SHAW (GREG) VS. SALYER (TONY), ET AL.
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RENDERED: JULY 9, 2010; 10:00 A.M.
NOT TO BE PUBLISHED
Commonwealth of Kentucky
Court of Appeals
NO. 2010-CA-000470-MR
GREG SHAW
v.
APPELLANT
APPEAL FROM RUSSELL CIRCUIT COURT
HONORABLE JULIA H. ADAMS, SPECIAL JUDGE
ACTION NO. 09-CI-00608
TONY SALYER; THOMAS SKAGGS;
LISHA POPPELWELL; LARRY
BENNETT; VICTOR HILL; AND DARYL
ROBERTSON
APPELLEES
OPINION AND ORDER
AFFIRMING
** ** ** ** **
BEFORE: ACREE, NICKELL, AND STUMBO, JUDGES.
STUMBO, JUDGE: Greg Shaw appeals from an order of the Russell Circuit
Court setting aside a local option election conducted in the Lake and Jamestown
precincts of Russell County, Kentucky. The circuit court cited two primary
reasons for invalidating the election: 1) that Kentucky Revised Statute (KRS)
242.185(6), the statute under which the election was conducted, does not authorize
local option elections by precinct; and 2) that even had the local option election
statute been properly invoked, the question put to the electorate in the two
precincts did not substantially comply with the specific language required by the
statute. Finding no error in either conclusion, we affirm the decision of the Russell
Circuit Court.
Every resident of the city of Jamestown, Kentucky, resides in either
the Lake or the Jamestown Precinct of Russell County, but not every resident of
the Lake or Jamestown Precinct lives within the confines of the city of Jamestown.
Proponents of the sale of alcohol beverages by the drink in certain restaurants
petitioned for a local option election pursuant to KRS 242.185(6), which provides:
In order to promote economic development and tourism,
other provisions of the Kentucky Revised Statutes
notwithstanding, a city or county in which prohibition is
in effect may, by petition in accordance with KRS
242.020, hold a local option election on the sale of
alcoholic beverages by the drink at restaurants and dining
facilities which seat a minimum of one hundred (100)
persons and derive a minimum of seventy percent (70%)
of their gross receipts from the sale of food. The election
shall be held in accordance with KRS 242.030(1), (2),
and (5), 242.040, and 242.060 to 242.120, and the
proposition on the ballot shall state “Are you in favor of
the sale of alcoholic beverages by the drink in (name
of city or county) at restaurants and dining facilities
with a seating capacity of at least one hundred (100)
persons and which derive at least seventy percent
(70%) of their gross receipts from the sale of food?”.
If the majority of the votes in an election held pursuant to
this subsection are “Yes”, licenses may be issued to
qualified restaurants and dining facilities and the
licensees may be regulated and taxed in accordance with
subsections (4) and (5) of this section. [Emphases
added.]
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Despite a declaratory challenge to the propriety of the election in the
precincts outside the city of Jamestown, the Russell Circuit Court concluded that
the following question was to be placed upon the ballot in the Jamestown Precinct
in the November 24, 2009, election:
Are you in favor of the sale of alcoholic beverages by the
drink in the Jamestown Precinct at restaurants and dining
facilities with a seating capacity of at least 100 persons
and which derive at least 70% of their gross sales from
food, in order to promote economic development and
tourism pursuant to KRS 242.125-1292, et seq.
An identical question was posed to the electorate of Lake Precinct, with only the
identity of the precinct being changed. It is undisputed that the phrase “in order to
promote economic development and tourism pursuant to KRS 242.124-1292, et
seq.” does not appear in the language prescribed in the statute.
The local option election produced a “no” vote within the city of
Jamestown, but the proposition received a “yes” vote in each of the Lake and
Jamestown Precincts. A post-election contest resulted in the order invalidating the
local option election. In his appeal from that order, appellant Greg Shaw argues
that the trial court erred in: 1) granting appellees additional time in which to
complete their proof in the contest proceeding; 2) ruling that a precinct cannot
conduct a local option election under KRS 242.185(6); (3) violating the principle
of res judicata by invalidating the election; and (4) concluding that the ballot
questions did not substantially comply with the statutory prescription. We find no
merit in any of these contentions.
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First, KRS 120.165(2) unequivocally authorizes the trial court to grant
either party in an election contest a reasonable extension of time in which to
complete its proof:
The evidence in chief for the contestant shall be
completed within thirty (30) days after service of
summons; the evidence for the contestee shall be
completed within twenty-five (25) days after filing of
answer, and evidence for contestant in rebuttal shall be
completed within seven (7) days after the contestee has
concluded; provided that for cause the court may
grant a reasonable extension of time to either party.
[Emphasis added.]
The assessment of whether “cause” has been demonstrated is a matter addressed to
the discretion of the trial court which we will not disturb absent a clear showing of
abuse. No abuse has been demonstrated in this case, nor do we find any evidence
of prejudice to appellant Shaw given the relatively short additional time granted.
Thus, we cannot say the trial court erred in granting appellees a reasonable
extension of time in which to complete their proof.
Similarly, we find no abuse of the doctrine of res judicata in the trial
court’s decision to invalidate the election. In support of his contention, Shaw
argues that the pre-election declaratory judgment action which permitted the
questions to be placed on the November 24th ballot conclusively determined the
validity of conducting the local option election in the Lake and Jamestown
Precincts. We agree with the analysis of the circuit court that because the preelection declaratory action was not an adversarial proceeding, it cannot operate as a
bar to a properly prosecuted post-election contest.
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Turning now to the pivotal issues, we are convinced that the circuit
court correctly determined: 1) that the plain language of KRS 242.185(6) limits its
application to cities and counties and therefore the election conducted in the Lake
and Jamestown precincts is invalid; and 2) even if it had been proper to conduct a
precinct election under the statute, the addition of language not contained in the
statute would have nevertheless required the local option election to be set aside.
KRS Chapter 242 provides a comprehensive mechanism for obtaining
a local option vote concerning the sale of alcoholic beverages and permits a local
option precinct vote in certain narrowly defined circumstances. For example, KRS
242.123 permits local option elections concerning the limited sale of alcoholic
beverages in precincts containing a golf course and KRS 242.1242 provides for
local option elections concerning the limited sale of alcoholic beverages in
precincts containing a qualified historical site. KRS 242.185(6) however by its
own terms limits the local option election for qualified restaurants to cities and
counties.
A fundamental rule of statutory construction requires courts to
interpret statutes by reference to the ordinary meaning of the words used by the
legislature:
We have a duty to accord to words of a statute
their literal meaning unless to do so would lead to an
absurd or wholly unreasonable conclusion. A legislature
making no exceptions to the positive terms of a statute is
presumed to have intended to make none.
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Here, giving the words of the statute their literal
meaning and adding no exceptions neither leads to
absurdity nor to a wholly unreasonable conclusion. On
the contrary, there appears to be bona fide reasons why
the two-years statute is both sensible and reasonable.
Bailey v. Reeves, 662 S.W.2d 832, 834 (Ky. 1984) (internal citations omitted). In
the instant case, we are required to defer to the General Assembly’s judgment in
determining the appropriate locus for a local option election and presume that there
are “bona fide reasons” for limiting the application of KRS 242.185(6) to cities and
counties.
Nor can we agree that the Kentucky Constitution compels a different
result. Section 61 grants the General Assembly the exclusive authority to prescribe
the means for taking the sense of the people as to the sale of alcoholic beverages.
It does not require every local option election be conducted at the precinct level.
So long as there is a rational basis for the legislation, it will not fail to pass
constitutional muster. The legislature’s determination that the sale of alcoholic
beverages by the drink at qualified restaurants will serve to promote economic
development and tourism in cities and counties constitutes just such a rational
basis. Thus, the statute is not unconstitutional in its application.
Furthermore, even were we not constrained by the plain language of
the statute, we would nevertheless agree with the trial court that the addition of
language to that provided in the statute would require invalidation of the election.
Contrary to Shaw’s argument, this is not a case in which mere variations in the
language used nevertheless substantially comply with the statutory proposition. As
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noted by the trial court, the question posed in KRS 242.185(6) is “not confusing
and does not invite enlargement or embellishment, however well intended.” The
language added in this case is not substantially the same as the statutory language
because it introduces an additional element to the statutory question – whether the
voter is in favor of promoting economic development and tourism – an element
which is not germane to whether a voter is in favor of the sale of alcoholic
beverages in qualified restaurants and dining facilities. The cases cited by Shaw
are therefore distinguishable.
For all the foregoing reasons, we conclude that the well-reasoned
judgment of the Russell Circuit Court must be affirmed.
Shaw’s motion to advance this appeal is DENIED AS MOOT.
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ALL CONCUR.
ENTERED: July 9, 2010
BRIEF FOR APPELLANT:
Robert Bertram
Jamestown, Kentucky
/s/ Janet L. Stumbo
JUDGE, COURT OF APPEALS
BRIEF FOR APPELLEES TONY
SALYER AND THOMAS SKAGGS:
A.C. Donahue
Somerset, Kentucky
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