City of Jacksonville v. Smith

540 S.W.3d 661
CourtSupreme Court of Arkansas
DecidedMarch 15, 2018
DocketNo. CV–17–634
StatusPublished
Cited by13 cases

This text of 540 S.W.3d 661 (City of Jacksonville v. Smith) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Jacksonville v. Smith, 540 S.W.3d 661 (Ark. 2018).

Opinion

Rule 65 of the Arkansas Rules of Civil Procedure governs the issuance of preliminary injunctions. In determining whether to issue a preliminary injunction pursuant to Rule 65, the circuit court must consider two issues: (1) whether irreparable harm will result in the absence of an injunction or restraining order and (2) whether the moving party has demonstrated *666a likelihood of success on the merits. Ark. Dep't of Human Servs. v. Ledgerwood , 2017 Ark 308, 530 S.W.3d 336.

This court reviews the grant of a preliminary injunction under an abuse-of-discretion standard. Baptist Health v. Murphy , 365 Ark. 115, 226 S.W.3d 800 (2006). When an appeal reaches an appellate court via an order granting a preliminary injunction, the appellate court will not delve into the merits of the case further than is necessary to determine whether the circuit court exceeded its discretion in granting the injunction. Id. , 226 S.W.3d 800. The sole question before the appellate court is whether the circuit court departed from the rules and principles of equity in making the order and not whether the appellate court would have made the order. Id. at 121-22, 226 S.W.3d at 806-07.

A. Subject-Matter Jurisdiction

We first address the alternative argument raised by the City. The City contends that the circuit court did not have subject-matter jurisdiction because Smith failed to exhaust her administrative remedies. Specifically, the City asserts that because Smith failed to exhaust her administrative remedies, the circuit court lacked subject-matter jurisdiction, and this court must dismiss the appeal.

The City's argument is actually an argument involving a plaintiff's standing to bring an illegal-exaction lawsuit. Article 16, section 13 of the Arkansas Constitution provides that "[a]ny citizen of the county, city or town may institute suit, in behalf of himself and all others interested, to protect the inhabitants thereof against the enforcement of any illegal exactions whatever." An illegal exaction is defined as any exaction that either is not authorized by law or is contrary to law. Wilson v. Walther , 2017 Ark. 270, 527 S.W.3d 709. In a "public funds" illegal-exaction case, such as the one before us, the plaintiff contends that public funds generated from tax dollars are being misapplied or illegally spent. Id. , 527 S.W.3d 709. We have explained that citizens have standing to bring a "public funds" case because they have a vested interest in ensuring that the tax money they have contributed to a state or local government treasury is lawfully spent. Id. This court has explained that

the only standing requirements we have imposed in public-funds cases [are] that the plaintiff be a citizen and that he or she have contributed tax money to the general treasury. We have not required the plaintiff to trace his or her individual tax contribution to the tax money that is allegedly being spent in an illegal manner, nor have we required the plaintiff to establish a significant tax contribution to the state treasury. Hence, in public-funds cases we have given the word "interested" as used in article 16, section 13, a very broad construction.

2017 Ark. 270, at 5-6, 527 S.W.3d at 713 (quoting Bowerman v. Takeda Pharms. U.S.A. , 2014 Ark. 388, at 5, 442 S.W.3d 839, 842-43 (citations omitted)).

Here, Smith brought her illegal-exaction lawsuit as a citizen and taxpayer of the City on behalf of other citizens and taxpayers of the City. Accordingly, we hold that Smith has standing in this action.

B. Justiciability

The City also makes a general justiciability argument and states that the "Declaratory Judgement Act ... was not intended to allow any question to be presented by any person, for the matter must first be justiciable."

Our declaratory-judgment statute provides that "[a]ny person ... whose rights, status or other legal relations are affected by a statute ... may have determined any question of construction or validity arising *667under the ... statute ... and obtain a declaration of rights, status or other legal relations thereunder." Ark. Code Ann. § 16-111-102 (Repl. 2016).

Here, the circuit court has not ruled on Smith's underlying declaratory-judgment action, but it granted Smith's request for entry of a preliminary injunction. In its order granting preliminary injunction, the circuit court found that Smith had met her burden of establishing both a likelihood of success on the merits of her claims and the existence of irreparable harm in the absence of injunctive relief. This court has stated that "[a] party thus is not required to prove his [or her] case in full at a preliminary-injunction hearing." Ledgerwood , 2017 Ark. 308, at 9, 530 S.W.3d at 342 (quoting Univ. of Tex. v. Camenisch ,

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Cite This Page — Counsel Stack

Bluebook (online)
540 S.W.3d 661, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-jacksonville-v-smith-ark-2018.