Bradbury Capital, LLC v. Lofty Labs LLC

2025 Ark. App. 592
CourtCourt of Appeals of Arkansas
DecidedDecember 10, 2025
StatusPublished

This text of 2025 Ark. App. 592 (Bradbury Capital, LLC v. Lofty Labs LLC) is published on Counsel Stack Legal Research, covering Court of Appeals of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bradbury Capital, LLC v. Lofty Labs LLC, 2025 Ark. App. 592 (Ark. Ct. App. 2025).

Opinion

Cite as 2025 Ark. App. 592 ARKANSAS COURT OF APPEALS DIVISION II No. CV-24-359

BRADBURY CAPITAL, LLC Opinion Delivered December 10, 2025 APPELLANT APPEAL FROM THE WASHINGTON COUNTY CIRCUIT COURT V. [NO. 72CV-23-3312]

LOFTY LABS LLC HONORABLE JOHN C. THREET, APPELLEE JUDGE

AFFIRMED IN PART; REVERSED AND VACATED IN PART

BART F. VIRDEN, Judge

Appellant Bradbury Capital, LLC, appeals from the Washington County Circuit

Court’s order denying its motion to set aside a default judgment granted to appellee Lofty

Labs LLC. Bradbury argues that the trial court erred by (1) failing to set aside the default

judgment for insufficient service; (2) failing to set aside the default judgment pursuant to

Ark. R. Civ. P. 55(c)(1), (3), or (4); (3) entering a permanent injunction; and (4) awarding

damages without holding a hearing. We affirm in part and reverse and vacate in part.

I. Background

Bradbury is a private investment firm with investments in the agriculture and oil-and-

gas industries. Lofty is a strategic software development firm operating in the same industries.

On August 4, 2021, the parties entered into a “Master Services Agreement” (MSA). In August 2023, the owners of Bradbury and Lofty began discussing winding down one of the

two projects that Lofty had been working on that Bradbury did not think was profitable, and

there was mention that Bradbury had already spent $1.5 million on the other project. Soon,

a dispute ensued over Lofty’s supposed lack of progress and Bradbury’s alleged failure to

make timely payments, resulting in an outstanding balance of $440,000. Counsel for both

parties then got involved, and the email exchanges got contentious, with both sides

threatening litigation.

On August 29, 2023, Bradbury’s counsel sent a “demand” letter to Lofty for

“purported work related to the MSA,” including copies of invoices and timesheets and access

to a drive containing documentation on the software developed for Bradbury. Bradbury’s

counsel wrote that if he did not hear from Lofty by 5:00 p.m. on September 5, he would

assume that Lofty was refusing the demand and that Bradbury would pursue all legal rights

and remedies available. Lofty’s counsel responded the following day to say that Lofty was not

refusing Bradbury’s request for documents but that Lofty could not get them by the deadline.

Same counsel for Lofty responded on September 8 that Bradbury already had most of the

information being sought and that Lofty was “prepared to seek all legal recourse” for

Bradbury’s breach of the MSA and to collect the $440,000 Bradbury still owes Lofty. On

September 10, Bradbury’s counsel said that he “looked forward to” the discovery process,

warned that any attempt to collect on fees would be met with a countersuit, and informed

counsel that Bradbury was engaging local counsel that week and “will be at the ready to

respond.” On September 12, Bradbury’s counsel said that Bradbury would not be paying any

2 more invoices from Lofty and that “we are more than happy to waive arbitration and proceed

directly to court.” Bradbury’s counsel replied, “Our local counsel will be at the ready with

our countersuit as soon as we are served with your pleadings and begin the discovery

process.” Bradbury’s counsel added, “I am happy to accept service via email at this address.”

Later that same day, Lofty’s counsel wrote that the parties’ dispute appeared to be “head[ing]

toward litigation,” and in conclusion, Lofty’s counsel wrote that “we will file suit if Lofty

does not receive payment from Bradbury this week. I will provide a courtesy copy to you via

email.”

On October 25, 2023, Lofty filed a complaint against Bradbury alleging causes of

action for breach of contract, breach of implied contract, and unjust enrichment. Lofty

sought damages as well as injunctive relief for Bradbury’s alleged violation of the parties’

nonsolicitation provision in the MSA. On December 5, Lofty filed proof of service that had

been obtained on Bradbury’s registered agent in Wilmington, Delaware, on November 2.

Lofty also filed a motion for default judgment seeking damages in the amount of $440,000

for breach of contract on an open account as set forth in its verified complaint. On December

6, Lofty sent a proposed order to the judge, and the trial court granted default judgment

against Bradbury on December 7.

The trial court specifically found that Lofty’s complaint had been properly verified

and that the court accepted the verification as true and correct. The trial court thus awarded

Lofty $440,000 plus prejudgment and postjudgment interest, attorney’s fees, and costs. The

trial court also granted the injunctive relief sought by Loft, finding that Bradbury is

3 prohibited from directly or indirectly soliciting, retaining, or hiring any of Lofty’s current or

former employees for employment or outside services. Bradbury moved to set aside the

default judgment, and a hearing was held in February 2024.

At the hearing, counsel for both parties made arguments. It was learned through

Bradbury’s counsel that Bradbury’s registered agent, CT Corporation, had “inexplicably”

held the summons and complaint from Lofty until November 29 and then mailed it to an

unrelated “Bradbury Capital” in Boston, Massachusetts, which had been defunct for over a

decade. The trial court ruled from the bench, denying Bradbury’s motion to set aside.

In its order denying the motion to set aside, the trial court found that Lofty had

properly served Bradbury in that there was no dispute that Lofty served Bradbury’s registered

agent for service of process via certified mail, return receipt requested. The trial court found

that the “CT Corporation” stamp on the return receipt was sufficient to satisfy the

requirements of Ark. R. Civ. P. 4(g). The trial court further found that none of Bradbury’s

arguments under Ark. R. Civ. P. 55(c) were sufficient to set aside the default judgment.

Bradbury brought this appeal.

II. Discussion

A. Default Judgment

When a party against whom a judgment for affirmative relief is sought has failed to

plead or otherwise defend as provided by these rules, judgment by default may be entered by

the court. Ark. R. Civ. P. 55(a). Pursuant to Rule 55(c), the court may, upon motion, set

aside a default judgment previously entered for the following reasons: (1) mistake,

4 inadvertence, surprise, or excusable neglect; (2) the judgment is void; (3) fraud (whether

heretofore denominated intrinsic or extrinsic), misrepresentation, or other misconduct of

an adverse party; or (4) any other reason justifying relief from the operation of the judgment.

The party seeking to have the judgment set aside must demonstrate a meritorious defense to

the action; however, if the judgment is void, no other defense to the action need be shown.

Ark. R. Civ. P. 55(c).

Our standard of review from an order denying a motion to set aside a default

judgment depends on the grounds upon which the appellant is claiming that the default

judgment should be set aside. Ewing v. Schmalz, 2025 Ark. App. 495, ___ S.W.3d ___. When

the appellant claims that the default judgment is void, the matter is a question of law, which

we review de novo and give no deference to the trial court’s ruling. Id. In all other cases

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2025 Ark. App. 592, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bradbury-capital-llc-v-lofty-labs-llc-arkctapp-2025.