Latin Social Club, Inc. v. Liquor Control Commission

• Decision Date: 18 November 1977
• Docket Number: No. 76-173,76-173
• Parties: , 12 Ill.Dec. 486 LATIN SOCIAL CLUB, INC., an Illinois Corporation, Plaintiff-Appellee, v. LIQUOR CONTROL COMMISSION of the State of Illinois, Defendant-Appellant. Appeal of Richard L. VERBIC, as Mayor and Local Liquor Control Commissioner of the City of Elgin, Illinois, Defendant.
• Court: United States Appellate Court of Illinois

Page 109

370 N.E.2d 109

54 Ill.App.3d 798, 12 Ill.Dec. 486

LATIN SOCIAL CLUB, INC., an Illinois Corporation, Plaintiff-Appellee, v. LIQUOR CONTROL COMMISSION of the State of Illinois Defendant-Appellant Appeal of Richard L. VERBIC, as Mayor and Local Liquor Control Commissioner of the City of Elgin Illinois, Defendant.

No. 76-173.

Appellate Court of Illinois, Second District.

Nov. 18, 1977.

Erwin W. Jentsch, Wm. J. Scott, Atty. Gen., Imelda Terrazino, Asst. Atty. Gen., Chicago, for defendants-appellants.

Geister, Schnell, Richards & Brown, Van R. Richards, Jr., Elgin, for plaintiff-appellee.

RECHENMACHER, Presiding Justice:

The Latin Social Club, Inc. (hereafter the "Latin Club"), an Illinois corporation operating a tavern in Elgin, Illinois, filed an action under the Administrative Review Act (Ill.Rev.Stat.1973, ch. 110, par. 264, et seq.), to review a decision of the Illinois Liquor Control Commission which affirmed the Local Liquor Control Commissioner's revocation of the Latin Club's liquor license, and denial of the Latin Club's application for a renewal of its liquor license. The circuit court of Kane County reversed the order of the Illinois Liquor Control Commission and the Commission and the Local Liquor Control Commissioner have appealed, contending that (1) the instant action was rendered moot when the City of Elgin passed an ordinance reducing the number of available liquor licenses by one; (2) that the circuit court erred when it held that the Illinois Liquor Control Commission lost jurisdiction to affirm the revocation order entered by the Local Liquor Control Commissioner, when it failed to render a decision within thirty days after hearing the appeal, and (3) that the circuit court erred when it held that the findings of the Local Control Commissioner were "against the greater weight of the evidence", and therefore, "contrary to Illinois law".

The relevant facts are as follows: On December 6, 1973, Alonzo Alvarado, the president and principal shareholder of the Latin Club, was served with a notice that a public hearing would be held before the Liquor Control Commissioner of the City of Elgin to determine whether the Latin Club's Class A liquor license should be suspended or revoked. The notice alleged that Alvarado was not eligible to hold a liquor license, since he had committed acts of violence and "engaged in other unlawful conduct on numerous occasions", and that the continued operation of the Latin Club threatened the public health, safety and welfare, and resulted in numerous disturbances, injury to persons, violations of the law, and police calls. Specific instances of misconduct, covering a period from February 1, 1971, to August 27, 1973, were set forth, along with the allegation that on February 24, 1972, the Latin Club's license was suspended for sale after hours and allowing persons to remain in the licensed premises after hours, and that on January 28, 1970, the liquor license of the "Latin Social Club of Elgin", predecessor to the Latin Club, had been suspended for permitting intoxicated persons on the premises, conducting business so as to disturb the peace of the neighborhood, and selling liquor to an intoxicated person.

On January 24, 1974, a hearing on these charges was held before William L. Rauschenberger, the mayor of Elgin and Local Liquor Control Commissioner. Counsel for the Latin Club stipulated to the license suspensions of February 24, 1972, and January 28, 1970. Counsel also stipulated that Alvarado had been convicted of disorderly conduct on March 9, 1971, and unlawful use of weapons on May 16, 1972. However, it was argued on behalf of the Latin Club that such evidence of prior convictions and suspensions should be excluded on various grounds, including relevance and estoppel.

Each side then presented evidence pertinent to a number of incidents involving Alvarado. The City of Elgin presented testimony by Officer Robert Call of the Elgin Police Department who stated that on February 1, 1971, Alvarado discharged a pistol on a busy street in Elgin. Gill Mauricio testified that Alvarado, without provocation, struck him on the lip at the Latin Club, on the evening of February 3, 1973. By contrast, Alvarado's testimony was that Mauricio had been involved in a fight and he denied that he ever struck Mauricio. Porfidio Olvirez, called by the City, testified that on August 27, 1973, Alvarado, without provocation, struck him from behind with a beer bottle at an establishment called the Redwood Inn. Olvirez admitted that he had consumed roughly eight "beers" prior to the incident. Olvirez said that the blow from Alvarado knocked out some of his teeth. Officer Call testified that he assisted in arresting Alvarado on August 27, 1973, and in searching Alvarado's car, discovered a gun in the glove compartment. Criminal charges arising out of incidents on August 27, 1973, were pending against Alvarado at the time of the hearing, and Alvarado did not testify concerning these events. However, William Smith, a bartender at the Redwood Inn, testified on behalf of the Latin Club that he "assumed" that he had worked on August 27, 1973. He stated that Olvirez had come into the bar "hurt and bleeding", and stayed "just long enough for (Smith) to ask him to leave." Smith said that he had not seen Alvarado in the Redwood Inn that evening. Uncontradicted evidence was presented that on July 22, 1973, Alvarado struck Rueben Munos outside of the Los Campos restaurant. No arrests were made as a result of this incident. Alvarado testified that he struck Munos because Munos insulted Alvarado and his family with a "dirty name". It was also established that on December 30, 1972, the police responded to a battery complaint at the Latin Club. As the officers entered the Latin Club, they observed Alvarado take a gun out of his back pocket and pass it to an associate. Alvarado was placed under arrest and told that he would have to go to the police station with the officers. Officer Robert Christ testified that Alvarado began to "edge away" from the officers, toward the back door of the bar. The officers persuaded Alvarado to go outside with them. As the paddy wagon pulled up, Alvarado began to "fight" the officers, and resisted their efforts to place him in the paddy wagon. Alvarado kicked one of the officers twice before they were able to place him in the paddy wagon. Alvarado attempted to explain this incident during his testimony, by stating that one of the officers was twisting his arm and the officer didn't "give (him) a chance."

On January 28, 1974, the Local Liquor Control Commissioner (Rauschenberger) entered an order revoking the Latin Club's liquor license. The order made specific findings on the factual questions which were presented at the hearing, resolving them in each instance against the Latin Club. The order found that Alvarado was the president, manager and principal shareholder of the Latin Club, and that he had committed "acts of violence in violation of State statutes and ordinances" and was "of such character and reputation" that the Latin Club's retention of its liquor license would constitute "a threat to the well being of the community and to the persons in or near the licensed premises."

The Latin Club then began an unsuccessful effort to obtain administrative relief. On January 29, 1974, the Latin Club filed an appeal of the revocation order with the Illinois Liquor Control Commission. On January 31, 1974, the Illinois Liquor Control Commission acknowledged the filing of the appeal, and ordered the Local Liquor Control Commissioner to permit the Latin Club to remain open during the pendency of the appeal. On March 11, 1974, arguments of counsel were heard by the Illinois Liquor Control Commission. On April 19, 1974, the Latin Club filed an application with the City of Elgin for a renewal of its liquor license. On May 2, 1974, the Latin Club was informed that its application for renewal had been denied. On May 8, 1974, the City of Elgin passed an ordinance reducing the number of Class A liquor licenses by one. Then, on July 7, 1974, the Illinois Liquor Control Commission entered orders affirming the Local Liquor Control Commissioner's order revoking the Latin Club's liquor license and the denial of the Latin Club's application for renewal of its license. On July 3, 1974, the Illinois Liquor Control Commission denied the Latin Club's application for rehearing, and the Latin Club filed a complaint for administrative review in the circuit court of Kane County on August 9, 1974.

The Latin Club's proceedings in the circuit court met with the success which had eluded it before the Illinois Liquor Control Commission. The circuit court entered an order staying the enforcement of the Local Liquor Control Commissioner's orders of revocation and non-renewal during the pendency of the administrative review proceedings. The Local Liquor Control Commissioner moved to dismiss the Latin Club's complaint for administrative review, on grounds of mootness, the motion being supported by a copy of the ordinance of May 8, 1974, and an affidavit from William Rauschenberger stating that all retail liquor licenses authorized by the City of Elgin had been issued; this motion was denied. Finally, after reviewing the report of proceedings before the Local Liquor Control Commissioner and hearing arguments of counsel, the circuit court of Kane County entered an order on January 14, 1976, holding that the Illinois Liquor Control Commission lost jurisdiction to affirm the order of the Local Liquor Control Commissioner when it failed to render a decision within thirty days after the appeal was heard, as required by statute (Ill.Rev.Stat.1973, ch. 43, par. 153), and that the findings of the Local Liquor Control Commissioner were "against the great weight of the evidence and contrary to Illinois law." The circuit court, therefore, reversed the orders revoking the liquor license of...