On February 13, 2019 the Nova Scotia Court of Appeal released its reasons in Unfiltered Brewing Incorporated v. Nova Scotia Liquor Corporation. Those reasons can be read in full here. The appeal was dismissed, with costs ordered payable by Unfiltered Brewing to the Attorney General of Nova Scotia. The trial judge’s reasons are summarized here.
In the recent British Columbia Supreme Court decision R. v. Roudiani, the accused was charged with aggravated assault arising from an incident near the intersection of Granville and Smithe Streets in Vancouver – the heart of the Granville Entertainment District. Mr. Roudiani was ultimately acquitted and those reasons can be read in full here. Mr. Roudiani was successfully defended by a friend of Alcohol & Advocacy – Mr. Joven Narwal.
Of interest to readers of Alcohol & Advocacy is the unreported decision of Mr. Justice N. Smith on a voir dire relating to the admissibility of BarWatch records at trial. Mr. Roudiani asserted that the use of this information gathered by the police during its investigation was a breach of his Charter right to be free from unreasonable search and seizure.
On November 26, 2018 the General Manager of the Liquor and Cannabis Regulation Branch released reasons for the decision in Re Oak & Carriage EH18-041. That decision can be read in full here. The Oak & Carriage is licensed as a liquor primary establishment in Duncan, BC and is operated by a third party.
In Re Oak & Carriage the Branch alleged that the licensee contravened the Liquor Control and Licensing Act by selling liquor outside the hours of service specified on the licence (being after 1:00 am) and failing to ensure that an employee did not consume alcohol while working.
When you or your establishment has been served with a Notice of Enforcement Action, it can feel like the full weight of British Columbia’s Liquor Control and Licensing regime, and its endless resources, are bearing down on you. Exacerbating matters, you may learn that police officers will be giving evidence for the prosecution. Despite your convictions, and your firm belief that the contravention alleged by the Branch did not occur, you may be tempted to sign a waiver notice – just to get the unpleasant process behind you. Resist this urge!
As the recent decision of the General Manager of the (then) Liquor Control and Licensing Branch in Re Days Inn, EH18-006 exemplifies, liquor inspectors and police officers do not always make good witnesses. Sometimes their evidence can be inconsistent and incomplete, forcing the Delegate hearing the matter to favour the evidence of the licensee and conclude that the alleged contravention has not been established. The decision in Re Days Inn can be read in full here.
Facts
On December 4, 2017 two on-duty RCMP officers sat in their patrol car near a Licensee Retail Store, the Days Inn (Inn of the West) in Terrace, BC.
“Officer 2” (as he is identified in the Branch’s reasons) observed a male cross the intersection and enter the LRS. Both officers then exited the police vehicle and observed the customer, through the LRS windows, purchase a 15 pack of Wildcat beer. When the customer exited the store, the police spoke with the customer and observed a high degree of intoxication.The officers concluded that the customer was intoxicated.
“Officer 1” subsequently entered the LRS, spoke with the clerk who sold the customer the beer, and asked that she refund the purchase. The clerk did, and the customer was allowed to continue home on his own accord. The clerk advised police she thought the customer merely had something wrong with his leg, and was not staggering from alcohol consumption.
Officer 2 wrote his report immediately after the incident. Officer 1 did not produce a written report of the incident until the following day. The local liquor inspector learned of the incident from Officer 1 at a hockey game later that same day. The liquor inspector attended the LRS on December 8 (four days after the incident) to speak with the LRS supervisor. On December 11 the liquor inspector, having now received the RCMP reports interviewed the LRS clerk, and issued a contravention notice to the licensee for selling liquor to an intoxicated person.
Analysis
At first blush the facts in Re Days Inn are not particularly remarkable: the LRS employee denied selling alcohol to an intoxicated person, two police officers filed reports saying otherwise. However, upon closer examination, the Branch’s case against the licensee was plagued by the police officer’s poor note taking, contradictory evidence at the hearing, and tainted by the liquor inspector’s request that Officer 1 provide a supplemental report on December 27th.
The evidence of the police was as follows:
In dismissing the contravention, the General Manager’s Delegate Nerys Poole set out her concerns with the Branch’s evidence as follows:
While each of inconsistencies outlined above may not individually have been sufficient to undermine the Branch’s case against the LRS, the totality of the contradictions in the Branch’s evidence caused concern for Delegate Poole. When contrasted with the compelling evidence of the LRS store clerk on her training, and established practice of not serving intoxicated individuals, the General Manager’s Delegate had little choice but to dismiss the contravention allegations.
Liquor Control and Licensing Act contraventions related to intoxication turn significantly on the observations made by liquor inspectors, police officers, and sometimes other witnesses. When the reliability of those observations are in doubt, as they were in Re Days Inn, it is difficult for the General Manager’s Delegate to be satisfied that a contravention in fact occurred.
Conclusion
Re Days Inn is an important reminder to licensees to be cautious before signing a waiver notice – resist the urge to “plead guilty” before all the facts are known, and the Branch has made proper and fulsome disclosure of the case against you.
Being served with a Contravention Notice or Notice of Enforcement Action can be intimating especially when the police have been involved. Retaining counsel familiar with British Columbia’s liquor laws and the enforcement process can go a long way to ensuring your business makes an informed decision about signing a waiver notice, or proceeding to a hearing. If you have questions about this process please contact Dan Coles at Owen Bird.
*Alcohol & Advocacy publishes articles for information purposes only. They are not a substitute for legal advice, and persons requiring such advice should consult legal counsel.
On October 22, 2018 the Alberta Gaming and Liquor Commission announced that “effective immediately” bars and restaurants are allowed to mix liquor products with ingredients such as spices, herbs and fruits as well as create house-aged liquor products. Additional changes will allow Albertans to take liquor served at a hotel bar to their rooms or other areas within the hotel.
British Columbia’s liquor laws have permitted these practices since January, 2017.
Other key changes include:
The complete news release can be read here.
In January of this year the Supreme Court of Nova Scotia issued its decision in the matter of Unfiltered Brewing Inc. v. Nova Scotia Liquor Corporation. That decision can be read in full here. You can also find a summary of that decision over at Slaw.ca.
In the Spring 2018 edition of Liquor Line, the Liquor Control and Licensing Branch’s biannual newsletter, the LCLB affirmed the basic principle that licensees are responsible for making sure their staff do not provide liquor to minors, but also clarified situations where it is “ok” for staff not to check ID.
The Branch clarified that staff members observed not asking a youthful looking person for ID is not itself a contravention of the Liquor Control and Licensing Act, or the terms and conditions of a licence – it is the act of selling or serving liquor to a minor that is a contravention. The Branch provided the following examples to clarify the point:
The Branch stressed that where there is any doubt, requesting two pieces of ID remains the best practice.
As Alcohol & Advocacy has previously discussed, staff are also entitled to refuse service when they believe an individual is intoxicated, or has been previously asked to leave.
For licensees, providing ongoing training for staff on the basics of asking for and inspecting identification is of paramount importance. Not only is it the responsible thing to do, but a meaningful and thorough staff training regimen with ongoing reinforcement of the Serving It Right curriculum goes a long way towards mounting a successful defence of contravention enforcement action.
Despite the LCLB’s ongoing efforts to educate licencees on the importance of preventing the sale and service of alcohol to minors, contraventions for the same remain the leading cause of enforcement action against licensees. The penalty for a first contravention of serving a minor is a 10 day licence suspension or a $7,500 fine.
If your establishment has been served with a contravention notice, or is facing enforcement action, contact Dan Coles at Owen Bird for assistance.
*Alcohol & Advocacy publishes articles for information purposes only. They are not a substitute for legal advice, and persons requiring such advice should consult legal counsel.
The trend of Canadian consumers and licensees challenging how provincial governments regulate, tax, and sell alcohol is alive and well in 2018. The anticipation in advance of the Supreme Court of Canada’s decision in R. v. Comeau, and the widespread media attention following its release, speaks for itself. From coast-to-coast Canadians are dissatisfied with the regimes in place in their respective provinces that tax and restrict the sale of alcohol. The ink spilled over Comeau tells us something else too: very few Canadians actually understand how the liquor licensing and retail regimes in their respective provinces operate.
St. Patrick’s Day is a big source of business for the liquor industry. While all owners and managers hope that the day will run smoothly, and profitably, the failure by staff to comply with the terms of the Liquor Control and Licensing Act, namely by over-service, can put a damper on the festivities. Regrettably, the Brew Street Craft and Kitchen learned this the hard way last year.
Many British Columbians consider access to alcohol a serious issue. In fact the laws surrounding access to alcohol in British Columbia are the very reason this blog exists. Still for others, access to alcohol is not just a serious or even a legal issue – its a matter of human rights.