ABC denies hearing over Corbin liquor applicants; Morgan promises lawsuit

The Kentucky Department of Alcoholic Beverage Control (ABC) has denied the request by a Richmond liquor storeowner for an evidentiary hearing into the validity of applications submitted for Corbin’s three retail package liquor store licenses.

In a letter dated Oct. 11, ABC General Counsel Steve Humphress says the request by C. Wesley Morgan, owner of Liquor World, cannot be honored because there is no provision under state law to hold such a hearing.

Morgan’s application for a license to open a package liquor store in Corbin was one of 12 received by the ABC. Only three were issued. His was denied.

"…The laws does not provide an unsuccessful applicant with the right to such an appeal or administrative hearing regarding issuance of quota licenses to successful applicants," Humphress writes in the letter, citing a 1984 Kentucky Court of Appeals case between applicants for retail package liquor licenses in Floyd Co. and the ABC.

Morgan, who operates Liquor World stores in Richmond and Manchester, had planned to build an 11,200 square foot store in south Corbin on Cumberland Falls Hwy. if granted a license.

He said he plans to file a lawsuit in Franklin Circuit Court seeking a judgment on the issue.

"We expected to be denied," Morgan said. "We are going to file in Franklin Circuit Court."

Morgan claimed in an affidavit submitted to the ABC Sept. 28 that the applicants who were awarded licenses all had deficiencies or irregularities of one sort or another that should ultimately prevent them from receiving a license.

According to Dick Brown, Executive Director of Communications and Public Outreach for the state cabinet that includes the Office of Alcoholic Beverage Control, ABC staff reviewed all the applications in the wake of Morgan’s complaint and found no irregularities.

Similarly, those who were granted licenses in Corbin all deny any irregularities or wrongdoing.

In Humphress’ letter, however, he notes that he forwarded Morgan’s affidavit and original letter of complaint to the ABC’s enforcement division for further investigation.

"If allegations of violations are substantiated after investigation, the Department will take appropriate administrative action."

Morgan said he is doubtful ABC’s enforcement division will do anything. He added that he felt his complaints could be jeopardizing his chances of obtaining a retail package liquor store license in Somerset. Five are currently up for grabs in that town after voters there approved a ballot initiative to expand alcohol sales only week’s after Corbin voters made a similar move.

"A lot of this is about wearing you out with attorney fees so you will give it up," Morgan said. "I bet that is part of the strategy here."

Of Corbin’s three licensees, Liquor Mart is already open and operating in the old Dairy Queen building in Trademart Shopping Center. It was the first local liquor store to open its doors.

Liquor King, the largest of Corbin’s planned stores at 10,000 square feet, plans to open the first week of November. It is located on Cumberland Falls Hwy. in the old Marine Myers building.

Ernie’s Spirits is slated to break ground soon on a parcel of property behind Applebee’s in south Corbin. Owners of that store plan a 5,000 square foot facility, and have received an extension from the ABC in order to complete the project. Initially, the ABC required those awarded licenses be open to the public by Oct. 31.