PER CURIAM.
Plaintiff Martell's Tiki Bar, Inc. appeals from a final order of summary judgment dismissing its complaint against defendants Borough of Point Pleasant Beach and members of its governing body seeking declaratory relief and alleging violations of the New Jersey Civil Rights Act,
Although the parties dispute the reasons for the ordinances at issue and the governing body's purpose in proposing them, the essential facts of the consideration of the ordinances and the timeline of events are undisputed. Martell's owns and operates a popular restaurant and bar on the Point Pleasant Beach boardwalk. It alleges that the Borough demanded money from it under threat of enacting Ordinance 2012-15, which, as originally conceived, would have required the bar to close at midnight unless it paid a fee, determined by its maximum occupancy, to allow it to continue to serve alcohol until 2:00 a.m.
The ostensible purpose of the ordinance was "to prevent further deterioration of public safety and quality of life" by curtailing the sale of alcohol after midnight while simultaneously allowing licensees "the ability to mitigate any perceived adverse effect" on their businesses by paying a fee which would allow the Borough to provide the "additional police, code enforcement and public works employees required to secure compliance with the provisions of the Alcoholic Beverage Control law and Borough Ordinances and to eliminate disturbing and disorderly conduct occasioned" by the sale of alcohol between midnight and 2:00 a.m. Martell's alleges that the Borough holds it "responsible for changing social mores . . . alleged to encourage the excessive use of alcohol and outrageous behavior" and that the structure of the ordinance evidenced the Borough's intention to single it out in "extract[ing] exorbitant fees that would be used to subsidize the Borough's budget rather than accomplish a legitimate purpose of zoning or exercise of police powers."
After initially introducing Ordinance 2012-15, the governing body determined to sever the portion allowing extended hours and incorporate it into its own ordinance. Thereafter, proposed Ordinance 2012-15 provided that "no alcoholic beverages shall be sold, served, delivered to, or consumed in any licensed premises between the hours of 12:00 a.m. and 6:00 a.m.," effectively compelling the Borough's bars to close at 12:00 a.m. rather than 2:00 a.m. Proposed Ordinance 2012-16 would have permitted licensees to continue to serve alcohol until 2:00 a.m. upon filing a petition requesting extended hours and paying a fee, based on maximum occupancy reduced by 200 and then multiplied by $60.00.
At a public hearing on the proposed ordinances on May 15, 2012, the mayor acknowledged receipt of a letter from the Acting Commissioner of the Department of Community Affairs advising the Borough of the Department's view that proposed Ordinances 2012-15 and 2012-16, considered together, were unlawful and beyond the scope of the powers delegated to the municipality by the State. Specifically, the Commissioner wrote:
The governing body adopted Ordinance 2012-15 that evening with an effective date of July 1, but tabled Ordinance 2012-16.
On June 5, Martell's and Jenkinson's Pavilion, Inc. filed a petition of appeal and request for interim relief with ABC to contest the adoption and enforcement of Ordinance 2012-15. On June 29, the Director of ABC stayed the ordinance pending appeal. Although acknowledging the Borough's power to limit the hours of operation of licensed establishments under
On the same day the Director entered the order staying the ordinance, Martell's and Jenkinson's filed a complaint in lieu of prerogative writs in Superior Court, seeking to invalidate it. The seven count complaint alleged (1) the Borough had induced Martell's and Jenkinson's to purchase and invest in their commercial properties and businesses; that they had done so in response to those inducements "with the representation and expectation of continued ability to operate their legal restaurant/tavern facilities during normal and reasonable operating hours as established by past practice over many years," and that adoption of Ordinance 2012-15 being "contrary to the inducements and practices over many years upon which the plaintiffs have relied and acted upon," was barred by equitable estoppel; (2) the ordinance was adopted in violation of the Local Government Ethics Law,
Defendants moved to dismiss the complaint in lieu of answer pursuant to
Following the devastation of super storm Sandy, the Borough on February 19, 2013 adopted Ordinance 2013-01, which rescinded Ordinance 2012-15 and restored the 2:00 a.m. closing time for all ABC licensed premises in the Borough. Following the rescission, all parties to the administrative appeal agreed it could be marked as settled and dismissed by ABC. Thereafter, Jenkinson's and defendants entered into a stipulation of dismissal, and the matter continued with Martell's as the sole plaintiff.
Defendants subsequently filed a motion for summary judgment to dismiss plaintiff's complaint, which the court granted on October 28, 2013. Judge Grasso found counts one through six of plaintiff's complaint were rendered moot when Ordinance 2012-15 was rescinded, a point Martell's conceded at oral argument on the motion.
With regard to count seven, plaintiff's claims under the New Jersey Civil Rights Act, Judge Grasso found "that the Borough's stated intention to enact Ordinance 2012-16 did not constitute a threat, intimidation, or coercion sufficient to warrant civil penalties" under the Act. The judge looked to
The judge further found imposing "civil penalties on a municipality for words spoken during its deliberations" would undesirably chill the legislative process. Finally, Judge Grasso noted that Martell's had failed to cite any case where "a court has awarded civil penalties against a municipality for passing an allegedly invalid ordinance, and then rescinding it before the law takes effect." The judge declined to do so here "because it would constitute a purely academic exercise."
The judge also rejected Martell's claim to attorney's fees under the Civil Rights Act. Accepting for purposes of the motion that its lawsuit caused the Borough to rescind the ordinance, the judge nevertheless rejected Martell's claim that it qualified for fees under a catalyst theory.
The judge rejected Martell's alternate theory, that the Borough interfered with its right to do business, because no interference occurred as the ordinance never took effect. Finally, the judge noted that Martell's filed its Civil Rights Act claim in Superior Court only after enforcement of the ordinance was stayed by the ABC director, "[e]ssentially . . . piggyback[ing] this Civil Rights Act claim onto its ABC appeal." Reasoning that our law would not allow Martell's to recover its attorney's fees for that administrative appeal in this action, the judge rejected reliance on the ABC stay to prove Martell's Civil Rights Action claim had an adequate basis in law. Martell's appeals.
We review summary judgment using the same standard that governs the trial court.
Martell's spends the bulk of its brief taking issue with Judge Grasso's finding that it "enjoys no protected property right to its liquor license." It argues that "[w]hether one calls it `property' or a `privilege,' [Martell's] interest in its liquor license is by no means meager, transitory, or uncertain. Pursuant to state and federal law, [Martell's] is entitled to due process prior to the revocation or nonrenewal of its license."
We agree, as did Judge Grasso. As the Supreme Court has recently explained, however, New Jersey's Civil Rights Act, unlike the analogous Federal Civil Rights Act, 42
We also reject Martell's contention that Ordinance 2012-15 would violate its substantive due process right to a liquor license. "Typically, a legislative act will withstand substantive due process challenge if the government `identifies a legitimate state interest that the Legislature could rationally conclude was served by the statute.'"
Here, because the Borough articulated what is clearly a "legitimate state interest" — that is, "to prevent further deterioration of public safety and quality of life" by curtailing the sale of alcohol after midnight — and because a liquor license can hardly be deemed a "fundamental" right, a substantive due process claim fails.
Although Martell's argued in the trial court that it was entitled to attorney's fees under
Because Martell's conceded that counts one through six of its complaint were mooted when the ABC director stayed enactment of Ordinance 2012-15, and we agree with Judge Grasso that its liquor license does not afford Martell's a substantive right subject to protection under the Civil Rights Act, we affirm the grant of summary judgment dismissing its complaint.
Affirmed.