YARBROUGH v. MONTOYA

• Decision Date: 07 February 1950
• Docket Number: No. 5243,5243
• Citation: Yarbroush v. Montoya, 54 N.M. 91, 214 P.2d 769 (N.M. 1950)
• Parties: YARBROUSH v. MONTOYA, Chief of Division of Liquor Control.
• Court: New Mexico Supreme Court

54 N.M. 91

214 P.2d 769

YARBROUSH

v.MONTOYA, Chief of Division of Liquor Control.

No. 5243.

Supreme Court of New Mexico.

Feb. 7, 1950.

[214 P.2d 770, 54 N.M. 93]

Dean S. Zinn, Sante Fe, Attorney for Division of Liquor Control, Bureau of Revenue, Joe L. Martinez, Attorney General, for appellant.

Garland & Sanders, Las Cruces, for appellee.

McGHEE, Justice.

The appellee made application to the appellant, Chief of Division of Liquor Control, for a license authorizing him to sell intoxicating liquors at retail at Animas, Hidalgo County.Following an investigation by one of his liquor inspectors and some protests from citizens of the area, the appellant declined to issue the license.An appeal was then taken to the District Court of Santa Fe County pursuant to Section 61-516, 1941 Comp.(Supp), where the decision of the appellant was reversed with a direction to issue the license.This appeal followed.

Sec. 61-516, as amended byCh. 87, Laws of 1945, reads:

'Any person, firm or corporation aggrieved by any decision made by the chief of division as to the issuance or refusal to issue any such additional license may appeal therefrom to the district court of Santa Fe County, by filling a petition therefor in said court within thirty (30) days from the date of the decision of the chief of division, and a hearing on the matter may be held in the district court which hearing shall be de novo.Provided, however, that the decision of the chief of division shall continue in full force and effect, pending a reversal or modification thereof by the district court unless otherwise ordered by the court for good cause shown.

'Any appeal from the decision of the district court to the Supreme Court shall be permitted as in other cases of appeals from the district court to the Supreme Court.'

The petition appealing the decision of the Chief of Division to the District Court states that Yarbrough is qualified under the law to receive the dispenser's license applied for; that all formalities with respect to the making of the application have been met; that in denying the application the Chief of Division disregarded the recommendations of the Board of County Commissioners of Hidalgo County and abided by the wishes of several alleged citizens of Animas instead; that the public convenience and necessity requires the granting of the application; that the Chief of Division failed to take into consideration the population of the locality involved, the number of existing licenses in that locality, and that the granting of the license would not impair the public health, safety and morals of the area where the liquor establishment would be located.

The Chief of Division denied these various allegations, and pleaded affirmatively that his decision was based upon the petitions of substantial citizens of the community wherein the license was to be located; the general needs of the community for a dispensers license as requested; the number of licenses of all kinds in existence throughout the State of New Mexico and particularly in the general area in which the proposed license was to be situated; the population of the locality involved, and the public health, safety and morals of the locality and the area wherein the new license was sought.

The important question raised by this appeal is what must be proven before the district court may reverse an order of the Chief of Division denying an application for a liquor license in view of the provision for a de novo hearing granted by the 1945amendment, and whether in making his decision the Chief of Division may only consider matters which would be admissible in a court of law.

The Chief of Division of Liquor Control is given broad discretionary powers under our liquor control act.It is stated in Sec. 61-501, 1941 Compilation:

'It is hereby declared to be the policy of this act that the sale of all alcoholic liquors in the state of New Mexico shall be licensed, regulated and controlled so as to protect the public health, safety and morals of every community in this state; and it is hereby made the responsibility of the chief of division to investigate into the legal qualifications of all applicants for licenses under this act, and to investigate into the conditions existing in the community wherein are located the premises for which any license is sought, before such license is issued, to the end that licenses shall not be issued to unqualified or disqualified persons or for prohibited places or locations.'

Section 61-516, 1941 Compilation, reads, in part, as follows:

'All licenses provided for in this act shall expire on June thirtieth of each year, and may be renewed from year to year under the rules and regulations of the division.Any New Mexico wholesaler, rectifier, winer, wine bottler, retailer, club or dispenser licensee in good standing at the expiration of any license year, (June 30), shall be entitled to a new annual state license for the succeeding license year if said licensee is otherwise entitled thereto under the provisions of this act.Provided, however, that at the beginning of any new license year (July 1), and throughout the new license year, the chief of division of liquor control shall have the authority to limit, in his discretion, the number of additional New Mexico wholesaler, rectifier, winer, wine bottler, retailer, club or dispenser licenses to be issued within the state and every political subdivision thereof,and the chief of division, in his discretion, may refuse to issue any such additional licenses. * * *

'In determining whether such new or additional licenses shall be limited or refused, the chief of division shall take into consideration the population of the locality involved, the number of existing licenses in the locality or area, and shall take into consideration the public health, safety and morals of such political subdivision, area or locality wherein any additional license is sought.'

The statute granting the Chief of Division the use of wide administrative judgment with respect to new licenses is silent as to the manner or means whereby the investigation is to be...