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DK Entertainment v. Oregon Liquor Control Commission

Summarized by: 

Date Filed: 05-09-2012
Case #: A143690
Armstrong, P.J. for the Court; Haselton, C.J.; and Duncan, J.
Full Text Opinion: http://www.publications.ojd.state.or.us/Publications/A143690.pdf

Administrative Law: Under OAR 845-006-0347(3)(a), the Oregon Liquor Control Commission's interpretation of the word "permit" is consistent with it's application in previous cases where the unlawful actions of an employee are imputed to a licensee.

DK Entertainment (Licensee) was charged with a violation of the Oregon Liquor Control Commission (OLCC) when a patron paid an employee for sexual contact. One of Licensee’s managers witnessed the acts and did not take reasonable preventative action until after the transaction was complete. OLCC concluded that the employee's failure to prevent her own unlawful activity was properly imputed to Licensee, leading to the cancellation of Licensee’s license to serve alcohol. Licensee argues that OLCC's analysis is inconsistent with prior decisions. The Court of Appeals concluded that the OLCC's interpretation of "permit" in OAR 845-006-0347(3)(a) was not inconsistent with previous decisions where the unlawful acts of an employee are imputed to a licensee. Affirmed.