Stone Neapolitan Pizzeria, Inc. v. PLCB
19 C.D. 2017
| Pa. Commw. Ct. | Sep 22, 2017Background
- Stone Neapolitan Pizzeria (Licensee) filed a restaurant liquor license renewal online on May 18, 2015, after the April 2, 2015 deadline; Application indicated taxes were not current.
- Bureau of Licensing objected because the Application was untimely, lacked the required tax clearance from the Department of Revenue, and the proper late fee; a hearing was scheduled for Nov. 5, 2015 (Licensee absent).
- The hearing examiner recommended denial; the Pennsylvania Liquor Control Board (Board) denied renewal by Order dated Jan. 13, 2016 and mailed that Order to the owner’s listed home address.
- Licensee filed an appeal in the trial court on Feb. 16, 2016 (beyond the 20‑day appeal period) and sought supersedeas; Board moved to dismiss as untimely and argued supersedeas did not apply under Section 477(f).
- Trial court held a de novo hearing, found potential administrative breakdown in mailing to owner’s home address, and ordered provisional renewal conditioned on Licensee paying delinquent taxes and a $2,500 civil penalty; Board appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the untimely appeal should be accepted nunc pro tunc | Werner said he did not receive the Board’s Order and learned of denial only in Feb. 2016, so delay was due to administrative breakdown | Board argued appeal was filed after mandatory 20‑day period and party bears heavy burden for nunc pro tunc relief | Court VACATED trial court orders and REMANDED for trial court to make findings and decide nunc pro tunc issue first |
| Whether the late renewal Application may be accepted nunc pro tunc under Section 470(a) | Licensee argued late filing was due to need to resolve taxes and obtain loan; requested relief to allow renewal | Board argued renewal must be denied without tax clearance and late filing lacked reasonable cause | Court directed that, if appeal allowed nunc pro tunc, trial court must then decide whether Application itself meets nunc pro tunc standard before reaching merits |
| Whether the trial court erred by granting provisional renewal/supersedeas | Licensee sought supersedeas to use license as collateral and argued hardship | Board maintained Section 477(f) prevents supersedeas where tax noncompliance exists | Court declined to reach merits or supersedeas issues pending resolution of nunc pro tunc and Application timeliness on remand |
| Whether lack of tax clearance precludes renewal as matter of law | Licensee emphasized equities and investment loss; sought conditional renewal pending tax payment | Board relied on Sections 470 and 477 requiring tax clearance and denial where taxes unpaid | Court did not decide merits; instructed trial court to address threshold procedural issues first on remand |
Key Cases Cited
- J.V. Lounge, Inc. v. Pennsylvania Liquor Control Board, 131 A.3d 517 (Pa. Cmwlth. 2015) (trial court must analyze nunc pro tunc standard before reaching merits)
- Arena Beverage Corp. v. Pennsylvania Liquor Control Board, 97 A.3d 444 (Pa. Cmwlth. 2014) (untimely appeals require nunc pro tunc analysis; failure to do so warrants vacatur)
- H.D. v. Dep’t of Pub. Welfare, 751 A.2d 1216 (Pa. Cmwlth. 2000) (standards for nunc pro tunc relief: administrative breakdown, fraud, or non‑negligent circumstances)
- Cook v. Unemployment Comp. Bd. of Review, 671 A.2d 1130 (Pa. 1996) (nunc pro tunc relief may be granted for reasonable causes including administrative breakdown)
- Blast Intermediate Unit No. 17 v. Unemployment Comp. Bd. of Review, 645 A.2d 447 (Pa. Cmwlth. 1994) (party seeking nunc pro tunc bears heavy burden)
- Olson v. Borough of Homestead, 443 A.2d 875 (Pa. Cmwlth. 1982) (statutory appeal periods are mandatory)
- Coshey v. Beal, 366 A.2d 1295 (Pa. Cmwlth. 1976) (timeliness of appeal implicates court’s jurisdiction)
- J.C. v. Dep’t of Pub. Welfare, 720 A.2d 193 (Pa. Cmwlth. 1998) (additional factors for nunc pro tunc: promptness after learning of untimeliness, short delay, lack of prejudice)