Nationwide Insurance Enterprise v. Ibanez

246 S.W.3d 883, 368 Ark. 432, 2007 Ark. LEXIS 27
CourtSupreme Court of Arkansas
DecidedJanuary 11, 2007
Docket06-765
StatusPublished
Cited by19 cases

This text of 246 S.W.3d 883 (Nationwide Insurance Enterprise v. Ibanez) 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
Nationwide Insurance Enterprise v. Ibanez, 246 S.W.3d 883, 368 Ark. 432, 2007 Ark. LEXIS 27 (Ark. 2007).

Opinion

Jim Gunter, Justice.

This appeal arises from an order of the Benton County Circuit Court reducing a foreign judgment filed in Benton County against appellee and garnishee, Wal-Mart, after a default judgment was entered in favor of appellant, Nationwide Insurance Enterprise, in the State of Washington. We affirm.

On January 7, 2005, Wal-Mart was served by Nationwide with a writ of garnishment with respect to the wages of Tamela Ibanez, its employee, in the amount of $11,523.39. The writ was issued out of the Clark County District Court of Washington. Ibanez was terminated from Wal-Mart on February 9, 2005. On March 3, 2005, a default judgment was entered against Wal-Mart in the amount of $11,523.39, pursuant to Wash. Rev. Code § 6.27.200 (2003).

On October 20, 2005, Nationwide registered the Washington judgment in the Benton County Circuit Court, and the clerk of the Benton County Circuit Court sent a notice of filing a foreign judgment to Wal-Mart. On January 20, 2006, Wal-Mart filed a motion to set aside judgment or, in the alternative, to reduce judgment. In its motion, it alleged that, from the time of service of the writ of garnishment until Ibanez’s termination, Wal-Mart should have withheld $1,086.37, and that the judgment against Wal-Mart should not have exceeded that amount. Nationwide responded on February 6, 2006, arguing that the Benton County Circuit Court should give full faith and credit to the Washington judgment and that a foreign judgment is protected from collateral attack.

A hearing on the matter was held on February 14, 2006. The Benton County Circuit Court entered an order on March 3, 2006, ruling that Wal-Mart’s motion to set aside judgment was a direct attack on the judgment and was permissible under the Uniform Enforcement of Foreign Judgments Act (“Act”). The circuit court reduced the amount of the judgment to $1,086.37, which reflects the period of time between the service of the writ, pursuant to Wash. Rev. Code § 6.27.200, and the time of Ibanez’s termination. 1 Nationwide timely filed its notice of appeal on March 21, 2006. Nationwide brings its appeal from the March 3, 2006, order.

For its sole point on appeal, Nationwide argues that the circuit court erred in ruling that Wal-Mart’s motion to set aside constituted a direct attack on the Washington judgment filed in Arkansas under the Act. Specifically, Nationwide contends that a direct attack to the foreign judgment is not permissible under the Act. In response, Wal-Mart argues that the circuit court was correct in its order to reduce the judgment. Specifically, Wal-Mart asserts that a direct attack is allowed under the Act, that WalMart’s motion to reduce the judgment was a direct attack on the foreign judgment, and that its motion to reduce the judgment demonstrated a meritorious defense. Wal-Mart also contends that its motion was not untimely.

This case involves an appeal of an order setting aside a default judgment. Our standard of review depends on the grounds upon which the appellant is claiming the default judgment should be set aside. In cases where 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 circuit court’s ruling. Nucor Corp. v. Kilman, 358 Ark. 107, 186 S.W.3d 720 (2004). In all other cases where we review the motion to set aside a default judgment, we do not reverse absent an abuse of discretion. Id. Because Wal-Mart does not argue that the default judgment was void, we will review the circuit court’s decision under an abuse-of-discretion standard.

The Uniform Enforcement of Foreign Judgments Act, codified at Ark. Code Ann. §§ 16-66-601 — 16-66-619 (Repl. 2005), provides a summary procedure in which a party in whose favor a judgment has been rendered may enforce that judgment promptly in any jurisdiction where the judgment debtor can be found. May v. May, 57 Ark. App. 215, 944 S.W.2d 550 (1997). The Act further provides that Arkansas courts give any judgment of a court of the United States full faith and credit when the judgment is regular on its face and authenticated. Ark. Code Ann. § 16-66-601; see also Strick Lease, Inc. v. M.P.Juels, 30 Ark. App. 15, 780 S.W.2d 594 (1989). Under the Full Faith and Credit Clause of the United States Constitution, art. 4, § 1, a foreign judgment is as conclusive on collateral attack as a domestic judgment would be, except for the defenses of fraud in the procurement of the judgment or want of jurisdiction in the rendering court. Id. For full faith and credit purposes, default judgments are considered judgments on the merits. See Butler Fence Co. v. Acme Fence & Iron Co., Inc., 42 Ark. App. 30, 852 S.W.2d 826 (1993). Foreign judgments entered by default are equally protected against collateral attack, unless the previously stated defenses can be established. Id.

The primary purpose of the Act is to allow a party with a favorable judgment an opportunity to obtain prompt relief. See Chem. Methods Leasco, Inc. v. Ellison, 46 Ark. App. 288, 879 S.W.2d 467 (1994). A party may file a copy of a foreign judgment in the office of the clerk of the court having jurisdiction over the matter. See Ark. Code Ann. § 16-66-602. The Act requires only that the foreign judgment be regular on its face and duly authenticated to be subject to registration. Butler, supra. Once a decree or judgment is accepted as proper for registration, then it becomes, in effect, an Arkansas judgment and will remain on the judgment books to be enforced by Arkansas in the future. Nehring v. Taylor, 266 Ark. 253, 583 S.W.2d 56 (1979) (decision under prior law).

Nationwide argues that the circuit court erred in ruling that Wal-Mart’s filing the motion to set aside the judgment was a direct attack rather than a collateral attack. Wal-Mart counters, arguing that a direct attack is permissible under the Act and that its motion to set aside the judgment constituted a direct attack on the judgment. We stated in Council of Co-Owners for Lakeshore Resort & Yacht Club Horizontal Property Regime v. Glyneu, LLC, 367 Ark. 397, 240 S.W.3d 600 (2006):

A direct attack on a judgment is an attempt to amend it, correct [it], reform it, vacate it, or enjoin its execution in a proceeding instituted for that purpose. An attack is direct where the proceeding in which it is made is brought for the purpose of impeaching or overturning the judgment, and collateral if made in any manner other than by a proceeding the very purpose of which is to impeach or overturn the judgment.

Id. (Citations omitted.)

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Bluebook (online)
246 S.W.3d 883, 368 Ark. 432, 2007 Ark. LEXIS 27, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nationwide-insurance-enterprise-v-ibanez-ark-2007.