Matter of Quirke Restaurant, Inc. v. State Liquor Authority, 57 N.Y.2d 86 (1982)
The State Liquor Authority lacks the power to impose a fine as a penalty for violations of the Alcoholic Beverage Control Law; its authority is limited to revocation, cancellation, or suspension of a license.
Summary
Quirke Restaurant, Inc. challenged the State Liquor Authority’s (Authority) determination that it violated the Alcoholic Beverage Control Law. The Authority revoked Quirke’s license, imposed a $1,000 bond claim, and levied a $2,250 fine. The New York Court of Appeals held that while the revocation and bond claim were justified by substantial evidence, the Authority exceeded its jurisdiction by imposing the fine. The Court reasoned that the Alcoholic Beverage Control Law does not explicitly grant the Authority the power to levy fines, limiting its punitive actions to license revocation, cancellation, or suspension.
Facts
Quirke Restaurant, Inc., held a restaurant liquor license with Dennis V. Quirke, Jr., listed as the sole principal. The Authority charged the restaurant with five violations of the Alcoholic Beverage Control Law, including permitting Quirke’s father-in-law to benefit from the license, possessing mislabeled liquor, illegally purchasing liquor for resale, altering the premises without permission, and maintaining inaccurate records. Quirke initially pleaded not guilty but later pleaded “no contest” to the mislabeling charge.
Procedural History
Following a hearing, the Authority sustained all five charges and imposed a penalty of revocation, a $1,000 bond claim, and a $2,250 fine for the mislabeling violation. Quirke sought review via an Article 78 proceeding. The Supreme Court transferred the case to the Appellate Division, which affirmed the Authority’s determination. Quirke then appealed to the New York Court of Appeals.
Issue(s)
Whether the State Liquor Authority has the statutory authority to impose a monetary fine as a penalty for violations of the Alcoholic Beverage Control Law, or whether its power is limited to revoking, cancelling, or suspending a license.
Holding
No, because the Alcoholic Beverage Control Law empowers the Authority to revoke, cancel, or suspend a license but does not grant it the power to impose a fine as a penalty.
Court’s Reasoning
The Court of Appeals found substantial evidence supporting the Authority’s determination that Quirke permitted an unlicensed individual to benefit from the license. It also found no abuse of discretion in the revocation and bond claim, given the sustained charges. However, the Court focused on whether the Authority had the power to impose the $2,250 fine. The Court stated that while subdivision 3 of section 17 of the Alcoholic Beverage Control Law allows the Authority to revoke, cancel, or suspend a license, “it contains no authority to impose a fine or penalty.” The Court distinguished “fines” from “penalties,” noting that the term “fine” typically refers to a criminal exaction imposed by a court. Although section 112 mentions “fines and penalties,” the Court interpreted this in light of other sections of the law, concluding that “fine” refers to a criminal violation imposed by a court, not an administrative fine levied by the Authority. The Court emphasized that statutes penal in character should be construed narrowly. The Court cited City of Buffalo v. Neubeck, 209 App. Div. 386, 388 for the principle that “a fine is a sum of money exacted of a person guilty of a crime…while a penalty is a sum of money for which the law exacts payment by way of punishment for doing some act which is prohibited.”