In Matter of JA Rocks Inc. v. New York State Liquor Authority , JA Rocks challenged the New York State Liquor Authority's revocation of its on-premises liquor license and the subsequent imposition of a $1000 bond forfeiture.
On appeal, the Appellate Division, First Department, reversed the Liquor Authority's determination, since the charges in dispute lacked sufficient evidentiary support.
While the Liquor Authority alleged a failure by JA Rocks to exercise "adequate supervision" over the latter's business, 9 NYCRR § 48.2 expressly limits this obligation to conduct occurring on the licensed premises.
Although the violative conduct transpired outside JA Rocks's establishment, the Liquor Authority still applied the "inadequate supervision" charge.
Additionally, the Liquor Authority failed to demonstrate that JA Rocks had used unlicensed security personnel in violation of another code provision (9 NYCRR § 53.1(n)). Even in the face of evidence offered by JA Rocks that it hired duly licensed personnel, the Liquor Authority erroneously opted to rely on an "illegible" police report which purportedly established the unlicensed status of the company's security personnel.
Clearly, the AD1 felt that the Liquor Authority's case was rocky at best.
To download a copy of the Appellate Division's decision, please use this link: Matter of JA Rocks Inc. v. New York State Liquor Authority