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In the Matter of JVC TAVERN CORP., Doing Business as THE BACK DOOR, Petitioner, v. NEW YORK STATE LIQUOR AUTHORITY, Respondent.

Adjudged that the petition is granted, the determination is annulled, on the law, with costs, and the charges are dismissed.

The respondent's determination that petitioner (the licensees) suffered or permitted its premises to become disorderly in violation of Alcoholic Beverage Control Law § 106 (6) is not supported by substantial evidence in the record considered as a whole (see, 300 Gramatan Ave. Assoc. v State Div. of Human Rights, 45 N.Y.2d 176; Matter of Pell v Board of Educ., 34 N.Y.2d 222). The events upon which the charges against the petitioner were predicated were three sales of cocaine to an undercover police officer by a bartender working at the licensed premises. Although the bartender (a youth of approximately 20 years of age) was the son of one of the licensees, the record is devoid of evidence that the licensees knew or should have known of the sales (see, Matter of Richjen Rest. v State Liq. Auth., 51 N.Y.2d 847; Matter of Martin v State Liq. Auth., 41 N.Y.2d 78; Matter of De Palo v New York State Liq. Auth., 82 A.D.2d 831, affd 54 N.Y.2d 950; Matter of Triple S. Tavern v New York State Liq. Auth., 40 A.D.2d 522, affd 31 N.Y.2d 1006). The record is similarly devoid of evidence that the bartender was vested with managerial authority or unequivocal supervisory responsibility so as to impute his knowledge of the disorderly conduct to the licensees (see, Matter of Richjen Rest. v State Liq. Auth., supra; Matter of Falso v State Liq. Auth., 43 N.Y.2d 721; Matter of Martin v State Liq. Auth., supra; Matter of De Palo v New York State Liq. Auth., supra, Matter of Triple S. Tavern v New York State Liq. Auth., supra).

Accordingly, the determination must be annulled, and the charges dismissed. Lazer, J.P., Rubin, Lawrence and Kooper, JJ., concur.

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MATTER OF JVC TAVERN v. N.Y. ST. LIQUOR AUTH
(Oct 20, 1986)