Johnson v. Butler
2016 Ark. 253
| Ark. | 2016Background
- Eugene Butler, a UAPB police officer promoted to detective/major, alleged he participated in an audit/investigation concerning possible misuse of Harrold Complex payroll/time sheets and told auditors the truth. He alleges retaliation and termination on Feb. 24, 2012 after communicating with auditors and refusing to lie.
- Butler sued Calvin Johnson (official capacity) and the Board of Trustees of the University of Arkansas under the Arkansas Whistle-Blower Act (AWBA), seeking reinstatement, benefits, and damages.
- The University moved to dismiss under Ark. R. Civ. P. 12(b)(6), arguing sovereign immunity barred the suit and the complaint failed to state an AWBA claim; the trial court denied the motion without explanation.
- The University appealed interlocutorily under Ark. R. App. P.–Civ. 2(a)(10) (denial of motion to dismiss based on sovereign immunity).
- The Arkansas Supreme Court reviewed whether Butler’s third amended complaint pleaded facts sufficient to state a claim under the AWBA (which, if proven, would waive sovereign immunity) and whether the interlocutory appeal was properly before the Court.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Butler pleaded facts sufficient to state a claim under the AWBA (reporting waste/participation in investigation) | Butler: alleged participation in audit/investigation, communications with auditors, and that he was told he would be terminated for participating | University: complaint is conclusory, does not identify what was reported, lacks specific facts showing covered reporting or causation | Held: Complaint fails to state factual basis for AWBA relief; conclusory allegations insufficient; dismissal required (sovereign immunity bars suit) |
| Whether the AWBA waives the State’s sovereign immunity such that suit may proceed against the University/officials in official capacity | Butler: AWBA creates cause of action against a “public employer,” so waiver applies | University: Article 5 § 20 forbids making State a defendant; legislative waiver unconstitutional or inapplicable here | Held: Court did not decide constitutional question of legislative waiver because Butler failed to allege AWBA claim; waiver issue unnecessary to resolve |
| Whether equitable/ultra vires exception permits suit (injunctive/extraordinary relief against state officials) | Butler: implied that participation in audit and alleged misconduct might implicate equitable exceptions | University: No allegations of ultra vires, bad faith, or arbitrary official acts; no equitable exception pleaded | Held: No ultra vires/bad-faith allegations in complaint; equitable exception not established |
| Whether this Court has jurisdiction over interlocutory appeal (trial court ruling on sovereign immunity) | Butler: trial-court order denying motion operated as ruling on sovereign immunity; interlocutory appeal proper | University/Some dissenters: trial court’s order did not expressly rule on sovereign immunity; Alpha Marketing requires an express ruling; no jurisdiction | Held: Majority treated trial-court denial as ruling on sovereign immunity and reached the merits; (several justices dissented, arguing lack of jurisdiction) |
Key Cases Cited
- Arkansas State Highway Comm’n v. Nelson Brothers, 191 Ark. 629 (court’s historical view that legislature cannot consent to suit against State)
- Fairbanks v. Sheffield, 226 Ark. 703 (Ark. 1956) (legislative attempts to waive immunity held unconstitutional)
- Ark. Dep’t of Fin. & Admin. v. Staton, 325 Ark. 341 (Ark. 1996) (later cases recognizing legislative waivers)
- Ark. Dep’t of Fin. & Admin. v. Tedder, 326 Ark. 495 (Ark. 1996) (same)
- Ark. Tech Univ. v. Link, 341 Ark. 495 (Ark. 2000) (equitable ultra vires exception; jurisdictional nature of sovereign immunity)
- Smith v. Daniel, 2014 Ark. 519 (Ark. 2014) (holding AWBA authorization against a public employer amounts to a waiver where claim sufficiently pleaded)
- Ark. State Claims Comm’n v. Duit Constr. Co., 2014 Ark. 432 (Ark. 2014) (pleading standards; treat facts as true but not legal conclusions)
- Crawford County v. Jones, 365 Ark. 585 (Ark. 2006) (AWBA: reporting to appropriate authorities can be jury question when evidence supports it)
- Arkansas Lottery Comm’n v. Alpha Marketing, 2012 Ark. 23 (Ark. 2012) (interlocutory appeal under Rule 2(a)(10) requires express ruling on sovereign immunity)
- Arkansas Dep’t of Cmty. Correction v. City of Pine Bluff, 2013 Ark. 36 (Ark. 2013) (statutory waiver/sovereign immunity analysis)