Board of Liquor License Com'rs for Baltimore City v. Fells Point Cafe, Inc.

Citation344 Md. 120,685 A.2d 772
Decision Date01 September 1995
Docket NumberNo. 128,128
PartiesBOARD OF LIQUOR LICENSE COMMISSIONERS FOR BALTIMORE CITY v. FELLS POINT CAFE, INC. ,
CourtCourt of Appeals of Maryland

Gerald Langbaum, Assistant Attorney General, Annapolis (J. Joseph Curran, Jr., Attorney General, Baltimore, John K. Barry, Assistant Attorney General, Annapolis, on brief), for appellants.

George D. Bogris (William F. Gately, Howell, Gately, Whitney & Carter, on brief), Towson, and (Melvin J. Kodenski, Kodenski and Canaras, on brief), Baltimore, for appellee.

Argued before MURPHY, * C.J., and ELDRIDGE, RODOWSKY, CHASANOW, KARWACKI, BELL and RAKER, JJ.

CHASANOW, Judge.

In this case, we are called upon to decide whether the Board of Liquor License Commissioners for Baltimore City possessed the authority to impose restrictions on an individual license with the consent of the licensee and whether additional restrictions may be imposed on the license thereafter as a sanction for violating the consented to restrictions. For the following reasons, we answer the first question in the affirmative and the second question in the negative. We also hold, as a preliminary matter, that the Petitioners filed a timely notice of appeal.

I.

The facts in this case are as follows. On November 4, 1993, a hearing was held by the Board of Liquor License Commissioners for Baltimore City ("the Board") on an application to transfer the ownership of a liquor license to the Licensees 1 and to modify the restrictions that had been placed on the license. The restrictions had been placed on the license as a result of protracted conflict between the previous license holders and the neighborhood residents over the operation of a club called the Sanctuary. The Fells Point Homeowners' Association ("the FPHA"), an organization of neighborhood residents, initially opposed the transfer of the license to the Licensees, most likely because they feared another club like the Sanctuary. In an effort to convince the FPHA not to oppose the transfer of the license, the Licensees agreed to have certain conditions placed on their operations that would make the establishment more compatible with neighborhood living. The FPHA agreed not to oppose the transfer of the license at the November 4, 1993 hearing in exchange for the concessions by the Licensees.

At the November 4, 1993 hearing, the Licensees argued that the Board should transfer the license because the Licensees and the FPHA had "entered into a written agreement which set[ ] forth restrictions on the [l]icense which [met] the needs of both sides." The Licensees requested that the written agreement dated November 4, 1993 be incorporated into the license "as a restriction." The restrictions in the agreement included what kinds of music and other entertainment were prohibited, under what conditions dancing would be allowed, what percentage of revenue had to be derived from the sale of food and specific restrictions on the sale of beer, wine and liquor. Before the Board would agree to the transfer, however, it questioned the prospective Licensees extensively and sought assurances that the premises would be operated as a restaurant and not as a nightclub or bar. It appears from the transcript of the November 4, 1993 hearing that the Board had had some problems with the establishment formerly known as the Sanctuary, which was a nightclub, and that the license was only transferred because the Licensees had expressly agreed that the premises would be used as a restaurant. 2 The Board granted the application to transfer the license subject to the restrictions set forth in the agreement and on the license. The face of the license contains the following restriction: "Must operate in line with the conditions set forth in the agreement with the Fells Point Homeowners Association, the agreement dated November 4, 1993."

On December 1, 1994, a public hearing was held by the Board to determine, among other things, whether the Licensees had violated the restrictions contained in the November 4, 1993 agreement. 3 At the hearing, the Licensees moved to dismiss the charges against them on the ground that the November 4, 1993 agreement was binding on the community and the Licensees only and was not enforceable by the Board. The Licensees asserted that, as to the Board, the restrictions in the agreement were "null and void." The Board argued that it did have the power to restrict an individual license and that it had been doing so for many years, whenever it believed that such restrictions would be in the best interests of the community.

The Board concluded that the November 4, 1993 agreement had been accepted by the Licensees and the FPHA and that the Board had accepted the agreement as a binding restriction on the license. The Board also stated that it had the authority, under Article 2B, to impose such restrictions. After finding that the Licensees had violated many of the restrictions in the agreement and that the premises were being used primarily as a nightclub or bar, the Board imposed the following, additional restrictions, effective December 8, 1994: no live entertainment, no D.J., no dancing, no exotic entertainment.

The Licensees sought judicial review of the Board's decision in the Circuit Court for Baltimore City and obtained a stay of the Board's Order. The Board and several interested individuals 4 (collectively "the Petitioners") responded to the Licensees' petition. A hearing was held on May 15, 1995 before the Honorable Hilary D. Caplan. Judge Caplan found that the Board lacked statutory authority to impose any restrictions on a license not expressly provided for in Article 2B and he stated: "the decision of the Board of Liquor License Commissioners is hereby reversed...." The Judge asked counsel to prepare an order to that effect. An order was prepared and was signed by Judge Caplan on May 17, 1995. The order stated that the decision of the Board was "REVERSED for the reasons articulated by the Court in its oral ruling from the bench and in the Court's Memorandum Opinion attached hereto." 5 The Order was docketed on the same day; the docket entry read: "ORDER OF COURT THAT THE DECISION OF THE BOARD IS REVERSED; COSTS TO BE PAID BY RESPONDENTS (CAPLAN, J)."

On May 23, 1995 and May 25, 1995, the Board and the interested individuals, respectively, filed motions for reconsideration. The Licensees filed a motion in opposition to the motions for reconsideration on June 8, 1995. Judge Caplan held a hearing on the motions on June 16, 1995. After arguments on the motions concluded, Judge Caplan gave the parties ten days to present any additional materials for consideration on the motions. He told the parties to expect his ruling "sometime by the middle of July." Later in the day, on June 16, 1995, the Board and the interested individuals, apparently believing that an appeal had to be filed within 30 days of the May 17, 1995 docket entry, filed notices of appeal to the Court of Special Appeals of Maryland. On July 19, 1995, Judge Caplan filed a Memorandum Decision and Order, which restated his conclusion that the Board lacked authority to impose restrictions on the license and which implicitly disposed of the outstanding motions.

The Licensees filed, in the Court of Special Appeals, a Motion to Dismiss the appeals of the Board and the individual appellants on the grounds that they failed to note timely appeals pursuant to Maryland Rule 8-202(a). The Court of Special Appeals denied the motion on September 26, 1995. We granted a writ of certiorari, on December 19, 1995, before the case could be reviewed on its merits by the Court of Special Appeals in order to consider the important issues raised by the appeal. In their brief to this Court, the Licensees have again moved to have the Petitioners' appeals dismissed on the grounds that they were not timely.

II.

The threshold issue that we must address is whether the Petitioners filed timely notices of appeal. A notice of appeal must be filed within thirty days after the entry of the judgment or order from which an appeal is to be taken. Maryland Rule 8-202(a). The Licensees argue that when the Petitioners filed their notices of appeal, on June 16, 1995, in response to the Order docketed May 17, 1995, there was no final judgment from which an appeal could be taken. The Licensees argue that a final judgment was entered in the circuit court on July 19, 1995, the date that Judge Caplan filed the Memorandum Decision and Order. The Licensees assert that because the Petitioners did not file additional notices of appeal within 30 days after the entry of the Memorandum Decision, their opportunity for appellate review expired.

The Petitioners filed a response to the Licensees' motion in which they argued that Judge Caplan rendered a judgment on May 15, 1995, which became final when the order was signed and entered on the docket on May 17, 1995. The appellants argue that their appeal, filed on June 16, 1995, was timely because it was filed on the thirtieth day after the final judgment was entered. We agree, and we hold that the Circuit Court for Baltimore City granted a final judgment, from which the Petitioners could appeal, on May 17, 1995.

The Maryland Rules define a judgment as "any order of court final in its nature entered pursuant to these rules." Maryland Rule 1-202(m). Maryland Rule 2-601 prescribes the manner in which a judgment must be entered:

"(a) When Entered.--Upon a general verdict of a jury or upon a decision by the court allowing recovery only of costs or a specified amount of money or denying all relief, the clerk shall forthwith enter the judgment, unless the court orders otherwise. Upon a special verdict of a jury or upon a decision by the court granting other relief, the clerk shall enter the judgment as directed by the court. Unless the court orders otherwise, entry of the judgment shall not be delayed...

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