Pawnderosa Pawn Shops, Inc. v. Conley (Majority)

Annotate this Case
Justia Opinion Summary

The Supreme Court reversed the circuit court’s order certifying a class in this action filed by Appellees alleging that Appellants’ business practices violated the anti-usury language of amendment 89 to the Arkansas Constitution and of the Arkansas Deceptive Trade Practices Act. The circuit court’s order defined the class as any and all “persons who have owed, currently owe or will incur debts” arising out of transactions with Appellants. For the reasons set forth in Arch Street Pawn Shop, LLC v. Gunn, 2017 Ark. 341, also decided today, the Supreme Court held that the circuit court abused its discretion in certifying the class.

Download PDF
Cite as 2017 Ark. 342 SUPREME COURT OF ARKANSAS No. CV-17-188 Opinion Delivered: November 30, 2017 PAWNDEROSA PAWN SHOPS, INC., APPEAL FROM THE PULASKI AND PAUL PAKIS APPELLANTS COUNTY CIRCUIT COURT [NO. 60CV-16-3005] V. HONORABLE WENDELL GRIFFEN, JUDGE HERMAN CONLEY APPELLEE REVERSED AND REMANDED WITH INSTRUCTIONS TO DECERTIFY THE CLASS. SHAWN A. WOMACK, Associate Justice Pawnderosa Pawn Shops, Inc., and Paul Pakis (“Pawnderosa”) appeal the Pulaski County Circuit Court’s order granting class certification for a group of Pawnderosa’s customers including Herman Conley. Appellees allege that Pawnderosa’s business practices violated the anti-usury language of amendment 89 to the Arkansas Constitution and of the Arkansas Deceptive Trade Practices Act. The circuit court’s order defined the class as “[a]ny and all persons who have owed, currently owe or will incur debts directly arising out of pawn transactions with Defendant, Pawnderosa Pawn Shops, Inc. within five years of the date of this Complaint was filed and continuing up through and until judgment may be rendered in this matter.” Pawnderosa argues on appeal that the circuit court abused its discretion in determining that a class exists, in determining that the putative class satisfied the requirements of Arkansas Rule of Civil Procedure 23 (2016), and in refusing to admit testimony relevant to these issues at the hearing on class certification. For the reasons expressed in Arch Street Pawn Shop, LLC v. Gunn, 2017 Ark. 341, handed down this same date, we hold that the circuit court abused its discretion in certifying the class. Reversed and remanded with instructions to decertify the class. Williams & Anderson PLC, by: Heather G. Zachary, Philip E. Kaplan, David M. Powell, and Alec Gaines, for appellants. Omavi Shukur, for appellee. 2