Abay, L.L.C. v. Nebraska Liquor Control Comm.
303 Neb. 214
Neb.2019Background
- Abay, L.L.C. (doing business as Blondo Convenient Food Mart) applied for a Class D packaged liquor license for a new Omaha convenience store in 2017.
- Omaha City Council denied recommending the license after requesting conditions: no single-can beer sales and no distilled spirits under 375 ml; applicant declined those conditions.
- The Nebraska Liquor Control Commission granted the license but imposed restrictions: "No single can sales" and "No spirits/wine sales less than .375."
- Abay appealed the Commission's order to the Lancaster County District Court for de novo review on the agency record; the district court read the spirits restriction as 375 ml, found competent evidence supporting the conditions, and affirmed the Commission.
- Abay argued on appeal that the Commission lacked statutory authority to impose conditions and that the conditions were arbitrary, unreasonable, and vague.
- The Nebraska Supreme Court reviewed the district court order for errors appearing on the record and affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Commission may impose conditions on a liquor license | Commission lacks statutory authority; may only grant or deny licenses | Statutes and precedent empower the Commission to regulate and impose conditions to protect public health and safety | Commission has authority to impose reasonable conditions consistent with the Act |
| Whether the specific restrictions were lawful and sufficiently definite | Restrictions were arbitrary, unreasonable, and vague (volume not specified) | Restrictions reflect city recommendation and evidence about litter/public-safety concerns; district court properly interpreted " .375" as 375 ml | Restrictions were reasonable, not arbitrary or capricious; district court reasonably read " .375" as 375 ml |
Key Cases Cited
- Gas ’N Shop v. Nebraska Liquor Control Comm., 229 Neb. 530, 427 N.W.2d 784 (1988) (State may prescribe conditions for sale of alcoholic beverages; broad regulatory discretion)
- Major Liquors, Inc. v. City of Omaha, 188 Neb. 628, 198 N.W.2d 483 (1972) (recognition of state power to regulate alcoholic beverage sales and conditions)
- F & T, Inc. v. Nebraska Liquor Control Comm., 7 Neb. App. 973, 587 N.W.2d 700 (1998) (Court of Appeals concluded Commission may impose conditions on licenses)
- City of Omaha v. C.A. Howell, Inc., 20 Neb. App. 711, 832 N.W.2d 30 (2013) (illustrative follow-up acknowledging Commission authority to condition licenses)
- Schwarting v. Nebraska Liq. Cont. Comm., 271 Neb. 346, 711 N.W.2d 556 (2006) (district court’s de novo review on agency record; may weigh commission credibility findings)
- Jolly v. State, 252 Neb. 289, 562 N.W.2d 61 (1997) (administrative bodies have only statutory authority conferred by statute)
- State v. Coble, 299 Neb. 434, 908 N.W.2d 646 (2018) (legislative acquiescence inferred where judicial construction of statute remains unamended)
