The Arkansas Supreme Court recently ruled in favor of City of Eureka Springs and City Advertising and Promotion Committee officials in affirming the lawfulness of the appointment of Carol Wright, who lives in rural Carroll County, to the CAPC. Plaintiffs had appealed an earlier Arkansas Supreme Court ruling that the appointment of Wright was legal.
The lawsuit seeking nearly $17 million in damages was filed by former CACP contract worker Tracy Johnson, who was special events coordinator; Rick Bright, CAPC finance director, who has since retired; Karen Pryor, group sales coordinator; Gina Rambo, publicist; and Greg Moon, who has since resigned as an A&P commissioner.
The lawsuit alleges the rights of the plaintiffs were violated through acts of civil conspiracy, fraud, defamation, breach of contract, negligence, violations of the Arkansas Deceptive Trade Practices, violations of the Arkansas Open Meetings Law, and violations of the Arkansas Freedom of Information Act. The plaintiffs are represented by attorney Tim Parker.
Defendants in the case include Wright, alderman CAPC commissioner Melissa Greene, alderman/CAPC commissioner Harry Meyer, commissioners Jeff Carter, James DeVito and Patrick Burnett, Mayor Butch Berry, Administrative Assistant Kim Stryker, State Auto Mutual Insurance Company, and Philadelphia Indemnity Insurance Company.
Amanda LaFever, litigation counsel, Arkansas Municipal League, who is representing the city and the CAPC in the lawsuit, sent an email letter to her clients April 28 stating: “Plaintiffs filed what’s called a Petition for Rehearing at the Supreme Court, asking the Court to reconsider its previous ruling regarding Carol’s CAPC service, and I responded.
“…I’m pleased to report that the Supreme Court issued an Order today denying Plaintiffs’ Petition for Rehearing. The Court also ordered that the Plaintiffs pay $138 for brief costs. Congratulations!”
LeFever said plaintiffs have filed a supplement to the complaint regarding Mayor Berry only, to which she has filed an answer. She also said that she has hired an additional attorney to assist her with the case “in the hope that she can assist me in beginning to whittle down parties and claims. I will keep you all posted.”
The supplemental complaint filed against Berry is regarding an allegation that he slandered Tracy Johnson when meeting with alderman Autumn Slane, who secretly recorded the conversation and turned the tape over to Parker.
The supplemental complaint based on the tape said that Berry made false and malicious statements about Tracy Johnson to third persons on April 5, 2021. “Specifically, Berry accused Tracy Johnson of embezzlement,” the complaint states. “Berry admitted at his deposition taken Feb. 8, 2022, that he had no knowledge that Tracy Johnson had committed any acts of embezzlement or other wrongdoing involving her taking money or property belonging to the City of Eureka Springs or the Eureka Springs City Advertising and Promotion Commission.”
The complaint alleges that his statement was a lie given under oath. The complaint states that as a result of Berry’s false and malicious statements, the reputation of Tracy Johnson has been damaged. “She has suffered embarrassment and humiliation as well as mental and emotional distress as a direct proximate result,” the complaint states.
The complaint asks for both compensatory and punitive damages against Berry in amounts to be determined by a jury.
The response filed by LaFever states that Berry denies having engaged in slander or defamation of Johnson.
“The allegations of the Supplemental Complaint fail to state facts or a claim upon which relief may be granted,” the answer to the Supplement Complaint states. “City Defendants assert that they have not engaged in any conduct that violated any of the Plaintiffs’ Constitutional, statutory, common law or other legal rights. City Defendants are entitled to tort, qualified, good faith, and punitive damages immunity under all applicable doctrines of immunity pursuant to state and federal law.”
The response also states “to the extent Plaintiffs sustained any damages, the damages were a direct and proximate result of Plaintiffs’ own conduct. Plaintiffs have plead a factually insufficient case to warrant the imposition of punitive damages. Punitive damages are not recoverable against a municipality as a matter of law. Plaintiffs have failed to exhaust all administrative remedies prior to bringing this action.”
CAPC commissioners have said that Johnson was not fired, but that the special events coordinator position was eliminated because of the pandemic restrictions on special events.
In a recent letter to the editor of the Eureka Springs Independent, Berry said he does not believe he lied under oath.