Circus Liquors, Inc. v. Governing Body of Middletown Township

N.J.S.A. 33:1-12.31 prohibits persons from holding a beneficial interest in more than two retail alcoholic beverage licenses in New Jersey. The question before us is whether the Director of the Division of Alcoholic Beverage Control (Director) exceeded his authority by applying the remedy of divestiture—that is, allowing sale of the license to an unrelated bona fide purchaser—when enforcing compliance with the two-license limitation in this matter. Because we conclude that divestiture is within the Director’s authority, and that it was not arbitrary, capricious, or unreasonable for the…