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

Supreme Court of Arkansas·Decided October 16, 2025·No. CV-24-663·Published

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.”).

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

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

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

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) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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