R.E.C. Enters., LLC v.Gaillard Builders, Inc.
2017 Ark. App. 609
| Ark. Ct. App. | 2017Background
- R.E.C. Enterprises, LLC (d/b/a Stan Excavating) appealed a Miller County Circuit Court declaratory judgment entered Jan. 23, 2017.
- The circuit-court judgment: (1) awarded Gaillard Builders declaratory relief regarding R.E.C.’s failure to timely foreclose a mechanic’s/materialmen’s lien; (2) granted Gaillard’s motion to compel arbitration; and (3) dismissed R.E.C.’s counterclaim.
- R.E.C. raised error as to dismissal of its counterclaim and several arbitration-related grounds (existence of valid agreement, mutuality, waiver).
- Gaillard moved to dismiss the appeal, arguing orders compelling arbitration are not appealable and that issues were not preserved.
- The Court of Appeals denied the motion to dismiss, concluding it had jurisdiction because the circuit court’s order was final; it also noted unpreserved arguments are summarily affirmed rather than dismissed.
- The appellate record’s abstract was deficient (a 25‑page transcript but a two-page abstract), so the court ordered R.E.C. to file a substituted brief complying with Rule 4‑2 within 15 days (rebriefing ordered).
Issues
| Issue | Plaintiff's Argument (R.E.C.) | Defendant's Argument (Gaillard) | Held |
|---|---|---|---|
| Whether appealable | Order compels arbitration and final-judgment aspects can be reviewed | Orders compelling arbitration are not appealable under Ark. R. App. P.–Civ. 2(a)(12) | Court: jurisdiction exists because appeal is from a final order (Ark. R. App. P.–Civ. 2(a)(1)); motion to dismiss denied |
| Preservation of arbitration arguments | Court erred by not finding a valid arbitration agreement; lack of mutuality; no waiver | Arguments not preserved for appeal | Court noted unpreserved arguments are subject to summary affirmance but not dismissal; addressed preservation issue and denied dismissal |
| Adequacy of record for appellate review | Appellant proceeded with existing abstract | Appellee relied on insufficiency of abstract to challenge appeal | Court found appellant’s abstract deficient and ordered substituted brief/compliant abstract within 15 days |
| Disposition of counterclaim | Circuit court improperly dismissed counterclaim | Dismissal proper as part of declaratory-judgment/arbitration ruling | Court did not resolve merits on appeal now; required rebriefing so merits can be considered after cured abstract |
Key Cases Cited
- Tilley v. Malvern Nat’l Bank, 515 S.W.3d 636 (Ark. Ct. App. 2017) (unpreserved appellate arguments are subject to summary affirmance rather than dismissal)