Appeal from the Notice of Proposal to Revoke a Licence Transfer dated August 4, 2021 made by the Registrar under the Liquor Licence Act, R.S.O. 1990, c. L.19
Between:
1938334 Ontario Inc. o/a Baseline Lounge & Cafe
Appellant
and
Registrar, Alcohol, Cannabis and Gaming Regulation and Public Protection Act, 1996
Respondent
DECISION AND ORDER
Adjudicators: Colin Osterberg, Member
Appearances:
For the Appellant: Spiros Pantziris, Representative
For the Respondent: Rena Khan, Counsel
For the Proposed Added Party: Paul Martin, Counsel
Heard by videoconference: November 26, 2021
DECISION AND ORDER ON REQUEST TO ADD A PARTY
A. Overview
1This is a decision following a request made by the proposed added party, Ten X Toronto Inc. (“Ten X”) to be added as a party to this appeal.
2The appeal relates to the respondent’s proposal to revoke the appellant’s liquor licence pursuant to s. 56 of Ontario Regulation 719/90 (the “Regulation”) on the basis that the appellant failed to surrender its licence to the Registrar immediately after it ceased to operate business at the premises to which the licence applies.
3Ten X takes the position that the liquor licence which is the subject of the appeal covers premises that are owned and occupied by, Ten X. It argues that the appellant does not operate a business which engages in the sale of alcohol and that the licence was improperly issued in the appellant’s name. Ten X is unable to sell liquor in its premises until it is issued a liquor licence and it cannot obtain a licence until the appellant no longer holds a licence that covers Ten X’s premises.
4The appellant operates a Starbucks coffee shop. It is not clear why or how it obtained a liquor licence over premises it does not own or occupy. Its lease with the building owner provides that its activities are restricted to carrying on the business of a Starbucks café which does not include the sale of alcohol.
5Ten X wishes to operate a licenced lounge on the premises covered by the liquor licence and alleges that it is losing significant income because it is unable to sell alcohol.
6The issue to be determined on the appeal will determine whether the appellant’s liquor licence should be revoked. If it is revoked, then Ten X will be free to apply for a liquor licence in its own name.
B. ISSUES
7The Tribunal must decide whether Ten X has a significant interest in the appeal and should be added as a party.
C. LAW
8Rule 3.6 of the Licence Appeal Tribunal, Animal Care Review Board, and Fire Safety Commission Common Rules of Practice & Procedure, Version I (October 2, 2017) (the “Rules”) provides that to add a party, that party must have a significant interest in the proceeding.
9In order to be added as a party, it is not enough that a person may have important and relevant information with respect to the issues in the appeal. There must also be evidence that the outcome may result in an order affecting that person’s interests. In making that determination, the Tribunal must decide whether its determination in the appeal will affect the substantive rights of the proposed added party.
10I note that even if a proposed party is found to have a significant interest in a proceeding, this does not automatically result in that person being added as a party. The Tribunal must still exercise its discretion bearing in mind procedural fairness.
D. EVIDENCE AND ANALYSIS
11The appellant consents to the motion to add Ten X as a party. The respondent takes no position on the motion. Although the parties have consented, the Tribunal must be satisfied that the added party has a significant interest in the appeal and that it should exercise its discretion to add Ten X as a party.
12Ten X argues that its business relies on it holding a liquor licence. It is unable to obtain a liquor licence because of the one already in place in the name of the appellant. The appeal will result in a decision by the Tribunal either that the appellant’s liquor license should be revoked or that it should remain in place. The issue of whether the liquor licence which is currently in place will remain so, is the central issue to be determined in the appeal and may be determinative of the ability of Ten X to apply for and be issued a licence in its own name. I find that the outcome of the appeal will affect substantive rights of Ten X and that it has a significant interest in the appeal.
13The parties have either consented or take no position on Ten X’s motion. A case conference has not yet occurred and there is no evidence that the participation of Ten X would result in delay or unfairness to the current parties. I find that the Tribunal should exercise its discretion and add Ten X as a party to the appeal.
E. ORDER
14The Tribunal orders that Ten X be added as a party to this appeal.
LICENCE APPEAL TRIBUNAL
________________________
Colin Osterberg, Member
Released: November 30, 2021