gary F. DiVito, Chief Counsel, for appellant.

Robert L. Ceisler, with him, George A. Baillie, Ceisler/Richman Law Firm, for appellee.


The Pennsylvania Liquor Control Board (LCB) appeals a Washington County Common Pleas Court order sustaining the appeal of Kayden Corporation (Kayden) from a denial of a restaurant liquor license and directing issuance of a license. We reverse.

Kayden operates a bowling alley in South Strabane Township. It applied for licensure under the resort area exemption contained in Section 461(b) of the Liquor Code. The LCB found that there was no evidence of need for an additional license in the Township. The common pleas court found that there was a substantial need for the license.

Act of April 12, 1951, P.L. 90, as amended, 47 P. S. § 4-461 (b). This section empowers the LCB to increase the number of permitted licenses in a municipality which is located within a resort area. In an earlier decision, the common pleas court held that South Strabane Township is a resort area. The LCB discontinued its appeal of this ruling. The LCB does not contest the Township's resort area status in this appeal.

Our review of the court's order is limited to determining whether the findings of fact are supported by substantial evidence and whether an error of law or an abuse of discretion was committed. Pennsylvania Liquor Control Board v. Seder, 88 Pa. Commw. 351, 489 A.2d 278 (1985).

Preliminarily, Kayden moves to quash the LCB's appeal. It argues that the LCB's appeal is fatally defective because (1) no post-trial motions were first filed with the common pleas court and (2) the court's Order was not reduced to judgment before the LCB appealed. We deny Kayden's motion.

The requirement of filing post- trial motions to preserve issues, Pa. R.C.P. No. 227.1, does not apply here. We have held that the Rules of Civil Procedure do not specifically govern matters which come under the common pleas courts' statutory appeal jurisdiction. Pennsylvania Liquor Control Board Appeal (Dinardi), 84 Pa. Commw. 598, 480 A.2d 338 (1983). Because the common pleas court's order sustained an appeal, and in no way related to a trial, Rule No. 227.1 is not applicable. The fact that the order sustaining Kayden's appeal was not reduced to judgment is irrelevant. A final order is appealable once it has been entered on the docket. Pa. R.A.P. 301(a); Department of Transportation v. Jennings, 76 Pa. Commw. 453, 463 A.2d 1290 (1983). The order here was entered on the docket prior to the LCB's appeal.

The LCB contends that the common pleas court erred by concluding that Kayden met its burden of proving entitlement to a license under the resort area exception. We agree.

An applicant seeking to establish that the resort area exception entitles it to a license must prove that a seasonal influx of transients causes a population swell which creates a need for an additional licensee. Pennsylvania Liquor Control Board v. Jimmy Paul's, Inc., 82 Pa. Commw. 280, 475 A.2d 914 (1984). If this need is shown, the question then is whether the applicant can serve this need by offering a service which existing licensees cannot. Pesante Appeal, 82 Pa. Commw. 242, 476 A.2d 474 (1984). Kayden offered no evidence to meet this burden. The only conceivable evidence of need concerns the desire of Kayden's regular patrons to engage in social drinking while participating in weekly league bowling. Assuming, arguendo, that this customer preference qualifies as a "need," there is not one piece of evidence linking it to an influx of tourists. Moreover, there is unrefuted record evidence that several other bowling alleys in the area are licensees. While this may put Kayden at a competitive disadvantage, the sole purpose for the resort area exception is to ensure that the needs of the public in a given locale are adequately met. We must conclude that Kayden has not met its burden of proof.

Because this conclusion is determinative of the appeal, we shall not address the LCB's contention that there was an insufficient evidentiary basis for the common pleas court to make significantly different factual findings.

Accordingly, the common pleas court's order is reversed.

ORDER

The Washington County Common Pleas Court order, No. 44 Misc. 84 dated August 7, 1984, is reversed. The order of the Pennsylvania Liquor Control Board refusing Kayden Corporation's application for new restaurant liquor license is reinstated.


Summaries of

P.L.C.B. v. Kayden Corp.

Commonwealth Court of Pennsylvania
Feb 27, 1986
505 A.2d 393 (Pa. Cmmw. Ct. 1986)
Case details for

P.L.C.B. v. Kayden Corp.

Case Details

Full title:Commonwealth of Pennsylvania, Pennsylvania Liquor Control Board, Appellant…

Court:Commonwealth Court of Pennsylvania

Date published: Feb 27, 1986

Citations

505 A.2d 393 (Pa. Cmmw. Ct. 1986)
505 A.2d 393

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