Miracle Kids Success Academy, Inc. v. Maurras
2016 Ark. App. 445
| Ark. Ct. App. | 2016Background
- Marvin Maurras sued Miracle Kids Success Academy on July 17, 2014, asserting three counts: repayment of a $150,000 loan with interest (Count I); production of a 2013 Schedule K-1 and related documents (Count II); and an injunction restraining corporate acts without board meeting and notice (Count III).
- The parties filed cross-motions for partial summary judgment and a hearing was held.
- The circuit court orally granted Maurras’s motion on Count I and, in an October 14, 2015 order, found Maurras had loaned $150,000 at 5% interest and awarded judgment of $197,627.93 plus postjudgment interest at 10%.
- The court dismissed Counts II and III without prejudice; no Rule 54(b) certification was entered to make the partial adjudication final as to all claims.
- No party raised finality at the time; the Court of Appeals raised it sua sponte and considered whether the order was appealable.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the circuit court’s order was final and appealable | Maurras treated the ruling on Count I as a final judgment entitling him to appeal | Miracle Kids did not obtain a Rule 54(b) certification; counts dismissed without prejudice are not final | The appellate court held the order was not final because Counts II and III were dismissed without prejudice and no Rule 54(b) certification was entered; appeal dismissed for lack of jurisdiction |
| Whether dismissal of Counts II and III without prejudice affects finality | Maurras likely contended dismissal resolved those claims sufficiently for appeal | Miracle Kids argued dismissal without prejudice left plaintiff free to refile, so merits not finally determined | Court held dismissal without prejudice is not an adjudication on the merits and preserves the plaintiff’s ability to refile, defeating finality |
Key Cases Cited
- Hotfoot Logistics, LLC v. Shipping Point Mktg., Inc., 2012 Ark. 76 (Ark. 2012) (appellate courts must raise finality jurisdictional issues sua sponte)
- Brasfield v. Murray, 96 Ark. App. 207, 239 S.W.3d 551 (Ark. App. 2006) (Rule 54(b) required for partial judgments to be final and appealable)
- Beverly Enterprises–Ark., Inc. v. Hillier, 341 Ark. 1, 14 S.W.3d 487 (Ark. 2000) (dismissal without prejudice is not a final adjudication on the merits)