Claims filed against the state-run Department of Alcohol Beverage Control by bar and restaurant owners doing business in Los Angeles County have turned into a class-action lawsuit.
State and county agencies or officials had 45 days to respond to the claims but didn’t, according to Brian Kabateck, the attorney who filed the class action complaint in Los Angeles Superior Court on Monday, Dec. 14.
33 Taps on Hollywood Blvd, which is permanently closed, is suing to recoup the money it spent on state and local fees, including liquor licenses, health permits, and state tourism assessments.
“It applies to all bars and restaurants for permits in the County of Los Angeles,” Kabateck told the Southern California Record. “It also applies to every restaurant in California that paid the state of California for an alcohol license.”
As previously reported, the restaurants want a refund for the fees they were charged during the pandemic because they were shut down or only partially allowed to operate.
On Dec. 3, Gov Gavin Newsom temporarily restricted all nonessential travel in response to a surge in COVID-19 cases, according to media reports, and last month 28 counties were placed in the purple zone. Purple tier restrictions include limiting indoor retailers and malls to 25% capacity while closing food courts, for instance.
“They would have to write a check to the restaurants that have gone out of business because of the virus and those people would be entitled to their money back,” Kabateck said. “But one way around this for bars and restaurants that remain open would be to give people a credit for next year. It's still probably a hundred million dollars. That’s my best estimate statewide to make this right. Both counties and state.”
The causes of action against the County of Los Angeles, the Los Angeles County Department of Public Health, and the California Department of Alcohol Beverage Control include
Violation of mandatory duty of the government.
“The government has a mandatory duty to refund the permit fees because ‘You can't keep my money if you're the one telling me to close,’” Kabateck said. “They canceled or suspended their permits but not for any wrongdoing that the restaurants engaged in.”
Violation of the California Constitution.
“If they’re going to keep their money, this is now a tax not a permit and you can't do that in California without either voter approval or some government agency approval," Kabateck said. "It's pretty hard to just simply get up in the morning and tax people without some process and procedure.”
Violation of Government Code 53723 against the County of Los Angeles County Department of Health.
“That's the code that requires people to have a fair opportunity to have their case heard before their permit obligations are pulled,” Kabateck said.