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Daniel Corp. v. Reed

The intervening defendant did not forfeit the alcohol licenses of its two Atlanta nightclubs, even though it did not sell alcohol in the nine months following the licenses' issuance, since it complied with the City of Atlanta Code of Ordinances § 10-69's requirement to open for business the establishments referred to in the licenses.

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Within nine months after the City of Atlanta issues an alcohol license, the holder of that license must “open for business the establishment referred to in the license,” and if the holder fails to do so, it automatically forfeits the license. City of Atlanta Code of Ordinances § 10-69 a. SPI Club, Inc. operates two nightclubs in Atlanta, and in July 2010, the City issued an alcohol license for each club. Daniel Corporation contends that SPI Club failed to open either club for business within nine months of the issue of these licenses, and in April 2011, Daniel sued City officials, seeking a writ of mandamus to compel these officials to recognize an automatic forfeiture of the licenses. The court below found that SPI Club had, in fact, opened the clubs for business within the required time, and it denied the petition for a writ of mandamus. Daniel appeals, and we affirm.

After Daniel filed its petition, SPI Club intervened as a defendant, and the parties agreed to a stipulation of the material facts. According to that stipulation, one of the clubs hosted two private events in August 2010. The first event, on August 21, was a birthday celebration attended by approximately 100 people. The second event, on August 23, was a wedding celebration attended by approximately 50 people. Food and alcoholic beverages were served, but not sold, at both events, and musical entertainment was arranged by the third-party organizers of the events. Bartenders, servers, and other event workers were provided by a third-party employee leasing company that works with SPI Club. SPI Club charged a venue rental fee for the use of its club for the wedding celebration, but not for the birthday celebration.

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