Vancouver bar denied 'procedural fairness' while fighting $40K whisky seizure, judge rules

Inspectors entered Fets Whiskey Kitchen in East Vancouver and seized 242 bottles of specialty whisky from its shelves in January 2018. (Facebook)

A whisky bar in East Vancouver was denied "procedural fairness" while battling against the seizure of $40,000 worth of imported scotch, a B.C. Supreme Court judge has ruled.

The decision means Fets Whisky Kitchen will have another chance to dispute the seizure at a hearing, this time with government documents the owners have been trying to get their hands on for more than three years.

The Commercial Drive bar was raided by the B.C. Liquor and Cannabis Regulation Branch back in January 2018, with inspectors hauling away 242 bottles of single-malt scotch that had been purchased from a private supplier.

In British Columbia, bars and restaurants are required to buy alcohol intended for resale from the government.

Fets, which was also issued a $3,000 fine, has been fighting the province ever since, and pushing for documents related to the raid that could potentially bolster its case. Earlier this week, Justice Nathan Smith ordered the LCRB to hand those documents over.

"I find that Fets was entitled to fully argue the issue based on a complete evidentiary record, and that the denial of full access to documents relating to the branch's investigation was a breach of procedural fairness," Smith wrote in his March 14 decision.

The documents in question include notes and internal correspondence related to the LCRB's investigation, dubbed Operation Malt Barley, which also targeted three other establishments.

It's unclear whether the documents will ultimately help Fets reclaim its whisky, which remains in the government's possession pending "eventual destruction," according to the court decision.

Fets Whisky Kitchen has argued the inspectors' warrantless search violated constitutional protections against unreasonable search and seizure.

A previous hearing noted warrants aren't usually required when enforcing the province's liquor control and licensing regime. Fets’ case hinges on the possibility that a warrant would have been required if the LCRB had been considering charges in addition to the seizure.

Smith noted that none of his findings "should be taken as expressing an opinion on the merits of Fets' position."

Back in 2018, B.C. Attorney General David Eby indicated the province was considering changes to the regulations that would allow establishments to legally buy some specialty products that aren't available through public wholesalers. Those changes have yet to be implemented.