We study the level spacing statistics p(s) and eigenfunction propertie
s in a billiard with a rough boundary. Quantum effects lead to localiz
ation of classical diffusion in the angular momentum space and the Shn
irelman peak in p(s) at small s. The ergodic regime with Wigner-Dyson
statistics is identified as a function of roughness. Applications to Q
spoiling in optical resonators are also discussed.