ARKANSAS DEPARTMENT OF EDUCATION; JOHNNY KEY, IN HIS OFFICIAL CAPACITY AS ARKANSAS COMMISSIONER OF EDUCATION; AND DIANE ZOOK, SUSAN CHAMBERS, CHARISSE DEAN, R. BRETT WILLIAMSON, O. FITZGERALD HILL, OUIDA NEWTON, SARAH MOORE, AND KATHY MCFETRIDGE, IN THEIR OFFICIAL CAPACITIES AS MEMBERS OF THE ARKANSAS STATE BOARD OF EDUCATION v. AMBER BOOTH MCCOY; DON BOOTH; KATHERINE LU; EUGENE LU; AND SKYE ADAMS
No. CV-20-536
SUPREME COURT OF ARKANSAS
June 17, 2021
2021 Ark. 136
RHONDA K. WOOD, Associate Justice
APPEAL FROM THE PULASKI COUNTY CIRCUIT COURT [NO. 60CV-20-2439]
HONORABLE MARY SPENCER MCGOWAN, JUDGE
AFFIRMED IN PART; REVERSED AND DISMISSED IN PART; AND REMANDED.
RHONDA K. WOOD, Associate Justice
This is a dispute about the State of Arkansas‘s continued supervision and control over the Little Rock School District (“LRSD“). The present appeal involves whether sovereign immunity precludes this lawsuit by appellees1 against the Arkansas Department of Education,
The State Board presents three issues, and we resolve them as follows. First, we conclude the circuit court lacked subject-matter jurisdiction over the parents’ Administrative Procedure Act (“APA“) claim and reverse and dismiss as to that claim. Second, we reverse the circuit court‘s finding that the appellees sufficiently pled an illegal-acts or ultra vires exception to sovereign immunity under
I. Procedural Background and Relevant Facts
In 2017, the General Assembly passed the Arkansas Educational Support and Accountability Act (AESAA), 2017 Ark. Acts 930, codified at
- The LRSD Board may not make any change in the superintendent without the approval of the State Board;
- The LRSD Board may not make any manner of selection of the Personnel Policy Committee or affect its status, or recognize any employee bargaining agent without the approval of the State Board; and
- The LRSD Board may not institute any litigation (other than routine contract litigation against vendors or contractors of the LRSD).
The State Board moved to dismiss based on sovereign immunity and lack of subject-matter jurisdiction. The circuit court denied the motion to dismiss. The State Board appealed.
II. Standard of Review
In reviewing a circuit court‘s decision on a motion to dismiss, we treat the facts alleged in the complaint as true and view them in the light most favorable to the plaintiff. Ark. Dep‘t of Fin. & Admin. v. Carpenter Farms Med. Grp., 2020 Ark. 213, at 6, 601 S.W.3d 111, 117. We focus only on the allegations in the complaint and not matters outside the complaint. Id. We will resolve all reasonable inferences in the complaint‘s favor and construe the pleadings liberally. Id. On appeal, we review de novo the State Board‘s claim that sovereign immunity bars the parents’ complaint. Id. at 7, 601 S.W.3d at 117.
A. Administrative Procedure Act - Section 25-15-214
We first address the circuit court‘s lack of subject-matter jurisdiction under the APA. The parents’ complaint alleged that under
Subject-matter jurisdiction is a court‘s authority to hear and decide a particular type of case. Ark. Dep‘t of Fin. & Admin. v. Naturalis Health, LLC, 2018 Ark. 224, at 6, 549 S.W.3d 901, 906. Whether a circuit court has subject-matter jurisdiction rests on the pleadings, not the proof. Id. Generally, courts lack “jurisdiction to examine administrative decisions of state agencies.” Id. That said, circuit courts do have limited review as specifically granted by certain APA provisions. Id.
The State Board has already promulgated rules of general applicability for exit criteria.
The parents’ APA claim could survive under
The parents’ complaint also sought relief from the State‘s decision to place three limitations on the reconstituted LRSD Board. They asked the circuit court to declare their right to elect a local board free of any limitations and to enjoin the State Board from imposing restrictions. Do the parents’ allegations state sufficient facts to surmount sovereign immunity? We hold that they do not.
Our sovereign-immunity doctrine bars suit if a judgment for the plaintiff will operate to control the action of the State or subject it to liability. Bd. of Trs. of Univ. of Ark. v. Andrews, 2018 Ark. 12, at 5, 535 S.W.3d 616, 619. Yet we allow declaratory-judgment actions against the State if the complaint alleged illegal and unconstitutional acts in compliance with our fact-pleading rules. See Monsanto Co. v. Ark. State Plant Bd., 2019 Ark. 194, at 9, 576 S.W.3d 8, 13; Ark. Game & Fish Comm‘n v. Heslep, 2019 Ark. 226, at 6, 577 S.W.3d 1, 5. In other words, the complaint must specify facts to support the parents’ allegation that the State or a State agency acted illegally or beyond its authority. Id.
The parents alleged that the State Board exceeded its statutory powers because
Our constitution charges the State with the responsibility of educating its youth: “the State shall ever maintain a general, suitable and efficient system of free public schools and shall adopt all suitable means to secure to the people the advantages and opportunities of
Taking the facts in the light most favorable to the parents, the parties agree that the LRSD remained at Level 5 for more than five years, and that consistent with its authority under
Thus, even taking the parents’ allegations as true, as we are required to do in a motion to dismiss, the parents identify no fact or statute that suggests the State Board acted illegally or ultra vires by imposing limitations on the reconstituted LRSD Board. Sovereign immunity consequently bars these claims, and we reverse and dismiss as to these claims.
C. Unconstitutional Delegation of Legislative Authority
Our inquiry does not end with our holding that the State Board did not act illegally. The parents argue alternatively that
Because this claim involves a direct challenge to the constitutionality of these statutes, and because the parents seek only declaratory and injunctive relief under it, this claim surmounts a sovereign-immunity defense at the motion-to-dismiss stage. See Ark. State Plant Bd. v. McCarty, 2019 Ark. 214, 576 S.W.3d 473. And we decline to decide the merits of this constitutional challenge at this interlocutory stage. We therefore affirm the circuit court‘s denial of the motion to dismiss based on sovereign immunity as to this claim and remand.
Affirmed in part; reversed and dismissed in part; and remanded.
BAKER, WOMACK, and WEBB, JJ., concur in part and dissent in part.
KAREN R. BAKER, Justice, concurring in part and dissenting in part. While I concur in the result reached by the majority in Parts A and B, I dissent from the remainder of the opinion. Because of the precedent established in Board of Trustees of the University of Arkansas v. Andrews, 2018 Ark. 12, 535 S.W.3d 616, I would also reverse and dismiss as to Part C for the reasons explained below.
Andrews does not provide for exceptions to its broad language barring suit against the State. In Andrews, the court held that “never means never” and did not identify exceptions. Accordingly, despite the majority‘s attempt to narrow Andrews, the broad language of Andrews does not permit such suit. Pursuant to Andrews, McCoy‘s pleadings are
Accordingly, I concur in part and dissent in part.
SHAWN A. WOMACK, Justice, concurring in part and dissenting in part. I join the Court‘s decision today with one exception. The majority erroneously affirms the denial of the State Board‘s motion to dismiss Appellees’ constitutional challenge to
I.
As an initial matter, the circuit court did not rule that sovereign immunity barred the constitutional challenge to the AESAA. Instead, the circuit court‘s order on this point was premised on its view that the complaint stated a claim upon which relief could be granted. Absent a ruling on sovereign immunity, we do not have jurisdiction to entertain this point on appeal under
II.
If we had jurisdiction over this issue, the circuit court should be reversed and the constitutional challenge dismissed. The majority‘s decision otherwise misapprehends our sovereign immunity caselaw. We have previously held that “the defense of sovereign immunity [is] inapplicable in a lawsuit seeking only declaratory and injunctive relief and alleging an illegal, unconstitutional, or ultra vires act.” Ark. State Plant Bd. v. McCarty, 2019 Ark. 214, at 7–8, 576 S.W.3d 473, 477 (citing Martin v. Haas, 2018 Ark. 283, at 7–8, 556 S.W.3d 509, 514–15). The first requirement is undoubtedly satisfied: Appellees seek declaratory and injunctive relief. Under the second requirement, the complaint must allege “an illegal, unconstitutional, or ultra vires act.” Id. These allegations must still comply with our fact-pleading rules. See Monsanto Co. v. Ark. State Plant Bd., 2019 Ark. 194, at 9–10, 576 S.W.3d 8, 12. The complaint falls far short of meeting our fact-pleading requirement and thus failed to adequately allege an illegal, unconstitutional, or ultra vires act.
The majority‘s contrary conclusion is based on its view that the claim is sufficient because it “involves a direct challenge to the constitutionality of” the statutes. This may be true in “notice pleading” jurisdictions, which simply require that a complaint provide fair notice of “what the . . . claim is and the grounds upon which it rests.” Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 555 (2007).
According to the complaint,
There are no factual allegations within the complaint identifying how the challenged statutes fail to provide guidelines and elements for the creation of exit criteria for the Little Rock School District. Indeed, the only factual allegations regarding exit criteria involve Appellees’ erroneous assertion that district-specific criteria are subject to the rulemaking procedure within the Administrative Procedure Act. Similarly, the complaint fails to identify any facts showing that the “guardrails” exceed the “specifically enumerated powers” within
BARBARA W. WEBB, Justice, concurring in part and dissenting in part. The majority misapplies our standard in reviewing the granting of a
We are to construe pleadings liberally so as to do substantial justice.
For the violations of the APA and the offenses on the educational liberties to them and their children, the parents sought the following relief in their complaint:
¶ 73. A court order requiring the State to immediately comply with the APA and
¶ 78. A declaratory judgment that declared the parents the right to an elected District School Board free of “guardrails” and a District not subject to improperly promulgated “exit criteria“;
¶ 82. A writ of mandamus to compel the State to comply with the five-year deadline in
¶ 95. A finding that the actions of the State Board in imposing “guardrails” that went beyond the five-year period is “unlawfully delegated power“; and, finally,
¶ 96. The parents requested an injunction against future State Board action.
In a
Whether the rules governing the AESAA have the exit-criteria rules should not be a factor because it does not test the pleading sufficiency of the parents’ complaint. To the extent further inspection of the AESAA Rules would be necessary, the parents would still state a claim. The parents acknowledge the AESAA Rules in their briefs and count them as of no moment. They are right to do so because there are no rules for exit criteria—none whatsoever—in the AESAA Rules.
Instead, the AESAA Rules state that the education department shall develop a “district improvement/exit plan for each district classified as in need of level 5-intensive support.” AESAA R. 005-19-348 § 8.01. Nowhere in the AESAA Rules, or anywhere else that any party has cited, are there rules, be them general or specific, “to establish the criteria by which a public school district may exit Level 5—Intensive support.”
The absence of the APA-promulgated exit-criteria rules and the factual allegation that the commissioner is simply making up the exit-criteria rules for the termination of Level 5-Intensive Support directly offends, and is contrary to, the plain mandate of
We should next see that declaratory judgments are permitted in this kind of case and that sovereign immunity does not apply. Monsanto Co. v. Ark. State Plant Bd., 2019 Ark. 194, at 9, 576 S.W.3d 8, 13; Ark. Game & Fish Comm‘n v. Heslep, 2019 Ark. 226, at 6, 577 S.W.3d 1, 5. The parents alleged facts that the state board is acting illegally and unconstitutionally by failing to make APA rules, making rules outside the APA, continuing Level 5-Intensive Support for more than five years, and whether the state board is exercising an unlawful delegation of power from the legislature. These facts are present and pled and preclude sovereign immunity because they allege that the State is acting illegally and beyond its authority.
Leslie Rutledge, Att‘y Gen., by: Kat Guest, Ass‘t Att‘y Gen., for appellants.
Noland Law Firm, P.A., by: Ross Noland, for appellees.
RHONDA K. WOOD
Associate Justice
