Tricou v. ACI Management, Inc.

823 S.W.2d 924, 37 Ark. App. 51, 1992 Ark. App. LEXIS 47
CourtCourt of Appeals of Arkansas
DecidedJanuary 29, 1992
DocketCA 90-547
StatusPublished
Cited by6 cases

This text of 823 S.W.2d 924 (Tricou v. ACI Management, Inc.) 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
Tricou v. ACI Management, Inc., 823 S.W.2d 924, 37 Ark. App. 51, 1992 Ark. App. LEXIS 47 (Ark. Ct. App. 1992).

Opinion

Melvin Mayfield, Judge.

On December 14, 1988, the appellee filed suit against the appellants seeking to recover damages allegedly sustained as a result of intentional and fraudulent misrepresentations which induced appellee to contract with appellants for the purchase of voltage surge suppressors. The complaint stated that “the misrepresentations involved the misrepresentation of the fact that Underwriters Laboratories, Inc. had approved the devices which were sold.” Recovery for both compensatory and punitive damages were sought.

The appellants filed a timely answer to the complaint, and appellant Utility Management Controls, Inc. subsequently filed a counterclaim in which it asked for damages against the appellee for failure to fulfill appellee’s contract to purchase the suppressors and its agreement not to compete with appellant in selling or manufacturing the suppressors described in the contract of sale between the parties.

On June 23, 1989, the appellee took the deposition of appellant Jim Tricou, who owned and operated appellant Utility Management Controls, Inc. During the deposition, Tricou refused to answer several questions but promised to furnish certain information to appellee. On July 13, 1989, the appellee filed a motion to compel the appellants to furnish the promised information. The trial court granted the motion by an order filed of record on October 10, 1989.

The license to practice of the attorney representing the appellants was subsequently revoked and the trial court entered an order substituting new counsel on February 24,1990. By this time the new counsel was aware that the court had granted the motion to compel and had advised the appellants of the court’s order in this regard. On April 3,1990, the appellee filed a motion alleging that the information which the court’s order of October 10, 1989, had directed appellants to furnish had not been furnished. The motion further alleged that the case was set for trial on April 25, 1990, and that the information to be furnished “might be useless if furnished at this late date.” The motion concluded with the request that the court “impose sanctions on the defendant by awarding plaintiff the relief sought in the complaint in the form of summary judgment.

This motion was heard on May 30, 1990. On that same day the appellants filed a “Response to Discovery Requests” which supplied information in the form of statements made and documents and correspondence attached. At the hearing on the motion for sanctions, counsel for appellee pointed out that the information ordered furnished by the court’s order of October 10, 1989, was not furnished until May 30, 1990, over seven months later, and that he thought default judgment against appellants would be a proper sanction under Arkansas Rules of Civil Procedure, Rule 37.

Counsel for appellants explained to the court that another attorney had represented the appellants at the time Mr. Tricou’s deposition was taken and that there was some confusion in getting the requested information to the present attorney. Counsel said he “finally got to the point” where he called his client and told him to “get the stuff to me” if “you want me to stay on this case.” He said he “did not receive the stuff until yesterday.” Counsel also pointed out that default judgment was a harsh remedy.

After some discussion, the court stated:

Allright. The Court is going to, I am going to strike the counterclaim and I am going to grant a default judgment. You’re going to have to put on proof of damages. I’m not going to mess with this any longer.

The court then set August 27, 1990, as the date for a hearing on damages. A written order to that effect was entered in July of 1990. At the August hearing, the court granted appellee a judgment against the appellants for compensatory damages in the sum of $47,689.50 and punitive damages in the sum of $95,995.65.

Appellants first argue that the trial court abused its discretion in awarding a default judgment as a sanction for failing to comply with its order to furnish discovery information within a timely period. One point made in their argument is that the Arkansas cases, in which the sanctions of dismissal or default judgment have been employed, are cases where the court order has specifically warned that failure to comply would subject the party to the sanctions provided for such failure. Appellants cite the following cases in support of that argument: Cagel v. Fennel, 297 Ark. 353, 761 S.W.2d 926 (1988); Mann v. Ray Lee Supply, 259 Ark. 565, 535 S.W.2d 65 (1976); Graham v. Sledge, 28 Ark. App. 22, 771 S.W.2d 296 (1989). It is not contended that such a warning must be given; only that the cases have involved situations where the warning was given; and that it would be proper in this case to reverse the severe sanction imposed since no warning was given, there was a change of counsel, and there was ultimate compliance with the court’s order.

Cagel v. Fennel, supra, points out that our rules do not require a finding of willful or deliberate disregard of the court’s order before sanctions may be applied. However, the court’s order granting default judgement in the instant case made the specific finding that the appellants “have willfully failed to comply” with the order which directed them to furnish the information promised in Tricou’s deposition. Because the order to furnish that information, which was entered on October 10, 1989, provided that the appellants had thirty days in which to comply and because they failed to do so until more than seven months later, and then only after present counsel warned appellants to furnish the information if they wanted him to stay on the case, we cannot say the sanctions imposed by the court, although certainly harsh, were an abuse of the court’s discretion.

Appellants also argue that the award of punitive damages was not proper, was not supported by the evidence, and was excessive.

After hearing the evidence as to damages on August 27, 1990, the trial court simply announced the amount of compensatory and punitive damages which it granted without making any finding of malice or willful, wanton, or reckless conduct, nor did the judgment entered by the court make any such findings. This issue has been fully discussed in the recent opinion of the Arkansas Supreme Court in the case of Stein v. Lukas, 308 Ark. 74, 823 S.W.2d 832 (1992). In that opinion, the court stated:

We have held that punitive or exemplary damages are proper where there is an intentional violation of another’s right to his property. See Walt Bennett Ford, Inc. v. Keck, 298 Ark. 424, 768 S. W.2d 28 (1989). We have further held that punitive damages are available in cases of misrepresentation or deceit. See Thomas Auto Co. v. Craft, 297 Ark. 492, 763 S.W.2d 651 (1989).

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Bluebook (online)
823 S.W.2d 924, 37 Ark. App. 51, 1992 Ark. App. LEXIS 47, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tricou-v-aci-management-inc-arkctapp-1992.