Richards

Roland Richards, owner of a restaurant and supper club known as the Atlas Bar and Grill, appeals a summary judgment in favor of the Department of Alcoholic Beverage Control (Department). He contends the Department acted in an arbitrary and discriminatory manner in revoking or suspending an alcoholic beverage license issued to the prior owner and in causing the prior owner to surrender the license. We conclude that Richards’s failure to apply for a transfer of the license or for an original license was a failure to exhaust an administrative remedy and is a complete defense to this action. We also conclude that the Department established a complete defense based on other independently sufficient grounds. We therefore affirm the summary judgment.

FACTUAL AND PROCEDURAL BACKGROUND

1. Factual Background

The Department first issued a license for the sale of alcoholic beverages at the Atlas Bar and Grill sometime before 2000. The licensee was Atlas Bar & Grill, Limited Partnership. Atlas One, Inc., was the general partner of the limited partnership. Richards purchased the business and the license in or about November 2002. The initial purchase and sale agreement stated that…