Sebastian County Chapter of the American Red Cross v. Weatherford

Robert H. Dudley, Justice. The plaintiff-appellee, Wanda Weatherford, filed a request of the defendant-appellant, Sebastian County Chapter of the American Red Cross, to “inspect and copy all non-privileged documents” in its possession. The request was filed under the authority of the Arkansas Freedom of Information Act. The local chapter denied the request. The plaintiff-appellee field suit in circuit court for the information.

The Arkansas Freedom of Information Act gives a citizen the right of access to public records. Ark. Code Ann. § 25-19-105 (1987). “Public records” are the records of any organization that is “wholly or partially supported by public funds.” Ark. Code Ann. § 25-19-103 (1) (1987) (emphasis added).

The trial court held that the local chapter received a subsidy from the City of Fort Smith, and, since it was partially supported by public funds, the chapter was under an obligation to disclose its non-privileged records. The majority opinion reverses the trial court’s ruling and, for all practical purposes, dismisses the request.

In 1983, the City of Fort Smith leased a lot to the Sebastian County Chapter of the American Red Cross for thirty years for one dollar per year. It is undisputed that the fair rental value of the lot is substantially more than one dollar per year. Thus, it is without dispute that the City has been and will continue to partially support the local chapter of the Red Cross. The majority opinion holds that the partial support provided by the City is not in the form of public funds because it is only an “indirect benefit,” and it is not “money.”

The subsidy given to the local chapter is not an “indirect benefit.” It is direct. Nothing more need be said.

The majority opinion construes the statutory phrase “public funds” to exclude a governmental subsidy by rental value. The majority opinion does so by holding that the phrase “wholly or partially supported by public funds” means wholly or partially supported by “moneys belonging to the government.”

Without question, the word “public” is inclusive of government property. The only question is whether the word “funds” includes a subsidy by rental value. The answer to the question is found in our rules of statutory interpretation. The primary goal in the interpretation of statutes is to determine and to give effect to the intent of the General Assembly. Sanders v. State, 310 Ark. 630 , 839 S.W.2d 518 (1992). In determining that intent we give words their usual and ordinary meaning. Bob Cole Bail Bonds, Inc. v. Howard, 307 Ark. 242 , 819 S.W.2d 684 (1991). Finally, we have stated repeatedly that the Freedom of Information Act should be liberally construed in order to accomplish the act’s laudable purpose. See, e.g., Bryant v. Mars, 304 Ark. 179 , 801 S.W.2d 275 (1990). An examination of the facts of this case in the light of the above rules of construction reveals the fault in the majority opinion.

Legislative Intent

Under the rationale of the majority opinion, if a governmental entity gives a $1,000 bill to another organization, that other organization must disclose its relevant records. However, if the governmental entity gives millions in value to subsidize another organization, that organization does not have to disclose its relevant records. These exempt subsidies might be in the form of goods or labor or services, or in the form of a check or warrant or draft or bond, or in the form of a conveyance or lease of either personal or real property — anything so long as it is not “money.” Such a rationale is not at all in keeping with the legislative intent.

The Usual And Ordinary Meaning of Words

If one were to ask an ordinary person, “Where do you keep your funds?”, the answer might be, “In the bank,” or it might be, “Partly in stocks, partly in bonds, some real estate, and some cash.” Funds in the bank are only a credit. A credit is not money. Having one’s funds in stocks and bonds would also be having one’s funds in something other than money. “Funds” is the plural of “fund.” Fund means a quantity of material resources maintained or available as a source of supply. Websters International Dictionary 920 (3d ed. 1961). On the other hand the word “money” has a more limited definition. Money means a medium of exchange. Websters International Dictionary 1458 (3d ed. 1961); See also Quinn-Moore v. Lambert, 272 Ark. 324 , 614 S.W.2d 230 (1981). The dollar is the monetary unit that constitutes the medium of exchange in the United States. Thus, the majority opinion limits the meaning of the phrase “partially supported by public funds,” to partially supported by United States dollars. In short, the majority opinion does not give the word “funds” its usual and ordinary meaning.

Construction To Accomplish Act’s Purpose

In this case the City, over the period of the lease, has given and will give to the local chapter the fair rental value of the lot that exceeds one dollar per year. The amount of this gift is monetarily determinable. It is a subsidy that causes a depletion of the public funds just as certainly as if the subsidy were by dollar bills. A construction that gives meaning to the laudable purposes of the Act would require disclosure by an organization that is partially supported by public services, or goods, or property, just as surely as it does one supported by public dollars.

Accordingly, I dissent.