Boyle Ventures, LLC v. City of Fayetteville

2025 Ark. 71, 711 S.W.3d 280
Supreme Court of Arkansas·Decided May 15, 2025·Published·Cited by 3 cases

Opinion

Cite as 2025 Ark. 71

SUPREME COURT OF ARKANSAS No. CV-24-226

Opinion Delivered: May 15, 2025 BOYLE VENTURES, LLC APPELLANT/CROSS-APPELLEE APPEAL FROM THE BENTON COUNTY CIRCUIT COURT

[NO. 04CV-22-2109]

V.

HONORABLE DOUGLAS

SCHRANTZ, JUDGE

CITY OF FAYETTEVILLE, ARKANSAS CROSS-APPEAL REVERSED AND APPELLEE/CROSS-APPELLANT REMANDED FOR DISMISSAL;

DIRECT APPEAL DISMISSED AS MOOT.

CODY HILAND, Associate Justice Boyle Ventures, LLC (Boyle), appeals from an order of the Benton County Circuit Court dismissing its complaint against the City of Fayetteville (the City) for an alleged violation of the Arkansas Civil Rights Act. On direct appeal, Boyle argues (1) Ordinance No. 6587 (the Ordinance) violated the Arkansas Constitution, and the City is not immune from damages for violations of clearly established constitutional rights; and (2) the Arkansas Civil Rights Act permits the circuit court to award attorney’s fees to the prevailing party. On cross-appeal, the City argues the Ordinance did not violate Arkansas statutory law. Because the Ordinance never went into effect against Boyle and did not deprive Boyle of rights or cause damages, we hold the circuit court erred in finding that enacting the Ordinance violated the statute. Thus, we reverse the circuit court on cross-appeal and remand for an order of dismissal. We dismiss the direct appeal and any other remaining issues as moot.

Although two justices join this opinion, two also agree to reverse and remand for a dismissal of the circuit court’s order on the cross appeal which results in an agreement of four justices to reverse and remand for entry of a dismissal order, albeit for different reasons.

I. Factual Background

Boyle operates franchised retail pet stores that, among other things, sell cats and dogs obtained from breeders regulated by the U.S. Department of Agriculture. After Boyle obtained a business license to operate a location in Fayetteville, but prior to the opening of the business, the City Council passed Ordinance No. 6587 that prohibited such sales “unless [the animals were] obtained from and in cooperation with the Fayetteville Animal Shelter, a government or nonprofit animal shelter approved by Fayetteville Animal Services, or a nonprofit animal rescue organization approved by Fayetteville Animal Services.”

Soon thereafter and prior to the effective date of the Ordinance, Boyle filed suit against the City seeking (1) a declaratory judgment that the Ordinance violated both the Arkansas Retail Pet Store Consumer Protection Act of 1991 1 and the Arkansas Working Animal Protection Act,2 (2) injunctive relief to prevent the enforcement of the Ordinance, and (3) damages for a violation of its rights under the Arkansas Civil Rights Act.3 Boyle argued that because the Ordinance conflicted with the aforementioned statutes, the City

1 Arkansas Code Annotated §§ 4-97-101 et seq. (Repl. 2023).

2 Arkansas Code Annotated § 14-54-1105(b)(2) (Supp. 2023).

3 “Every person who, under color of any statute, ordinance, regulation, custom, or usage of this state or any of its political subdivisions subjects, or causes to be subjected, any person within the jurisdiction thereof to the deprivation of any rights, privileges, or immunities secured by the Arkansas Constitution shall be liable to the party injured in an action in circuit court for legal and equitable relief or other proper redress.” Ark. Code Ann. § 16-123-105(a) (Repl. 2016).

violated article 12, section 4 of the Arkansas Constitution, which states: “No municipal corporation shall be authorized to pass any laws contrary to the general laws of the state.” This violation, Boyle asserted, was the basis for its claim under the Arkansas Civil Rights Act.

In response, the parties immediately agreed to a temporary restraining order and a stay during the pendency of the action, meaning the Ordinance would not go into effect and the City would not enforce it against Boyle until after the case was decided. However, before the circuit court could rule on the matter, the City repealed the Ordinance. As a result, Boyle conceded that the declaratory relief initially sought was moot. The parties filed multiple competing motions for summary judgment whereby Boyle sought damages for the alleged civil rights violation and the City argued that qualified immunity precluded such relief. At the conclusion of the hearing on the motions, the circuit court ultimately ruled in favor of the City by granting its motion. The circuit court found, in pertinent part, the following: (1) “Fayetteville Ordinance [6587] conflicts with both the Retail Pet Store Act and the Working Animal Act”; (2) “It is clear that the passage of Ordinance [6587] would deprive [Boyle] of its right to do business in Fayetteville insofar as its business includes the sale of cats and dogs”; and (3) “[B]ut for the stay agreed to by Fayetteville and [Boyle], [Boyle] would have been prevented from engaging in a legal business enterprise . . . . But the qualified immunity of [the City] bars recovery. The conduct of [the City] did not violate

“clearly established . . . constitutional rights of which a reasonable person would have known.”4 The complaint was dismissed, and both Boyle and the City timely appealed.

II. Standard of Review

The law is well settled that summary judgment is to be granted by a circuit court only when there are no genuine issues of material fact to be litigated, and the party is entitled to judgment as a matter of law. Dodson v. Taylor, 346 Ark. 443, 57 S.W.3d 710 (2001). Once the moving party has established a prima facie entitlement to summary judgment, the opposing party must meet proof with proof and demonstrate the existence of a material issue of fact. Id. On appellate review, we determine if summary judgment was appropriate based on whether the evidentiary items presented by the moving party in support of the motion leave a material fact unanswered. Id. We view the evidence in the light most favorable to the party against whom the motion was filed, resolving all doubts and inferences against the moving party. Id. Our review focuses not only on the pleadings but also on the affidavits and documents filed by the parties. Id.

“A motion for summary judgment based on qualified immunity is precluded only when the plaintiff has asserted a constitutional violation, demonstrated the constitutional right is clearly established and raised a genuine issue of fact as to whether the official would have known that the conduct violated that clearly established right.” Smith v. Brt, supra.

4 An official is immune from suit if his or her actions did not violate clearly established principles of law of which a reasonable person would have knowledge. Smith v. Brt, 363 Ark. 126, 131, 211 S.W.3d 485, 489 (2005) (citing Harlow v. Fitzgerald, 457 U.S. 800 (1982)). Here, an oddity of this case is that Boyle filed suit only against the City, not any of its officials acting in an official capacity. However, because Boyle’s claim fails as a matter of law for the reasons discussed infra, the question whether qualified immunity can even apply to a municipal corporation is not properly before us, and we do not reach it here.

Whether a party is immune from suit is purely a question of law and is reviewed de novo on appeal. City of Fayetteville v. Romine, 373 Ark. 318, 321, 284 S.W.3d 10, 13 (2008).

III. Analysis

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Boyle Ventures, LLC v. City of Fayetteville, 2025 Ark. 71, 711 S.W.3d 280 (Ark. 2025).

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