Liquor Licensing Lawyers
The Liquor Licence and Control Act (the Act) is a significant piece of legislation in Ontario that governs the sale and consumption of alcohol across the entire province of Ontario. Any person or establishment that intends to serve or sell any kind of alcoholic beverages in Ontario should be aware of and informed about this Act and all of its rules that are contained within it.
What is the Purpose of the Liquor License and Control Act?
In order to regulate the sale, service, and use of alcohol in Ontario, the Liquor Licence and Control Act was implemented. Its main objectives are to safeguard public safety and to encourage responsible alcohol use. The Alcohol and Gaming Commission of Ontario (AGCO), which gives and oversees liquor licenses throughout the province, is responsible for enforcing the Act. For instance, this Act might lower the incidence of drinking-and-driving accidents by mandating that establishments refuse to serve patrons that are clearly excessively intoxicated.
The Liquor Licence and Control Act was enacted in order to control the sale and use of alcoholic beverages and to best ensure that they are provided and used responsibly in Ontario. The Act aims to lower the risks of alcohol consumption, such as impaired driving, disturbances in public, and injury to people or communities.
The Act also encourages responsible drinking by giving license holders certain rules and suggestions.
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What are some Important Terminologies and Definitions contained within the Act?
It is important to adequately comprehend some of the most significant definitions and terminology used in the Liquor Licence and Control Act before diving into the various kinds of liquor licenses that are offered in Ontario.
The AGCO defines a “license holder” as an individual who possesses a valid liquor license. In Ontario, a “license” is a permission to manufacture, sell, or serve alcoholic beverages. All alcoholic beverages, such as wine, beer, hard liquor, cocktails, and spirits, are deemed to be “alcohol,” and any place of business that has a license to sell or serve alcohol is referred to as “licensed premises.”
Moreover, “responsible service” is defined by the Act as the act of serving alcohol in a way that mitigates the dangers associated with the intake of alcohol. This includes monitoring how much alcohol customers consume, refusing to serve intoxicated customers, and ensuring they have access to food and non-alcoholic drinks.
The Act also defines a phrase that is highly important: “liquor sales license,” which is necessary for any establishment that sells alcohol to the general public. The AGCO is the license holder, and it is up for renewal every year.
What Types of Liquor License are there?
In Ontario, there are various kinds of liquor licenses that come with their own rules and specifications. Some examples of the kinds of liquor licenses are a manufacturer’s license, a license for catering, or a licensed establishment.
A Manufacturer’s License is required for any company that produces alcoholic beverages in Ontario.
Any company that sells alcohol to the general public for off-site consumption must have a retail sales license. Grocery stores and liquor stores such as the LCBO are some examples of this. License for Catering is a necessity for any company that offers catering services and wants to serve alcohol at events. It permits the licensee to serve and sell alcoholic beverages at events held outside their own licensed establishment.
Licensed Establishment refers to companies or establishments that serve alcohol on its premises. Any company that serves alcohol for consumption on its premises needs to have this license. Bars, restaurants, and clubs are a few examples of establishments that need this kind of license.
There are rules and conditions specific to each kind of license that must be fulfilled in order to get and keep the license. Enforcing these rules and making sure license holders abide by the Liquor License and Control Act are the responsibilities of the AGCO.
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What is the Licence Appeal Panel? (LAT)
Part of Safety, Licensing Appeals and Standards Tribunals Ontario, the Licence Appeal panel (LAT) is an adjudicative panel that operates independently of the AGCO. The LAT hears appeals pertaining to decisions issued by various regulators on licensing and registration issues.
When might a Hearing be requested?
A hearing can be requested before LAT concerning liquor, gambling, horse racing, or cannabis licensing issues after receiving a Notice of Proposal (NOP) or Notice of Proposed Order (NOPO). If the Registrar imposes a monetary penalty on a licensee in the alcohol, gaming, or cannabis sectors, the licensee can appeal the decision to LAT. For horse racing licensees, appeals of monetary penalties go to HRAP. The Registrar may refuse to issue or renew licenses or registrations under the Liquor Licence Act (LLA), Gaming Control Act 1992 (GCA), Horse Racing Licence Act 2015 (HRLA), and Cannabis Licence Act 2018 (CLA).
Moreover, the Registrar might opt to take other proposed actions under these acts, hold public interest hearings to decide if granting a liquor license or modifying licensed premises serves the public interest, and conduct appeals against monetary penalties issued by the Registrar.
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Recent Cases
Brampton (City) v. Ashkani (2024 ONCJ 303)
The legal dispute in this case was in regard to how liquor license requirements should be interpreted in relation to a traffic stop. The main focus of the lawsuit is the implementation of section 42(1) of the Liquor Licence and Control Act, 2019, which forbids operating a motor vehicle carrying alcohol unless it is unopened or not easily accessible to any occupant of the vehicle. The Court looked at whether the accused had “care or control” of the car while it was carrying alcohol and whether the police had the right to search the car without a warrant if they had a good faith suspicion that alcohol was being kept in it illegally.
The Court’s ruling emphasized the Liquor Licence and Control Act’s regulatory character, setting it apart from criminal statutes by emphasizing public benefit and safety over penalizing morally reprehensible behaviour. By approving the police officers’ actions under their auxiliary police powers, derived from their responsibility to regulate traffic and prevent crime, the Court emphasizes the importance of protecting public safety and upholding regulatory enforcement integrity.
1380882 B.C. Ltd. v. Aztec Properties Company Ltd., 2024 BCSC 1001
This legal dispute pertains to the renewal of a lease for Bimini’s Pub, a restaurant and bar. In this case, the plaintiff attempted to have a Court order that would enable them to stay in business at the pub after the lease period. The injunction had supposedly ended and was set aside. The fundamental question was whether the defendant, 138, had appropriately extended the lease verbally, as stipulated by the terms of the leasing agreement which called for written notification.
The Court concluded that 138 relied on verbal communication instead of the requisite written notice, which was deemed not sufficient under the conditions of the lease. Additionally, 138 presented an inaccurate copy of the assignment instrument in order to get the ex parte injunction (a Court order that is given without notifying the other party), thereby failing to provide complete and honest disclosure. The Court highlighted the requirement for written notice and the legal precept that, in cases where the lease specifies particular modes of acceptance, including writing notice, those ways must be followed.
In the end, the Court determined that 138 did not meet the requirements for granting a new injunction and set aside the Cort order for non-disclosure. The ruling here shows us how important it is to strictly comply with the terms of the lease, and moreover, to provide complete transparency in court cases.
Brown-Forman Corporation v. Charton-Hobbs Inc, 2024 ABKB 261
The disagreement focuses on Authentic’s dismissal as the Benriach Brands’ liquor agency. According to Brown-Forman and Benriach, sales in Western Canada were stopped for roughly three years by Authentic and Charton-Hobbs’ alleged refusal to transfer inventory to the new agency.
Liquor importation, distribution, and sale are governed by the British Columbia Liquor Distribution Branch (BCLDB) and the Alberta Gaming, Liquor and Cannabis Commission (AGLC). In order to represent particular products in each province, suppliers are required to register with a liquor agency.
The dispute has to do with the agency’s and supplier’s contractual duties as well as the interpretation of regulatory policies. Authentic claimed that significant and excessive sums of money had been spent on marketing and promoting the Benriach Brands, even though the data seemed to indicate that these expenses were standard or otherwise the “norm” for the sector.
The case demonstrates the nuances that are involved in liquor license disputes, the importance of precise contract language, and the possible impacts that regulatory frameworks can have on agency agreements. Moreover, these cases show us that each province has their own regulatory bodies and processes that are equipped to deal with liquor licensing disputes. This shows us the decentralized nature of liquor license regulation throughout Canada.
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About the Author
Jordan Donich
Jordan Donich has been a Lawyer for over 10 years and is a trusted legal analyst by Canadian Media. He is as a leader in Canada’s tech sector for lawyers and developer of Law Newbie. Jordan is a Black Belt with the Japan Karate Association and trained in Krav Maga. He won a Gold Medal at 2004 Canadian National Championships and was published in the National Newspaper Awards.
Jordan has been featured in Forbes and is a member of DMZ Angels in Toronto.