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Gates v. Chadwick
Citations: 812 F. Supp. 1233; 1993 U.S. Dist. LEXIS 1657; 1993 WL 36145Docket: Civ. A. No. 93-7-VAL (WDO)
Court: District Court, M.D. Georgia; February 9, 1993; Federal District Court
On January 19, 1993, a show-cause hearing was held regarding defendants' refusal to grant plaintiff Sammie Lee Gates a beer and wine license for his gameroom in Lakeland, Georgia. Gates has applied for this license four times, with each application denied. He claims to meet all licensing criteria and argues that the denials violate his due process rights. For procedural due process in licensing, two requirements are identified: adequate notice of standards and a fair hearing in applying those standards. If a license is denied without a reasonable basis from established standards or evidence, it is deemed arbitrary and a violation of due process. The defendants cite two reasons for denying Gates' application. First, they reference a Lakeland ordinance that prohibits granting a beer or wine license if the establishment is within 100 yards of a church. Testimony indicated a church is located within this distance; however, Gates demonstrated that this building has not functioned as a church for years, lacking essential utilities and being in disrepair. The court concluded that the church's non-functionality invalidates the basis for denial. Second, the defendants referenced Gates' two prior misdemeanor convictions from nearly twenty years ago (related to gambling and carrying a weapon). While state law allows discretion in denying licenses based on past misdemeanors if it contradicts public interest, no local ordinance explicitly provides such grounds for denial. The defendants argue that a provision in Lakeland's ordinances allows them to exercise similar discretion as the State Revenue Commissioner. Ultimately, the court found that neither reason provided by the defendants constituted a valid basis for denying Gates' beer and wine license, thereby infringing on his due process rights. The court rejects the defendants' claims regarding the applicability of Georgia Department of Revenue rules to municipal liquor licenses, clarifying that these state rules are specific to state liquor licenses and do not extend to municipal regulations. Section 4-54 of the Lakeland City Ordinances explicitly states that the city will issue licenses in accordance with state law, without granting itself equivalent discretionary authority as the State Revenue Commissioner. Consequently, the ordinance does not indicate that past misdemeanor convictions can be grounds for denying a beer license. The court finds that the city's denial of the plaintiff's beer license based on such convictions violated due process, as there was no legitimate justification for the denial. Therefore, the court grants the plaintiff's motion for a preliminary and permanent injunction, permanently enjoining the defendants from refusing to issue the requested beer and wine license.