Matter of Village of Brockport v. New York State Liquor Authority, 26 N.Y.2d 5 (1970): Scope of Village Intervention in Liquor License Hearings

Matter of Village of Brockport v. New York State Liquor Authority, 26 N.Y.2d 5 (1970)

While villages have the right to seek judicial review of liquor license grants under Alcoholic Beverage Control Law § 123, this right does not automatically imply the right to intervene fully in the State Liquor Authority’s license hearings; the extent of village participation in such hearings is generally at the agency’s discretion.

Summary

The Village of Brockport sought to intervene fully in a State Liquor Authority (SLA) hearing regarding a liquor license application. When the SLA limited the village’s participation, the village sought judicial review, arguing that its limited involvement constituted an illegality in the licensing process. The Court of Appeals held that while villages have the right to seek judicial review of liquor license grants under Alcoholic Beverage Control Law § 123, this right does not guarantee them full intervention in SLA hearings. The decision to allow or deny intervention rests within the agency’s discretion.

Facts

An application for a liquor license was filed with the State Liquor Authority (SLA). The Village of Brockport attempted to fully participate in the SLA hearing concerning the application. The SLA restricted the extent of the Village’s participation during the hearing process.

Procedural History

The Village of Brockport sought judicial review of the SLA’s decision to limit their participation in the liquor license hearing. The Appellate Division remitted the matter to the Authority for a new hearing. The Court of Appeals reversed the Appellate Division’s order and remitted the case back to the Appellate Division to determine the appropriate action, holding that the SLA had the discretion to limit the village’s participation.

Issue(s)

Whether a village has a statutory right to intervene fully in liquor license hearings held by the State Liquor Authority pursuant to section 54(3) of the Alcoholic Beverage Control Law.

Holding

No, because there is no statutory provision expressly granting villages the right to intervene fully in liquor license hearings; the allowance or denial of applications to intervene in administrative proceedings rests in the discretion of the agency.

Court’s Reasoning

The Court of Appeals reasoned that while villages have the right to seek judicial review of the grant of a license under section 123 of the Alcoholic Beverage Control Law, this right does not automatically grant them the right to intervene in the underlying agency proceedings. The court noted that the decision to allow or deny intervention in administrative proceedings is generally within the agency’s discretion. The court stated, “Generally, allowance or denial of applications to intervene in administrative proceedings rests in the discretion of the agency.” The court acknowledged that allowing the village to participate fully might have been preferable, but the agency was still within its rights to limit the village’s participation. The court also emphasized that proceedings under section 123 are typically brought to review whether there is sufficient basis for the Authority to grant a liquor license. Since the Appellate Division didn’t determine whether a proper basis for the license grant existed, and the village’s sole claim was the denial of full participation, the Court of Appeals remitted the case for further action consistent with its ruling that full participation was not required.