A bar in Prince Rupert, B.C., has been handed a $10,000 fine and will have its licence suspended for 22 days for liquor law infractions including hosting a karaoke night and serving alcohol after hours, according to the province’s Liquor and Cannabis Regulation Branch.
A decision from the regulator issued Friday explains that the establishment owned by Kaien Island Holdings has a food primary licence and is allowed to sell liquor from 9 a.m. to 12 a.m. seven days a week. The document refers to the location as Sunset Bar and Grill, however the bar’s social media accounts are under the name Sunset Lounge and Grill.
The ruling doles out penalties for four contraventions. The branch alleged that on Nov. 18, 2023, the bar allowed a patron to consume liquor half an hour after the end of service; failed to produce records on Dec. 29, 2023; sold or served liquor after hours on Feb. 17, 2024; and on the same day “allowed unauthorized patron participation entertainment.”
Based on evidence the branch provided, weighing it against the licensee’s statements made in a pre-hearing conference—the bar did not make any written submissions in the case—the general manager’s delegate Dianne Flood ruled the “contraventions occurred as alleged.”
The karaoke incident
In order to offer “patron participation entertainment” such as dancing or karaoke, a food-primary licence holder must get permission from the LCRB’s general manager and their local government or First Nation, the branch explains.
The decision notes that Sunset Lounge had not received an approval in this case.
“That approval is required to ensure that a food primary licensee does not operate as if it is a nightclub or bar, which requires a more stringent approval process to be followed,” Flood wrote. “Obtaining a food primary licence and then operating as if a liquor primary licence circumvents the legislated regulatory process.”
The branch says two undercover liquor inspectors visited the bar on Feb. 16, 2024, and saw about 20 people inside, roughly half of whom were on the dance floor. “Some of those persons (were) singing karaoke,” the decision reads.
The inspectors reported that “the house DJ encouraged (them) to participate in karaoke” and the bar’s Facebook page advertised regular karaoke nights on Fridays.
That same night, the branch says staff served “various patrons” liquor after midnight, including to one of the inspectors.
For Sunset Lounge’s part, its representative said the bar has been trying for more than a year to obtain a “patron participation endorsement” and an extension of their liquor service hours.
“He believed that with such an endorsement and extended hours, the alleged contraventions could have been avoided,” the decision reads.
Other issues
The second after-hours service detailed in the decision was observed by an RCMP officer on Nov. 18, 2023, according to the decision. The officer attended the establishment four times over the course of about an hour, reporting patrons still being served liquor at 12:41 a.m. and still consuming alcoholic drinks at 1:05 a.m., though no sales were observed at that time.
The branch notes that Sunset Lounge’s licence was previously suspended for allowing patrons to drink more than half an hour after midnight in June of that year.
“Patrons who consume liquor and leave an establishment after the licensed hours of liquor service may disturb nearby residents and businesses. Selling liquor after hours also leads to unfair competition with other licensed establishments,” Flood wrote.
The licensee told the branch both he and the police officer “were wondering why there was alcohol at the bar,” and asserted he did not serve the drinks to the patrons and no one was allowed to sell liquor without his knowledge.
“He said the bartender told him that it (the liquor) had been ordered earlier and he then directed the bartender to remove the alcohol. According to him, the incident involved only one beverage,” the decision reads.
After the incident, the branch requested specific documents from Sunset Lounge, which were not submitted by deadline, and further attempts to reach the licensee by phone and email “were for the most part unsuccessful.” After sending another “notice to produce” a few months later the bar sent some, but not all of the requested documents, according to the LCRB.
“This is a serious contravention that undermines the branch’s compliance and enforcement program. Without access to records associated with the operation of the establishment, a licensee obstructs the branch’s ability to notify, inform, and issue a notice of enforcement action in a timely manner. This is also a second contravention of this type,” the decision reads.
The penalty
In deciding what penalties to impose on Sunset Lounge, Flood said she considered the bar’s repeated infractions, a past warning from the branch, and “the seriousness of the contravention, the threat to public safety and the well-being of the community.”
The monetary penalties included a $3,000 fine for serving liquor outside allowed hours (the February 2024 incident) and $7,000 for allowing a patron to drink alcohol half an hour after end of service (the November 2023 incident).
The branch also suspended Sunset Lounge’s licence—one day for allowing karaoke, and 21 for failing to produce records. On the latter suspension, Flood wrote that “while being at the high end of the range, (it) reflects the extra work and attention required of the branch due to the licensee’s repeat failure to comply or to respond to follow up emails and telephone calls.”
Sunset Lounge must pay the $10,000 fine by March 21 and the 22-day licence suspension is set to begin the same day.
