181 S.E.2d 1 (N.C. 1971), 74, Underwood v. State Bd. of Alcoholic Control

Docket Nº:74.
Citation:181 S.E.2d 1, 278 N.C. 623
Party Name:Edward Leon UNDERWOOD t/a the Castaway Night Club, Petitioner, v. STATE BOARD OF ALCOHOLIC CONTROL, Respondent.
Case Date:May 12, 1971
Court:Supreme Court of North Carolina
 
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181 S.E.2d 1 (N.C. 1971)

278 N.C. 623

Edward Leon UNDERWOOD t/a the Castaway Night Club, Petitioner,

v.

STATE BOARD OF ALCOHOLIC CONTROL, Respondent.

No. 74.

Supreme Court of North Carolina.

May 12, 1971

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Robert Morgan, Atty. Gen., by Christine Y. Denson, Asst. Atty. Gen., and James L. Blackburn, Staff Atty., Raleigh, for the respondent appellant.

Charles B. Hodson, Chapel Hill, and Robert L. Satterfield, Hillsborough, Attys. for petitioner appellee.

HUSKINS, Justice:

It is well established that regulation of the sale and use of alcoholic beverages is within the police power of the State. Boyd v. Allen, 246 N.C. 150, 97 S.E.2d 864 (1957). The State Board of Alcoholic Control is empowered to enforce laws relating to the sale and control of alcoholic beverages. G.S. § 18--39. The suspension and revocation of licenses by the Board are administrative decisions affecting the rights of specific parties and are subject to judicial review under the provisions of Article 33 of Chapter 143 of the General Statutes. Upon such review, the 'whole record' test is applicable, and the decision of the Board may be reversed if substantial rights of the licensee are prejudiced by administrative findings, inferences, conclusions or decisions which are not supported 'by competent, material, and substantial evidence in view of the entire record as submitted.' G.S. § 143--315(5); Freeman v. Board of Alcoholic Control, 264 N.C. 320, 141 S.E.2d 499 (1965); Keg, Inc. v. Board of Alcoholic Control, 277 N.C. 450, 177 S.E.2d 861 (1970). The 'whole record' test must be distinguished from the 'any competent evidence' standard. See Hanft, North Carolina Case Law--Administrative Law, 45 N.C.L.Rev. 816 (1967).

The State Board of Alcoholic Control has adopted regulations to administer the laws governing the sale of wine and malt beverages, and the Board may revoke or suspend the State permit of any licensee for a violation of the law or of any regulation adopted by it. G.S. § 18--78(d). Regulation No. 30 reads as follows: 'Permits authorizing the sale at retail of beverages, as defined in G.S. 18--64, and Article 5 of Chapter 18 of the General Statutes, for on or off premises consumption may be suspended or revoked upon violation of * * * the following provisions[278 N.C. 630] upon the licensed premises: * * * 5. Permitting any person engaging in an affray or disorderly conduct.' Petitioner is charged with a violation of this regulation.

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