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Law360 (February 10, 2021, 6:31 PM EST ) A Houston nightclub that has thrice had its alcohol permit suspended by the Texas Alcoholic Beverage Commission for allegedly violating COVID-19 protocols has sued the state's alcohol regulator, challenging its most recent 60-day suspension as unjust.
In a lawsuit filed in Harris County District Court on Tuesday, Spire Reception Hall LLC, which does business as Spire, is asking the court to vacate the suspension, arguing it was based on an "isolated event" that constituted no continued threat to public safety. The suspension was issued by the TABC on Jan. 19. It was to be in effect for 90 days, but an administrative law judge who presided over Spire's appeal of the punishment before the State Office of Administrative Hearings knocked it down to a 60-day suspension.
"During the hearing, Spire argued that its day-to-day operations are not a continuing threat to public welfare because this violation was an isolated event, not a daily breach of the social distancing requirements and minimum standard health protocols recommended by the Texas Department of State Health Services," Spire told the court in the suit.
TABC had the burden of proof to show there was a continued threat to justify the suspension, but Spire alleges that the agency produced "no witness or evidence" showing any such threat.
Spire argues it was diligent in trying to line up security for a private birthday party it hosted on Jan. 17 — an event that featured musicians Trey Songz and Fabolous — but the Harris County Sheriff's deputies originally scheduled to work the show backed out, and calls to the Houston Police Department and a constable's office "were not returned."
The club then hired private security. Those security officers allegedly allowed a crowd of "party crashers," who hadn't bought tickets to the private event, to breach the back doors and flood into the club, many of them "not wearing protective masks properly," Spire alleges.
After the breach, Spire's management and the Houston Fire Marshal's Office collectively determined the right course of action was to shut down the event, refund everyone's ticket purchases and close down for the night.
While patrons were being asked to exit, Spire alleges TABC auditors and agents entered the club, and reported that social distancing and face mask rules weren't being enforced.
According to the suit, Administrative Law Judge Steven Neinast determined after a Jan. 29 hearing that the suspension should be reduced by 30 days because Spire had made "reasonable efforts prior to the event to maintain crowd control."
The lawsuit excerpts testimony from the hearing where counsel for Spire questioned TABC auditors about what continued threat existed after the club was closed and patrons were exiting, and neither could answer the question.
According to TABC records, Spire has had its license suspended two other times since March. On July 1, the club received a 30-day suspension and it was hit with a 60-day suspension on Oct. 20.
The parties didn't immediately return messages seeking comment on Wednesday.
Spire is represented by Albert T. Van Huff and Morgan K. Abels of Monshaugen & Van Huff PC.
Counsel information for TABC wasn't available Wednesday.
The case is Spire Reception Hall LLC dba Spire v. Texas Alcoholic Beverage Commission, case number 2021-08202, in the County Court-At-Law No. 80 of Harris County, Texas.
--Editing by Regan Estes.
For a reprint of this article, please contact reprints@law360.com.
