Bennett Scott "Storm" Nolan II and River Valley Production, LLC, D/B/A River Valley Relief Cultivation v. 2600 Holdings, LLC, D/B/A Southern Roots Cultivation

2024 Ark. 50, 686 S.W.3d 499
CourtSupreme Court of Arkansas
DecidedApril 11, 2024
StatusPublished
Cited by2 cases

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Bluebook
Bennett Scott "Storm" Nolan II and River Valley Production, LLC, D/B/A River Valley Relief Cultivation v. 2600 Holdings, LLC, D/B/A Southern Roots Cultivation, 2024 Ark. 50, 686 S.W.3d 499 (Ark. 2024).

Opinion

Cite as 2024 Ark. 50 SUPREME COURT OF ARKANSAS No. CV-22-739

Opinion Delivered: April 11, 2024

BENNETT SCOTT “STORM” NOLAN II AND RIVER VALLEY PRODUCTION, APPEAL FROM THE PULASKI LLC, D/B/A RIVER VALLEY RELIEF COUNTY CIRCUIT COURT, CULTIVATION FOURTH DIVISION APPELLANTS [NO. 60CV-21-582]

V. HONORABLE HERBERT T. WRIGHT, JR., JUDGE 2600 HOLDINGS, LLC D/B/A SOUTHERN ROOTS CULTIVATION, REVERSED AND REMANDED; ET AL. SUMMARY-JUDGMENT ORDER APPELLEES VACATED.

RHONDA K. WOOD, Associate Justice

2600 Holdings, LLC, one of the appellees1 and an unsuccessful applicant for a

cultivation license, petitioned the circuit court for relief mainly to require the Arkansas

Medical Marijuana Commission to strip Bennett Scott “Storm” Nolan II of his cultivation

license. The State and Nolan claimed that Nolan was an indispensable party under Rule

19(a) of the Arkansas Rules of Civil Procedure. Appellant Nolan filed multiple motions

seeking joinder under Rule 19 and intervention under Rule 24 as well as a motion for a

1 2600 Holdings, LLC, d/b/a Southern Roots Cultivation is an appellee and was the original plaintiff. Nolan also named Arkansas Department of Finance and Administration; Arkansas Alcoholic Beverage Control Division; and Arkansas Medical Marijuana Commission as appellees in his notice of appeal. Yet, they were defendants at the circuit court level and have not participated in this appeal. new trial. The circuit court denied Nolan’s motions and ultimately granted summary

judgment for 2600 Holdings. Nolan appeals. Because we find that Nolan was an

indispensable party under Rule 19(a)(2), we reverse and remand. We vacate the November

3, 2022 order granting summary judgment to 2600 Holdings because it was entered without

Nolan, an indispensable party. We thus do not address his remaining issues as they are now

moot.

I. Factual Background & Procedural History

This case is one of many arising from the medical marijuana licensing process that

followed the passage of Amendment 98, several of which have surrounded the

Commission’s decision to grant a license to Nolan.2 The Commission is authorized under

Amendment 98 to issue between four and eight cultivation licenses. Ark. Const. amend.

98, § 8(j). The Commission issued Nolan a license in 2020.

In early 2021, 2600 Holdings filed suit against the Commission, the Arkansas

Department of Finance and Administration, and the Arkansas Alcoholic Beverage Control

Division (collectively, “State”). In its amended complaint, 2600 Holdings mainly alleged

that Nolan’s application did not comply with the minimum merit selection criteria and that

2 See, e.g., Osage Creek Cultivation, LLC v. Ark. Dep’t of Fin. & Admin., 2023 Ark. 47, 660 S.W.3d 843 (concerning the Nolan license); Ark. Dep’t of Fin. & Admin v. 2600 Holdings, LLC, 2022 Ark. 140, 646 S.W.3d 99 (involving the interlocutory appeal in the present case); Ark. Dep’t of Fin. & Admin. v. Carroll Cnty. Holdings, Inc., 2022 Ark. 128, 644 S.W.3d 405; Ark. Dep’t of Fin. & Admin. v. Carpenter Farms Med. Grp., LLC, 2020 Ark. 213, 601 S.W.3d 111; Ark. Dep’t of Fin. & Admin. v. Naturalis Health, LLC, 2018 Ark. 224, 549 S.W.3d 901.

2 the Commission violated its own rules and the Arkansas Constitution when it awarded

Nolan a license.

Nolan was not named as a defendant, nor was he joined as a party in the suit. The

complaint sought a declaratory judgment and a writ of mandamus ordering the Commission

to strip Nolan of the license and award it to the next highest scoring applicant from the

reserve pool. The State moved to dismiss, arguing that the suit was barred by sovereign

immunity and that 2600 Holdings had failed to include Nolan, who was an indispensable

party. The circuit court denied the motion to dismiss, and the State brought an interlocutory

appeal. We affirmed in part and dismissed in part. Ark. Dep’t of Fin. & Admin. v. 2600

Holdings, LLC, 2022 Ark. 140, 646 S.W.3d 99. We dismissed the claim for declaratory

judgment, holding that 2600 Holdings “failed to plead that the State’s actions [were] illegal

or unconstitutional,” and thus the declaratory-judgment claim was barred by sovereign

immunity. Id. at 7–8, 646 S.W.3d at 103–04. Yet we found that sovereign immunity did

not preclude the petition for writ of mandamus. Id. at 5, 646 S.W.3d at 102.

On October 25, 2022, 2600 Holdings moved for summary judgment and to expedite

the briefing schedule. The circuit court granted the motion to expedite and ordered the

State to file a response by October 31. The Attorney General’s Office, which had been

representing the State, moved to withdraw as counsel because “recent disagreements by the

Defendants regarding the best course of action in this case” had given rise to “an unwaivable

conflict of interest.” The circuit court denied the motion to withdraw. The State then filed

a response to summary judgment and opposed it on multiple grounds, one being that Nolan

was an indispensable party required to be joined under Rule 19.

3 On the same day the State filed its response, Nolan moved to enter the case as a

party. Nolan styled this motion as a “motion to intervene” but mainly argued that he was

an indispensable party under Rule 19(a). The circuit court denied Nolan’s motion and the

following day it granted 2600 Holdings’ motion for summary judgment. The circuit court

found that in awarding the license to Nolan, the Commission exceeded its discretion, did

not act within its ministerial duty, and violated the Arkansas Constitution and its own rules.

Nolan filed a second motion, arguing his right to participate as a party under both

Rule 19 and Rule 24 as well as a motion for a new trial. The circuit court also denied these

motions. Nolan appeals. The State did not appeal the grant of summary judgment.

II. Jurisdiction and Standard of Review

Orders that, in effect, determine the action and prevent a judgment from which an

appeal might be taken are appealable. Ark. R. App. P.-Civ. 2(a)(2); see also Duffield v. Benton

Cnty. Stone Co., Inc., 369 Ark. 314, 316, 254 S.W.3d 726, 728 (2007). Because this case

was previously before this court, as a subsequent appeal we have jurisdiction under Arkansas

Supreme Court Rule 1-2(a)(7). We review the circuit court’s interpretation of our rules de

novo. JurisDictionUSA, Inc. v. Loislaw.com, Inc., 357 Ark. 403, 409, 183 S.W.3d 560, 564

(2004). We have explained in the context of intervention that a circuit court’s decision to

allow a party to intervene as a matter of right is reviewed de novo, but the circuit court’s

decision on timeliness will not be reversed absent an abuse of discretion. Compare Fort Smith

Sch. Dist. v. Deer/Mt. Judea Sch. Dist., 2014 Ark. 486, at 6, 450 S.W.3d 239, 243 (explaining

timeliness standard), with Certain Underwriters at Lloyd’s, London v. Bass, 2015 Ark. 178, at

8–9, 461 S.W.3d 317, 323 (establishing the de novo standard for the factors on intervention

4 as a matter of right). In the context of joinder under Rule 19(a), this court likewise has not

given discretion to the circuit court as the rule requires an indispensable party “shall be

joined.” See, e.g., Stone v. Washington Reg’l Med.

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