233 W. 4th St. Tenants Assoc. v New York State Liq. Auth.

Annotate this Case

Download PDF

233 W. 4th St. Tenants Assoc. v New York State Liq. Auth. 2022 NY Slip Op 32624(U) August 3, 2022 Supreme Court, New York County Docket Number: Index No. 153773/2022 Judge: Lyle E. Frank Cases posted with a "30000" identifier, i.e., 2013 NY Slip Op 30001(U), are republished from various New York State and local government sources, including the New York State Unified Court System's eCourts Service. This opinion is uncorrected and not selected for official publication. INDEX NO. 153773/2022 [FILED: NEW YORK COUNTY CLERK 08/03/2022 12:55 P~ NYSCEF DOC. NO. 22 RECEIVED NYSCEF: 08/03/2022 SUPREME COURT OF THE STATE OF NEW YORK NEW YORK COUNTY PRESENT: PART HON. LYLE E. FRANK Justice ----------------------------------------------------------------- ----------------X 233 WEST 4TH STREET TENANTS ASSOCIATION, et al Petitioner, INDEX NO. MOTION DATE 11M 153773/2022 05/13/2022 001 MOTION SEQ. NO. - V - DECISION + ORDER ON MOTION NEW YORK STATE LIQUOR AUTHORITY, Respondent. ------------------------------------------------------------------- --------------X The following e-filed documents, listed by NYSCEF document number (Motion 001) 2, 7, 8, 9, 10, 11, 12, 14, 15, 16, 17, 18, 19, 20, 21 were read on this motion to/for ARTICLE 78 (BODY OR OFFICER) Petitioners seek an order pursuant to CPLR Article 78, to vacate, set aside, and annul the Declaratory Ruling issued on January 26, 2022 by the respondent New York State Liquor Authority (the "Authority") granting a "grandfather" exception to the public interest requirements of Alcoholic Beverage Control Law ("ABCL") §64(7)(b) and §64(7)(-f) for a liquor license issued to the premises located at 225-231 West 4th Street, New York, New York 10014 and to vacate, set aside, and annul the Authority's denial on February 16, 2022 of a request by the Petitioner Tenants Association for reconsideration of the Ruling. Respondent opposes the instant petition. For the reasons set forth below, the petition is granted. On January 26, 2022, the Authority issued a declaratory ruling that granted a grandfather exemption to the premises at 225-231 West 4th Street, New York, New York 10014 1. The 1 See NYSCEF Doc. 3. 153773/2022 Motion No. 001 [* 1] Page 1 of4 1 of 4 INDEX NO. 153773/2022 [FILED: NEW YORK COUNTY CLERK 08/03/2022 12:55 P~ NYSCEF DOC. NO. 22 RECEIVED NYSCEF: 08/03/2022 Authority granted this exemption despite the Authority's acknowledgement that the location had been unlicensed since September 1, 2017 and without a public hearing. In the written ruling, the Authority cites two reasons to justify the ruling: (1) that there was no intervening use of the premises and (2) the impact of the Covid-19 pandemic on the bar/restaurant industry. On February 16, 2022, petitioner, 233 West 4th Street Tenants Association, requested, in writing, that the Authority reconsider the ruling, that request was denied and the original determination was upheld. Article 78 Standard ofReview Article 78 review is permitted, where it is alleged a determination was made "in violation of lawful procedure, was affected by an error of law or was arbitrary and capricious or an abuse of discretion .... " NY CPLR §7803(3). "Arbitrary" for the purpose of the statute is interpreted as "when it is without sound basis in reason and is taken without regard to the facts." Pell v Board ofEd. of Union Free School Dist. No. of the Towns of Scarsdale and Mamaroneck, Westchester Cty. 34 NY2d 222, 231 [1974]. A court can overturn an administrative action only if the record illuminates there was no rational basis for the decision. Id. "Rationality is what is reviewed under both the substantial evidence rule and the arbitrary and capricious standard." Id. If the court reviewing the determination finds that "[the determination] is supported by facts or reasonable inferences that can be drawn from the records and has a rational basis in the law, it must be confirmed." American Telephone & Telegraph v. State Tax Comm 'n 61 NY2d 393,400 [1984]. Alcohol Beverage Control Law 153773/2022 Motion No. 001 [* 2] Page 2 of 4 2 of 4 [FILED: NEW YORK COUNTY CLERK 08/03/2022 12:55 P~ NYSCEF DOC. NO. 22 INDEX NO. 153773/2022 RECEIVED NYSCEF: 08/03/2022 ABCL §64(7)(b) prohibits the Authority from issuing a retail license for the sale or consumption ofliquor for on-premises consumption where there are three or more such liquor licenses within 500 feet of the proposed location. There is an exception, pursuant to ABCL §64(7)(f), where issuance of the license would be in the public interest after a public hearing and consultation with the local community board and one exemption, pursuant to ABCL §64(7)(c), known as the "grandfather" exemption, where there has been a full liquor license "continuously in existence" at the location since on or before November 1, 1993. Discussion In opposition, respondent conclusory avers that its declaratory ruling was rational and not arbitrary and capricious as a matter oflaw, however, the Court does not agree. Respondent contends that the statute is vague and that the Authority's interpretation is rational and must be given deference. The Court does not find the language in the statute to be vague, in contrast, it deems the subject provisions of the statute to be quite clear and finds that the Authority did act in contravention of the clear unambiguous language of the statute. While the respondents argue that the Authority has generally allowed new applicants to be grandfathered-in provided: (1) that there was no intervening use of the premises as anything other than a bar or restaurant; and (2) in the absence of special circumstances, that no more than one-year has passed between the prior license becoming inactive and the new applicant filing an application, and that such one-year limit can be extended where there are extenuating circumstances (emphasis added). The Court finds that the Authority's action is in contravention of its own policy and does not provide any rational basis for excusing the 4 year and 5-month 153773/2022 Motion No. 001 [* 3] Page 3 of 4 3 of 4 INDEX NO. 153773/2022 !FILED: NEW YORK COUNTY CLERK 08/03/2022 12: 55 PM! NYSCEF DOC. NO. 22 RECEIVED NYSCEF: 08/03/2022 gap in licensure, specifically the over two-year period before the Covid 19 pandemic. Accordingly, it is hereby ADJUDGED that the petition is granted; and it is further ORDERED that the Declaratory Ruling issued on January 26, 2022 by the Respondent New York State Liquor Authority granting a "grandfather" exception to the public interest requirements of Alcoholic Beverage Control Law ("ABCL") §64(7)(b) and §64(7)(f) for a liquor license located at 225-231 West 4th Street, New York, New York 10014, is vacated; and the matter is remanded to the New York State Liquor Authority to take action consistent with this Decision and Order. 8/3/2022 DATE CHECK ONE: LYLE E. FRANK, J.S.C. CASE DISPOSED GRANTED • DENIED APPLICATION: SETTLE ORDER CHECK IF APPROPRIATE: INCLUDES TRANSFER/REASSIGN 153773/2022 Motion No. 001 [* 4] ~ NON-FINAL DISPOSITION GRANTED IN PART SUBMIT ORDER FIDUCIARY APPOINTMENT • • OTHER REFERENCE Page4 of 4 4 of 4

Some case metadata and case summaries were written with the help of AI, which can produce inaccuracies. You should read the full case before relying on it for legal research purposes.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.