Lawsuit questioning Corbin liquor licenses dismissed; Morgan vows to appeal

A lawsuit by a Richmond liquor store operator seeking to invalidate the issuance of package liquor licenses in Corbin was dismissed by a circuit court judge earlier this month.

C. Wesley Morgan, owner of Liquor World stores in Richmond and Manchester, vowed this week that he would appeal the decision and press on.

"They are trying to get rid of this stuff," Morgan said. "The judged erred … we do have the right to hold the ABC accountable. If I can’t hold them accountable, who can?"

The lawsuit was dismissed Dec. 11 because a judge ruled Morgan lacked standing in the case. "Standing" is a term that represents the ability of a party to demonstrate to the court sufficient connection to and harm from the law or action challenged to support that party’s participation in the case.

Morgan had planned to open an 11,200-square-foot store in south Corbin on Cumberland Falls Hwy. if granted a license. He was one of 12 applicants in the process and was unsuccessful. There were only three licenses up for grabs in Corbin.

Morgan had originally asked that the Kentucky Department of Alcoholic Beverage Control (ABC) grant him an evidentiary hearing before its three-member board to determine if the three successful applicants – Liquor Mart, Liquor King and Ernie’s Wine and Spirits – had deficiencies in their applications. He claimed in an affidavit provided to the ABC that all three had issues that could or should prevent them from being granted licenses.

The owners of each of the three stores denied any irregularities in their applications. Officials with the Kentucky Department of Alcoholic Beverage Control said they found no irregularities as well.

Morgan’s lawsuit took direct aim at the ABC and at Daniel Reed: Distilled Spirits Administrator for Kentucky and one of three members on the Kentucky Alcoholic Beverage Control Board, naming them as defendants. Reed had the sole authority to determine which applicants received licenses to operate package alcohol stores in Corbin.

The ABC and Reed are the only named defendants in the lawsuit.

Reed will finish up his four-year term as Distilled Spirits Administrator at the end of this year. He was not reappointed to the position.

Morgan said Reed and the ABC failed in their duties by not enforcing the rules regarding the license applications, and for accepting applications that were fraudulent and riddled with errors. He had originally asked that the ABC Board grant him an evidentiary hearing to determine if the three successful applicants – Liquor Mart, Liquor King and Ernie’s Wine and Spirits – had deficiencies in their applications. He claimed in an affidavit provided to the ABC that all three had issues that could or should prevent them from being granted licenses. He was denied the hearing.

Liquor Mart and Liquor King are already both doing business in Corbin and were granted licenses by the ABC before Morgan was able to file legal action. Ernie’s Wine and Spirits is currently under construction behind Applebee’s restaurant on Cumberland Falls Hwy.

Morgan said he still plans to purchase the property in Corbin where he planned to build Liquor World. S&H Towing and Repair is currently operating there. He said closing on sale of the property should be completed some time in February.

When asked what he planned to do with it, Morgan said he hoped to sell to a national chain restaurant.