ELECTRONICALLY FILED

Pulaski County Circuit Court

Terri Hollingsworth, Circuit/County Clerk
2023-Apr-21 12:01:14
60CV-22-5528
C06D12 : 5 Pages

IN THE CIRCUIT COURT OF PULASKI COUNTY, ARKANSAS

CIVIL DIVISION

STATE OF ARKANSAS, ex rel.

TIM GRIFFIN, ATTORNEY GENERAL PLAINTIFF

v. CASE NO. 60CV-22-5528

BIG COUNTRY CHATEAU, LLC;

APEX BIG CHATEAU AR, LLC; and
APEX EQUITY GROUP, LLC DEFENDANTS

STATE’S MOTION TO SHOW CAUSE WHY DEFENDANTS SHOULD NOT BE HELD

IN CONTEMPT OF COURT AND INCORPORATED BRIEF

COMES NOW the State of Arkansas, ex rel. Tim Griffin, Attorney General, (“the State”)

and for its Motion to Show Cause against Separate Defendants Big Country Chateau, LLC; Apex

Big Chateau AR, LLC; and Apex Equity Group, LLC (collectively, “Defendants”), states and

requests as follows:

1. On February 22, 2023, this Court entered an Order Appointing Receiver in this

matter. 1

2. This Order appointed Sal Thomas, Senior Vice President-Multifamily, Tarantino

Properties, Inc. as Receiver of the property located at 6200 Colonel Glenn Rd, Little Rock, AR

72204 (formerly 6200 Asher Ave., Little Rock, AR 72204).

1
Order Appointing Receiver, State of Ark. v. Big Country Chateau, LLC et al, No. 60CV-22-
5528 (Feb. 22, 2023), attached as Exhibit A.
 3. Mr. Thomas filed an Acceptance and Oath of Receivership on February 23, 2023. 2

4. The Order required Defendant Apex Equity Group, LLC to “provide an accounting

of assets and all financial records pertaining to Big Country Chateau, LLC, Apex Big Chateau AR,

LLC, and the property located at 6200 Colonel Glenn Rd, Little Rock, AR 72204” within twenty-

one (21) days of the entry of the Order. 3

5. Counsel for Defendants was present at the February 10, 2023 hearing in which the

Court made this ruling; furthermore, counsel for Defendants approved the proposed order that was

submitted to the Court and which was entered as the Order Appointing Receiver. Upon its entry

by the Court, this Order was served upon Defendants through the Court’s Electronic Case Files

(“ECF”) system. Defendants were, therefore, on notice of the Order and its requirements.

6. The Order further required all Defendants to cooperate with the Receiver and

“provide all bank records, tax records, entity formation articles, purchase agreements, and any and

all records involving Big Country Chateau, LLC, Apex Big Chateau AR, LLC, and the property

located at 6200 Colonel Glenn Rd, Little Rock, AR 72204.” 4

7. It has now been 58 days since the entry of this Court’s Order. Defendants have not

provided an accounting of assets and financial records, bank records, tax records, entity formation

articles, or purchase agreements. 5

8. Defendant Apex Equity Group, LLC has not provided any records to the Receiver. 6

9. Defendant Big Country Chateau, LLC has not provided any records to the

2
Acceptance and Oath of Receivership, State of Ark. v. Big Country Chateau, LLC et al, No.
60CV-22-5528 (Feb. 23, 2023), attached as Exhibit B.
3
Order Appointing Receiver, supra note 1, ¶ 6.
4
Id. ¶ 7.
5
Aff. of Sal Thomas (Apr. 05, 2023), attached as Exhibit C.
6
Id. ¶ 3.

2
Receiver. 7

10. Defendant Apex Big Chateau AR, LLC has provided to the Receiver a resident

ledger, a rent roll, and some invoices. 8

11. Defendants are in violation of this Court’s Order and should be compelled to

provide the ordered documentation. Defendants’ failure to provide these records is willful

disobedience of this Court’s Order and should be punished as criminal contempt, a Class C

misdemeanor, 9 pursuant to Ark. Code Ann. § 16-10-108.

12. Contempt is divided into criminal contempt and civil contempt. 10 Criminal

contempt preserves the power of the court, vindicates its dignity, and punishes those who disobey

its orders. 11 Civil contempt, on the other hand, protects the rights of private parties by compelling

compliance with orders of the court made for the benefit of private parties. 12 The Arkansas

Supreme Court has often noted that the line between civil and criminal contempt may blur at

times. 13 “[C]riminal contempt punishes while civil contempt coerces.” 14

13. The Court should find Defendants in contempt. Pursuant to Ark. Code Ann. § 16-

10-108(a)(3), Arkansas courts have the power to hold parties in contempt for “[w]illful

7
Id. ¶ 4.
8
Id. ¶ 5.
9
A person convicted of a Class C misdemeanor may be incarcerated up to thirty days. Ark. Code
Ann. § 5-4-401(b)(3).
10
Johnson v. Johnson, 343 Ark. 186, 197, 33 S.W.3d 492, 499 (2000).
11
Id. at 197, 33 S.W.3d at 499.
12
Id.
13
Id.
14
Ivy v. Keith, 351 Ark. 269, 280, 92 S.W.3d 671, 677 (2002) (quoting Baggett v. State, 15 Ark.
App. 113, 116, 690 S.W.2d 362, 364 (1985)).

3
disobedience of any process or order lawfully issued or made by it.” 15

14. In addition to the Court’s express authority to issue sanctions, the Court also has

inherent powers, including those to “find for contempt, imprison for contumacy, enforce the

observance of order, etc.” 16

15. In issues of contempt, the trial court has the discretion to fashion the punishment to

fit the circumstances. 17

16. Before a person may be held in contempt for violating a court order, the order must

be definite in its terms and clear as to what duties it imposes.18 The Order Appointing Receiver

was clear, unambiguous, specific, and susceptible of only one interpretation. Because Defendants

were ordered by this Court to provide records to the Receiver within 21 days of the entry of the

Order on February 22, 2023, the Court should hold all Defendants in contempt.

17. At a minimum, the State requests the Court issue an Order to Show Cause requiring

Defendants to appear and show cause why they should not be held in contempt for violating the

Court’s February 22, 2023 Order and award the State reasonable and necessary attorneys’ fees and

costs incurred as a result of pursuing this motion in the amount of $1,000.00.

18. The State now moves this Court to order Defendants be held in criminal contempt

15
Ark. Const. art. 7, § 26; Ark. Code Ann. § 16-10-108(a)(3); Hervey v. Hervey, 186 Ark. 179,
52 S.W.2d 963 (1932); Hall v. State, 237 Ark. 293, 372 S.W.2d 603 (1963); Ivy v. Keith, 351
Ark. 269, 92 S.W.3d 671 (2002).
16
Lee v. McNeil, 308 Ark. 114, 121, 823 S.W.2d 837, 841 (1992) (dissenting opinion) (quoting
State v. Morrill, 16 Ark. 384 (1855). See also Ivy v. Keith, 351 Ark. 269, 279, 92 S.W.3d 671,
677 (2002) (stating that the “constitution and caselaw make it clear that the courts of this state
have inherent power to punish a contemnor for contempts committed in the presence of the court
or in disobedience of process”).
17
Conlee v. Conlee, 370 Ark. 89, 257 S.W.3d 543 (2007); Ward v. Ward, 2014 Ark. App. 261,
434 S.W.3d 923.
18
Albarran v. Liberty Healthcare Management, 2013 Ark. App. 738, 431 S.W.3d 310 (2013).

4
and fined $1,000 per day until they provide the Receiver with an accounting of assets and financial

records, bank records, tax records, entity formation articles, and purchase agreements pursuant to

this Court’s Order.

WHEREFORE, the State of Arkansas, ex rel. Tim Griffin, Attorney General, respectfully

requests that this Court issue an order for Defendants to appear and show cause why they should

not be held in contempt for failing to provide financial records to the Receiver in violation of this

Court’s Order, for attorneys’ fees and costs, and for all other just and proper relief.

Respectfully submitted,
TIM GRIFFIN
ATTORNEY GENERAL

By: ______________________________________
Amanda J. Wentz, Ark. Bar No. 2021066
Assistant Attorney General
Arkansas Attorney General's Office
323 Center Street, Suite 200
Little Rock, AR 72201
Phone: 501.682.1178
Fax: 501.682.8118
Email: amanda.wentz@arkansasag.gov

CERTIFICATE OF SERVICE

I hereby certify that on this 21st day of April 2023, a copy of the foregoing was sent to the
following via eFlex to:

Sylvester Smith
The Firm, PLLC
4137 JFK Blvd., Ste. D
North Little Rock, AR 72116
(501) 429-4885
ssmith@thefirmpllc.net

__________________________
Amanda Wentz