The Travelers Indemnity Company and Stephen E. Goldman v. the Board of Trustees of the University of Arkansas

2022 Ark. 146
CourtSupreme Court of Arkansas
DecidedJune 23, 2022
StatusPublished
Cited by1 cases

This text of 2022 Ark. 146 (The Travelers Indemnity Company and Stephen E. Goldman v. the Board of Trustees of the University of Arkansas) 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
The Travelers Indemnity Company and Stephen E. Goldman v. the Board of Trustees of the University of Arkansas, 2022 Ark. 146 (Ark. 2022).

Opinion

Cite as 2022 Ark. 146 SUPREME COURT OF ARKANSAS No. CV-22-124

Opinion Delivered: June 23, 2022

THE TRAVELERS INDEMNITY COMPANY AND STEPHEN E. GOLDMAN APPEAL FROM THE PULASKI APPELLANTS COUNTY CIRCUIT COURT, SIXTH DIVISION V. [NO. 60CV-20-4834]

THE BOARD OF TRUSTEES OF THE HONORABLE TIMOTHY DAVIS UNIVERSITY OF ARKANSAS FOX, JUDGE APPELLEE

REVERSED AND REMANDED IN PART; DISMISSED IN PART.

COURTNEY RAE HUDSON, Associate Justice

Appellants, The Travelers Indemnity Company (“Travelers”) and Stephen E.

Goldman, appeal from the Pulaski County Circuit Court’s order disqualifying Goldman

from further participation as Travelers’ counsel in a suit filed by appellee, the Board of

Trustees of the University of Arkansas (“the Board”). For reversal, appellants argue that the

circuit court erred by (1) revoking Goldman’s pro hac vice admission and (2) excluding

unvaccinated jurors from the venire. We reverse and remand in part and dismiss in part.

On August 31, 2020, the Board, acting on behalf of the University of Arkansas

System, including the University of Arkansas for Medical Sciences (“the University”), filed

suit against Travelers for breach of contract, declaratory judgment, and bad faith arising out

of Travelers’ denial of the University’s insurance claim. The Board filed a first amended complaint on October 14, 2020, a second amended complaint on August 9, 2021, and a

third amended complaint on November 9, 2021. The Board alleged that it was entitled to

benefits under its all-risk commercial property insurance policy with Travelers for losses and

damages it suffered during the coronavirus pandemic and that no policy exclusion defeated

coverage.

Goldman, an out-of-state attorney representing Travelers, filed a motion for

admission pro hac vice, which was granted on October 15, 2020. Travelers filed an answer

denying the material allegations in the Board’s complaint, and the parties proceeded with

discovery. At a pretrial hearing on January 31, 2022, the circuit court explained the

procedures it had put in place to address COVID-19-related guidelines and concerns during

the upcoming trial, which was scheduled for March 8, 2022. The court indicated that it was

not going to require the wearing of masks in the courtroom and therefore had excused

anyone from the jury pool who was not fully vaccinated. The court then stated, “[S]o that’s

what you’ve got for your jury panel and your pool, in case whoever doesn’t prevail on the

jury side— in case they want to make some argument that it was not a jury of their peers

or something that was unconstitutional, that’s what the Court has done.” Neither party

objected to the circuit court’s procedures at that time.

On February 18, 2022, Travelers filed a motion objecting to the circuit court’s

exclusion of unvaccinated jurors from the jury pool. Travelers argued that a jury

representative of the community should be selected without regard to COVID-19

vaccination status and that the exclusion of unvaccinated jurors violated Travelers’ rights

under the United States and Arkansas Constitutions. In addition, Travelers asserted that the

2 circuit court’s rationale of requiring vaccination in the place of wearing masks was

inconsistent with the public-health guidelines and this court’s directive to follow such

guidelines. Travelers attached multiple exhibits to its motion, such as articles from various

publications as well as a December 13, 2021 email from the circuit court to counsel of

record in which the circuit court set forth the special protocols in place for jury trials during

the first quarter of 2022, including the vaccination requirement for jurors and all in-person

participants.

The circuit court entered an order on February 22, 2022, denying Travelers’ motion.

Noting that the motion was filed more than two months after its December 2021 email to

counsel and more than two weeks after the pretrial conference, the court found that the

motion was “untimely, dilatory and was filed for the purpose of seeking a delay in the trial

of this case.” Further, the court ruled that Goldman’s pro hac vice admission was revoked

because several of the exhibits filed in support of Travelers’ motion contained external

hyperlinks to websites in violation of Arkansas Supreme Court Administrative Order No.

21, Section 9. The circuit court stated that these violations had “the ability to affect the

integrity of the entire Arkansas judicial electronic filing system” and were “substantial and

material violations of the Administrative Orders of the Arkansas Supreme Court.”

Remaining local counsel were ordered to immediately remove all offending materials from

their electronic filing and were given leave to file replacement exhibits, which Travelers

did.

On February 24, 2022, appellants filed a notice of interlocutory appeal from the

circuit court’s ruling disqualifying Goldman from further representing Travelers in this case.

3 Appellants also filed with this court an emergency motion for stay of the circuit court’s order

and the proceedings below, which we granted on February 28, 2022. On March 1, 2022,

after the partial record had been filed with this court and our stay had been issued, the circuit

court rescinded the portion of its previous order that revoked Goldman’s pro hac vice

admission and stated that Goldman would be allowed to participate in the upcoming trial.

Appellants then filed a motion for clarification of our order granting a stay, and we granted

that motion on March 2, 2022, clarifying that our February 28 stay applied to all proceedings

in the case.

On appeal, appellants first argue that the circuit court erred by revoking Goldman’s

pro hac vice admission. “An order which disqualifies an attorney from further participation

in the case” is immediately appealable pursuant to Arkansas Rule of Appellate

Procedure−Civil 2(a)(8) (2021). The Board claims that the revocation of an out-of-state

attorney’s pro hac vice admission is not a disqualification under Rule 2(a)(8) and that this

court therefore lacks jurisdiction to consider this issue in an interlocutory appeal. We

disagree. “Disqualification” is defined as “[s]omething . . . that prevents a lawyer from

representing a party.” Black’s Law Dictionary (11th ed. 2019); see also Merriam-Webster’s

Collegiate Dictionary (11th ed. 2014) (stating that “disqualify” means to “deprive of a power,

right, or privilege”). The circuit court’s order revoking Goldman’s pro hac vice admission

clearly prevented him from representing Travelers, and we therefore have jurisdiction to

review this ruling.

The Board also contends that the disqualification issue is moot because the circuit

court rescinded its March 1 ruling revoking Goldman’s pro hac vice admission. As appellants

4 assert, however, the circuit court had lost jurisdiction to enter this subsequent order.

Appellants appealed the circuit court’s February 22 order and filed an emergency motion

for stay pending the appeal, which we granted on February 28. On March 2, we clarified

that our February 28 stay order applied to all proceedings in the circuit court. Accordingly,

the circuit court’s March 1 order is of no effect, and the issue of Goldman’s revocation is

not moot.

We have stated that disqualification of an attorney is a drastic measure that should be

imposed only when clearly required by the circumstances.

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