Air Evac EMS, Inc. v. Usable Mutual Insurance Co.

At issue in these certified questions was the proper interpretation of the safe-harbor provision of the Arkansas Deceptive Trade Practices Act (ADTPA), Ark. Code Ann. 4-88-101(3). The Supreme Court exercised its discretion to reformulate the questions and answered that the ADTPA’s safe-harbor provision should be applied according to the specific-conduct rule, rather than the general-activity rule.Here, Petitioner filed suit against Respondent in federal district court, alleging, inter alia, violations of the ADTPA. Petitioner filed a motion to dismiss, alleging that it should receive the benefit of the safe-harbor provision of the ADTPA. Because the Supreme Court never expressly interpreted the safe-harbor provision of the ADPTA, the federal district court presented the Supreme Court with questions regarding the proper interpretation of the safe-harbor provision. The Supreme Court answered as set forth above, which meant that the provision precludes claims only when the actions or transactions at issue have been specifically permitted or authorized under laws administered by a state or federal regulatory body or officer. View "Air Evac EMS, Inc. v. Usable Mutual Insurance Co." on Justia Law