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Mercury Marketing Technologies of Delaware, Inc. v. State Ex Rel. Beebe
189 S.W.3d 414
Ark.
2004
Check Treatment

*1 TECHNOLOGIES OF MERCURY MARKETING Gointernet.net, Inc.; Saferstein; DELAWARE, INC.; Neal Cohen; of Arkansas Rosenkranz STATE Arthur Robert Beebe, General ex rel. Mike 189 S.W.3d 03-1328 Court of Arkansas Supreme 1,2004 delivered July Opinion *2 Coulter, Wilson, Corum D. Corum and Engstrom, by: Gary Coulter, Nate for appellant. Beebe, Gen., Williams, Mike Camille Ass’t Att’y by: Att’y J.

Gen., for appellee. Brown, ing R obert L. Market- Appellants, Mercury Justic Delaware, Inc., GoInternet.Net, e.e. Technologies Inc., Saferstein, Cohen, Neal Arthur and Robert Rosenkranz (jointly referred to as from the circuit court’s Mercury), appeal busi- it from its telemarketing conducting enjoining affirm the in Arkansas.1 assertsfour We ness points appeal. order of the circuit court. 12, 2002, Arkansas, the State of On November appellee, General,

which was filed State represented of action under the a cause against Mercury complaint alleging Arkansas Trade Practices Act which is (ADTPA), Deceptive — codified at Ark. Ann. 4-88-101 4-88-503 Code (Repl. §§ asserted that con- 2003). Supp. complaint nation, Arkansas, ducted business throughout including offer services operating telemarketing strategies “ostensibly such as web site creation and maintenance.” It then explained *3 method of business: Mercury’s conducting

21. The market defendants their services Mercury primarily churches, small businesses such as not-for-profit organizations, offices, medical and law firms. They obtain lists of telephone numbers of these businesses and for the trained telemarket- arrange ers to call these businesses.

22. the Mercury defendants telemar- began making calls to Arkansas. keting

23. defendants’ Mercury telemarketer with the speaks business, individual that answers the for the whether it is telephone (the small business owner call employee recipient). calls, 24. these During Mercury defendants offer ostensibly to create web for businesses. Most call pages recipients remem- ber the call believed were offered a free they being web sample and information but design never to be billed. Other call agreed do not recall ever contacted. recipients being 25. the telemarketer’s initial discussion with the Following call he or she is asked to hold for verification. recipient, During verification the call is asked procedure, informa- recipient verify name, tion such as address and number. phone

26. At no time this do the defendants during process disclose to the call clearly basic and conspicuously recipient 25, 2003, By September order dated defendants Cohen and Rosenkranz were dismissedfrom the lawsuit. terms, method of method of cancel-

material such as price, billing, lation, bill, the call assent to the intent to or even ask for recipient’s contractual arrangement. conceal

27. One method which the defendants is that after the referred to above is these material terms information confirmed, the cadence in such a rapid begins telemarketer speaking used that he cannot be understood. Another method the terms telemarketer omits some or all of simply presentation.

28. the call is not During monologue, recipient clearly informed the telemarketer that the business target conspicuously if it does cancel the $29.95 will be billed service affirmatively within 15 days.

29. At no time is the call asked to to have the recipient agree business billed. target service,

34. The written notice of the price method of .cancellation in small billing, policy printed print over down the second and on the back side of one half-way page There, contained in the mail-out below page package. fine-print, 1,000 (not list of over access numbers one of grey-screened dial-up *4 number), which is an Arkansas at the bottom of the very telephone in italicized fine is the notice: page, gray-screened print following Please above the dial accessnumbers up setting up your refer for numbers, internetservice. have aboutmoredial you anyquestions up If commentsor decideto cancel service beadvisedto call you your please if number, our customerservice 888-948-1930. rates days Afterfifteen are 29.95 a month local bill. We conveniently your telephone not associatedwith local your phone company. later,

36. Fifteen defendants for a days Mercury arrange $29.95 to bill the third-party billing business company target per month on its bill. The on the current telephone charge placed often ILD it listed as services so to be charges, billing appears service That until normal continues part charges. billing The resultof noticeand cancelled business by target. billing realizeit methodisthat often doesnot target being business[] billed. [Emphasis original emphasisadded.] The asserted that the acts and of “constitute State Mercury practices relief, violations” of the ADTPA and that absent injunctive Mercury continue consumers and harm Arkansas likely injure relief, The businesses. State sought including the same its it On State filed also filed day complaint, motion, motion for In that the State preliminary injunction. it claimed that could meet its burden of for a proof injunction by violated ADTPA showing appellants that the act authorized on a relief specifically injunctive showing that, violation the act. The State further noted while not could it demonstrate that the “four elements tradition- required, considered and the factors identified in Rule 65 ally Arkansas Rules of Civil Procedure in favor of weigh granting State’s The State attached to its affidavits motion from request[.]” of four businesses representatives had been stating they billed Avenue Church of fraudulently Christ by Mercury (College Dorado, Rock, in El Law Firm in Little Hoggard Stuttgart Center, Medical and a at Regional Stuttgart physician Regional Medical The State Center). also attached an affidavit from its who had ADTPA investigator violations investigated by Mercury by conducting survey. 9, 2002,

On December filed a motion Mercury to dismiss motion, due to a In that statutory asserted that exception. because it was to an order subject administered currently being by the Federal Trade Commission (FTC) iden- concerning practices action, tical to those issue in the current the ADTPA was not under the terms of Ark. Code applicable Ann. 4-88-101 (Repl. Thus, 2001). according matter should be dis- Mercury, missed. The State this matter should responded Harris, addressed under our case of Villinesv.

S.W.3d 516 It further contended that the did ADTPA because was not in with apply order compliance FTC, administered as evidenced a letter from the FTC that was stating investigating Mercury engaging practices in violation of the order. FTC also State asserted that many the violations which occurred in Arkansas took place prior *5 27, reasons, of the FTC order dated entry For 2000. these February maintained, the State motion to dismiss should Mercury’s denied. 7, 2003, at held on the motion on January A was hearing business heard from Arkansas time the court testimony on their been services Mercury’s owners who had charged time, the circuit their At bills without knowledge.

phone and denied the State’s denied motion to dismiss court Mercury’s there was but found that motion The with the order. cause for FTC probable non-compliance a trial there reason to forward with court determined that was go At with the FTC’s order. whether on compliance 2003, 14, the circuit court on July granted subsequent hearing the State’s oral renewal continuance denied again then set The circuit court its motion for a preliminary injunction.2 10, trial for November 2003. 2003, 26, counsel withdrew

On Mercury’s original August for a due to a of interest. new counsel’s conflict Following request continuance, noted to the court its inclination grant order and said: do is is that it’s tell what inclination is to you my my guess

I’ll in late. My to be for trial since ready you’re coming going had, order. They inclination is to grant temporary restraining we had a almost a there was substantial hearing year ago, case, were in that I but I also since we thought, thought evidence this, at so last have a resolution of least I fairly early thought to going fall, inclina- Restraining My that I denied Motion for Order. to, So, the reason I tion at this is to that motion. grant point General’s to if stay, you wanted office you guys Reconsider, will, I if Mr. Coulter is would file a Motion then If, hired, not, can and I’ll set somebody he can if respond. respond, for, determination. for some on motion At held on October the State’s hearing continuance, motion for for reconsideration Mercury’s circuit decided to Prior grant issue, made the on the the circuit court parties’ arguments statement: following think, me I I’ll let just Let me let tell what and then just, you to, too, had a last I

you year guess talk. We guys hearing deal, full, two and we had a a full have been injunction, day may court, hearing, jury that a in the matter was beginning at the noted trial set in two weeks. *6 it,... it like it was about a week after I to and

days, seemed listened was... that that my truthfully,... impression listening spi[e]l consumers, did ... telemarketers to Arkansas and given the, nature and of Federal lawsuit studied . . . Federal having that, it it seemed to me violated that Judge[’s Order], [Order], My concern and the reason I didn’t though, grant that I a real shaky think there is here. I’m not so sure legal precedent that case . governed this is . . Federal law. I mean I don’t just decided, so, know. I think there is an there that has and issue to be instead of an I to this to granting injunction, tried some get thing trial, resolution and that it to early to would way, get Supreme Court, and we it get one or other. way [could decided] meantime, Thirteenth, this has turned Halloween thing into and for, we’ve been in it and we’re wallowing now to wallow in it going for year, another I And it concerns me that suppose. type marketing that I saw in this hearing would techniques me, be continued we until it And try again. that’s... what bothers and I if don’t know still they’re if the SBC doing here], [business business, cut them out that’s I maybe something [ha]s shouldn’t be concerned about. If I were to grant temporary injunction, that Order? appealable the court Following parties’ arguments, State’smo- granted tion: Well,... I think I am to going grant injunctive relief. I think just there’s, but me say let also need we to this set get thing for

trial. I think it’s in a position that I don’t think can it in they try before,... November.... Q]ustfrom what I’veseen but... I’m going date, grant at least until the temporary injunction trial [and] let in there you guys go with Melissa and out when can figure you older, try this And I’ll abe we’ll spring. year all be a little smarter, But, this get I’m thing going. going grant your since, injunction. I think for one I thing don’t think they’re doing here business now right but I think that anyway, there’s a chance for harm if they continue the way they’re and it’shard going, this stop of conduct from type hurting lot of inif fact that’s what people ... to be a trial going going by jury? [is on.] [I]s 21, 2003, On October the circuit court entered an order motion granting continuance and Mercury’s the State’s motion for a based on the evidence and preliminary injunction 5, The order set arguments the trial date for presented. April and restrained and “from enjoined busi- any conducting ness in the state of Arkansas:” (1) telemarketing shall initiate any . Defendants . . Specifically, consumers; any (2)bill Arkansasconsumers any to Arkansas calls kind; any collect any or products sales services previous services customer for sales of any Arkansas charges *7 products. 6, the court on November order was entered circuit by

An amended 2003. ADTPA

I. Exception the is under first that ADTPA inapplicable argues Act, the at issue are of the because subject 4-88-101 practices § and this the FTC. It asserts with an order administered by comply had the Federal Trade Commission already on grounds in Penn- identical Mercury’s telemarketing practices investigated had filed one of the suit sylvania against appellants court, these a federal court order federal obtained governing the that order at the time identical and was administering practices, the It circuit State initiated action. maintains claims and violated the statute State’s by by issuing accepting injunction. be this: does by Mercury presented appears question circuit court have to issue a jurisdiction preliminary injunction ADTPA, under Ann. Ark. Code specifically pursuant where the 2001), 4-88-104(1) being enjoined (Repl. party § to an administered FTC involving order subject currently similar, same, as under 4-88- if not the practices contemplated § 4-88-101, of which 101. We turn to language governs ADTPA: applicability This does not to: chapter apply to and which subject Advertising practices rule, order, Federal administered with statute comply Trade Commissionf.] Ann. 4-88-101(1) 2001).

Ark. Code (Repl. court has observed that

This questions previously are not an interlocutory jurisdiction independently appealable Harris, See Villines injunction. supra. appeal hear Villines, had the court a “distinct basis authority specific from an 340 Ark. at 11 S.W.3d at injunction[.]” appeal 519. While the this court to examine whether the urged parties court erred in circuit had subject-matter jurisdiction finding issue, over the at an matter court said: reaches appeal “[w]hen court via order granting preliminary injunction, appel- late court will not delve into the merits the case further than to determine whether the trial court exceeded its discre- necessary tion in at Id. 11 S.W.3d 519. This granting injunction.” court concluded that where there is a distinct basis and specific to hear the from an “the authority extent our injunction, appeal 324,11 review is on the decision from.” Id. at dependent appealed S.W.3d at 519. We declined to review a number of specifically issues, unrelated to the whether preliminary injunction, including the circuit court erred in that it had subject-matter juris- action, diction over the because this went beyond scope interlocutory with that dealing appeal

The situation in Villines appears analogous here, situation where the statutory argued by exception Mercury concerns the circuit court’s to enjoin under the authority Mercury ADTPA. In this we are not regard, persuaded by Mercury’s contention that because statutory exception inextricably Furthermore, linked to this we should address it. we fail appeal, see how is in with an order Mercury administered compliance by FTC, which 4-88-101 for the to take requires exception § effect. We hold that the does not exception instant prevent appeal.

II. Standard ApplicableLegal that the State was erroneous in its argues conten- tion that it need show some credible evidence that reasonable violated, cause existed to believe that had or was likely violate, the ADTPA in order to receive a or temporary It contends that this court has never held that the General could authorize the of Assembly grant preliminary injunc- tive in the relief absence of two essential likelihood requirements: of success on the merits It harm. maintains that the irreparable is, best, court’s issuance of a preliminary injunction premised that the tone and cadence upon “suspicion ‘spiel’ — telemarketers which the trial court characterized as ‘quick — from someone in New gibberish not be Jersey’ might fully understood some Arkansans.” It asserts that nowhere in the circuit court of finding statement

record is there any harm, for such a basis much less evidentiary any irreparable of success on of likelihood nor is there any finding; express the merits. the ADTPA is Ark. relief under governed by

Injunctive 2001), Ann. 4-88-104 provides: Code (Repl. § hereunder, the to the criminal penalty imposed In addition authority, through General of this state shall have Attorney acting Counsel, to file action in the court designated Consumer chapter, civil enforcement of the this provisions 4-88-112 for to, of restitution and the seeking but not limited including, any engaging of an seeking injunction prohibiting person or unlawful deceptive practice prohibited by chapter. however, relies 2001). Ark. Code Ann. 4-88-104 (Repl. Mercury, 65 and our common law the on ArkansasRule of Civil Procedure that when issuing preliminary injunction proposition order, trial court must find: harm will (1) restraining irreparable order, in the absence of an result has demonstrated likelihood of success the merits. moving party Smith, Co., Inc. v. 140 S.W.3d Operating See AJ&K matter, As an initial we with agree he has a mandate to General that when specific statutory protect interest, for an traditional common-law prerequisites public as harm and likeli in civil such litigation, merits, are not Commonwealth hood of success on See applicable. *9 CRINC, 79, v. N.E.2d 792 ex (1984); Mass. 392 Mass. 466 People 874, Ill. 3d 471 N.E.2d rel. v. 128 Hartigan Dynasty Sys. Corp., App. (1984). decisions from foreign The State discussestwo state appellate the in of its that Rule jurisdictions proposition require- support do not to the State’s for ments preliminary apply request ex under 4-88-104. The most recent decision is State injunction § S.E.2d 792 rel. McGraw v. 196 W. Va. ImperialMarketing, case, the of West Court Appeals Virginia Supreme of a which restricted injunction examined the grant preliminary solicit West method and manner in which the could the appellee in the of and other The consumers sale products. Virginia jewelry issued observed that the method of analysis injunction court Va. the under W. Code 46A-7-110 West Virginia is Consumer Credit Protection Act more narrow than the motion for West typical applicable as statute follows: Virginia provided

With to an action to violations of this respect brought enjoin or chapter unconscionable fraudulent or unconscio- agreements conduct, nable to the court for attorney general may apply relief appropriate temporary against respondent, final pending determination of the If the court finds after a proceedings. hearing held notice to that there is reasonable to upon respondent cause believe that the in or is in respondent engaging likely engage restrained, conduct sought may to be grant any relief temporary order it deems appropriate. Va.W. Code 46A-7-110 (1974).

The West then went on to Virginia whether analyze the issuance of the under appropriate that statute:

The method of analysis governs propriety scope of an under W. Va. Code 46A-7-110 (1974) deviates from the standard for the customary issuance of relief and may best be as described whether the General has Attorney shown evidence, some existence of credible even if disputed, that reasonable cause exists to believe respondent is in engaging isor likely conduct engage sought be restrained. In other words, the General need not prove respondent has Act, fact violated but needs to make a minimal evidentiary reason showing good to believe that the essential elements of violation of the Act in view. footnote,

196 W. Va. at 472 S.E.2d at 798. In a the West Virginia court stated that the standard issuance of a customary prelimi consists of nary injunction similar to requirements Arkansas’: reason merits, able likelihood of success on the presence harm, the absence of other appropriate remedy, necessity aof test. balancing-of-hardship The second case cited State ex rel. People Hartigan There, Illinois, Sys.

Dynasty Court Corp., supra. Appellate Division, Fourth examined an denial interlocutory appeal of a motion to vacate a order and to vacate temporary restraining

330 from the marketing enjoining appellees a injunction preliminary services, sales consisted of a multi-level their products program. the the issuance of statute injunction

The Illinois governing provided: is to believethat any.person the Generalhas reason Attorney Whenever method, used, actor declared practice by is aboutto useany has or

using, and that proceedings Act to be unlawful, 2 20 this through Sections interest,he an action... to bring the or shemay wouldbe in public the use of such injunction restrainby preliminary permanent , method, 267. par. Ill.Rev. Stat. ch. 1/2 practice. act One of N.E.2d added). 128 Ill. 3d at (emphasis App. General, the Illinois was whether Attorney issuesbefore a in injunction, required prove seeking an The Illinois injunction. common-law traditional requirements an is that “when autho court reiterated a injunction prior holding statute, relief need common-law grounds rized traditional by statute established and requirements court then concluded that Id., 471 N.E.2d at 243. The controlling.” General, an Illinois’s in seeking Attorney pursuant Act, Business Practices need Fraud Consumer Deceptive Id., N.E.2d at 244. “show a violation the statute.” 4-88-104, differs the two statutes statute from foreign Our that the State relied on the State in that Attorney by provides any person General seek an may injunction “prohibiting or unlawful prohibited engaging deceptive practice Illinois, Act, Thus, as the case in violation of chapter.” General, is what to the state triggers prayer according Attorney for an injunction. the issuance of then arises as to what governs

The question In 1974 statute under 4-88-104. West Virginia, to file suit and General provided authorized Attorney order would issue upon temporary restraining court of “reasonable cause believe” engaging respondent Illinois, the that if the statute in forbidden conduct. provided that an unlawful “has reason to believe” practice General he she or may interest is contrary public being perpetuated, statute The Illinois injunction. seek a or permanent should what standard the court employ offers no guidance issuing *11 us, case before the Arkansas General Attorney had that a of the ADTPA was reason believe violation

clearly afoot, which he detailed in his and in his motion for complaint At the the Attor January hearing, preliminary injunction. from several Arkansas small- General ney presented testimony services, owners had been for its business who charged Mercury Knoll, Pawn; H Dale Dennis owner of H & including Haugen, Restaurants; office Cow Denise manager Hoggard, Purple Stewart, and owner of Dixon Manor Mobile attorney; Joe Park. of the Home None owners’ had been authorized employees service from to the owners. Some Mercury, accept according the owners testified that had never received information they in the mail. And some that would testified have Mercury they no use for the services offered that had they already services, internet did not internet service aor they require website. Each owner testified that after a bill phone reviewing a from the General did he or upon receiving survey she discover that the business was billed for being Mercury’s cross-examination, services. for some of During Mercury played the owners and the court of the circuit tape recordings calls that between the telemarketing owners’ phone transpired The circuit court later described employees Mercury. these calls as like the from The phone sounding Chipmunks Chipmunk Show, a spiel, “quick gibberish.”

We conclude that -the circuit court believed that clearly violation ADTPA was At circuit court’s occurring. July 14, 2003 court said had “there felt was hearing, previously 26, 2003, case for an pretty strong injunction[.]” On August court circuit stated that his inclination was to grant order had because there been a on matter hearing and there year was “substantial evidence in previously case[.]”3 violation,

The circuit court found evidence of a we hold that the court’s in this was not regard clearly America, erroneous. SeeArk. R. Civ. P. 52(a); Bank Thompson 576, 157 Moreover, S.W.3d 174 (2004). the circuit court argued We whether has that there was not sufficient question appeal arguments evidence that the ADTPA had been Rather, violated. its couched terms of no substantial evidence of harm or likelihood success merits. on the not issue that one reason it did

admitted to parties trial on merits was it believed a full earlier case, the isshed not to be the imminent. When proved to us to a reasonable This appears court’s decision upon public’s premised explanation interest. *12 court whether the circuit Mercury At one questioned point, to it was in The court went on that

was business the state. say doing of the chance of harm the because injunction issuing preliminary in Arkansas. This seems to the if is business doing Mercury public trial on whether to issue a reasonable. If at entirely permanent that has ceased business it is determined doing injunction Mercury then, Arkansas, the the be moot. Until in matter will should stand. we hold that the circuit court’s finding Again, P. was violated is not erroneous. SeeArk. R. Civ. ADTPA clearly 52(a).

III. Comity Judicial that it is a of For its final violation point, urges for an Arkansas court to issue judicial comity in is in when federal district court order Pennsylvania the case effect and administered FTC. cites our being 167, Ark. Petroleum, of Inc. v. 348 72 S.W.3d ThreeSisters Langley, The State 95 in of its (2002), argument. support disagrees on that reliance ThreeSisters Mercury’s misplaced. argues in The is correct. This court’s Three Sisters State analysis Petroleum,Inc. v to instant case. inapplicable Langley,supra, case, that this court reviewed a order restraining from circuit court Arkansas enjoining appellants proceeding court. After further in a similar suit in Louisiana state rejecting and likelihood of success circuit court’s bases for harm merits, this noted that the order at issue court of between courts of the “common comity ignored principles sister 348 Ark. at 72 S.W.3d at 103. We said: states.” “ . . . is the accordancewith comity’ principle ‘Judicial to of effect the laws jurisdictiongive the courts one state another, out of obligation not asa matterof but decisionsof judicial (1998) Laws 16 deference 16 respect.” 2d Conflictof Am.Jur. of that courts (footnote omitted). principle comity requires to Am. foreign exercise suits See 42 power enjoin sparingly. This is true where Injunctions 2d particularly Jur. has brought suit been court. already foreign Generally, “[a] of will of in a one state an action enjoin prosecution state second when court of second state was the first and the jurisdiction adjudicate acquire parties right in the absence of some controversy, peculiarly equitable ground such relief.” Am. granting Injunctions 206§ 2d Jur. This (footnote omitted). recognized in Pickett general principle Ferguson, (1885), wherein court held in the “is restraining party proceeding courts another state a matter of almost very great delicacy, inevitably leading distressing jurisdiction.” conflicts This court concluded such restraint should be suit imposed “where foreign ill calculated to answer the appears justice,” ends such as where the jurisdiction court lacks over all parties matter of the case. subject (citations omitted). Id.

Here, Pickett, unlike the facts in the state Louisiana court has fact, jurisdiction over all of the In the issue of parties. jurisdiction has been with repeatedly litigated, the Louisiana state court and both the Arkansas and Louisiana federal courts ruling jurisdiction court, in belonged Louisiana state due to fact that Louisiana residents were on both sides of the suit. Although have' Appellees recent appealed most jurisdiction state ruling by Louisiana court, it is not will apparent they succeed on that issue. Moreover, the in holding Cook clearly demonstrates this court’s historic reluctance to injunction support a resident of restraining a sister state from awith suit proceeding already instituted in that short, state. In the circuit court’s issue authority to injunctions suits foreign should be in exercised the rarest of circumstances. is not

This such a rare circumstance. 178-180,

Id. at 72 S.W.3d 103-04. hand,

In the case at same both in parties federal district court case and the Pennsylvania Arkansas case. case, the State was not in the Namely, federal and the FTC party Moreover, is not a here. while actions party of Mercury might case, be the in same each those actions could violate both certainly 334 addition, in the case the State instant federal statutes. In

state and action or federal does to the FTC’s not seek enjoin prosecution The circumstances injudi- taken in resulting being Pennsylvania. to are not cial which were at issue ThreeSisters analogous comity that Arkansas has the at issue here. We conclude right situation its citizens. There was no violation to on behalf of seek restitution of judicial comity.

Affirmed.

Corbin, dissent. Hannah, Imber, JJ., I I dissent. dis- Hannah, dissenting. respectfully Jus e,e, re- c c conclusion Rule 65 majority’s ti ti Jim for a do not State’s quirements apply request preliminary case should reversed under I believe this 4-88-104. injunction § the of Rule 65 to circuit court remanded application State’s request to issue a whether determining 65, the court Rule circuit order restraining

temporary pursuant result must two whether harm will consider irreparable things: order, and (2) in the absence of an a restraining a likelihood of success whether the has demonstrated moving party Petroleum, Three Inc. v. 348 Ark. on the merits. Sisters Langley, Smith, K Co. v. S.W.3d Recently, Operating AJ& this court took (2004), S.W.3d review for that the standard of clarify opportunity order or is whether the circuit preliminary injunction standard its discretion. We stated: “The of review abused the two of a TRO or same for essential components prelimi- harm, and likelihood of success on nary injunction: Watkins, David & Civil Procedure merits. See Ñewbern John J. 29-2, at 437 ed. (3d 2002).” that in cases where the General holds majority *14 interest, tradi- “has mandate to a protect public statutory specific for in tional civil litiga- common-law prerequisites tion, of success on such as harm likelihood irreparable merits, not I rules of civil Our disagree. procedure applicable.” in all suits actions of in the circuit courts or govern a civil nature with the procedure in Rule 81. Ark. R. stated See exceptions in relevant Civ. P. 1. Rule provides, part: These shall to all civil apply pro- in General. rules (a) Applicability those in the circuit of thisstate in except courts ceedingscognizable a a instanceswhere statute whichcreates or right, remedy proceeding in which event the procedure specificallyprovides procedure different so shall specified apply. (c) ProcedureNot Prescribed. When no procedure spe- Specifically rules, cifically these prescribedby thecourtshall in proceed any lawful State, mannernotinconsistentwith the Constitutionofthis theserules or statute. any applicable

Ark. P. R. Civ. 81(a), (c) added). (emphasis case, In the 4-88-104 present 2001) (Repl. provides § ADTPA; however, for civil enforcement of the remedy 4-88- § 104 does not a different specifically for provide procedure seeking such, relief. As injunctive in Rule does 81(a) exception Further, the Rule does not apply.1 81(c) a basis exception provide for Where, from our here, rules of civil deviating as procedure. rules, is not procedure specifically these the court prescribed by shall lawful manner proceed not inconsistent with the Constitution, Arkansas our rules of civil procedure, any appli- cable statute. a new for By creating procedure seeking injunctive relief, the authorizes majority which is inconsistent proceeding with a rule of civil procedure. Specifically, judicially-created is inconsistent with procedure Rule the circuit requires court to consider: (1) whether harm will result in the absence order, of an and (2) whether the has demonstrated a moving party likelihood of success on the merits. This new is also inconsistent with procedure this court’s 1 See Weissv. 331 Ark. 409, 961 S.W.2d 28 In that Johnson, case, appellee’s driver’s license was the Office of Driver Services of the Revenue Division of the suspended by of Finance and pending adjudication Administration charge. Department her DWI Pursuant to (Repl. 1997), Ark. Code Ann. 5-65-104 filed a“de novo appellee petition agency review” of the determination in circuit court. DF &A failed to hearing, at the appear and the judgment trial court entered a in favor of the DF & A moved to set aside the appellee. judgment, arguing that it was not served with the with Ark. appellee’s petition compliance R. Civ. P. 4. The trial court denied the hearing motion, was a “special hearing” and that the rule was not DF& A arguing that the trial court applicable. appealed, abused denying its discretion in its motion to set aside because service of the petition review failed to with Ark. R. Civ.P. stating: 4. We reversed and dismissed, “Given the comply silence 5-65-104(c) of Ark. Code Ann. subject on the of notice or service of process, therefore the lack of a'different which conflicts with the Rules, we are left with no procedure’ choice but to govern 81(a) conclude that the Rules because Rule does not apply.” Johnson, 331 Ark. at 416,961 S.W.2d at 31.

336 well-settled rule that the standard of review for is whether the circuit order or court abused its discretion.

Moreover, it is unclear what this new exactly procedure circuit court has entails. states already majority “[t]he found substantial evidence to a violation of the FTC order support which would constitute a violation of the ADTPA.” Shortly thereafter, circuit court states found majority “[t]he violation, evidence of a and we hold that the court’s in this much evidence erroneous.” How warrants regard clearly of an issuance injunction?

Had the intended a new General institute Assembly 4-88-104, relief under or to seeking procedure injunctive § deviate from the rules of civil it could have done so. In procedure, Lester, 662, State v. 343 Ark. 38 S.W.3d 313 (2001), stated:

The Arkansas the inher Constitution confers courts upon State, ent rules of Miller v. authority promulgate procedure. 223, However, 7, Ark. (1977). 555 S.W.2d 563 Article sections 1 4,2 and “do not confer on this Court expressly by implication exclusive to set rules of court Procedure.” authority Jackson Ozment, 100, 101, 671 736, 738 Ark. S.W.2d overruledon Arnold, 138, other Weidricku 310 Ark. 835 S.W.2d grounds by (1992). The court shares this with the General authority Assembly. State, 223, 783 State, Clairv. St. 301 Ark. S.W.2d 835 Curtisv. (1990); 208, Thus, 301 Ark. 783 S.W.2d 47 it is not a violation for the to enact statutes separation-of-powers. principles legislature State, to rules of Si. Clairv. pertaining such procedure, supra,although may statutes the rules superseded by promulgated by judi State, 225, See Casementv. ciary. (1994); 884 S.W.2d 593 Arnold, Weidrickv. supra.

Lester, 343 Ark. at S.W.3d 316. the General is aware of its

Clearly, Assembly authority enact statutes to rules of For pertaining procedure. example, 5-37-407, General enacted which covers Assembly forgery 2 Article sections 1 and 4 were Amendment 80, 3, repealed provides: pleading, “The Court shall these rules of for all Supreme prescribe practice procedure enlarge abridge, right these rules shall not substantive courts; modify any provided right jury shall of trial as declared in this Constitution.” preserve

337 cable This statute makes clear fraudulent in television. practices relief, in for General Assembly, providing injunctive In a civil intended to deviate from the rules of civil procedure. action under that subchapter, may declaratory “[t]he [a]ward remedies, relief and other final equitable including preliminary or restrain violations of this injunctions prevent subchapter, without has or will actual requiring proof plaintiff suffered suffer law.” harm lacks an at Ark. damages irreparable adequate remedy Code Ann. 5-37-407(b)(1) 2003) added). (Supp. (emphasis

No relief is in procedure seeking injunctive provided omission, evidence 4-88-104. Without of a this court drafting will not read into what is not there. Cave legislation City Nursing Home, Servs., 13, Inc. v. Arkansas Human 351 Ark. 89 Dep’t of case, S.W.3d 884 In this there is no evidence of a (2002). drafting omission, nor is there evidence that the General Assembly intended to different rules of I believe provide procedure. Again, Rule 65 applies.

Further, I believe that the circuit court abused its discretion the State’s motion for In Three granting preliminary injunction. Sisters, we stated: supra, the first

Regarding this court has held: necessary showing, “Essential to issuance of a order temporary restraining that a failure to finding issue will result in harm to the irreparable Kreutzer, 244, 670, 271 applicant.” Ark. at 607 S.W.2d 671 (citing Ark. P. 65). R. Civ. “The harm or lack of an prospect irreparable otherwise is the foundation adequate remedy to issue power Teachers, relief.” injunctive Wilsonv. PulaskiAss’n Classroom 330 302, 298, 954 S.W.2d 221, 224 Ark. shown, the second Regarding that must be thing this court has course, held: “Of order to justify grant preliminary injunc relief, tion must establish that it will plaintiff on the likely prevail Co., 345, at merits trial.” W.E. Co. v.Holsum Ark. Long 307 Baking 351, 440, 820 S.W.2d 443 (citing Smith AmericanTrucking Ass’n, 594, 300 Ark. 781 S.W.2d(1989)).The 3 test for determining the likelihood of successis whether there is a reasonable probability 536, of success in the litigation. Customs 344 Ark. Microsystems, S.W.3d 453. Such a “is a showing benchmark for issuing prelimi 542, Id. at nary injunction.” 42 S.W.3dat 457-58. Sisters, 175,

Three 348 Ark. at 72 S.W.3d at 101. case, con-

In this the order of itself harm. At the on the State’s tains no hearing irreparable reconsideration, the circuit court stated that it believed motion there was a “chance for harm if continue the they way they’re and it’s hard to of conduct from a lot going, of stop type hurting fact that’s what... added.) people going (Emphasis [is on].” ifIn harm is considered when it Generally, cannot be or redressed adequately compensated by money damages Sisters, in a Ark. at court of law. See Three 72 S.W.3d Clark, Kreutzer v. 607 S.W.2d 670 (citing that since State seeks “credit” or (1980)). Mercury argues *17 it “restitution” consumers for amounts contended had customers, billed to clear that the its “harm” is not improperly it can because irreparable adequately compensated by money The State contends that an authorized damages. ADTPA results in a different harm analysis irreparable prong ofithe I believe the State cor- analysis. preliminary-injunction rect. The ADTPA consumers and the business commu- protects unconscionable, false, trade See nity deceptive practices. Co., State v. R&A Inv. The S.W.2d enactment of the ADTPA is a determination the General that violations of the Act will cause harm. Assembly irreparable Even that the circuit court’s statement assuming concerning harm, a “chance of harm” is considered a finding ofirreparable record is devoid of a of a likelihood of success on the merits. As stated whether to issue a previously, determining to Rule the circuit court must pursuant consider: whether harm will in the (1) result absence of whether the has demon- injunction, and moving party strated a likelihood of success on the merits. appropriate standard was not in this case. applied reasons,

For the I believe that this should be foregoing case reversed and remanded for the circuit court to apply appropri- ate standard. JJ., join. Imber,

Corbin

Case Details

Case Name: Mercury Marketing Technologies of Delaware, Inc. v. State Ex Rel. Beebe
Court Name: Supreme Court of Arkansas
Date Published: Jul 1, 2004
Citation: 189 S.W.3d 414
Docket Number: 03-1382
Court Abbreviation: Ark.
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