Retroactive, Inc. v. Nebraska Liquor Control Comm.
298 Neb. 936
| Neb. | 2018Background
- Retroactive, Inc. applied for a Class C liquor license for a nightclub at 1516 Jones Street, Omaha; nine nearby residents filed written citizen protests.
- Omaha City Council recommended denial; the Nebraska Liquor Control Commission held a hearing, received the written protests into evidence, and denied the license.
- Retroactive filed for judicial review under the Administrative Procedure Act (APA) in district court seeking reversal of the Commission’s denial.
- The City moved to dismiss, arguing Retroactive failed to name citizen objectors (e.g., Hecker) as parties of record required for APA review; the district court denied the motion.
- The district court reversed the Commission and ordered issuance of the license; the Commission appealed, arguing lack of subject-matter jurisdiction because a party of record was not joined.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether citizen objectors were "parties of record" for APA review | Retroactive: §53-1,115 definition of party of record does not extend to APA review; citizen objectors were not parties of record because they were not treated as formal parties at the hearing | Commission: Statutory definition in §53-1,115(4) controls; citizen objectors who filed written protests are parties of record and must be made parties to APA review | The Court held citizen objectors (including Hecker) are parties of record under §53-1,115(4); failure to join them deprived the district court of subject-matter jurisdiction |
| Whether the district court properly reversed the Commission's denial on the merits | Retroactive: Commission's decision was arbitrary, unsupported by evidence, and beyond authority | Commission: Merits not reached on appeal once jurisdictional defect established | Court did not address merits because lack of jurisdiction required vacatur and dismissal |
Key Cases Cited
- Shaffer v. Nebraska Dept. of Health & Human Servs., 289 Neb. 740 (discusses when a party is treated as a party of record at administrative hearings)
- Kozal v. Nebraska Liquor Control Comm., 297 Neb. 938 (holds §53-1,115(4) definition of party of record controls APA review of Commission proceedings)