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Mountain Pure, LLC v. Little Rock Wastewater Utility
383 S.W.3d 347
Ark.
2011
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Background

  • Mountain Pure appealed LRW's administrative decision finding violations of its compliance order, discharge permit, and sewer ordinance; LRW required separation of outfalls and installed a representative sampling/flow-measurement system to bill sewer fees accurately.
  • LRW's 2001 compliance order required Mountain Pure to install a properly calibrated sewer meter; LRW warned it would use city meters until fixed.
  • LRW permitted only two flow-measurement methods: a LRW-approved sewer meter or facility-based diversion meters.
  • MWP pursued alternatives for estimating wastewater flow; LRW clarified the ordinance in 2007–2009, referencing Little Rock Ordinance No. 19,647 §1(d) and §1(f)(6).
  • In 2009 the LRW Sanitary Sewer Committee authorized a show-cause order; the July 2009 hearing officer found MWP violated the compliance order, the discharge permit, and the ordinance; August 2009 compliance deadline was set.
  • The circuit court affirmed in 2010; MWP appealing; LRW argued Rule 9 governs the appeal since LRW is a municipal body rather than a state agency; this Court held Rule 9 governs and retained administrative-review standard of review; the appeal was then affirmed on the merits.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether the appeal was properly perfected under Rule 9. Mountain Pure argues APA/§§ 25-15-212, 35-303(C) apply. LRW argues Rule 9 governs appeals from municipal agencies. Yes; Rule 9 governs and provides jurisdiction.
Whether §1(d) vs §1(f)(6) of Ordinance 19,647 was correctly applied. §1(f)(6) allows credits for unjust charges; no meter installation required. §1(d) controls for customers with non-sewer-dispatched water; specific statute governs over general. LRW correctly applied §1(d); §1(f)(6) not controlling for past charges here.
Whether the administrative decision is supported by substantial evidence. MWP presented overcharge evidence; LRW failed to show non-overcharge. LRW found no competent support from Watkins; §1(d) compliance and meter requirement justified the credit. Yes; decision supported by substantial evidence and independent bases. (Circuit affirmed)
Whether the circuit court erred in excluding/admitting a post-order chart under evidentiary rules. Chart confirms overcharges; not offered to prove liability, but damages. Chart was for settlement and not part of agency record; Rule 408 applies; moot issue, no reversal. Moot; no reversal on evidentiary issue.

Key Cases Cited

  • Nash v. Ark. Elevator Safety Bd., 370 Ark. 345 (2007) (scope of review limited to the agency record; substantial evidence standard)
  • Wright v. City of Little Rock, 366 Ark. 96 (2006) (pleadings liberally construed to give substance over form in administrative appeals)
  • Wal-Mart Stores, Inc. v. D.A.N. Joint Venture III, L.P., 374 Ark. 489 (2008) (general statute yields to specific statute; statutory interpretation given deference to agency)
  • Ozark Gas Pipeline Corp. v. Ark. Pub. Serv. Comm’n, 342 Ark. 591 (2000) (specificity governs over general regulation in regulatory matters)
  • Stricklin v. Hays, 332 Ark. 270 (1998) (interpretation of ordinances; apply same rules as statutes)
  • Cave City Nursing Home, Inc. v. Ark. Dep’t of Human Servs., 351 Ark. 13 (2002) (statutory-construction rules apply to ordinances; deference to agency interpretation)
  • Johnson v. Dawson, 2010 Ark. 308 (2010) (strict compliance with Rule 9; pleadings viewed for substantial justice)
  • City of Ft. Smith v. Carter, 372 Ark. 93 (2008) (appellate deference to agency rulings and statutory construction)
  • Chelsea Piers Management, Inc. v. Chapin, 7 A.D.3d 389 (2004) (illustrative of credit/adjustment arguments in sewer charges)
Read the full case

Case Details

Case Name: Mountain Pure, LLC v. Little Rock Wastewater Utility
Court Name: Supreme Court of Arkansas
Date Published: Jun 16, 2011
Citation: 383 S.W.3d 347
Docket Number: No. 11-17
Court Abbreviation: Ark.