Morris Koontz v. Dexter Payne, Director, Arkansas Division of Correction; Dale Reed, Deputy Director, Arkansas Division of Correction; William Straughn, Deputy Director, Arkansas Division of Correction; Randy Watson, Warden, Arkansas Division of Correction; Jeremy Andrews, Deputy Warden, Arkansas Division of Correction; Gaylon Lay, Warden, Arkansas Division of Correction; James Dycus, Deputy Warden, Arkansas Division of Correction; And Anthony Jackson, Deputy Warden, Arkansas Division of Correction

2025 Ark. App. 200
CourtCourt of Appeals of Arkansas
DecidedApril 9, 2025
StatusPublished
Cited by1 cases

This text of 2025 Ark. App. 200 (Morris Koontz v. Dexter Payne, Director, Arkansas Division of Correction; Dale Reed, Deputy Director, Arkansas Division of Correction; William Straughn, Deputy Director, Arkansas Division of Correction; Randy Watson, Warden, Arkansas Division of Correction; Jeremy Andrews, Deputy Warden, Arkansas Division of Correction; Gaylon Lay, Warden, Arkansas Division of Correction; James Dycus, Deputy Warden, Arkansas Division of Correction; And Anthony Jackson, Deputy Warden, Arkansas Division of Correction) is published on Counsel Stack Legal Research, covering Court of Appeals of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Morris Koontz v. Dexter Payne, Director, Arkansas Division of Correction; Dale Reed, Deputy Director, Arkansas Division of Correction; William Straughn, Deputy Director, Arkansas Division of Correction; Randy Watson, Warden, Arkansas Division of Correction; Jeremy Andrews, Deputy Warden, Arkansas Division of Correction; Gaylon Lay, Warden, Arkansas Division of Correction; James Dycus, Deputy Warden, Arkansas Division of Correction; And Anthony Jackson, Deputy Warden, Arkansas Division of Correction, 2025 Ark. App. 200 (Ark. Ct. App. 2025).

Opinion

Cite as 2025 Ark. App. 200 ARKANSAS COURT OF APPEALS DIVISION II No. CV-23-464

Opinion Delivered April 9, 2025 MORRIS KOONTZ APPELLANT APPEAL FROM THE PULASKI COUNTY CIRCUIT COURT, TWELFTH DIVISION V. [NO. 60CV-21-5262]

DEXTER PAYNE, DIRECTOR, HONORABLE CARA CONNORS, ARKANSAS DIVISION OF JUDGE CORRECTION; DALE REED, DEPUTY AFFIRMED DIRECTOR, ARKANSAS DIVISION OF CORRECTION; WILLIAM STRAUGHN, DEPUTY DIRECTOR, ARKANSAS DIVISION OF CORRECTION; RANDY WATSON, WARDEN, ARKANSAS DIVISION OF CORRECTION; JEREMY ANDREWS, DEPUTY WARDEN, ARKANSAS DIVISION OF CORRECTION; GAYLON LAY, WARDEN, ARKANSAS DIVISION OF CORRECTION; JAMES DYCUS, DEPUTY WARDEN, ARKANSAS DIVISION OF CORRECTION; AND ANTHONY JACKSON, DEPUTY WARDEN, ARKANSAS DIVISION OF CORRECTION APPELLEES

N. MARK KLAPPENBACH, Chief Judge

Pursuant to the Arkansas Civil Rights Act of 1993 (ACRA), Ark. Code Ann. § 16-

123-105 (Repl. 2016), Morris Koontz filed a pro se civil-rights complaint in the Pulaski County Circuit Court against the following employees of the Arkansas Division of

Correction (ADC) in their official and individual capacities: Dexter Payne, director; Dale

Reed, deputy director; William Straughn, deputy director; Randy Watson, warden; Jeremy

Andrews, deputy warden; Gaylon Lay, warden; James Dycus, deputy warden; and Anthony

Jackson, deputy warden. In his complaint, Koontz alleged that appellees violated his

constitutional rights in connection with ADC’s restrictive-housing-review process and state

statutory law authorizing confiscation of inmates’ federal COVID-19 stimulus financial aid

and requested declaratory relief along with money damages, penalties, and fees. The circuit

court granted appellees’ motion and dismissed Koontz’s complaint. On appeal, Koontz

argues that the circuit court abused its discretion in dismissing his complaint. We affirm.

I. Standard of Review

The standard of review for the granting of a motion to dismiss is whether the circuit

court abused its discretion. Muntaqim v. Kelley, 2022 Ark. App. 76, at 2, 641 S.W.3d 35, 40.

An abuse of discretion occurs when the court has acted improvidently, thoughtlessly, or

without due consideration. Id. In reviewing the circuit court’s decision on a motion to

dismiss under Arkansas Rule of Civil Procedure 12(b)(6), we treat the facts alleged in the

operative complaint as true and view them in the light most favorable to the party who filed

the complaint. Id. In testing the sufficiency of the complaint on a motion to dismiss, all

reasonable inferences must be resolved in favor of the complaint, and the pleadings are to

be liberally construed. Id. However, under our fact-pleading requirement, a complaint must

state facts, not mere conclusions, to entitle the pleader to relief. Id.

2 II. Background

Koontz is an inmate incarcerated at the East Arkansas Regional Max Unit of the

ADC. On September 10, 2021, he filed a pro se civil-rights complaint asserting constitutional

violations relating to ADC’s restrictive-housing-review process and state law governing the

confiscation of state inmates’ federal COVID-19 stimulus funds—namely, Act 1110 of 2021

(codified at Ark. Code Ann. § 12-29-120 (Supp. 2023)). Appellees sought dismissal of the

complaint on several bases, including (1) sovereign immunity; (2) statutory immunity; (3)

failure to state facts upon which relief can be granted under Arkansas Rule of Civil Procedure

12(b)(6); and (4) a permanent injunction entered by the United States District Court for the

Eastern District of Arkansas enjoining ADC from using or disbursing inmates’ federal

stimulus funds in any manner other than “to pay off an inmate’s court fines, fees, costs, or

restitution pursuant to Act 1110” and requiring ADC to reimburse inmates any funds

remaining that had not been used for these limited purposes.1 Additionally, they submitted

1 Following the passage of Act 1110 of 2021, numerous Arkansas state inmates filed lawsuits in the United States District Court for the Eastern District of Arkansas challenging the Act on various constitutional and statutory grounds. The federal court consolidated the cases and designated three as “appropriate and representative test cases[.]” See Hayes v. Graves, No. 4:21-CV-00347-LPR, 2022 WL 822881, (E.D. Ark. Mar. 16, 2022); Lamar v. Hutchinson, No. 4:21-CV-00529-LPR (E.D. Ark.); Holloway v. Ark. Gen. Assembly, No. 4:21-CV-00495-LPR (E.D. Ark.). The plaintiffs in those cases argued, inter alia, that enforcement of Act 1110 violates the Takings Clause, procedural due process, and substantive due process. On September 3, 2021, the federal court entered a preliminary injunction significantly limiting the circumstances in which state prison officials could take and redirect the stimulus funds sent to prisoners. On March 16, 2022, the court entered a final order and judgment, including a permanent injunction, in the test cases and ordered the administrative termination of all the other cases, finding that its final order and judgment “likely address[ed] or moot[ed] most of the other cases.”

3 documentary proof showing that (1) on May 28, 2021, ADC deposited federal stimulus

funds issued to Koontz (a total of $1,400) into an “Act 1110 Stimulus Funds Account”; (2)

on August 19, 2021, ADC sent $790 of Koontz’s federal stimulus funds to Hempstead

County to pay off Koontz’s pending fines, fees, and court costs; and (3) on March 18, 2022,

ADC deposited the balance of Koontz’s federal stimulus funds ($610) into Koontz’s inmate

account. Following a hearing, the circuit court dismissed Koontz’s Act 1110 claims without

prejudice. Koontz filed an amended complaint, but he did not request any specific type of

relief. The circuit court granted appellees’ motion to dismiss “based upon sovereign

immunity as Plaintiff’s Amended Complaint is unclear as to the relief being sought” and

allowed Koontz three weeks to file an amended complaint.

On November 14, 2022, Koontz filed a second amended complaint—the operative

complaint in this case. In the complaint, he claimed that both Act 1110 of 2021 and Act

715 of 1981, commonly known as the State Prison Inmate Care and Custody

Reimbursement Act (codified at Ark. Code Ann. §§ 12-29-501 to -507, formerly Ark. Stat.

Ann. § 46-1701), are unconstitutional. He asserted that Act 1110, unlike Act 715, “allows

the state to take money without any process” and alleged that “Defendants took [his] stimulus

check without his consent and this check is his property.” He asserted that Act 715

“enhances the punishment on a person convicted of a crime . . . by allowing the state to take

money from a prisoner for his care and custody but the state provides no means for a prisoner

to pay for this care and custody.” He also claimed that he was denied due process in

connection with ADC’s restrictive-housing-review process. He asserted that the conditions

4 of his confinement in restrictive housing for an “aggregate of 10 ½ years” impose an atypical

and significant hardship on him, creating a liberty interest protected by due process, and he

alleged that appellees denied him the process he was due by providing “sham” reviews of his

restrictive-housing assignment.

From a review of the operative complaint, Koontz’s civil-rights action is based on the

following alleged facts. Koontz was placed in punitive isolation at the Tucker Max Unit after

receiving a disciplinary sanction “for assault on staff” in June 2012. He was subsequently

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