Couple Sues Jonesboro Over Denied Steakhouse Liquor Permit

Michael Shannon Kee and Elaine Kee ask a Craighead County court to reverse the city's denial of a private-club alcohol permit for 141 Prime.

Updated on Nov. 5, 2026 in Law

Couple Sues Jonesboro Over Denied Steakhouse Liquor Permit

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Should cities be able to deny alcohol permits for businesses near schools?

Jonesboro residents Michael Shannon Kee and Elaine Kee filed a lawsuit on November 3, 2026, in the Circuit Court of Craighead County challenging the Jonesboro City Council's October 20 denial of their private-club alcohol permit for the proposed 141 Prime steakhouse. The suit asks the court to reverse the decision.

Why it matters

The lawsuit argues the council's denial was arbitrary and capricious and that proximity to a school is not a legal factor in approving an application. The outcome could clarify how the city weighs school proximity in alcohol-permit decisions for Jonesboro businesses.

The Kees filed suit on November 3, 2026, in the Circuit Court of Craighead County seeking reversal of the council's denial. The lawsuit's claims that other nearby-school permits were approved have not been independently confirmed, and no court date has been reported.

The players

Michael Shannon Kee

Co-applicant and co-plaintiff seeking to open the 141 Prime steakhouse in Jonesboro.

Elaine Kee

Co-applicant and co-plaintiff named alongside Michael Shannon Kee in the permit application and lawsuit.

Jonesboro City Council

The municipal legislative body of Jonesboro, Arkansas, which denied the private-club permit at its October 20, 2026 meeting.

The details

The Kees applied on August 24, 2026 for a private-club permit to sell alcohol at 141 Prime, a steakhouse at 2740 N. Church St. The council denied the application at its October 20 meeting, and the lawsuit alleges the applicants met all requirements and ordinances.

August 24, 2026: Kees applied for the private-club alcohol permit.
October 20, 2026: Jonesboro City Council denied the application.
November 3, 2026: The Kees filed suit in Craighead County Circuit Court.

Legal Context

The case tests how Arkansas municipalities apply state-authorized private-club permitting when they weigh a business's proximity to schools. The Kees' claim that other nearby-school permits were previously approved will bear on whether the council applied its standards consistently.

For Jonesboro business owners seeking private-club alcohol permits, the lawsuit shows that proximity to a school may be a factor in council decisions. Residents near proposed establishments may also see how the court treats the council's reasoning.

The takeaway

Business applicants facing permit denials can review the stated reasons in council records and weigh whether to pursue legal review. Local residents can follow the Craighead County court docket to track how the case develops.