LIQUOR LICENCE ACT, R.S.O. 1990
In the Matter of: SOLID GOLD ADULT ENTERTAINMENT 398 Clarence Street London, Ontario N6A 3M7
Licensee: Darchris Productions Inc. Licence Number: 92427 Notice of Proposal: To REVOKE a licence Dated April 17, 2007
The Proposal alleges that:
I. With respect to section 6 of the Act:
(a) contrary to clause 6 (2)(d) of the Liquor Licence Act, the past/present conduct of the licence holder or if a corporation the present/past conduct of its officers or directors, or of a shareholder who owns or controls 10% or more of its equity shares, or of a person having beneficial interest in the business of the licence holder; or of a person having responsibility for the management or operation of the business of the licence holder affords reasonable grounds for belief that its business will not be carried on in accordance with the law and with integrity and honesty
II. With respect to contraventions of the Liquor Licence Act, and Regulations thereto:
(b) contrary to subsection 45(1) of Ontario Regulation 719/90 under the Liquor Licence Act, the licence holder permitted drunkenness or riotous, quarrelsome, violent or disorderly conduct to occur on the licensed premises or in the areas under the control of the licence holder.
(c) contrary to subsection 45 (1) of the Liquor Licence Act, the licence holder obstructed a person carrying out an inspection under the Act.
(d) contrary to subsection 45(2) of the Liquor Licence Act, the licence holder failed to facilitate an inspection relevant to the licence.
Hearing: Station Park All Suite Hotel 242 Pall Mall Street, London, Ontario May 1 and 2, 2007
Presiding
Board Members: David C. Gavsie, Chair Guy Maurice, Member
Appearances: Richard Kulis, Representative of the Registrar Jeffrey Lyons, Representative of the Licensee
The continuation of the hearing held on May 1 and 2, 2007 in London, Ontario regarding liquor licence 92427 in the name of Darchris Productions Inc. doing business as Solid Gold Adult Entertainment was held by conference call on June 1, 2007 to obtain submissions as to sanction following the decision by the Board as to findings dated May 29, 2007.
1. Submissions by the Registrar
Mr. Kulis stated that the Registrar was still seeking revocation because of long-standing problems with the Licensee. The Licensee has employees interfering with patrons, and now the police. There have been previous decisions of the Board regarding the Licensee. The Licensee should have been able to come to grips with its problems.
Now, there are 3 altercations in one night. If the Licensee had been more properly vigilant, the incidents should not have occurred. Police and AGCO inspectors have a job to do. They go into establishments to ensure the public safety. Otherwise, the public interest would be compromised.
The manuals of the Licensee had mistakes in them. Mr. Kulis doubted that Mr. Rudan had read them because of these errors. The licensee did not show that the employees had read them. There was no test, questioning or even sign-off by the employees indicating they had read the manuals. There was no follow-up staff meeting. Mr Kulis said that the manuals are a hollow attempt by the Licensee to show a hollow control.
The Licensee had 2 prior suspensions. Yet the police had to pull out their weapons inside the Premises on April 15. The past and present conduct of the Licensee leads to the conclusion that the Licence should be revoked.
2. Submissions by the Licensee
Mr. Lyons pointed out that Mr. Rudan operates 5 adult clubs including the Licensee and has done so for 10 to 15 years. There was an easy-going manager of the premises who was not tough enough when she had to be. Mr. Rudan had fired a previous manager, Tom Katsaris. There is no doubt a mistake was made when they did not perform a criminal inspection before hiring Mr. Cornelisse, but he had worked there before and they thought they knew him better than obviously they did. Mr. Rudan had manuals made. They are not being followed. Mr. Lyons agreed it is not even enough for people to read through them.
In addition, Mr. Lyons said that the manager should have been more diligent that evening.
Mr. Lyons stated that he had had a conversation with Mr. Kulis about adding some conditions to the licence such as:
a) all employees would have to have no criminal record;
b) Mr. Cornelisse and Ms. Fader would be banned from being in the Premises;
c) all security people would have to take a Safer Bars program and gain a certificate; and
d) security employees would have special clothing to identify them as such to patrons and police.
3. Reply
Mr. Kulis re-stated his client’s position that the Registrar is seeking revocation of the Licence.
4. Interim Suspension
At the conclusion of the hearing, the Board ORDERED that the interim suspension of the licence remain in place.
5. Sanction
The Board has deliberated long and hard over what is the appropriate sanction for the findings made against the Licensee. The greatest penalty the Board can impose is that of revocation of a licence, something because of its consequences not only to the Licensee but also to employees and suppliers, should only be issued by the Board in circumstances where the Board feels that a suspension with or without conditions would not be the appropriate punishment for a violation or violations found to or admitted to have been committed by the Licensee. In this case, the Board is of the view that a lengthy suspension and the addition of conditions to the Licence are the appropriate sanction, although the Board certainly understands and considered fully the position of the Registrar.
The Board heard no evidence that Mr. Rudan had discipline issues for any other licensed establishment in which he has an involvement. Further, the Board did hear evidence that Mr. Rudan’s relationship with London Police Services regarding the Premises prior to April 15, 2007 seemed to be fine. There may have been issues, but these were dealt with satisfactorily. The manager of the Premises, Ms. Gomes, hired Mr. Cornelisse based on her knowledge of his satisfactory and trouble-free employment in the Premises 10 to 12 years ago. His current employment was to be part-time, temporary, as a disc jockey, and he was to have no security role. She did not insist on a police check for Mr. Cornelisse, but she has also been lax at having security staff obtaining police checks and submitting them to her, as requested by Mr. Rudan.
The Board believes Mr. Rudan should have one more chance to show he and his manager of the Premises can get it right, and not be the object of any further discipline matters with the AGCO and the London Police Services.
Accordingly, the Board ORDERS that licence 92427 be suspended for ninety (90) consecutive days commencing retroactively with the imposition of the interim suspension on April 17, 2007, and continuing until 2 a.m. on July 16, 2007.
In addition, the following conditions shall be added to licence 92427:
a) the manuals (Ex. 1 (a) to (c)) inclusive, are to be updated deleting references to incorrect names and authorities. The updated manuals shall be complete no later than August 31, 2007;
b) all employees shall read the manual fitting their employment in the Premises, and shall sign a written statement to the effect they have read and understood the specific manual, naming it, and dating their statement;
c) all employees of the Premises should have a uniform of special clothing to clearly identify them as employees, with security having a different uniform if deemed necessary or appropriate by the Licensee;
d) all security personnel employed by the Licensee shall sign up for and attend the Safer Bars program and obtain no later than September 30, 2007, a certificate from that security program. The cost of attendance shall be paid for by the Licensee. Any new employee shall also be required to take that course within 90 days from starting his or her employment with the Licensee, also at the cost of the Licensee.
e) Leigh Fader and Marcus Cornelisse shall be barred from entering the Premises.
DATED AT TORONTO THIS 7th DAY OF JUNE 2007.
DAVID C. GAVSIE, CHAIR GUY MAURICE, BOARD MEMBER
DCG/mw