Matter of Martin Dennis Co. v. State Liquor Authority, 24 N.Y.2d 84 (1969)
A restaurant granted a retail license for on-premise liquor consumption must generally be open to the public to advance “public convenience and advantage,” as intended by the Alcoholic Beverage Control Law.
Summary
Martin Dennis Co., operating a restaurant called “Numero Uno,” had its liquor license canceled by the State Liquor Authority (SLA) for effectively operating as a private club and discouraging public access. The restaurant argued that it catered to a membership club and gave members preference. The Court of Appeals reversed the Appellate Division’s decision, holding that the SLA’s determination was supported by substantial evidence and that the Alcoholic Beverage Control Law requires restaurants with on-premise consumption licenses to serve the general public, promoting public convenience and advantage.
Facts
The State Liquor Authority (SLA) investigated Martin Dennis Co.’s restaurant, “Numero Uno,” after receiving complaints. An investigator attempted to make reservations and gain admission but was denied because he was not a member of the “Numero Uno” club. The restaurant’s manager testified that before 7:00 p.m., reservations were accepted only from club members (1,300-1,500 members). After 7:00 p.m., members received preference, and non-members were seated if space permitted, for a $7.50 fee. After 10:30 p.m., seating was on a first-come, first-served basis. The restaurant did not advertise, and a plaque on the outer wall identified the premises as “Numero Uno.”
Procedural History
The State Liquor Authority (SLA) canceled Martin Dennis Co.’s liquor license. The company appealed. The Appellate Division reversed the SLA’s decision. The State Liquor Authority appealed to the New York Court of Appeals.
Issue(s)
Whether the Alcoholic Beverage Control Law requires restaurants holding retail licenses for on-premise consumption to admit the general public.
Holding
Yes, because the legislative intent behind the Alcoholic Beverage Control Law is to advance “public convenience and advantage,” which requires retail on-premise restaurant licenses to serve the general public.
Court’s Reasoning
The Court of Appeals found that the SLA’s determination that the restaurant was not open to the general public was supported by substantial evidence. The court emphasized that its review in administrative proceedings is limited to determining whether the findings are supported by substantial evidence, citing Matter of Playboy Club v. State Liq. Auth., 23 N.Y.2d 544, 547. The court stated, “A reviewing court will not substitute its judgment for the considered judgment of an administrative tribunal if there is ‘such relevant evidence as a reasonable mind might accept as adequate to support a conclusion’ (Consolidated Edison Co. v. National Labor Relations Board, 305 U. S. 197, 229).” The court reasoned that although the Alcoholic Beverage Control Law does not explicitly state that restaurants must be open to the general public, the legislative intent is clear. Section 2 states that regulation of alcoholic beverages by the SLA should be for the “public convenience and advantage.” The court distinguished Playboy Club v. Hostetter, 40 Misc 2d 449, noting that the Playboy Club admitted all who paid the admission fee. The court concluded that because “Numero Uno” discouraged public admission, the SLA’s cancellation of the license was justified.