ALCOHOL AND GAMING COMMISSION OF ONTARIO
IN THE MATTER OF The: Liquor Licence Act, R.S.O. 1990, c. L.19, as amended
B E T W E E N:
Registrar, Alcohol and Gaming Commission Ontario Registrar
-and-
352085 Ontario Limited O/A Golden Ring Bar and Grill Licensee
DECISION ON SANCTION
Panel: David C. Gavsie, Chair Patricia McQuaid, Vice-Chair
Decision Date: November 26, 2007
Hearing Location: Toronto, Ontario
Alcohol and Gaming Commission of Ontario 90 Sheppard Avenue East, Suite 300 Toronto ON M2N 0A4 Phone: (416) 326-0366 Fax: (416) 326-5566 Toll Free in Ontario: 1-800-522-2876 Website: www.agco.on.ca
Appearances
Registrar, Alcohol and Gaming Commission ) Joyce Taylor, Representative 352085 Ontario Limited, Licensee ) Michele Khitab, Representative
Allegations
1A hearing into a Notice of Proposal dated October 18, 2007 to revoke a liquor licence and an Order dated October 18, 2007 to immediately suspend a liquor license on an interim basis to licence number 23860 operating as GOLDEN RING BAR AND GRILL, 326 Parliament Street Toronto, Ontario, M5A 2Z7 on the basis of alleged violation of clause 6(2)(d) of the Liquor Licence Act ("LLA") and subsection 45(2) Ontario Regulation 719/90 (“O.Reg”) made pursuant to the LLA, was held on October 30 and November 2, 2007 in the City of Toronto.
2In its decision dated November 15, 2007, the Board found that the Licensee violated subsection 45(2) of the O.Reg and made a finding pursuant to clause 6(2)(d) of the LLA. The parties were directed to provide written submissions on the appropriate sanction. The Board has received and reviewed those submissions.
Decision
3Ms. Taylor, in her submissions, reiterates the request for a revocation of the licence, stating that the Licensees, at a minimum, Mrs. Georgeopoulos, were involved in the trafficking of narcotics in the establishment. There has been no explanation offered by the Licensees in defence of the situation, no indication of remorse, and a recent history of non-compliance with the O.Reg, resulting in a five day suspension in 2003 and a ten day suspension in February, 2007. Furthermore, she submits that there is no condition proposed that would respond to the need for a significant change in the way this establishment is operated.
4Ms. Khitab, in her submissions, acknowledges that the trafficking of controlled substances is serious conduct requiring sanction, however, revocation is extremely harsh. The licence has been subject to an interim suspension order since October 18, 2007, resulting in less revenue which has served the purpose of specific deterrence. While the Board may deem a further suspension appropriate, Ms. Khitab urges the Board to reinstate the licence and if necessary impose conditions on the licence. Though not specific on either the length of any further suspension or all of the conditions, the Board infers, from her submissions, a condition that Mrs. Georgeopoulos not be permitted on the premises. Ms. Khitab does suggest a condition restricting hours of service and periodic inspections of the premises.
5This is an establishment owned by a corporate licensee, the sole shareholders of which are Mr. and Mrs. Geogeapoulos. As best, it appears that Mr. Geogeapoulos who, on the evidence, is not in good health, was wilfully blind to what was occurring at the establishment. This is not a situation where the Licensee, specifically Mrs. Georgeopoulos, has done nothing to prevent the drug trafficking at the premises. Rather, she herself seems to be, on the balance of probabilities, intimately connected with the problem. Further, there is no evidence to suggest that Mr. Georgeopoulos would be able to keep his wife’s influence out of the establishment nor that he has the management competency to safely run the establishment.
6The Board has been given nothing by way of evidence to provide it with the necessary assurances that Mrs. Georgeopoulos will or can refrain from any involvement in the business, and the Board would require more than just physical separation from the premises for that assurance.
7There is a qualified right to a liquor licence in Ontario. With a liquor licence, comes a responsibility for ensuring adherence to the LLA and its regulations. The Licensees have shown a lack of acknowledgement for that responsibility, and, on the evidence, almost indifference to the situation.
8The Board fails to see how a restriction on the hours of service of alcohol would respond to the very serious issues at this establishment. To submit that random “spot” checks, might alleviate concerns of illegal activity at the premises is to suggest that continued enforcement is necessary to ensure compliance as opposed to a licensee driven plan for responsible adherence to its obligations under the Act. There was no mitigating evidence nor any proposal for real responsive remedial action.
9It troubles the Board that this licence was in fact subject to a suspension order on February 8, 2007, when charges were laid with respect to a seizure of drugs at the premises on that date (those charges were subsequently disposed of without trial). Mrs. Georgeopoulos had entered into the agreement, resulting in the suspension period of February 5-15, 2007, on behalf of the licence holder, signing as Mary Georgeopoulos. Compliance with the suspension order, then or currently, may not necessarily equate to compliance with the LLA and its regulations.
10As well as finding a violation of subsection 45(2) of the O.Reg, the Board, determined that there were reasonable grounds to conclude from the conduct of the Licensee that the business will not be carried on in accordance with the law and with honesty and integrity. There has been no evidence, nor anything in submissions, from which the Board can draw assurances, in these circumstances, that there will be compliance with the Act and regulations. Revocation is, indeed very serious, and for the Licensee, a harsh result, but these are very serious findings and the Board is responsible for ensuring the continued integrity public confidence in the liquor licence regime.
11The Board, THEREFORE, immediately REVOKES licence number 23860 issued to 352085 Ontario Limited operating as GOLDEN RING BAR AND GRILL, 326 Parliament Street Toronto, Ontario, M5A 2Z7.
DATED AT TORONTO THIS 26th DAY OF NOVEMBER, 2007
PATRICIA MCQUAID, VICE-CHAIR DAVID C. GAVSIE, CHAIR
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