Bank Ozk v. Paul Summers, as Trustee of the Paul Summers Revocable Trust Dated August 19, 2004; Ozark Mountain Solid Waste District; And Carroll County Tax Collector Kay Phillips

── Bank Ozk v. Paul Summers, as Trustee of the Paul Summers Revocable Trust Dated August 19, 2004; Ozark Mountain Solid Waste District; And Carroll County Tax Collector Kay Phillips ── Court: Court of Appeals of Arkansas Date: May 20, 2026 Category: General Cite as 2026 Ark. App. 334 ARKANSAS COURT OF APPEALS DIVISION IV No. CV-23-553 BANK OZK Opinion Delivered May 20, 2026 APPELLANT APPEAL FROM THE CARROLL COUNTY CIRCUIT COURT, V. EASTERN DISTRICT [NO. 08ECV-18-116] PAUL SUMMERS, AS TRUSTEE OF THE PAUL SUMMERS REVOCABLE HONORABLE SCOTT JACKSON, TRUST DATED AUGUST 19, 2004; JUDGE OZARK MOUNTAIN SOLID WASTE DISTRICT; AND CARROLL COUNTY AFFIRMED IN PART; REVERSED IN TAX COLLECTOR KAY PHILLIPS PART APPELLEES CINDY GRACE THYER, Judge As explained in Summers v. Bank OZK, 2026 Ark. App. 352, ___ S.W.3d ___, which is also being handed down today, the taxpayers in Carroll County challenged an $18 charge that was added to their ad valorem tax bills in 2018. The purpose of the $18 charge was to repay bonds issued to the Ozark Mountain Solid Waste District (the “OMSWD”).1 This case analyzes garnishment and contempt orders resulting from the illegal-exaction lawsuit in Carroll County. 1 Although the orders at issue in this appeal were entered by the Carroll County Circuit Court, the OMSWD also included Baxter, Boone, Marion, Newton, and Searcy Counties, and there were illegal-exaction lawsuits in those counties as well.  The taxpayers of Carroll County filed their illegal-exaction lawsuit on May 16, 2018. The Summers opinion explains what happened in the Pulaski County Circuit Court before and after this Carroll County action was filed. As a reminder, the Pulaski County Circuit Court appointed a receiver for OMSWD. That receivership order instructed the receiver to cause the $18 charges to be transmitted annually by the Carroll County tax collector to Bank OZK so that Bank OZK could act as a payment agent. During the pendency of the Carroll County illegal-exaction lawsuit, the taxpayers filed a motion to enjoin the receiver from transferring the collected money to Bank OZK. They argued that the county tax collector should remain in possession of the funds because it was possible Bank OZK would transfer the funds to “unknown bondholders . . . [and] be impossible for the taxpayers to recover, regardless of the outcome of this litigation.” The receiver, acting on behalf of OMSWD, opposed this motion stating, “The Receiver has instructed [Bank OZK] not to make any distributions while the instant action is pending” and that “upon transmittal of the Service Fees collected in Carroll County to [Bank OZK], those funds will also be held while this action is pending.” Further, the receiver stated, “[A]ny funds transmitted by Carroll County to the Receiver shall be held by [Bank OZK]. Should the Plaintiff prevail in this action . . . [Bank OZK] can transmit the funds back to the Carroll County Tax Collector for redistribution to the Plaintiff and other taxpayers.” In light of those representations, the Carroll County Circuit Court entered an order stating, “[T]he Receiver for the Ozark Mountain Solid Waste District, Geoffrey Treece, has represented to the Court that all funds collected from the $18.00 charge at issue and 2 previously transmitted to Bank OZK . . . will not be distributed to any third parties. It is the order of the Court that no such funds shall be released pending further orders of this Court.” On April 3, 2020, the Carroll County Circuit Court entered an order finding that the $18 charge was an illegal exaction. Before this ruling, $433,987.10 was collected from Carroll County taxpayers in 2018 and