Calandro v. Parkerson

970 S.W.2d 796, 333 Ark. 603, 1998 Ark. LEXIS 404
CourtSupreme Court of Arkansas
DecidedJune 18, 1998
Docket98-38
StatusPublished
Cited by28 cases

This text of 970 S.W.2d 796 (Calandro v. Parkerson) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Calandro v. Parkerson, 970 S.W.2d 796, 333 Ark. 603, 1998 Ark. LEXIS 404 (Ark. 1998).

Opinion

Donald L. Corbin, Justice.

Appellants Janet Calandro and Dale H. Suezaki appeal the judgment of the Garland County Circuit Court dismissing with prejudice their claim of deceit against Appellee John W. Parkerson and, also, granting summary judgment in favor of Appellee. This is the second appeal of this case, following our partial reversal and remand to the trial court. See Calandro v. Parkerson, 327 Ark. 131, 936 S.W.2d 755 (1997) (Calandro I). Hence, our jurisdiction of this appeal is pursuant to Ark. Sup. Ct. R. 1-2(a) (7). Appellants raise two points for reversal. We find no error and affirm.

We set out the relevant facts of this case in considerable detail in Calandro I:

On April 29, 1994, appellants filed their complaint against appellee, an attorney practicing in Hot Springs. They alleged that, in the spring of 1991, they had desired to open a convenience store, had located a site for the business, and had found a prospective landlord, Kwik Lane Management Company, which had agreed to rent the property and necessary equipment to them. Appellants obtained a proposed lease agreement from Jim Davis, a representative of the purported lessor, and took it to appellee.
Upon appellee’s recommendation, appellants incorporated as U and Me, Inc. Thereafter, appellee redrafted the lease agreement, which was executed on May 1, 1991, by Kwik Lane Management Corporation as lessor and U and Me, Inc., as lessee. The business had been in operation for approximately five months when, in September of 1991, appellants were advised that Kwik Lane was not the owner of the business premises; rather, Southern Farm Bureau Life Insurance Company owned the real property and Worthen Bank owned the equipment. It was appellants’ position that appellee’s failure to inquire as to the status of the lessor and the title of the property leased constituted professional negligence, which proximately caused them to lose possession and use of the premises and equipment.
According to appellants’ complaint, in October of 1991, appellee agreed to assist them in obtaining leases for the real property and the equipment and promised that he would “get back to them.” On or about January 2, 1992, appellee, knowing that appellants would rely on his statement, told appellant Calandro that the real property had been sold, when, in fact, appellee knew that the property had not been sold. Relying on appellee’s statement, appellants vacated the premises and allowed Worthen to take the equipment. Appellants claimed that, as a result of appellee’s deceit as to the sale of the business premises, they voluntarily surrendered their rights in the equipment and fixtures necessary to operate their store, which closed in January of 1992. Two years later, on January 24, 1994, U and Me’s corporate charter was revoked for nonpayment of franchise taxes. Appellants asserted that appellee’s negligence and malfeasance constituted a breach of the attorney-client agreement, entitling them to a return of attorney’s fees and costs.

327 Ark. 131, 133-34, 936 S.W.2d 755, 756-57. Appellants originally sued Appellee for legal malpractice, breach of contract, and deceit. The trial court granted summary judgment to Appellee on all three claims. We affirmed the trial court’s ruling on the claims of legal malpractice and breach of contract in Calandro I, holding that those claims could only have been brought by the client-corporation, not the individual Appellants. Hence, because the corporation’s charter had been revoked, we concluded that it had lost its capacity to sue. We reversed and remanded for further factual development of the claim of deceit, for which no privity of contract is required.

On remand, the trial court again ruled in favor of Appellee, this time dismissing Appellants’ claim for their failure to comply with the court’s order compelling discovery, pursuant to ARCP Rule 37. Additionally, the trial court granted summary judgment to Appellee due to Appellants’ failure to meet proof with proof in support of their claim of deceit. This appeal followed.

On appeal, Appellants argue that the trial court erred and abused its discretion in dismissing their deceit claim based upon discovery violations. They contend that such a sanction was too harsh in proportion to the violations. They argue further that the trial court erred in granting summary judgment to Appellee, as they assert that there are material issues of fact still to be resolved.

Facts

The record reflects that on June 5, 1997, Appellee filed a motion to compel discovery. The motion reflected that Appellee had sent interrogatories to Appellants on April 8, 1997, and that no response had been made as of the date the motion to compel was filed. The motion reflected further that, approximately two weeks before the motion was filed, Appellee’s attorney had contacted Appellants’ attorney and had received assurances from Appellants’ attorney that the answers would be forthcoming. On June 6, 1997, the trial court issued an order granting Appellee’s motion to compel the discovery. The order directed Appellants to fully and completely respond to the interrogatories and the request for production on or before June 20, 1997.

Appellants filed their answers with the circuit court clerk on June 20, 1997. On June 23, 1997, Appellee filed a motion to dismiss pursuant to Rule 37, asserting that he had not yet received Appellants’ answers, and that they were thus in violation of the trial court’s order that the information be provided to him on or before June 20, 1997. On June 25, 1997, Appellee filed a supplemental motion to dismiss, asserting that, although he had received the answers on June 23, 1997, they were “largely evasive and incomplete.” Appellee asserted further that the objections made by Appellants to four interrogatories were untimely and thus waived, as they were not raised within thirty days of service. On August 13, 1997, Appellee filed a motion for summary judgment, asserting, among other things, that from the evidence already taken, including various affidavits and depositions of the parties, there was no evidence of intentional deceit on his part.

On September 5, 1997, the trial court conducted a hearing on both motions, during which Appellants’ attorney attempted to submit an amended complaint and a response to Appellee’s motion for summary judgment, which contained affidavits and a brief in support of the response. The trial court refused to consider the offered documents, ruling that Appellants had failed to comply with the provisions of ARCP Rule 56(c), which states that the adverse party has the right to serve opposing affidavits prior to the day of the hearing on the motion. The trial court heard considerable argument from both sides and, on September 8, 1997, issued a letter order granting both motions. The trial court entered an order of record on September 17, 1997. Regarding the motion to dismiss, the trial court found that Appellants were in violation of the court’s order directing them to fully and completely answer Appellee’s interrogatories, that their failure to comply with the court’s order was willful, and that dismissal of the case was appropriate as a sanction for such violations, as provided in Rule 37(b).

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Bluebook (online)
970 S.W.2d 796, 333 Ark. 603, 1998 Ark. LEXIS 404, Counsel Stack Legal Research, https://law.counselstack.com/opinion/calandro-v-parkerson-ark-1998.