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Burns v. Rebels, Inc.

Order approving transfer of restaurant liquor license reversed insofar as it held that petitioners lacked standing to intervene, but order otherwise affirmed; substantial evidence supported court's determination that transfer was based on legitimate desire of licensee to transfer license to family members because of his health problems.

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Argued: May 8, 2001

Barbara Burns, Dorothy Eichner, Charles and Madeline Johns and East Allegheny Community Council (Petitioners) *fn1 petition for review of a decision of the Pennsylvania Liquor Control Board (Board) which approved the transfer of Restaurant Liquor License No. R-9927 (License) from Cindy’s Bar and Restaurant (Cindy’s Bar) to Rebels, Inc. (Rebels). Petitioners contend that the Board erred in determining that Petitioners lack standing to intervene in this matter and that the Board erred in permitting the person-to-person transfer of the License.

Cindy’s Bar has held the License since December 5, 1991, at which time Cynthia M. Butler was its president, secretary/treasurer, manager and sole stockholder. On December 8, 1993, the Board approved a notice of change which made Cynthia Butler’s husband, Leonard E. Butler, Jr., the president, secretary/treasurer, manager and sole stockholder of Cindy’s Bar. In late 1998, Rebels filed an application for the person-to-person transfer of the License from Cindy’s Bar to Rebels. Cynthia Butler is the president and secretary/treasurer of Rebels, and she holds 70 per cent of its stock. Cynthia and Leonard Butler’s son, Michael Butler, holds the remaining 30 per cent of its stock. An agreement of sale conveys the License and the business to Rebels in exchange for Rebels’ assumption of the debts of Cindy’s Bar. The business continues to operate on land owned by Cynthia and Leonard Butler, and Rebels would lease the land from them at a monthly rent of $1,400.

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