Kennel club infighting could take a bite out of local revenue

Dispute over control of group leads to cancellation of dog show

A dispute between two groups, each of which claims to be the Texarkana Kennel Club, may cost the local economy hundreds of thousands in lost revenue associated with an annual dog show.

At a hearing Wednesday morning, Texarkana lawyer Darren Anderson told 202nd District Judge Leon Pesek Jr. the American Kennel Club has canceled the AKC show hosted by the Texarkana Kennel Club. The show was scheduled for June at the Four States Fairgrounds in Texarkana, Ark.

The American Kennel Club’s site continues to list the show as pending, though the Website of Onofrio, the company acting as superintendent of the show, has the phrase

“event not approved” by each listed contest.

Staff at the Four States Fairgrounds said they still list the dog show as tentative, not yet confirmed.

Gazette news reports concerning the dog show last summer state the AKC show generated more than $500,000 in revenue via hotel, restaurant and other expenses from dog show competitors. Last year’s show featured about 1,100 dogs and was the largest in Arkansas.

On behalf of a group that claims it is the Texarkana Kennel Club, Anderson filed a civil suit in Bowie County, Texas, in December against Jim and Carol Arnett. Jim Arnett was elected president of the Kennel Club in January 2012 and Carol Arnett was elected secretary.

The complaint Anderson filed alleges conflict between two factions within the club arose when members began asking Carol Arnett for a complete accounting of the club’s finances. Anderson’s filings allege the Arnetts refuse to hand over more than $34,000 in club funds and have acted to tarnish the club’s reputation.

The Arnetts, represented by Texarkana lawyer Gary Grimes, have filed a response to Anderson’s complaint, claiming the group that hired Anderson isn’t the Texarkana Kennel Club and doesn’t have standing to bring the suit.

The Arnetts claim some of the plaintiffs were booted from the club last summer and are now trying to take over, according to some of Grimes’ filings. Affidavits signed by the Arnetts, Claudia Bright, Ron Bright, Niki Mizell and Briana Webb support the documents filed by Grimes alleging the group that filed suit with Anderson is not the Texarkana Kennel Club.

The group Anderson represents claims the Arnetts resigned their posts in October and are holding club funds wrongfully.

Affidavits signed by Susan Barnes, Tracy Pounds, Jean Nelson, Jimmeye Moore, Christi Rhyne, Harmon Huddle and Theresa Galle support the documents filed by Anderson alleging the group that filed suit with Grimes is not the Texarkana Kennel Club.

In a previous interview Grimes said the case boils down to, “Who is the Texarkana Kennel Club?”

At Wednesday’s well-attended hearing, Pesek addressed Grimes’ claim that Anderson’s complaint should be tossed out because he first listed the plaintiff as Texarkana Kennel Club Inc. and not Texarkana Kennel Club Incorporated. In a response, Anderson argued the two names are interchangeable and pointed out that the club’s own bylaws refer to the organization with both titles.

Pesek said he will research the legal precedent for resolving such an argument about an organization’s name and issue a ruling in a few days.

If the court finds the suit should have been filed as Incorporated rather than Inc., Anderson may voluntarily dismiss the original complaint and file a new one using Incorporated in the plaintiff’s name.

But Pesek’s ruling concerning Inc. versus Incorporated won’t resolve the disagreement dividing the dog lovers.

Anderson’s filings accuse the Arnetts of attempting to hijack the club and of mishandling club money. The Arnetts’ filings allege Anderson’s group has no standing to bring a suit on behalf of the nonprofit organization, which the Arnetts claim is not the real Texarkana Kennel Club chartered by the American Kennel Club more than 30 years ago.

“It is clear there are many fact issues in this case,” Pesek said. “These questions will have to be answered by a fact finder to determine the status of the kennel club.”

Neither side has indicated whether it desires a judge or a jury to decide the case.

Pesek told both sides he wants them to submit recent bank statements concerning any funds being held that were derived from membership dues, dog shows or other fundraisers.

“Any money raised with the anticipation of advancing the good of the organization,” Pesek said as a crowd of about 20 watched the proceeding.

Pesek said those funds will be deposited in the court’s register and held until the suit is resolved.