SHELLEY HAUSE AND STEPHEN HAUSE v. CITY OF FAYETTEVILLE, ARKANSAS; THE FAYETTEVILLE PLANNING COMMISSION; AND THE FAYETTEVILLE CITY COUNCIL

CourtSupreme Court of Arkansas
DecidedOctober 16, 2025
DocketCV-24-663
StatusPublished

This text of SHELLEY HAUSE AND STEPHEN HAUSE v. CITY OF FAYETTEVILLE, ARKANSAS; THE FAYETTEVILLE PLANNING COMMISSION; AND THE FAYETTEVILLE CITY COUNCIL (SHELLEY HAUSE AND STEPHEN HAUSE v. CITY OF FAYETTEVILLE, ARKANSAS; THE FAYETTEVILLE PLANNING COMMISSION; AND THE FAYETTEVILLE CITY COUNCIL) 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.

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SHELLEY HAUSE AND STEPHEN HAUSE v. CITY OF FAYETTEVILLE, ARKANSAS; THE FAYETTEVILLE PLANNING COMMISSION; AND THE FAYETTEVILLE CITY COUNCIL, (Ark. 2025).

Opinion

Cite as 2025 Ark. 156 SUPREME COURT OF ARKANSAS No. CV-24-663

Opinion Delivered: October 16, 2025 SHELLEY HAUSE AND STEPHEN HAUSE APPEAL FROM THE WASHINGTON APPELLANTS COUNTY CIRCUIT COURT [NO. 72CV-23-3702] V. HONORABLE DOUG MARTIN, JUDGE CITY OF FAYETTEVILLE, AFFIRMED IN PART; DISMISSED ARKANSAS; THE FAYETTEVILLE WITHOUT PREJUDICE IN PART. PLANNING COMMISSION; AND THE FAYETTEVILLE CITY COUNCIL APPELLEES

CODY HILAND, Associate Justice

Shelley and Stephen Hause appeal the Washington County Circuit Court’s denial of

their request for injunctive relief against the City of Fayetteville, the Fayetteville Planning

Commission, and the Fayetteville City Council. They also contend that this appeal

encompasses the circuit court’s nonfinal dismissal of a separate Rule 9 administrative appeal.

We affirm the denial of the preliminary injunction and dismiss their remaining claim without

prejudice.

I. Factual Background

In 2021, the City of Fayetteville enacted Ordinance 6427, or the “Short-Term

Rental Ordinance” (“STR Ordinance”), which created a regulatory scheme for residential

property rented for fewer than thirty days (a “short-term rental”) into two category types.

A license is required to operate both types of short-term rental properties, but a conditional- use permit is also required before a property owner can get a license to operate a Type 2

short-term rental in a residential zoning district. The STR Ordinance capped Type 2 short-

term rentals at no more than 2 percent of the City’s total housing stock, a limit later reduced

to 475 total houses. The City delegated the approval of conditional-use permits to its

Planning Commission, which has broad discretion to grant or deny applications.

The Hauses own a home in Fayetteville that they use when visiting northwest

Arkansas. During periods when they are not in residence, the Hauses sought to rent the

property as a short-term rental to offset the mortgage and related costs. They familiarized

themselves with the STR Ordinance and confirmed that the Commission had not issued

the ordinance’s 475-license maximum on Type 2 short-term rentals. In October 2023, after

completing the application process, the Commission heard the Hauses’ request for a

conditional-use permit. Although the cap had not been reached, the Commission denied

their conditional-use permit application, finding the proposed short-term rental

“incompatible with the neighborhood” because of the number of other Type 2 short-term

rentals nearby.

II. Procedural History

On November 2, the Hauses attempted to file an appeal with the Fayetteville City

Council. On November 7, they received a letter stating that no Council member had

agreed to sponsor an appeal to the Council. 1 On December 6, the Hauses filed an

1 See Fayetteville, Ark., Code of Ordinances § 155.05(A)(3) (Municode through Ordinance No. 6888, enacted Aug. 4, 2020) (Whereas “[t]hree Council Members may in unison appeal a decision of the Planning Commission approving or denying a conditional use request.”).

2 administrative appeal in the Washington County Circuit Court under Rule 9 of the

Arkansas District Court Rules. At the same time, they filed a complaint for declaratory

judgment under Arkansas Code Annotated section 16-111-101 (Repl. 2016) and for

deprivation of rights under section 16-123-105(a) (Repl. 2016) and article 2, section 22 of

the Arkansas Constitution. On January 18, 2024, they moved for a preliminary injunction

to bar enforcement of the STR Ordinance while their claims against the City, the

Commission, and the Council were pending. On February 24, the City moved for

summary judgment, asserting that the Rule 9 administrative appeal to the circuit court was

untimely.

On August 1, the circuit court held a hearing on the Hauses’ motion for preliminary

injunction and the City’s motion for summary judgment. On August 19, the circuit court

denied the Hauses’ preliminary injunction motion and granted the City’s motion to dismiss

the Rule 9 administrative appeal, finding the appeal untimely and concluding it lacked

jurisdiction over that portion of the case. The circuit court noted, however, that the

constitutional challenges to the STR Ordinance remained pending and stated that it “will

refrain from making a final ruling” until those issues are fully briefed.

On September 6, the Hauses filed their first notice of appeal to this court, challenging

only the denial of their motion for a preliminary injunction, which is immediately appealable

under Arkansas Rule of Appellate Procedure–Civil 2(a)(6). On September 10, they sought

a Rule 54(b) certification so they could also appeal the dismissal of their Rule 9

administrative appeal. Three hours later that same day, the circuit court issued the requested

Rule 54(b) certification of its order granting summary judgment to the City, thereby

3 purporting to allow review of the dismissal of the Rule 9 administrative appeal as well. On

September 11, the Hauses filed a second notice of appeal to include that order. Six hours

later, the City moved to reconsider the Rule 54(b) certification, arguing it had not had an

opportunity to respond and that the Hauses’ assertion—that an immediate appeal would

conserve judicial resources—could be made in almost any case and did not justify

certification. On September 13, the circuit court agreed and vacated its Rule 54(b)

certification pursuant to Rule 60, which then removed that portion of the Hauses’ appeal

from our review. Ten days later, the Hauses moved to reconsider the vacatur, but the

circuit court never ruled, and the motion was deemed denied. The Hauses did not file a

subsequent third notice of appeal to include the circuit court’s vacatur of its Rule 54(b)

certification or subsequent deemed denial of their motion for reconsideration. As explained

below, we have appellate jurisdiction only over the appeal from the circuit court’s denial of

the preliminary injunction.

III. Law and Analysis

The Hauses’ appeal presents two main issues. First, whether the circuit court abused

its discretion in denying their motion for preliminary injunction. And second, whether this

court has the appellate jurisdiction to review the timeliness of their Rule 9 administrative

appeal below. Because the first claim lacks merit and the second is not properly before us,

we affirm in part and dismiss without prejudice in part.

A. Preliminary Injunction

A preliminary injunction is an “extraordinary remedy . . . reserved for extraordinary

circumstances.” Muntaqim v. Lay, 2019 Ark. 203, at 2, 575 S.W.3d 542, 545 (quoting

4 Drummond Citizens Ins. Co. v. Sergeant, 266 Ark. 611, 621, 588 S.W.2d 419, 424 (1979)).

When determining whether to issue a preliminary injunction or not, circuit courts 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 a likelihood of success

on the merits. Gulley v. State ex rel. Jegley, 2023 Ark. 70, at 5, 664 S.W.3d 421, 425. The

party seeking the injunction bears the burden of demonstrating both factors. Muntaqim,

2019 Ark. 203, at 2, 575 S.W.3d at 545.

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