Justia Arkansas Supreme Court Opinion Summaries

Articles Posted in Legal Ethics
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The case involves a group of appellants who allegedly purchased luxury vehicles with funds provided by Dilmurod Akramov, the owner of CBC and D&O Group. The appellants would then transfer the vehicle titles back to Akramov's D&O Group without receiving cash or equivalent in exchange. They would then claim a "trade-in credit" against the sales tax due on the purchase of a vehicle. The Arkansas Department of Finance and Administration (DFA) argued that these were not valid sales as required by Arkansas law and denied the sales-tax-refund claims.The appellants challenged the DFA's decision through the administrative review process, which affirmed the DFA's decision. The appellants then appealed to the Pulaski County Circuit Court for further review. The circuit court found that the appellants' attorney, Jason Stuart, was a necessary witness and therefore disqualified him from further representing the appellants. The court also held the appellants in contempt for failing to provide discovery per the court's order.The Supreme Court of Arkansas affirmed the circuit court's decision. The court held that the circuit court did not abuse its discretion in disqualifying Stuart. The court applied the three-prong test from Weigel v. Farmers Ins. Co., which requires that the attorney's testimony is material to the determination of the issues being litigated, the evidence is unobtainable elsewhere, and the testimony is or may be prejudicial to the testifying attorney’s client. The court found that all three prongs were satisfied in this case. The court also affirmed the circuit court's decision to strike the third amended and supplemental complaint filed by Stuart after his disqualification. View "STUART v. WALTHER" on Justia Law

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Fred and Sandra Monaco took legal action against the Faulkner County Assessor and the Faulkner County Tax Collector concerning the 2021 assessment of their property. Sandra Monaco had purchased a parcel of timberland in 2005 and later built a home on it. The property was assessed as agricultural without a building until 2020 when the Assessor's office discovered the improvement and reassessed the property's value. In July 2021, Sandra deeded the property to herself and her husband, Fred, and subsequently filed a form asserting a homestead right on the property and her right to an assessment freeze under amendment 79 of the Arkansas Constitution. Following the Board's upholding of the Assessor's valuation and assessment, Fred filed a petition for writ of mandamus in circuit court, which was denied.The Supreme Court of Arkansas upheld the circuit court's decision on several grounds. Firstly, Fred's attempt to represent Sandra's interests was deemed unauthorized practice of law, rendering the petition null with respect to Sandra's claims. Secondly, Fred could not claim a writ of mandamus as there were other remedies available to him such as appealing the Board's decision. The court found that a writ of mandamus is an extraordinary remedy only issued to enforce an established right or the performance of a duty, and it requires the petitioner to show a clear and certain right to the relief sought and the absence of any other remedy. In this case, Fred failed to meet these requirements. View "MONACO v. LEWIS" on Justia Law

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The Supreme Court affirmed the judgment of the circuit court dismissing Appellant's legal malpractice complaint against Appellees, her attorneys, and finding that there were no facts in the complaint sufficient to toll the running of the statute of limitations based on fraudulent concealment, holding that there was no error.In the motion to dismiss, Appellees argued that Appellant's malpractice claim was barred by the applicable statute of limitations and should be dismissed. The circuit court granted the motion to dismiss based on the statute of limitations. The Supreme Court affirmed, holding that the circuit court did not abuse its discretion in dismissing the case and finding there were no facts contained in the complaint sufficient to toll the running of the statute of limitations based on fraudulent concealment. View "Nichols v. Gibson" on Justia Law

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The Supreme Court affirmed the interlocutory order of the circuit court granting a preliminary injunction enjoining Kristina Gulley from exercising any powers as a justice of the peace or participating in the Pulaski County Quorum Court or its committees as a justice of the peace, holding that there was no error. Gulley was elected justice of the peace for District 10 in Pulaski County in 2020 and filed for reelection in 2022. Thereafter, voters filed a petition for writ of mandamus and declaratory judgment alleging that Gulley was ineligible to be a candidate for reelection because she had twice been convicted of hot-check charges. The circuit court granted the petition and ordered the board of election commissioners not to certify Gulley as a candidate. Appellees later brought this petition pursuant to Ark. Code Ann. 16-118-105 seeking Gulley's removal from office and the return of salary and benefits. The motion was converted to a motion for a preliminary injunction, which the circuit court granted. The Supreme Court affirmed, holding (1) res judicata did not bar Appellees' motion to remove Gulley from office; and (2) the circuit court did not clearly err in granting a preliminary injunction. View "Gulley v. State ex rel. Jegley" on Justia Law

Posted in: Legal Ethics
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The Supreme Court denied this petition for a writ of certiorari seeking to challenge the validity of a decision of the circuit court ordering attorney Helen Grinder to refund her client William Campbell $10,000 as a condition as her withdrawal, holding that Grinder had an adequate alternate remedy available.Grinder charged $10,000 to represent Campbell in an ex parte petition for a change in custody. Campbell prevailed and then fired Grinder. Grinder sought formally to withdraw as Campbell's counsel, but Campbell opposed the withdrawal on the grounds that Grinder retained unearned fees. The circuit court subsequently issued an order granting Grinder's motion to withdraw on the condition that she refund $10,000 of allegedly unearned fees to Campbell. Grinder filed a petition for a writ of certiorari and sought a stay. The Supreme Court denied the writ, holding that there was an adequate remedy other than a writ of certiorari for her to challenge the circuit court's fee adjudication. View "Grinder v. Campbell" on Justia Law

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The Supreme Court affirmed the order of the circuit court denying Appellant's complaint for declaratory judgment and injunctive relief and petition for writ of mandamus seeking to direct Appellees to allow Appellant to carry a firearm inside the district court, holding that there was no error.Appellant, an attorney, filed a complaint for declaratory judgment and injunctive relief seeking a declaration that Act 1087 of 2017, codified at Ark. Code Ann. 5-73-122(b), authorizes attorneys as "officers of the court" to carry a firearm in any of the state's courts or courthouses and a declaration that Appellees' conduct in refusing to allow Appellant to enter the Pulaski County District Courthouse with a firearm violated Arkansas law. Appellant further sought mandamus relief asking that the court direct Defendants to permit attorneys in court with a firearm. The circuit court denied relief. The Supreme Court affirmed, holding that the circuit court did not err in denying Appellant's mandamus petition. View "Corbitt v. Pulaski County Jail" on Justia Law

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The Supreme Court granted the petition brought by the Arkansas Judicial Discipline and Disability Commission claiming that Judge Carroll violated several rules of the Arkansas Code of Judicial Conduct, including breaching his duty to the public and undermining the fair and impartial administration of justice, holding that disciplinary action was required.In its petition, the Commission agreed to recommend a suspension without pay for ninety days, with thirty days held in abeyance for one year, and certain remedial measures for Judge Carroll's improprieties. The Supreme Court granted the Commission's expedited petition and modified the recommendation sanction by suspending Judge Carroll without pay for eighteen months, with six of those months held in abeyance. The Court further ordered Judge Carroll to perform an assessment and complete a plan with the Judges and Lawyers Assistance Program, holding that, given the seriousness of the conduct at issue, the length of the recommended suspension was insufficient. View "Ark. Judicial Discipline & Disability Comm'n v. Carroll" on Justia Law

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The Supreme Court granted a petition sought by the Arkansas Judicial Discipline and Disability Commission for expedited consideration and report of uncontested sanction following its investigation of complaints against Pope County District Court Judge Don Bourne, holding that Judge Bourne's conduct warranted sanctions.Several complaints involving two counts were filed against Judge Bourne involving his conduct toward unrepresented litigants. Judge Bourne did not contest either count, waived a formal disciplinary hearing, and accepted the investigatory panel's recommended sanction of suspension without pay for ninety days, with seventy-five days held in abeyance for one year. The commission accepted the recommended sanction. The Supreme Court suspended Judge Bourne from the bench without pay for ninety days with seventy-five days held in abeyance if he agrees to, among other things, never again to hold judicial office after his current term expires, ordering that the mandate shall issue immediately. View "Arkansas Judicial Discipline & Disability Commission v. Bourne" on Justia Law

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The Supreme Court reversed Defendant's conviction of first degree murder and sentence of life imprisonment, holding that the per se improper political activity of the prosecutor campaigning for a judicial position during trial so infected the integrity of the proceeding as to warrant a new trial.This was Defendant's third trial for the murder of Jesse Hamilton. The first conviction was reversed on appeal, and a mistrial occurred on remand. After a third trial, Defendant was again convicted of murder. Prosecutor Stephanie Barrett prosecuted the case, and at the time of the third trial, Barrett was campaigning for a position in the Arkansas Court of Appeals. Defendant moved for a mistrial based on an appearance of impropriety. The motion was denied. Following his conviction, Defendant appealed the circuit court's decisions related to the prosecutor's campaigning and solicitation of signatures at the courthouse. The Supreme Court reversed, holding that the prosecutor's improper political activity and the failure of the trial court to resolve the situation so compromised the integrity of Defendant's trial as to warrant a new trial. The Court remanded the case for a fourth trial. View "Stanton v. State" on Justia Law

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The Supreme Court affirmed the order of the circuit court finding attorney Jonathan Streit in contempt of court and assessing a $100 fine, holding that substantial evidence supported the court's decision that Streit's actions displayed a lack of regard for the court's integrity and demonstrated disrespect.Streit appeared before the circuit court on a petition for permanent guardianship. At the hearing, the circuit court noted several deficiencies in the case file. The circuit court was unwilling to let the matter to proceed without compliance with the statutory requirements, and Streit argued that the circuit court took issue with him because he successfully reversed the circuit court in a separate case. The circuit court then found Streit in contempt of court and assessed a fine. The Supreme Court affirmed, holding that substantial evidence supported the court's decision to hold Streit in contempt. View "Streit v. State" on Justia Law