Anderson v. Utah County Bd. of County Com'rs

• Citation: 589 P.2d 1214
• Decision Date: 04 January 1979
• Docket Number: No. 15653,15653
• Parties: Eldon L. ANDERSON, dba Silver Dollar Lounge, Plaintiff and Appellant, v. UTAH COUNTY BOARD OF COUNTY COMMISSIONERS, Yukus Y. Inouye, Karl R. Lyman, and Kenneth J. Pinegar as Commissioners, Defendants and Respondents.
• Court: Utah Supreme Court

Page 1214

589 P.2d 1214

Eldon L. ANDERSON, dba Silver Dollar Lounge, Plaintiff and Appellant, v. UTAH COUNTY BOARD OF COUNTY COMMISSIONERS, Yukus Y. Inouye, Karl R. Lyman, and Kenneth J. Pinegar as

Commissioners, Defendants and

Respondents.

No. 15653.

Supreme Court of Utah.

Jan. 4, 1979.

M. Matt Biljanic, Midvale, for plaintiff and appellant.

Noall T. Wootton, Utah County Atty., Provo, Guy R. Burningham, Deputy Utah County Atty., Sandy, for defendants and respondents.

CROCKETT, Justice:

Plaintiff Eldon L. Anderson appeals from an order of the district court which sustained the denial of his application for the renewal of his Class "B" beer license by the defendant Utah County Commission. He contends: (1) that the court failed to make adequate findings of fact to support its affirmance of the Commission's action, and (2) that the Commission acted arbitrarily and capriciously in refusing to renew his license.

The plaintiff is the owner and operator of the Silver Dollar Lounge near Provo. On December 12, 1975, he applied for a renewal of his beer license. The Commission denied that application on July 12, 1976, and the plaintiff was given 30 days to appear before the Commission and present evidence to persuade the Commission that that action should be set aside and the license granted.

Pursuant to hearings before the County Commission, it made findings which, it is significant to note, are not the findings of the district court, nor incorporated therein; and denied plaintiff's application for the renewal of his license.

Plaintiff subsequently initiated this action in the district court for a review of the action of the County Commission, contending that the Commission's findings were not supported by the evidence and that it "abused its discretion by arbitrarily and capriciously denying the application."

The entire findings of the district court are as follows:

1. Pursuant to Court order, the Utah County Commission transmitted to the Court for its review, a certified copy of its proceedings in the matter of the application of the Plaintiff, Eldon L. Anderson, for a Class "B" beer license.

2. The Court received and reviewed the above-described proceedings of the Utah County Commission.

3. The Court further considered the pleadings on file, oral and written stipulations entered into by the parties, and memoranda and oral arguments of counsel.

We agree with the plaintiff's contention that the foregoing are not really "findings of fact" but are simply recitals of procedure. They do not constitute findings as required by Rule 52(a), U.R.C.P., which provides:

In all actions tried upon the facts without a jury . . ., the court shall Find the facts specially and state separately its conclusions of law thereon . . . . (Emphasis added.)

It is true that we indulge the presumption of regularity in the proceedings before the trial court. But this does not suffice when the record itself exposes essential deficiencies. With certain exceptions, not applicable here, the just-quoted rule must be complied with and a judgment cannot stand unless there are findings which will justify it. ¹

The failure of the trial court to enter adequate findings requires that the judgment be vacated. In so ruling, it is appropriate that we make some observations regarding the plaintiff's claim that the Commission acted arbitrarily and capriciously. ²

The spirit of enterprise which impels a person to initiate and develop a business which provides services to the public and employment for others is vital to the common welfare. By the same token that a business must operate in accordance with lawful regulations and requirements, it should be the policy of the law, and of officials charged with its administration, to encourage such initiative and enterprise by according it all proper protections of the law. In harmony with that purpose there should be considerable difference in determining whether an application for a new license should be granted, as compared with the renewal of a license where the business has been established and operating for a number of years. ³

There are respected authorities which affirm the proposition that the administrative body (the County Commission here) should not have the same breadth of discretion in refusing the renewal of the license of an operating business as it would in passing on an application for the establishment of a new business. ⁴ The reasonableness and justice of such a rule is apparent when one reflects on the practicalities of the situation where the business has been established and operating for some years and thus represents a substantial commitment in the time, effort and expense by the owner. ⁵

We do not desire to be understood as saying that an operating business necessarily has any such vested or inviolable right in the renewal of its license that the licensing authority is without discretion in determining whether it should be renewed. ⁶ On the other hand, inasmuch as the licensing of his business does represent a substantial property interest to the plaintiff, which also has its effect upon the public welfare, it should not be destroyed nor disrupted arbitrarily, nor without following fundamental standards of due process of law to guard against capricious or oppressive administrative action. ⁷

It is further pertinent to observe that because beer licenses are available on a quota system it seems especially reasonable and proper that a business which has had a license and has been in operation should have some preference over any new application; and that the operating business should have its license renewed unless there is some reasonable basis for denying it. ⁸ The same considerations of fundamental fairness and justice which prevent an administrative body from acting in a capricious or arbitrary manner in other areas of the law also apply in a beer license, even though it is a business which is subjected to a high degree of supervision and regulation in the interest of the public welfare. ⁹

Because the record of the trial court, and particularly its findings upon which the judgment is based, fail to demonstrate any reasonable ground for the refusal to renew the license, it is our conclusion that the judgment should be and is hereby vacated. No costs awarded.

MAUGHAN, WILKINS and HALL, JJ., concur.

ELLETT, Chief Justice (dissenting):

This appeal grows out of a denial by defendant Utah County Board of Commissioners (hereinafter "Commission") of an application for a class B beer license filed by appellant Eldon Anderson (hereinafter "Anderson") on or about July 1, 1976. The application was referred to the Utah County Sheriff for recommendation, and he recommended denial based upon a series of reports of trouble at the tavern Anderson had operated during 1975 under a previously issued class B beer license.

The Commission made Anderson aware of the Sheriff's recommendation and provided him two opportunities to appear before it and present argument and witnesses to show cause why the Commission should not act on the Sheriff's recommendation. Anderson and his attorney appeared before the Commission on August 16 and again on September 27, 1976. It does not appear from the transcript of the proceedings that witnesses were sworn, but the Sheriff and Sgt. Scott, who had prepared most of the trouble reports, were present and responded to questions.

On October 6, 1976, the Commission issued its formal "Findings and Decision" denying Anderson's application. Among its findings were that, while Anderson was operating under his previous license, there had been "numerous fights and/or public disturbances" and "minors were readily served beer" on Anderson's business premises.

Anderson filed a complaint in the Fourth District Court seeking injunction against the Commission's interference with the operation of his tavern on the grounds that the Commission's findings were unsupported by evidence, that the hearings were so conducted as to deny Anderson due process, and that the denial of license was arbitrary and irreparably injurious to him. Preliminary injunction was granted in accordance with stipulation of the parties. The Commission's records relating to Anderson's application, including transcripts of the hearings, were certified to the court. On January 30, 1978, after receiving memoranda and hearing oral argument, the court entered its Findings of Fact and Conclusions of Law and Judgment dissolving the preliminary injunction and dismissing the action by which permanent injunction was sought. From that judgment, Anderson appeals.

The first ground of appeal relates to the court's failure to make adequate findings of fact. The findings were, in their entirety, as follows:

1. Pursuant to Court order, the Utah County Commission transmitted to the Court for its review, a certified copy of its proceedings in the matter of the application of the Plaintiff, Eldon L. Anderson, for a Class "B" Beer License.

2. The Court received and reviewed the above-described proceedings of the Utah County Commission.

3. The Court further considered the pleadings on file, oral and written stipulations entered into by the parties, and memoranda and oral arguments of counsel.

I agree with Anderson that this recital of the procedures by which the court informed itself on the issues of law does not constitute findings of fact within the meaning of Rule 52(a), U.R.C.P. Where findings are required, the court must find on all material issues of fact raised by the pleadings. ¹ This case was not decided on issues of fact, however, but purely on issues of law. It cannot be determined from the record on appeal how the matter got to argument. Neither a Rule 12 nor a Rule 56 motion is in the record, nor does...