Greennecks Lawn Services LLC D/B/A Greennecks Landscape Management LLC And Joseph Swayze, in His Individual Capacity v. Stephen Lewis

2024 Ark. App. 404, 698 S.W.3d 367
Court of Appeals of Arkansas·Decided September 4, 2024·Published·Cited by 2 cases

Opinion

Cite as 2024 Ark. App. 404 ARKANSAS COURT OF APPEALS DIVISIONS I & II

No. CV-23-379

GREENNECKS LAWN SERVICES Opinion Delivered September 4, 2024 LLC D/B/A GREENNECKS LANDSCAPE MANAGEMENT LLC; APPEAL FROM THE FAULKNER AND JOSEPH SWAYZE, IN HIS COUNTY CIRCUIT COURT INDIVIDUAL CAPACITY [NO. 23CV-22-1295]

APPELLANTS

HONORABLE SUSAN WEAVER,

JUDGE

V.

STEPHEN LEWIS AFFIRMED APPELLEE

RITA W. GRUBER, Judge

Appellants are Joseph Swayze, in his individual capacity (Swayze), and Greennecks Lawn Services LLC d/b/a Greennecks Landscape Management LLC (the LLC). Swayze is the president and sole member of the LLC. Swayze and the LLC appeal four orders of the Faulkner County Circuit Court: an order denying a motion for extension of time to answer (MET), an order and an amended order granting appellee Stephen Lewis (Lewis) a default judgment on his complaint, and an order denying a motion to set aside the default judgment. Appellants raise four points on appeal: (1) the circuit court erred in finding that the MET was filed outside the initial thirty days that appellants had to respond to the complaint; (2) the “for cause” standard set forth in Arkansas Rule of Civil Procedure 6(b)(1) was clearly met; (3) the circuit court had no discretion under Arkansas Rule of Civil Procedure 55(c) to enter default judgment against Swayze when he otherwise defended by filing the MET

prior to the time prescribed for responding to the complaint; and (4) the attorney’s fees award and damages award must be vacated because they are not sufficiently supported by the record. We affirm.

I. Background

On July 21, 2022, appellants sent Lewis a ten-day notice of intent to file a lien. The lien was in connection with payment for services and materials that Lewis had hired the LLC to provide. On August 27, appellants were served with a letter from Lewis demanding that appellants withdraw the ten-day lien notice and pay Lewis for damages he alleged he had incurred due to the LLC’s incomplete and unsatisfactory services, or Lewis would file suit. On October 13, Lewis filed a petition for discharge of notice of lien and complaint against Swayze and the LLC. Swayze and the LLC were both served with the complaint on October 26. On November 28, the MET was filed. It requested an additional thirty days to “move, plead or otherwise respond” to Lewis’s complaint in order to “look[ ] for an attorney who can assist in this case.”

On November 30, 2022, the circuit court entered an order denying the MET. The order stated that the MET “lacks good cause as it was filed after the 30 days to respond, and the motion was made on behalf of the LLC.” On December 15, an objection to the denial of the MET was filed. It stated that “the defendant filed for Joseph Swayze and on behalf of llc,” invoked Arkansas Rules of Civil Procedure 4 and 9, and argued that the MET was filed under the allotted time, and securing legal counsel constituted “good cause.”

That same day—December 15—Lewis moved for default judgment. He alleged that both appellants had been properly and timely served; that both had failed to appear or

otherwise defend in the time and manner required by law; and that he was entitled to a default judgment against both as well as attorney’s fees and costs. Neither appellant responded to the motion for default judgment. On December 21, 2022, a default judgment was entered against appellants, jointly and severally. The judgment set forth that appellants had failed to appear or otherwise defend the complaint against them in the time and manner provided by law; and it awarded Lewis $33,623.16 plus 10 percent interest in damages and unspecified attorney’s fees and costs. On December 27, 2022, the circuit court entered an amended default judgment that was substantively the same as the December 21 default judgment, save that it specified that $3362.32 was awarded in attorney’s fees, and $374 was awarded in costs.

On January 10, 2023, appellants—for the first time by counsel—filed a motion to set aside the default judgment pursuant to Arkansas Rule of Civil Procedure 60.1 That motion set forth that an attempt was made to file the MET on Wednesday, November 23, 2022, but the clerk’s office had closed early for the Thanksgiving holiday and remained closed until the following Monday—the 28th—which is when the MET was filed. The motion to set aside asserted that the MET was timely filed because Rule 6(b) permits an enlargement of time “where the failure to act was the result of mistake, inadvertence, surprise, excusable neglect, or other just cause.” The motion to set aside argued that neither the MET nor an answer could have been filed prior to the November 25 deadline due to the closures; thus, the full measure of time to respond was not provided. The motion further stated that the

1 We note that neither appellant has challenged service, the summons, or the date on which they were served. We further note that neither appellant ever filed a responsive pleading.

judgment was highly prejudicial, and the only way to correct the miscarriage of justice was to set aside the judgment and permit time to file an answer.

On January 18, 2023, Lewis responded to the motion to set aside. The response recognized that an answer had not been due from appellants until November 28, 2022. Nevertheless, Lewis asserted that Rule 12 requires an answer within thirty days; that this did not occur; that appellants “have been involved in multiple lawsuits prior to the filing of this matter” and “were aware of and accustomed to the legal process”; that appellants have had since August 27, 2022—the day the demand letter was served—to involve an attorney and did not do so until January 10, 2023; that looking for an attorney was not “sufficient cause”; and that appellants’ failing “to attend to business in a timely manner” was not an acceptable reason or excuse for setting aside a default judgment. Lewis further argued that Swayze, individually, did not file an MET, and the filing of the MET by the LLC only did not automatically extend the time to file an answer. Lewis also argued that the default judgment was not a mistake or miscarriage of justice; rather, it was appropriate, and to set it aside would prejudice him.

On February 10, 2023, the circuit court entered an order denying the motion to set aside. In the order, the circuit court acknowledged “that Ark. R. Civ. P. 6(b) allows for an enlargement of time to file an answer upon cause shown,” but the court found that appellants “failed to show sufficient cause for granting an extension.” The court further denied the motion “pursuant to the reasons set forth in Lewis’s response to the motion to set aside.” This timely appeal followed.

II. The LLC

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Greennecks Lawn Services LLC D/B/A Greennecks Landscape Management LLC And Joseph Swayze, in His Individual Capacity v. Stephen Lewis, 2024 Ark. App. 404, 698 S.W.3d 367 (Ark. Ct. App. 2024).

2024 Ark. App. 404 (Greennecks Lawn Services LLC D/B/A Greennecks Landscape Management LLC And Joseph Swayze, in His Individual Capacity v. Stephen Lewis) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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