Justia Arkansas Supreme Court Opinion Summaries

In this class action, the Supreme Court reversed the circuit court's judgment that certain sanitation fees constituted an illegal exaction and that the City of Fort Smith was unjustly enriched because the class paid money expecting to receive recycling services, holding that the circuit court clearly erred.Plaintiff, on behalf of the citizens and taxpayers of Fort Smith (class), brought this action against the City after discovering that Fort Smith was dumping almost all of its recyclables in a landfill, claiming that Fort Smith's collection of monthly sanitation charges, including recycling fees, was an illegal exaction and that the City had been unjustly enriched. The Supreme Court reversed and dismissed the action, holding (1) because Fort Smith used the sanitation fee to collect and dispose of sanitation, the circuit court's finding that the fee was an illegal exaction was clearly erroneous; and (2) the damages evidence Plaintiff presented was not a valid measure of restitution. View "City of Fort Smith v. Merriott" on Justia Law

The Supreme Court reversed the order of the circuit court affirming the decision of the Arkansas Department of Finance and Administration (DFA) concerning its adjustments made to A-1 Recovery Towing & Recovery, Inc.'s taxable income and to its shareholders' accounts for tax years 2013-2017, holding that the circuit court failed to follow Ark. Code Ann. 26-18-406 when it affirmed DFA's decision sua sponte.Section 26-18-406 provides that a suit in circuit court to contest a DFA assessment "shall be tried de novo." On appeal, A-1 argued that the circuit court erroneously sua sponte entered its order affirming the DFA's decision because the order deprived A-1 of its right to a trial de novo under section 26-18-406. The Supreme Court agreed and reversed, holding that the circuit court deprived A-1 of its opportunity to meet proof with proof prior to affirming DFA's decision sua sponte. View "A-1 Recovery Towing & Recovery, Inc." on Justia Law

The Supreme Court reversed the order of the circuit court affirming a decision of the Arkansas Department of Finance and Administration (DFA) concerning certain adjustments to Cenark Investment Group, LLC's taxable income and to its shareholders' accounts for tax years 2016-2018, holding that the circuit court misinterpreted Ark. Code Ann. 26-18-406.Specifically at issue was the circuit court's interpretation section 26-18-406, which provides that a lawsuit brought in circuit court to contest a DFA assessment "shall be tried de novo." On appeal, Cenark argued that the circuit court erred in affirming DFA's decision without holding a trial de novo pursuant to section 26-18-406. For the reasons set forth in A-1 Recovery Towing and Recovery, Inc. v. Walther, 2023 Ark.___ (CV-22-281), also decided today, the Supreme Court reversed and remanded this case for further proceedings. View "Cenark Investment Group, LLC v. Walther" on Justia Law

The Supreme Court affirmed the decision of the Arkansas Client Security Fund Committee denying Appellant's application for the reimbursement of client funds, holding that the Committee properly denied Appellant's application for relief because his application was untimely.Appellant, who was incarcerated for second-degree sexual assault, filed an application for relief with the Fund seeking $2500 in reimbursement from his former attorney Thomas Wilson. The Committee denied the application pursuant to Rule 4(B) of the Rule of the Client Security Fund Committee. The Supreme Court affirmed, holding that Appellant's application was not filed within the three-year time frame set forth in Rule 4(B). View "Curran v. Ark. Client Security Fund" on Justia Law

The Supreme Court affirmed the judgment of the circuit court denying relief in this Administrative Procedure Act (APA) appeal of the Colonel William J. Bryant's denial of Appellant's application to obtain a license for his private security and investigations company, holding that there was no error.Col. Bryant, in his capacity as director of the Arkansas State Police, entered an administrative order finding that Appellant was ineligible to receive a license due to his prior convictions. Appellant filed a petition for judicial review. After a remand, the circuit court denied the petition finding that there was substantial evidence to support the agency's decision. The Supreme Court affirmed, holding (1) Appellant cited no authority for the proposition that it was reversible error for the circuit court to decide an APA appeal on a different ground than that found by the administrative agency; and (2) the director did not err in determining that Ark. Code Ann. 17-40-306 controlled over Ark. Code Ann. 17-1-103. View "Hackie v. Bryant" on Justia Law

The Supreme Court affirmed in part and reversed and remanded in part the judgment of the circuit court dismissing Appellant's complaint challenging the certification of the House District 25 (HD 25) Republican primary race by the Crawford County Board of Election Commissioners (CBEC), holding that the circuit court erred in concluding that it lacked the authority to transfer this matter.Appellant filed a complaint challenging the CBEC's certification, claiming that the HD25 Republican primary election results were unreliable and praying that the circuit court void either the CBEC's certification of the HD25 race or void the HD25 election. The circuit court granted Appellees' motion to dismiss, finding that the complaint was not filed in the proper county, that the court had no jurisdiction to hear the matter, and that venue was improper. The circuit court further denied Appellant's oral motion to transfer the case to Crawford County. The Supreme Court reversed in part, holding that the circuit court (1) properly ruled that Appellant incorrectly filed her postelection contest in Franklin County rather than in Crawford County; but (2) abused its discretion by denying Appellant's motion to transfer the case to Crawford County. View "Harris v. Crawford County Bd. of Election Commissioners" on Justia Law

The Supreme Court affirmed the order of the circuit court denying Appellant's petition for writ of mandamus against the City of Little Rock, holding that there was no error or abuse of discretion.Appellant brought a complaint for declaratory judgment, injunctive relief, and a writ of mandamus, arguing that Act 1024 of 2021 gave holders of an enhanced concealed carry license the right to carry a concealed weapon in municipal buildings. Appellant then brought this action seeking a writ of mandamus seeking to enforce the laws allowing enhanced concealed carry licensees to enter municipal buildings. The circuit court denied the petition. The Supreme Court affirmed, holding that Appellant could not demonstrate that the circuit court abused its discretion in denying his mandamus petition. View "Corbitt v. City of Little Rock" on Justia Law

In this case concerning the medical marijuana licensing and regulatory process the Supreme Court affirmed in part and dismissed in part this interlocutory appeal from the circuit court's denial of Defendants' motion to dismiss this action on the basis of sovereign immunity, holding that the circuit court erred in its ruling.Plaintiff brought this complaint seeking a writ of mandamus and declaratory relief to compel Defendants - the Arkansas Department of Finance and Administration, the Arkansas Alcoholic Beverage Control Division, and the Arkansas Medical Marijuana Commission - to revoke a cultivation facility license granted to another company and instead award it to Plaintiff. The circuit court denied Defendants' motion to dismiss on the doctrine of sovereign immunity. The Supreme Court remanded the action, holding (1) the circuit court did not err in denying the motion to dismiss the writ of mandamus on the basis of sovereign immunity; (2) the circuit court erred in denying gate State's motion to dismiss Plaintiff's claim of declaratory relief; and (3) to the extent that Appellants were seeking relief under the APA the case must be dismissed for lack of subject matter jurisdiction. View "Arkansas Department of Finance & Administration v. 2600 Holdings, LLC" on Justia Law

Legal Aid submitted an Arkansas Freedom of Information Act (FOIA) request to the Division of Workforce Services (DWS) seeking information about how DWS and its third-party vendors determined eligibility for applicants of the Unemployment Insurance and/or Pandemic Unemployment Assistance programs. Item 10 sought “[a]ll public records, including communications, created by, sent by, sent to, or otherwise provided to DWS employees between March 1, 2020, and present that contain the words ‘algo’ or ‘algorithm’ in singular or plural form.” Legal Aid did not request confidential information about any claimant.After DWS failed to provide a timeline for the production of the documents, Legal Aid filed suit. DWS’s representative testified that the records responsive to Item 10 were expected to comprise more than 42,000 pages of emails that had to be printed, reviewed, and redacted. The circuit court ordered DWS to submit an estimated timeline for production and to provide records on a weekly basis in accordance with its timeline. Legal Aid subsequently claimed that DWS redacted information that concerned algorithms, or factors, that the agency uses in its processes to determine benefit eligibility. DWS cited ongoing fraud investigations. The Arkansas Supreme Court affirmed an order that the unredacted documents be produced, and that access to and management of the documents be limited. The court found that neither the law enforcement nor the competitive advantage FOIA exception applied. View "Arkansas Department of Commerce, Division of Workforce Services v. Legal AId of Arkansas" on Justia Law

In this case related to a medical marijuana dispensary license the Supreme Court reversed the ruling of the circuit court denying the State's motion to dismiss a complaint seeking temporary and permanent injunctive relief and an injunction enjoining the State form issuing replacement dispensary-facility licenses, holding that the circuit court did not have subject matter jurisdiction over the complaint.In its complaint, Plaintiff, a corporation, alleged that the Medical Marijuana Commission had violated its own rules, the constitution, and the Administrative Procedure Act (APA). The State moved to dismiss on the grounds of sovereign immunity, lack of subject-matter jurisdiction, mootness, and failure to plead facts indicating a cause of action related to equal protection. The circuit court denied the motion. The Supreme Court reversed, holding that the circuit court lacked subject-matter jurisdiction over the complaint under either section 207 or 212 of the APA. View "Arkansas Department of Finance & Administration v. Carroll County Holdings, Inc." on Justia Law