RICHARDS v.
DEPARTMENT OF ALCOHOLIC BEVERAGES CONTROL
Filed 5/9/06
CERTIFIED FOR PUBLICATION
IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA
SECOND APPELLATE DISTRICT
DIVISION THREE
| ROLAND RICHARDS, Plaintiff and Appellant, v. DEPARTMENT OF ALCOHOLIC BEVERAGES CONTROL, Defendant and Respondent. | B183901 (Los Angeles County Super. Ct. No. BC316250) |
APPEAL from a judgment of the Superior Court of Los Angeles County, David A. Workman, Judge. Affirmed.
Law Offices of Leo James Terrell and Leo James Terrell for Plaintiff and Appellant.
Bill Lockyer, Attorney General, Marsha S. Miller and Kenneth G. Lake, Deputies Attorney General, for Defendant and Respondent.
Roland Richards, owner of a restaurant and supper club known as the Atlas Bar and Grill, appeals a summary judgment in favor of the Department of Alcoholic Beverages Control (Department). He contends the Department acted in an arbitrary and discriminatory manner in revoking or suspending an alcoholic beverage license issued to the prior owner and in causing the prior owner to surrender the license. We conclude that Richards's failure to apply for a transfer of the license or for an original license was a failure to exhaust an administrative remedy and is a complete defense to this action. We also conclude that the Department established a complete defense based on other independently sufficient grounds. We therefore affirm the summary judgment.
FACTUAL AND PROCEDURAL BACKGROUND
1. Factual Background
The Department first issued a license for the sale of alcoholic beverages at the Atlas Bar and Grill sometime before 2000. The licensee was Atlas Bar & Grill, Limited Partnership. Atlas One, Inc., was the general partner of the limited partnership. Richards purchased the business and the license in or about November 2002. The initial purchase and sale agreement stated that Richards was acquiring the limited partnership itself, including the business and the license, but that he was not acquiring any stock of Atlas One, Inc. The agreement later was amended to convey all of the stock of Atlas One, Inc., to Richards. The written amendments are not included in the appellate record. Richards did not apply to the Department for a transfer of the license at any time.
The Department sent a warning letter addressed to the limited partnership at the restaurant premises in February 2003 stating that the police had reported several activities that constituted violations of the license conditions. Richards admits that when the police or the Department contacted him regarding alleged violations, he falsely informed them that he was the manager and not the owner.[1] The Department filed an accusation against the limited partnership as licensee in June 2003 alleging that the licensee had sold alcoholic beverages from bottles contaminated with insects and debris. The police also reported to the Department other violations of law occurring at the premises, including violent altercations.
Richards met with Vincent Cravens and Hilarie Vazquez of the Department to discuss their concerns in or about November 2003. At the meeting, Richards admitted that he was the owner. Cravens and Vazquez informed Richards that he must apply to the Department to transfer the license, that he was not authorized to sell alcoholic beverages at the premises without a license, and that they would pursue a surrender of the license. Richards testified in a deposition, â€
