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4 N.J.A.R. 197

Mannies Cigarette Service, Inc., v. Aidan Corporation, Ritz Bar and Grill, Inc. and Municipal Board of Alcoholic Beverage Control of Clifton
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Citation: 4 N.J.A.R. 197
Decision Date: 1980
Agency: DIVISION OF ALCOHOLIC BEVERAGE CONTROL
Synopsis: Mannies Cigarette Service sought to reverse the authorization of a person-to-person transfer of a plenary retail consumption license from Ritz Bar & Grill, Inc. to Aidan Corp. granted by the City of Clifton. Mannies argued that the approval was erroneous because, at the time of the approval of the transfer, Ritz owed Mannies $5,000 and that, by transferring the liquor license, the only asset of Ritz was diverted to Aidan. The administrative law judge determined that it was not necessary, nor did jurisdiction exist, to determine whether or not Ritz actually owed Mannies any money or whether the contract purchasers of Ritz are personally liable for the loan. The only issue to be determined was whether the Division of Alcoholic Beverage Control has the authority to bar the transfer of a liquor license because an objector to that transfer is owed money by the original holder of the license. The judge determined that the Division was without statutory authority to prevent a person-to-person transfer of a liquor license which may or may not be the only asset of a corporation which may owe an unliquidated debt to an objector. In addition, the judge con- cluded that a liquor license, in and of itself, is not properly subject to lien, levy or execution and that a creditor may not obtain satisfac- tion out of the proceeds of its sale or prevent its sale in any event. Having concluded that the transfer was otherwise proper, the judge ordered the objector's petition dismissed. Herbert Ezor, Esq., for petitioner (Heller & Laiks, attorneys) Richard Roth, Esq., for respondent, Aidan Corporation Frances J. Calise, Esq., for respondent, Municipal Board of Al- coholic Beverage Control of the City of Clifton