Tracy Johnson, Gina Rambo, James R. "Rick" Bright, Greg Moon, and Karen Pryor v. Carol Wright, Individually and in Her Official Capacity as Past Chairman and Current and Past Member of the Eureka Springs City Advertising and Promotion Commission Jeff Carter, Individually and in His Official Capacity as a Member and Current Chairman of the Eureka Springs City Advertising and Promotion Commission James Devito, Individually and in His Official Capacity as a Member [Of] the Eureka Springs City Advertising and Promotion Commission Melissa Green, Individually and in Her Official Capacity as a Member [Of] the Eureka Springs City Advertising and Promotion Commission Harry Meyer, Individually and in His Official Capacity as a Member [Of] the Eureka Springs City Advertising and Promotion Commission Patrick Burnett, Individually and Ostensibly in His Official Capacity as an Apparent Member [Of] the Eureka Springs City Advertising and Promotion Commission The Eureka Springs City Advertising and Promotion Commission The City of Eureka Springs, Arkansas Robert D. "butch" Berry, Individually and as Mayor of the City of Eureka Springs, Arkansas Kim Stryker, Individually and in Her Official Capacity as Chief Administrative Assistant to Mayor Butch Berry State Auto Mutual Insurance Company And Philadelphia Indemnity Insurance Company
This text of 2022 Ark. 48 (Tracy Johnson, Gina Rambo, James R. "Rick" Bright, Greg Moon, and Karen Pryor v. Carol Wright, Individually and in Her Official Capacity as Past Chairman and Current and Past Member of the Eureka Springs City Advertising and Promotion Commission Jeff Carter, Individually and in His Official Capacity as a Member and Current Chairman of the Eureka Springs City Advertising and Promotion Commission James Devito, Individually and in His Official Capacity as a Member [Of] the Eureka Springs City Advertising and Promotion Commission Melissa Green, Individually and in Her Official Capacity as a Member [Of] the Eureka Springs City Advertising and Promotion Commission Harry Meyer, Individually and in His Official Capacity as a Member [Of] the Eureka Springs City Advertising and Promotion Commission Patrick Burnett, Individually and Ostensibly in His Official Capacity as an Apparent Member [Of] the Eureka Springs City Advertising and Promotion Commission The Eureka Springs City Advertising and Promotion Commission The City of Eureka Springs, Arkansas Robert D. "butch" Berry, Individually and as Mayor of the City of Eureka Springs, Arkansas Kim Stryker, Individually and in Her Official Capacity as Chief Administrative Assistant to Mayor Butch Berry State Auto Mutual Insurance Company And Philadelphia Indemnity Insurance Company) 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.
Opinion
Cite as 2022 Ark. 48 SUPREME COURT OF ARKANSAS No. CV-21-434
Opinion Delivered: March 10, 2022
TRACY JOHNSON, GINA RAMBO, JAMES R. “RICK” BRIGHT, GREG MOON, AND KAREN PRYOR APPEAL FROM THE CARROLL APPELLANTS COUNTY CIRCUIT COURT [NO. 08WCV-21-19] V. HONORABLE CHARLES SCOTT CAROL WRIGHT, INDIVIDUALLY JACKSON, JUDGE AND IN HER OFFICIAL CAPACITY AS PAST CHAIRMAN AND CURRENT AND PAST MEMBER OF AFFIRMED. THE EUREKA SPRINGS CITY ADVERTISING AND PROMOTION COMMISSION; JEFF CARTER, INDIVIDUALLY AND IN HIS OFFICIAL CAPACITY AS A MEMBER AND CURRENT CHAIRMAN OF THE EUREKA SPRINGS CITY ADVERTISING AND PROMOTION COMMISSION; JAMES DEVITO, INDIVIDUALLY AND IN HIS OFFICIAL CAPACITY AS A MEMBER [OF] THE EUREKA SPRINGS CITY ADVERTISING AND PROMOTION COMMISSION; MELISSA GREEN, INDIVIDUALLY AND IN HER OFFICIAL CAPACITY AS A MEMBER [OF] THE EUREKA SPRINGS CITY ADVERTISING AND PROMOTION COMMISSION; HARRY MEYER, INDIVIDUALLY AND IN HIS OFFICIAL CAPACITY AS A MEMBER [OF] THE EUREKA SPRINGS CITY ADVERTISING AND PROMOTION COMMISSION; PATRICK BURNETT, INDIVIDUALLY AND OSTENSIBLY IN HIS OFFICIAL CAPACITY AS AN APPARENT MEMBER [OF] THE EUREKA SPRINGS CITY ADVERTISING AND PROMOTION COMMISSION; THE EUREKA SPRINGS CITY ADVERTISING AND PROMOTION COMMISSION; THE CITY OF EUREKA SPRINGS, ARKANSAS; ROBERT D. “BUTCH” BERRY, INDIVIDUALLY AND AS MAYOR OF THE CITY OF EUREKA SPRINGS, ARKANSAS; KIM STRYKER, INDIVIDUALLY AND IN HER OFFICIAL CAPACITY AS CHIEF ADMINISTRATIVE ASSISTANT TO MAYOR BUTCH BERRY; STATE AUTO MUTUAL INSURANCE COMPANY; AND PHILADELPHIA INDEMNITY INSURANCE COMPANY APPELLEES
COURTNEY RAE HUDSON, Associate Justice
Appellants Tracy Johnson, Gina Rambo, James R. “Rick” Bright, Greg Moon, and
Karen Pryor appeal the Carroll County Circuit Court’s order denying their motion for an
emergency injunction that sought the removal of three members of the Eureka Springs City
Advertising and Promotion Commission (CAPC). For reversal, appellants argue that (1)
appellee Carol Wright’s appointment to the CAPC violated article 19, section 3, of the
Arkansas Constitution, and (2) the appointments of appellees Melissa Green and Harry
Meyer to the CAPC violated Arkansas Code Annotated section 14-42-107(a)(2) (Supp.
2021). We affirm.
2 The City of Eureka Springs (City) created the CAPC when it approved Ordinance
936 in 1972. The CAPC was organized under Act 185 of 1965 as amended by Act 30 of
the First Extraordinary Session of 1965 and further amended by Act 123 of 1969. At its
inception, the CAPC was composed of seven members, all of whom were required to be
qualified electors of the City. Four members were to be hotel, motel, or restaurant owners
or managers. The mayor and two members of the city council filled the remaining three
positions. Ordinance 936 vested commissioners with the authority to adopt rules and
regulations for the operation of the CAPC and to alter or amend those rules and regulations.
Over the years, Ordinance 936 was amended several times, but it always called for the
CAPC to be composed of, in part, two members of the city council.
In July 2007, the City approved Ordinance 2060, which adopted Arkansas Code
Annotated section 26-75-601 et seq. (Repl. 2020), as the enabling legislation under which
the City collected the Advertising and Promotion Tax (A&P tax). The City collects about
$1.5 million annually pursuant to the A&P tax. Ordinance 2060 provided that the CAPC
was to be composed of seven members; four business owners or managers in the tourism
industry who were to reside in the City, two members of the City’s governing body, and
one qualified elector who resided in the city to be appointed by the mayor from the public
at large. The two members of the governing body were to serve at the will of the governing
body. In January 2015, the City approved Ordinance 2220, which amended its code
regulating the CAPC. Ordinance 2220 provided that the CAPC was to be composed of
seven members: four tourism-industry members, an at-large member who was to reside in
Carroll County, and two members who were required to be “members of the governing
3 body of the municipality and selected by the governing body and serving at the will of the
governing body.” The ordinance authorized the mayor to appoint the at-large member.
At the January 11, 2021, regular City Council meeting, nominations were made for
appointments to CAPC positions five and six. All six members of the council were present:
appellees Green and Meyer, Bill Ott, Autumn Slane, Terry McClung, and LauraJo Smole.
As to position five, Green and Meyer initially received two votes each. After a second round
of voting resulted in Green and Meyer receiving three votes each, Mayor Butch Berry cast
the deciding vote for Green, and Green was appointed to CAPC position five. As to position
six, there were initially three votes for Meyer, and one each for McClung, Ott, and Slane.
A second vote yielded the same results, and Mayor Berry cast the fourth vote for Meyer,
which resulted in Meyer’s appointment to position six. Both Green and Meyer were sitting
city council members at the time of their appointments. Appellee Carol Wright holds
position seven, the CAPC at-large position. Wright was appointed to that position in June
2017. At that time, and all times thereafter, Wright has been a Carroll County resident, but
she has not lived within the Eureka Springs city limits at any time relevant to this appeal.
On January 27, 2021, the CAPC voted to remove appellant Moon from his position
as a CAPC commissioner. Appellants Rambo and Johnson were thereafter terminated from
their employment with the CAPC. Appellants filed a lawsuit alleging, among other things,
that Moon’s removal was illegal. On May 26, 2021, the circuit court entered an order
directing that Moon be reinstated. That did not resolve all the issues, and the case proceeded.
On June 3, 2021, appellants filed a motion for an emergency injunction in which they
asserted that Wright, Meyer, and Green, had been illegally appointed to the CAPC and
4 requested that the circuit court order their removal. Appellants argued that Wright’s
appointment to the CAPC pursuant to Arkansas Code Annotated section 26-75-605(a)(2)
violated article 19, section 3, of the Arkansas Constitution. They further argued that Meyer’s
and Green’s appointments pursuant to Arkansas Code Annotated section 26-75-605(a)(2)
violated Arkansas Code Annotated section 14-42-107(a)(2). On June 14, 2021, appellants
filed an amended complaint making the claims set forth in that motion.
At a June 25, 2021, hearing, the circuit court issued an oral order denying the motion
for an emergency injunction. Appellants filed a motion to reconsider the decision as to
Wright only. On July 19, 2021, the circuit court entered a written order again denying
appellants’ motion. Specifically, the circuit court held that in light of Arkansas Code
Annotated section 26-75-605 permitting the at-large CAPC commissioner to be appointed
from the county, article 19, section 3, of the Arkansas Constitution did not prevent Wright’s
appointment to the at-large position on the Eureka Springs CAPC even though she was not
a resident or an elector of the City of Eureka Springs at the time of her appointment or
service on the CAPC. With respect to Meyer and Green, the circuit court concluded that
Arkansas Code Annotated section 26-75-605 permitted the appointment of two city-
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