Florida Oil Investment Group, LLC v. Goodwin & Goodwin, Inc.
2016 Ark. App. 380
| Ark. Ct. App. | 2016Background
- Goodwin & Goodwin, Inc. performed construction work on the Fort Chaffee site and filed a materialmen’s lien for unpaid work after serving a notice of intent to file a lien while FCRA owned the property.
- Florida Oil purchased the Fort Chaffee property after the lien was filed and became record owner before this foreclosure suit was filed against the property.
- The circuit court originally foreclosed Goodwin’s lien and awarded attorney’s fees to Goodwin; the Arkansas Court of Appeals reversed, holding the lien invalid and remanded.
- On remand, Florida Oil moved for attorney’s fees as the prevailing party under Ark. Code Ann. § 18-44-128(b); the circuit court denied the motion, reasoning § 128(b) only applied to owners who received the pre-lien notice.
- The Court of Appeals reviewed statutory construction de novo and, applying strict construction of lien statutes, considered whether § 128(b) authorizes attorney’s fees for an owner who held legal title and was the prevailing party when the suit concluded.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Ark. Code Ann. § 18-44-128(b) entitles an owner who is the prevailing party to recover attorney’s fees when the owner acquired title after the lien was filed | Goodwin/circuit court: § 128(b) applies only to owners who received notice of intent to file lien (i.e., owners at time of notice or lien filing) | Florida Oil: plain statutory text entitles any owner who is the prevailing party to reasonable attorney’s fees, regardless of when title was acquired | Reversed: § 128(b) unambiguously awards fees to the prevailing owner; Florida Oil (legal title owner and prevailing party) is entitled to reasonable attorney’s fees |
Key Cases Cited
- Cent. Okla. Pipeline, Inc. v. Hawk Field Servs., LLC, 400 S.W.3d 701 (Ark. 2012) (statutory interpretation reviewed de novo; ordinary meaning controls)
- Simmons First Bank of Ark. v. Bob Callahan Servs., Inc., 13 S.W.3d 570 (Ark. 2000) (lien statutes are construed strictly and narrowly)
- Chrisco v. Sun Indus., 800 S.W.2d 717 (Ark. 1990) (guidance for determining reasonable attorney’s fees)
- Florida Oil Inv. Grp., LLC v. Goodwin & Goodwin, Inc., 463 S.W.3d 323 (Ark. Ct. App. 2015) (prior appeal reversing foreclosure of lien and remanding)