M & M Bonding Co. v. State

955 S.W.2d 521, 59 Ark. App. 228, 1997 Ark. App. LEXIS 860
CourtCourt of Appeals of Arkansas
DecidedDecember 3, 1997
DocketCA 96-1329
StatusPublished
Cited by9 cases

This text of 955 S.W.2d 521 (M & M Bonding Co. v. State) 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
M & M Bonding Co. v. State, 955 S.W.2d 521, 59 Ark. App. 228, 1997 Ark. App. LEXIS 860 (Ark. Ct. App. 1997).

Opinion

Terry Crabtree, Judge.

M & M Bonding Company, Inc., appeals from a decision of the circuit court that ordered forfeiture of a $25,000.00 bail bond posted by M & M Bonding for Manuel DeLopez. Appellant argues five points on appeal. First, appellant asserts that the trial court improperly permitted a default judgment ordering the bond forfeiture to be entered against it without any proof of the State’s compliance with Arkansas Code Annotated § 16-84-201(b) (Supp. 1995). Second, that the trial court erred in finding that the defendant failed to appear on October 12, 1995. Appellant also contends that the trial court erred in finding that there was no evidence that the defendant was apprehended or surrendered to law-enforcement authorities before March 1, 1996. Fourth, appellant asserts that the trial court’s finding that appellant was properly served with notice of the bond-forfeiture hearing was clearly erroneous. Finally, appellant argues that the trial court abused its discretion in failing to exonerate a reasonable amount of appellant’s liability under the bail bond.

The State argues that the order forfeiting bond was not a default judgment, that appellant’s motion to vacate the judgment was not timely made, and that the appeal should, therefore, be dismissed. We find the State’s argument on this point persuasive.

On August 28, 1995, bail was given by M & M Bonding for Manuel DeLopez in the amount of $25,000. On September 27, 1995, the State sent a letter to M & M Bonding requesting that it have DeLopez in court on October 12, 1997, for a hearing. On October 3, 1995, DeLopez’s attorney, a public defender, made a motion to be relieved as attorney for the defendant. The court granted the motion.

DeLopez did not appear at the October 12 hearing, and the trial court issued an order directing appellant to appear on January 18, 1996, to show cause why the bond should not be forfeited. The court directed that appellant be notified of the January 18 hearing by certified mail, restricted delivery. Further, as a result of the defendant’s failure to appear, the trial court ordered a warrant issued for the defendant.

On January 18, 1996, M & M Bonding failed to appear and show cause why the bond should not be forfeited. The court forfeited the $25,000.00 bond and entered judgment against M & M Bonding. The judgment was sent to appellant and a return receipt filed with the court. On February 14, 1996, the State filed a motion for Citation for Contempt against appellant for failure to pay the required amount to the clerk. A second show-cause hearing was set on the same day; appellant was ordered to appear and show cause on February 22, 1996.

On February 15, 1996, Paul Hoover entered his appearance as attorney for Manuel DeLopez. The defendant appeared with counsel on February 22, 1996, and was released pending bail in the amount of $10,000. On May 9, 1996, appellant filed a motion to vacate the order whereby the bail was forfeited. Because appellant’s motion to vacate was not filed within the time prescribed by law, we affirm. See Ark. R. Civ. P. 60(b) (1997).

In the trial court’s order, the court referred to the forfeiture judgment entered against appellant as a default judgment. No doubt this was an inadvertent statement by the trial court. A surety bond is posted by qualified individuals to insure the appearance of a criminal defendant at subsequent hearings. The surety bond itself is considered adequate security. Arkansas Code Annotated § 16-84-201 provides:

(a)(1)(A) If the defendant fails to appear for trial or judgment, or at any other time when his presence in court may be lawfully required, or to surrender himself in execution of the judgment, the court may direct the fact to he entered on the minutes, and shall promptly issue an order requiring the surety to appear, on a date set by the court not less than ninety (90) days nor more than one hundred twenty (120) days after the issuance of the order, to show cause why the sum specified in the bail bond or the money deposited in lieu of bail should not be forfeited.
(B) The one hundred twenty-day period begins to run from the date notice is sent by certified mail to the surety company at the address shown on the bond, whether or not it is received by the surety, (emphasis added).

Appellant was notified that the defendant had failed to appear at the hearing of October 12, 1995, on October 19, 1995.1 The trial court set the hearing for the bond forfeiture on January 18, 1996, — more than ninety days from the time appellant was notified of the defendant’s failure to appear. One-hundred twenty days from the date appellant received notice of the defendant’s failure to appear was February 17, 1996. The defendant appeared in court on February 22, 1996, — more than one-hundred twenty days from the date appellant received the notice. Accordingly, the trial court correctly forfeited the bond pursuant to the statute, and not as a default judgment.

Appellant asserts that it could have asked the court to vacate the judgment pursuant to Rule 55 of the Arkansas Rules of Civil Procedure. That rule provides in pertinent part:

(c) Setting Aside Default Judgments. The court may, upon motion, set aside a default judgment previously entered for the following reasons: (1) mistake, inadvertence, surprise, or excusable neglect; (2) the judgment is void; (3) fraud, 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.

Appellant’s reliance on Rule 55(c) is misplaced. The rule contemplates that an opposing party request a default judgment against another party. In a bond-forfeiture case, the money or other sufficient surety has been deposited with the court. Once the defendant has failed to appear, the entire amount of the bond is subject to forfeiture. The surety is given the opportunity to present evidence why the bond should not be forfeited, or why the full amount of the bond should not be forfeited, but the bond-forfeiture procedure is separate and apart from the Rules of Civil Procedure.

In Bryce Bail Bonds, Inc. v. State, we stated:

Our review of cases dealing with bail bonds discloses several setded rules with regard to forfeiture and principles and guidelines governing remission which are to be applied on a case by case basis. Most of these cases are collected and discussed in Tri-State Bonding Co. v. State, 263 Ark. 620, 567 S.W.2d 937 (1978); Craig & Schaaf v. State, 257 Ark. 112, 514 S.W.2d 383 (1974); and Allied Ins. Co. v. State, 268 Ark. 934, 597 S.W.2d 115 (Ark. App. 1980). These cases recognize that in determining a forfeiture of bail, the underlying basis for admitting one to bail must be considered. The defendant, rather than being held in custody by the State, is released to the surety who assumes custody of him and is responsible to the court for his appearance at any time.

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Bluebook (online)
955 S.W.2d 521, 59 Ark. App. 228, 1997 Ark. App. LEXIS 860, Counsel Stack Legal Research, https://law.counselstack.com/opinion/m-m-bonding-co-v-state-arkctapp-1997.