A civil dispute between businessman Larry Crain and his partner in a Little Rock radio station is heating up in Washington County Circuit Court.
Crain was found in contempt of court late last month after Circuit Judge Cristi Beaumont held that he was “deliberately thwarting” the work of a court-appointed receiver. Beaumont appointed the receiver in January to take over operations for the company because the partners, through their companies, “clearly [could not] work together to manage and operate [the company] in accordance with the operating agreement.”
Crain and radio executive Steve Renfro formed a company called Capital City Broadcasting LLC to own and operate KKSP-FM, 93.3, in Little Rock, and took control of the station in late 2012.
But the business relationship between the partners became “extremely strained” over time, leading to the company “being deadlocked in the management and operation of its affairs,” according to a complaint filed by Renfro.
Crain opposed the appointment of the receiver and has appealed Beaumont’s order to the Arkansas Court of Appeals. He also argued that the receiver was making “major business decisions” when he should have been “managing the business to preserve the assets.”
But Judge Beaumont found that the receiver was “undertaking all appropriate efforts to make CCB profitable” and sentenced Crain to a five-day suspended jail sentence, which required him to comply with the receiver.
Crain’s attorney, Charles Darwin “Skip” Davidson of Little Rock, recently filed an amended notice of appeal to include the contempt finding.
Davidson said in a press release that his client alleges that the receiver’s appointment violated an arbitration agreement between the parties and that it also violated the Federal Arbitration Act. He said the contempt hearing was also held with only two days of notice.
“Crain Media Group LLC respectfully disagrees with Judge Beaumont’s findings and is in the process of appealing her decision,” Davidson said.
Renfro’s attorney, Jason Wales, did not immediately return a phone message seeking comment.
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