Will the Arkansas AG opine on the validity of a private agreement between liquor stores and grocers?
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This page answers the general question as of 2017. Ezel answers yours: what it means for your facts, under current Arkansas law, with citations.
Plain-English summary
Representative Greg Leding asked the Attorney General two questions about an agreement between Arkansas liquor stores and grocers: was it valid, and was it enforceable?
Attorney General Leslie Rutledge declined to answer. AG opinions interpret and apply Arkansas statutes and constitutional provisions in response to specific legal questions. They do not interpret private contracts. Two practical reasons drove the limit: (1) contract interpretation typically depends on factual questions like the parties' intent, course of dealing, and surrounding circumstances, none of which the AG's office is equipped to investigate; and (2) Arkansas law prohibits the Attorney General from engaging in the private practice of law (Ark. Code Ann. § 25-16-701).
The opinion's substantive content was therefore brief: questions about private-party agreements have to be addressed by private counsel or, if there is a dispute, by a court. The AG pointed Representative Leding to Foundation Telecommunications, Inc. v. Moe Studio, Inc. (2000), an Arkansas Supreme Court case discussing essential contract elements, as a starting reference if he wanted to understand the legal framework.
Currency note
This opinion was issued in 2017. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.
Common questions
Q: Why doesn't the AG interpret private contracts?
A: Two reasons. First, contracts are factual instruments. Their meaning often depends on what the parties intended, what they communicated, and how they performed, none of which an AG opinion can determine. Second, Ark. Code Ann. § 25-16-701 prohibits the Attorney General from engaging in the private practice of law. Interpreting a private contract for one party would likely cross that line.
Q: What kinds of questions can a state legislator ask the AG?
A: Questions about the meaning or application of Arkansas statutes, constitutional provisions, or regulations to government action. Questions about the legal effect of statutes on private behavior in general (without picking sides in a private dispute) can also be in scope. Questions that turn on what private parties agreed to, however, generally are not.
Q: What about disputes between licensees and the state?
A: Different question. The AG can address the state's regulatory authority over licensees, the meaning of permit terms set by statute, and similar public-law questions. The line is drawn at private-party contracts.
Q: Where should a legislator like Rep. Leding direct the question?
A: To private counsel for the parties (or for any constituents asking about their position), or to a court if there is a justiciable dispute. The AG's office is simply not the right venue.
Q: Did the AG offer any guidance at all?
A: One footnote pointer to Foundation Telecommunications, Inc. v. Moe Studio, Inc., an Arkansas Supreme Court case discussing the essential elements of contract formation. That gives the requester a starting point if they want to understand contract-law fundamentals.
Background and statutory framework
The Arkansas Attorney General's opinion-writing function is an executive-branch advisory role, not an adjudicative one. AG opinions are persuasive authority but not binding precedent. They are most useful when they address abstract legal questions about state law that government officials need to resolve in the course of their duties. They are least useful (and most likely to be declined) when they require fact-finding or interpretation of private documents.
Section 25-16-701's prohibition on the AG engaging in the private practice of law reinforces that line. The AG cannot serve as legal counsel to private parties, even informally through opinion. Declining contract-interpretation questions is the practical application of that statutory boundary.
Citations and references
Statutes:
- Ark. Code Ann. § 25-16-701 (AG prohibited from private practice of law)
Case (offered as reference for contract-formation elements):
- Foundation Telecommunications, Inc. v. Moe Studio, Inc., 341 Ark. 231, 16 S.W.3d 531 (2000) (Ark. Supreme Court)
Source
Original opinion text
Opinion No. 2017-032
March 28, 2017
The Honorable Greg Leding
State Representative
P. 0. Box 1445
Fayetteville, AR 72702-1445
Dear Representative Leding:
STATE OF ARKAN SAS
ATTORNEY GENERAL
LESLIE RUTLEDGE
This is in response to your request for my opinion on the following questions:
What is the validity of the agreement between the liquor stores and
grocers? Also, is this enforceable?
RESPONSE
Please be advised that I am unable to respond to your questions. The "agreement"
you reference could, it seems, be a matter of contract between the parties
mentioned. This office cannot generally undertake to interpret or otherwise opine
on contracts or other agreements entered into by private parties. This type of
review often involves factual questions, such as intent, which this office is not
equipped or empowered to investigate and evaluate in the context of an Attorney
General opinion.
Additionally, the Attorney General is not authorized to engage in the interpretation
or construction of the provisions of agreements entered into by private parties. 1
Addressing the validity or enforceability of agreements between private parties
1 The Attorney General is statutorily prohibited from engaging in the private practice of law. See Ark.
Code Ann.§ 25-16-701(Supp.2015).
323 CENTER STREET, SUITE 200 · LITTLE ROCK, ARKANSAS 72201
TELEPHONE (501) 682-2007 · FAX (501) 682-8084
ARKANSASAG.GOV The Honorable Greg Leding
State Representative
Opinion No. 2017-032
Page2
therefore falls outside the scope of an Attorney General opinion. Such matters
must instead be addressed by private counsel, or by a court. 2
I must therefore respectfully decline to address the questions you have posed. I
regret that I could not be of assistance in this matter. If I may be of assistance in
some other respect, please do not hesitate to contact me.
Sincerely,
~ :::>~
LESLIE RUTLED~
Attorney General
2 For a general discussion of the essential elements of a contract, see Foundation Telecommunications, Inc.
v. Moe Studio, Inc., 341Ark.231, 242, 16 S.W.3d 531 (2000).
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