STEVEN KOUGL, ET AL. v. THE BOARD OF LIQUOR LICENSE COMMISSIONERS FOR BALTIMORE CITY
Court of Special Appeals, Woodward, June 2, 2016,
Baltimore Liquor Board Rules – To sustain a violation of Liquor Board Rules related to allowing/permitting sexual practices, “some level of knowledge by the licensee must be established by the evidence.”

Dancer’s solicitation of undercover detective for prostitution on a single occasion was insufficient to sustain liquor board violation where there was no evidence presented by the board that the owner “permitted” or “allowed” sexual activity.

Knowledge may be demonstrated by either actual or constructive knowledge, to include “willful blindness.”

“Constructive knowledge may be inferred if the conduct occurs openly, such that a reasonable person would observe it. If knowledge of the prohibited conduct could have been obtained through the exercise of reasonable care and diligence, constructive knowledge may be inferred.”