JPMorgan Chase Bank, N.A. v. Scott
2017 Ark. App. 358
| Ark. Ct. App. | 2017Background
- Chase appealed a Jackson County Circuit Court order granting the Scotts a default judgment as a discovery sanction under Ark. R. Civ. P. 37(b)(2)(C).
- The sanction declared Chase in default on the Scotts’ counterclaims and dismissed Chase’s forcible-entry and unlawful-detainer complaint; the trial court reserved damages for jury trial.
- The order determined liability but left damages for trial, so it was not a final judgment.
- Chase argued the order was appealable interlocutorily under Ark. R. App. P.–Civ. 2(a)(4) as an order striking a pleading, relying on an assertion that Rule 37 default requires Rule 55 standards.
- The Scotts moved to dismiss the appeal for lack of jurisdiction, contending the trial court did not strike Chase’s pleadings and the order is not appealable under Rule 2(a)(4).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the trial-court order is a Rule 2(a)(4) appealable strike of a pleading | Chase: sanction effectively "struck" its answer, so interlocutory appeal allowed | Scotts: court entered default as a sanction but did not strike any pleading; appeal not authorized by Rule 2(a)(4) | Court: appeal dismissed for lack of jurisdiction because the order did not strike a pleading and was not a final judgment |
| Whether Rule 37 default requires compliance with Rule 55 default-judgment standards | Chase: Rule 37 default permissible only if Rule 55 requirements met | Scotts: Rule 37 operates independently of Rule 55 | Court: Rule 55 requirements do not apply to Rule 37 sanctions; Chase’s argument without merit |
Key Cases Cited
- Arnold Fireworks Display, Inc. v. Schmidt, 307 Ark. 316 (holding that an order determining liability but reserving damages is not final)
- Nat’l Front Page, LLC v. State ex rel. Pryor, 350 Ark. 286 (holding Rule 55 requirements do not apply to Rule 37 sanctions)
- Viking Ins. Co. of Wisconsin v. Jester, 310 Ark. 317 (same: Rule 37 sanctions independent of Rule 55)
- In re Estate of Stinnett, 383 S.W.3d 357 (an order that strikes a pleading under Rule 2(a)(4) must be appealed within thirty days and cannot be challenged as an intermediate order after final judgment)