State Supreme Court rules in favor of City of CAPC

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The Arkansas Supreme Court recently ruled in favor of the City of Eureka Springs and the City Advertising and Promotion Committee (CAPC) officials in affirming the lawfulness of the appointment of three people to the CAPC—Carol Wright, who lives in rural Carroll County, and City Council members Harry Meyer and Melissa Green.

The lawsuit filed by former CAPC employees, one contract worker, and former commissioner Greg Moon made allegations 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 Independent reported in March 2021 that the Circuit Court lawsuit sought more than $16.75 million in collective damages. Plaintiffs are former CAPC Events Coordinator Tracy Johnson, former Interim-Director Gina Rambo, CAPC Finance Director Rick Bright, CAPC Sales Director Karen Pryor, and former commissioner Greg Moon.

Amanda LaFever, litigation counsel, Arkansas Municipal League, said in a letter to her clients recently that she was incredibly pleased to report that the Arkansas Supreme Court affirmed Judge Jackson’s rulings regarding the lawfulness of Carol’s, Melissa’s, and Harry’s CAPC service.

“Specifically, the Court ruled that it was NOT unlawful for Carol, as a resident of the County, but not of the City, to serve as a commissioner on the CAPC,” LaFever wrote. “The Court also ruled that the concurrent service of City Council members on the CAPC was lawful. This was a major victory, not just for you all, but for all of the A & P commissions in the state.”

However, she said that the remaining portions of the lawsuit in the Circuit Court are still active.

The five plaintiffs represented by the Parker Law Firm claim that their rights were violated by commissioners Wright, Greene, Meyer, commissioners Jeff Carter and James DeVito, Mayor Butch Berry, Chief Administrative Assistant Kim Stryker, State Auto Mutual Insurance Company, and Philadelphia Indemnity Insurance Company.

Reporter Holly Wescott wrote in the Independent in March 2021 that the petition sues commissioners individually and as members of the CAPC, claiming that their actions “warrant the imposition of punitive damages.” 

“Plaintiffs’ claims include that Greg Moon was illegally removed from the commission in order to have the votes necessary to remove Johnson and Rambo as employees,” Wescott reported. “Plaintiffs also claim that defendants took illegal initiative on Jan. 27 to remove Moon ‘in order that they could continue in their concerted efforts to take over the CAPC’.”

Moon has since resigned and moved out of town. Johnson and Rambo were fired, Bright retired, and Pryor terminated her association with the CAPC.