2169 Central Ltd. v. New York State Liquor Authority
Petitioners 2169 Central Ltd., operator of Shenanigan's Bar, and its president Lewis D. Cross, challenged a determination by the State Liquor Authority (SLA) which imposed a $3,000 civil penalty for employing unlicensed security guards. The petitioners initiated a CPLR article 78 proceeding, contending that the SLA exceeded its statutory authority and that its determination was not supported by substantial evidence. The court found that the SLA possessed the statutory authority to regulate and penalize licensees for violating its regulations, specifically 9 NYCRR 48.3 regarding conformance with governmental regulations. Furthermore, the court determined that the SLA's decision was supported by substantial evidence, including police investigator testimony, sworn employee statements, and Department of State certifications, which confirmed the employment of unlicensed security guards. Consequently, the court confirmed the SLA's determination and dismissed the petition.