The Arkansas Court of Appeals has affirmed a Jefferson County Circuit Court decision, allowing Jefferson County to impose daily jail fees on the city of Pine Bluff. This ruling, delivered Wednesday, stems from a long-standing dispute over jail costs and contractual agreements between the two entities.
The conflict originated from a 1993 contract in which Jefferson County agreed to build a 32-bed expansion at the W.C. “Dub” Brassell Detention Center, the Jefferson County adult jail, with Pine Bluff leasing 24 of those beds for $24,090 per month over 20 years. However, Pine Bluff ceased payments in March 2004, leading to a lawsuit and subsequent settlement in 2006. The settlement required Pine Bluff to pay past-due amounts and outlined future bed usage terms.
In December 2020, Jefferson County passed Ordinance No. 2020-154, authorizing a $30 daily fee for each inmate from any city housed in the county jail. Pine Bluff challenged this ordinance, claiming it violated the 2006 settlement agreement, which they argued was still in effect.
The court found the 2006 settlement agreement did not bind either party beyond December 2008, as the terms were completed and no new rate was negotiated. The court ruled Jefferson County’s ordinance was valid and controlled over the expired agreement. Consequently, Pine Bluff was ordered to pay $402,704 for unpaid invoices from January 2021 through March 2023 and all subsequent monthly invoices as long as the ordinance remains in effect.
The city argued the 2006 agreement was still valid and prohibited the county from imposing new fees. They contended the agreement allowed them to use the allotted bed space without additional charges unless they exceeded their allotment.
Independent reporting for Pine Bluff & Jefferson County since 1879.
Jefferson County asserted the agreement ended in 2008 and the ordinance was necessary due to Pine Bluff’s failure to pay for jail costs. The county emphasized its right to charge reasonable rates for municipal services.
Judge Brandon J. Harrison delivered the opinion of the Arkansas Court of Appeals. The court held that the settlement agreement did not extend beyond December 2008 and that Ordinance No. 2020-154 was valid. The court noted Section 12-41-506(a)(1) of the Arkansas Code allows the Quorum Court to establish a daily fee for housing municipal prisoners in the absence of an agreement on jail costs.
The decision means Pine Bluff must pay Jefferson County $402,704 for invoices from January 2021 through March 2023 and continue to pay subsequent monthly invoices as long as the ordinance remains in effect.
Four of the five appeals judges hearing the case — Bart Virden, Stephanie Potter Barrett, Kenneth S. Hixson and Mike Murphy — affirmed the ruling. Chief Judge Mark Klappenbach dissented, arguing that the county remains bound by the 2006 agreement and that the parties did not waive or modify any contract terms in writing. However, the majority opinion emphasized the agreement’s terms were completed in December 2008, leaving no clear terms for the county to modify. He believed the agreement did not terminate and that the ordinance should not apply.
Klappenbach emphasized that the first rule of contract interpretation is to give the language employed the meaning intended by the parties. He noted the agreement set a definite amount to be paid for a certain allotment of beds, which the city fulfilled. He said since the city did not exceed its allotted beds, no further negotiations were necessary.
“Future fees would need renegotiation “in the event that the city is using more beds than allotted to the city … The city did not exceed its allotted beds.”
Klappenbach pointed out that the county took no action against the city from 2008 until 2021, indicating that the agreement was still in effect. He concluded that the county was bound by the agreement and that the jail-fee ordinance did not apply.
The appellate court affirmed the Jefferson County Circuit Court’s order that dismissed Pine Bluff’s complaint for declaratory judgment and granted Jefferson County’s motion for summary judgment.