Anti-casino group doesn’t owe legal fees, judge rules

FILE — A roulette wheel spins at Cherokee Casino & Hotel in West Siloam Springs, Okla.
FILE — A roulette wheel spins at Cherokee Casino & Hotel in West Siloam Springs, Okla.

RUSSELLVILLE -- A circuit court judge ruled Monday that an anti-casino group does not have to pay the county's legal fees after the dismissal of a case that claimed county officials violated a local ordinance by endorsing casino license applicant Cherokee Nation Businesses.

Fifth Judicial Circuit Judge Bill Pearson also denied a motion from Citizens for a Better Pope County that the judge should disqualify himself from the case because Ben Cross, the county judge, endorsed Pearson on his reelection campaign Facebook page.

The social-media post came a day after Pearson's Oct. 29 ruling that the local ordinance that required voter approval before local officials could issue an endorsement for a casino license there was unconstitutional.

Pearson said from the bench that his dismissal of the case against the county was based on "facts and applicable law," and was not influenced by Cross.

Cross said after Monday's court hearing that the county has spent thousands of dollars on litigation concerning the casino issue.

"Our legal team sought to recoup a portion of the taxpayers' money through mechanisms afforded by law," Cross said. "From a purely legal perspective, our attorneys thought they could provide the court with sufficient basis to warrant a refund of some of these expenses incurred by the county.

"The court ruled otherwise, and we are content to accept that ruling and will not appeal the matter any further."

[RELATED: See complete Democrat-Gazette coverage of casinos in Arkansas at arkansasonline.com/casinos]

Pearson said that the case did not reach the bar for awarding attorney's fees according to Arkansas Code 16-22-309(b), which requires the court to find that the lawsuit was brought "in bad faith solely for purposes of harassing or maliciously injuring another or delaying adjudication without just cause."

Fort Smith attorney Colby Roe, who represents the county in the suit, told Pearson that he did not believe Citizens for a Better Pope County filed the lawsuit in bad faith, but pointed to another portion of the same law that says the party's attorney "should have known" that the legal action was "without any reasonable basis in law" and could not "be supported by a good faith argument."

The grassroots group's lawsuit stems from the county's actions since voters statewide approved Amendment 100, which allows new casinos in Pope and Jefferson counties. The November 2018 vote also allowed expansion of casino gambling at the racetracks in Hot Springs and West Memphis.

Pope County voters soundly rejected the amendment, which requires new casinos to have the backing of local officials, and passed Ordinance 2018-O-42 by about 70% of county voters.

James Knight filed the suit on Aug. 13 on behalf of Citizens for a Better Pope County against Cross and members of the Pope County Quorum Court -- on the same day the justices of the peace passed a resolution in support of a casino license application from Cherokee Nation Businesses.

The night before Pearson dismissed the lawsuit, the Quorum Court repealed the ordinance.

Knight filed notice last week that Citizens for a Better Pope County were appealing the case to the state Supreme Court.

The initiated ordinance, Pearson said in his ruling, is unconstitutional because it takes away powers granted by Amendment 100 to county and city officials. Ordinances cannot add additional qualifications to constitutional amendments, he ruled.

In another court case on behalf of the anti-casino group, Knight said in a civil suit against the Racing Commission that the Quorum Court's Aug. 13 repeal of the ordinance is invalid because it is in direct contradiction to the initiated county ordinance approved in November.

That case is set for a hearing at 1:30 p.m. Dec. 18 in front of Pulaski County Circuit Judge Wendell Griffen.

The Racing Commission, which opened a second application window after the Quorum Court's endorsement of the Cherokees, decided on Oct. 17 to hold off on considering applicants until all pending lawsuits have been resolved.

That second window closed Nov. 18 with applications submitted by Cherokee Nation Businesses and the Choctaw Nation.

The application from the Choctaw Nation does not include letters of support from local elected officials.

The Racing Commission in June rejected the five initial applicants for the Pope County casino license because none had endorsements by current local officials. A Racing Commission rule and a state law added that the endorsements must come from officials serving at the time the license application is made.

Gulfside Casino Partnership's application, which was submitted during the first application window, included endorsements of local officials who had left office by the time the application was filed. Gulfside sued the Racing Commission on Aug. 15 in Pulaski County Circuit Court, the same day the commission denied its appeal.

That lawsuit is currently being volleyed between Pearson and Pulaski County Circuit Judge Tim Fox because of disagreements over the venue.

Metro on 12/10/2019

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