NY Appellate Court Affirms Denial of Liquor Store’s Application to Expand Retail Space

This post was authored by Amy Lavine, Esq.

A determination from the New York State Liquor Authority (NYSLA) that denied a liquor store’s application to expand its retail premises by 65 percent was upheld by a state appellate court. The court found that the denial had a rational basis and was not arbitrary or capricious, since the liquor store failed to show that granting its application would serve the “public convenience and advantage” as required under the New York Alcohol Beverage Control Law. In this respect, the court pointed to evidence in the record showing that existing stores in the area were adequately serving current residents and the approval of the store’s liquor license in 2017 had actually decreased sales and demand at nearby stores. It was also reasonable for the NYSLA to discount the weight of sales data provided by the liquor store, since it was conceded that the store was “a shopping destination, drawing customers from well beyond the neighborhood.” Finally, the court noted that the NYSLA’s determination was not ultra vires or “de facto rule making”; rather, it was consistent with the agency’s advisory guidance regarding applications for liquor store alterations, which “memorialized practices that already existed under Alcoholic Beverage Control Law 63(6) and 111.”

Matter of Gunhill Liq. Warehouse Corp. v New York State Liq. Auth., 2022 NY Slip Op 05949 (NYAD 1st Dept 10/25/22).