R.K. Enterprises, LLC v. Pro-Comp Management, Inc.

272 S.W.3d 85, 372 Ark. 199, 2008 Ark. LEXIS 53
CourtSupreme Court of Arkansas
DecidedJanuary 24, 2008
Docket07-671
StatusPublished
Cited by9 cases

This text of 272 S.W.3d 85 (R.K. Enterprises, LLC v. Pro-Comp Management, Inc.) 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
R.K. Enterprises, LLC v. Pro-Comp Management, Inc., 272 S.W.3d 85, 372 Ark. 199, 2008 Ark. LEXIS 53 (Ark. 2008).

Opinion

Robert L. Brown, Justice.

R.K. Enterprises, LLC, d/b/a Nationwide Nurses, a Nevada Limited Liability Company, and Katherine Hefley, Mary Burks, Traca Lane, and Raymond Hefley, all individuals (collectively referred to as Nationwide), appeal from an order of the circuit court awarding a judgment in the amount of $262,303 under the theory of unjust enrichment to Pro-Comp Management, Inc., d/b/a The Right Solutions, an Arkansas corporation, The D.L.J. Wright Industries, Inc., d/b/a The Right Solutions, an Oklahoma corporation, and Amedistaf, LLC, d/b/a The Right Solutions, a Delaware Limited Liability Company (collectively referred to as TRS). We affirm the judgment.

This is the third appeal in this case, see R.K. Enterprises, LLC v. Pro-Comp Management, Inc., 356 Ark. 565, 158 S.W.3d 685 (2004) (R.K. I) and Pro-Comp Management, Inc. v. R.K. Enterprises, LLC, 366 Ark. 463, 237 S.W.3d 20 (2006) (R.K. II), and the underlying facts in this case were dictated at length by this court in R.K. I. Suffice it to say that TRS was in the business of providing nursing care services to medical care facilities, and the lawsuit involved the theft of trade secrets by Nationwide from TRS involving those services.

The procedural facts relevant to this appeal are as follows. Upon discovery that Nationwide had misappropriated various trade secrets from TRS, TRS filed a complaint against Nationwide alleging, among other things, conversion, civil conspiracy, and a violation of the Arkansas Theft of Trade Secrets Act. Following a bench trial, the circuit court entered an order on January 21, 2003, in which it found Nationwide liable for conversion, civil conspiracy, and misappropriating trade secrets in violation of the Trade Secrets Act, codified at Ark. Code Ann. §§ 4-75-601 — 4-75-607 (Repl. 2001). The circuit court then allowed TRS to elect to either seek damages under the Trade Secrets Act or on the basis of the tort claims of conversion and civil conspiracy. TRS chose recovery under the tort claims, and the circuit court awarded TRS judgment in the amount of $262,312. Nationwide appealed, and in R.K. I, this court held that the Trade Secrets Act preempted damages based on the tort claims of conversion and civil conspiracy and reversed and remanded the case for a determination of damages under the Trade Secrets Act.

Following remand, the circuit court entered an order on January 14, 2005, in which it concluded that Nationwide had been unjustly enriched by the misappropriation of the trade secrets but that sufficient evidence had not been developed at trial for the court to determine the amount of damages to be awarded under the Trade Secrets Act. The court entered judgment in favor of Nationwide.

TRS appealed, and in R.K. II, this court affirmed the circuit court’s denial of relief under the Trade Secrets Act but reversed and remanded the case for a determination of damages based on unjust enrichment. In R.K. II, this court also considered Nationwide’s cross-appeal, which asserted that this court lacked jurisdiction to remand the case in R.K. I for a determination of damages under the Trade Secrets Act because TRS did not cross-appeal on that point. This court rejected Nationwide’s jurisdictional argument in R.K.II and held that this court had jurisdiction to remand the case.

After the second remand, the circuit court entered an order on March 20, 2007, awarding TRS damages in the amount of $262,303 based on the theory of unjust enrichment. Specifically, the court said:

4. The Court finds that although liability for misappropriation of trade secrets has been proven, the evidence presented on actual loss is too speculative to prove damages. However, the evidence presented on damages for unjust enrichment has been clearly established.
5. The Court now makes the determination that the correct measure of damages on the issue of unjust enrichment is the fair market value of the trade secrets. This value represents the benefit that Nationwide has received by avoiding the payment of this value in order to obtain this information.

In the instant appeal, Nationwide again maintains as its first point that this court lacked jurisdiction to remand the case in R.K. I for a determination of damages under the Trade Secrets Act. Nationwide recognizes that it made this same argument during a cross-appeal in R.K. if but urges that although this court rejected Nationwide’s arguments in R.K. II regarding waiver and election of remedies, it failed to address directly the issue of subject-matter jurisdiction. It argues once more that in the circuit court’s January 21, 2003 order, the circuit court did not award any damages under the Trade Secrets Act, and TRS did not file a cross-appeal from that decision. Nationwide points out that, as a result, TRS was granted affirmative relief not asked for by cross-appeal. Thus, Nationwide insists, neither this court nor the circuit court had jurisdiction in R.K.I to award TRS damages under the Trade Secrets Act or for unjust enrichment, and the circuit court’s subsequent orders are all void ab initio.

We begin by discussing the law-of-the-case doctrine, which “prohibits a court from reconsidering issues of law and fact that have already been decided in a prior appeal.” Byme, Inc. v. Ivy, 367 Ark. 451, 457, 241 S.W.3d 229, 235 (2006). This court has explained that “[o]n second appeal, . . . the decision of the first appeal becomes the law of the case, and is conclusive of every question of law or fact decided in the former appeal, and also of those which might have been, but were not, presented.” Vandiver v. Banks, 331 Ark. 386, 391, 962 S.W.2d 349, 352 (1998) (quoting Mercantile First Nat’l Bank v. Lee, 31 Ark. App. 169, 173, 790 S.W.2d 916, 919 (1990)). Stated differently, “[t]he doctrine of the law of the case . . . prevents an issue raised in a prior appeal from being raised in a subsequent appeal unless the evidence materially varies between the two appeals.” Vandiver, 331 Ark. at 391-92, 962 S.W.2d at 352.

In R.K. II, the second appeal in this case, Nationwide raised the issue of this court’s subject-matter jurisdiction on cross-appeal. As already stated, Nationwide argued that this court lacked jurisdiction to remand the case in R.K. I for a determination of damages under the Trade Secrets Act because the circuit court did not award damages under the Trade Secrets Act at trial and TRS did not cross-appeal from that ruling. This is the same argument that Nationwide now makes in the current appeal.

In R.K. II, this court rejected Nationwide’s argument and confirmed its decision by continuing to assume jurisdiction in this matter and by remanding the case a second time for further rulings by the circuit court. Our decision on Nationwide’s jurisdictional point was clear. Because of this, we hold that the law-of-the-case doctrine bars Nationwide from now making the same argument which this court has previously rejected.

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Pro-Comp Management, Inc. v. R.K. Enterprises, LLC
272 S.W.3d 91 (Supreme Court of Arkansas, 2008)

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Bluebook (online)
272 S.W.3d 85, 372 Ark. 199, 2008 Ark. LEXIS 53, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rk-enterprises-llc-v-pro-comp-management-inc-ark-2008.