Perry v. Baptist Health

243 S.W.3d 310, 368 Ark. 114, 2006 Ark. LEXIS 567
CourtSupreme Court of Arkansas
DecidedNovember 16, 2006
Docket06-599
StatusPublished
Cited by19 cases

This text of 243 S.W.3d 310 (Perry v. Baptist Health) 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
Perry v. Baptist Health, 243 S.W.3d 310, 368 Ark. 114, 2006 Ark. LEXIS 567 (Ark. 2006).

Opinion

Betty C. Dickey, Justice.

Dr. Bobby Perry appeals a Pulaski County Circuit Court order awarding attorney’s fees in the amount of $65,000 to Baptist Health, arguing that Baptist Health was not a prevailing party pursuant to Ark. Code Ann. § 16-22-308 (1999), and that the amount of the award was unreasonable. We find no error and affirm.

On February 7, 2002, Dr. Perry filed suit against Baptist Health alleging breach of a professional services contract. The Appellees filed a motion to dismiss, alleging that Dr. Perry was not an intended third-party beneficiary of the professional services agreement. On June 19, 2002, the trial court, pursuant to Ark. R. Civ. P. 12(b)(6), granted the motion for failure to state facts showing an entitlement to relief. The Arkansas Court of Appeals affirmed that ruling. After granting Dr. Perry’s petition for review, this court in Perry v. Baptist Health, 358 Ark. 238, 189 S.W.3d 54 (2004), reversed the trial court’s dismissal of the complaint and remanded the case to the trial court. Upon remand, Baptist Health answered Dr. Perry’s complaint and asserted a counterclaim, alleging a breach of the professional services agreement and seeking $4,000 in damages. After a hearing on November 2, 2006, the trial judge ruled that the Appellant’s claim, which initially sought damages of approximately $1,000,000, was limited to damages occurring within ninety days after the alleged breach by Baptist Health. A trial was held starting on November 1, 2005, and the jury returned a verdict rejecting both the Appellant’s claim and the Appellee’s counterclaim and finding that no damages were due to either party. Baptist Health then filed a motion for attorney’s fees, and, on January 30, 2006, the trial court entered an order finding that Baptist Health was the prevailing party and awarding attorney’s fees in the amount of $90,000. Dr. Perry filed a motion for reconsideration, arguing that the trial court’s award was inequitable because it considered expenses incurred by Baptist Health in advancing its ultimately unsuccessful motion to dismiss. On February 14, 2006, a hearing on the motion for reconsideration was held, after which the trial court entered an order reducing the award to $65,000. We granted the Appellant’s petition for review from that order.

The Appellant’s first point on appeal is: The trial court abused its discretion by awarding attorney fees to the appellee, because there is no “prevailing party” here; therefore, attorney fees are not available under Arkansas Law.

A trial court is not required to award attorney’s fees and, because of the trial judge’s intimate acquaintance with the trial proceedings and the quality of service rendered by the prevailing party’s counsel, we usually recognize the superior perspective of the trial judge in determining whether to award attorney’s fees. Jones v. Abraham, 341 Ark. 66, 15 S.W.3d 310 (2000); Chrisco v. Sun Indus., Inc., 304 Ark. 227, 800 S.W.2d 717 (1990). The decision to award attorney’s fees and the amount to award are discretionary determinations that will be reversed only if the appellant can demonstrate that the trial court abused its discretion. Nelson v. River Valley Bank & Trust, 334 Ark. 172, 971 S.W.2d 777 (1998); Burns v. Burns, 312 Ark. 61, 847 S.W.2d 23 (1993).

As a threshold issue, it is necessary to assess the accuracy of the trial court’s determination that the Appellee was the “prevailing party” in the present case. Arkansas Code Annotated § 16-22-308 controls the award of attorney’s fees in contract cases, which provides in pertinent part:

in any civil action to recover on . . . breach of contract, unless otherwise provided by law or the contract which is the subject matter of the action, the prevailing party may be allowed a reasonable attorney fee to be assessed by the court and collected as costs.

The above statute gives the trial court the discretion to award reasonable attorney’s fees only to the “prevailing party.” Here, the Appellant asserted an unsuccessful breach of contract claim, and the Appellee asserted an unsuccessful breach of contract counterclaim. The Appellant argues that because the jury denied recovery on both his claim and Appellee’s subsequent counterclaim, there was no prevailing party in the instant action, as neither party gained any positive advantage over the other. The Appellee maintains that because it achieved its overall objective in this case, the successful defense of the Plaintiff-Appellant’s contract claim, it was the prevailing party in the instant action.

As is evident from a review of our case law, and as the Appellant concedes, a successful defendant in a contract action may be considered a “prevailing party” for the purposes of Ark. Code Ann. § 16-22-308. See, e.g., Marcum v. Wengert, 344 Ark. 153, 40 S.W.3d 230 (2001); Dawson v. Temps Plus, Inc., 337 Ark. 247, 987 S.W.2d 722 (1999); Marsh & McLennan of Ark. v. Herget, 321 Ark. 180, 900 S.W.2d 195 (1995).

Thus, the question to be answered here is whether the Defendant-Appellee’s assertion of the unsuccessful counterclaim necessarily precludes its classification as a “prevailing party” under section 16-22-308. We are of the opinion that it does not.

In our prior treatment of this issue, we have construed “prevailing party” in terms of the entire case, and not in terms of particular issues or actions therein. Accordingly, we have stated, “[u]nder Arkansas law, the prevailing party is determined by who comes out “on top” at the end of the case.” Marcum, 344 Ark. at 162, 40 S.W.3d at 236. Viewing the present case as a whole, it was the Appellee who achieved its primary objective and thus prevailed.

The Appellant relies on Kropp v. Ziebarth, 601 F.2d 1348 (8th Cir. 1979), for the proposition that an unsuccessful counterclaim removes a defendant from the definition as a prevailing party. In that case, the plaintiff filed suit to recover damages for breach of a contract to purchase cattle. The defendant buyers counterclaimed under the contract, asserting damages roughly double those claimed by the plaintiff. Eventually, a jury returned a verdict awarding both parties damages of the same amount. The trial court then awarded attorney’s fees to the defendant buyers. The Montana statute at issue in the case permitted the prevailing party to recover reasonable attorney’s fees. The Eighth Circuit Court reversed the award, stating:

We find no persuasive justification in the district court’s reasoning or clear support in Montana case law for the court’s view that only Buyers prevailed in this case.

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Bluebook (online)
243 S.W.3d 310, 368 Ark. 114, 2006 Ark. LEXIS 567, Counsel Stack Legal Research, https://law.counselstack.com/opinion/perry-v-baptist-health-ark-2006.