383 S.W.3d 893
Ark. Ct. App.2011Background
- This is an appeal from a judgment imposing personal liability on Dunn for a debt of Biomed to Womack.
- Womack sued Biomed and Dunn for breach of contract related to consulting services and nonpayment.
- In May 2009 the parties executed an agreement: Biomed would pay $46,200 to Womack with specified interest and amortization terms; Dunn signed separately, with a note that he could be personally liable if Biomed defaulted.
- The agreement stated that if Biomed defaulted, the debt could become joint and several personal debt of Dunn.
- Dunn admitted Biomed filed for Chapter 7 bankruptcy; Womack filed for judgment enforcement in June 2010 and sought Dunn’s personal liability, along with attorney’s fees and costs.
- The circuit court denied a jury trial, found Dunn personally liable, and awarded $46,200 plus fees and costs.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Dunn is personally liable under the statute of frauds. | Dunn agreed to be personally liable; attorney statements bound him. | Dunn signed as Biomed representative; no personal liability. | Yes; Dunn is personally liable despite signing as Biomed. |
| Whether there was sufficient proof of Biomed's default. | Biomed filed Chapter 7; admissions and pleadings prove default. | No explicit default proof beyond bankruptcy status; affidavit insufficient. | Yes; admissions and bankruptcy admission prove default. |
| Whether attorney’s fees were properly awarded and in what amount. | Fees authorized by statute; reasonable under factors; contingency fee not dispositive. | No statutory basis or improper procedure for award; too little evidence of amount. | Yes; proper statutory basis and amount affirmed. |
| Whether denial of a jury trial was improper. | Issues were legal/summary-judgment-like; no triable facts for a jury. | There were facts for jury resolution on capacity and breach. | Yes; court acted within discretion; no jury questions. |
Key Cases Cited
- Windsong Enters., Inc. v. Upton, 366 Ark. 23 (Ark. 2006) (summary judgment standards and evidentiary requirements)
- Hrezo v. City of Lawrenceburg, 934 N.E.2d 1221 (Ind.App.2010) (appellate review of trial court decisions)
- MEMO Elec. Materials, Inc. v. BP Solar Int'l, Inc., 196 Md.App. 318 (Md.App.2010) (evidence and contract enforcement principles)
- Brown Dev. Corp. v. Hemond, 2008 ME 146 (Me. 2008) (statute of frauds and personal liability for corporate debt)
- Dolphin v. Wilson, 328 Ark. 1 (Ark. 1997) (statute of frauds; enforceability of oral agreements)
- Pfeifer v. Raper, 253 Ark. 438 (Ark. 1972) (statute of frauds and equitable enforcement)
- Cobb v. Leyendecker, 89 Ark.App. 167 (Ark. App. 2005) (contract enforceability; evidence standards)