Shirley v. Progressive Car Finance, LLC
514 S.W.3d 488
Ark. Ct. App.2017Background
- Shirley and Smith appealed a $5,000 default judgment entered against them in Benton County District Court (small-claims) to the circuit court.
- They failed to timely file an answer in the circuit-court appeal; Progressive moved for default judgment in circuit court after the answer period lapsed.
- Shirley and Smith filed a motion to dismiss for lack of subject-matter jurisdiction; they withdrew their request for leave to file an answer and proceeded only on jurisdictional dismissal.
- The circuit court denied the motion to dismiss on September 18, 2015; Shirley and Smith appealed that denial on October 19, 2015.
- On October 27, 2015 (after the appeal was filed), the circuit court entered an order granting Progressive’s motion for default judgment.
- Progressive moved to dismiss the appeal for lack of a final, appealable order; the Court of Appeals dismissed the appeal without prejudice because the September 18 order was not final under Ark. R. Civ. P. 54(b).
Issues
| Issue | Plaintiff's Argument (Shirley/Smith) | Defendant's Argument (Progressive) | Held |
|---|---|---|---|
| Whether the circuit-court order denying dismissal was a final, appealable order | Denial of dismissal was effectively final; only jurisdictional issue remained, so appeal from Sept. 18 order was proper | The September order did not resolve all claims/parties; a later October 27 default-judgment order adjudicated the damages and parties | Denied: the Sept. 18 order was not final under Rule 54(b); appeal dismissed for lack of final order |
| Whether exception for interlocutory orders with practical effect of finality applies | The denial had practical finality because execution on the small-claims judgment continued and damages were unchanged | The denial left potential matters (e.g., hearing on damages) unresolved; circuit court could have altered the amount | Exception inapplicable: denial did not end litigation or have practical effect of final judgment |
Key Cases Cited
- Lenders Title Co. v. Chandler, 353 Ark. 339, 107 S.W.3d 157 (Ark. 2003) (general rule that denial of dismissal is not appealable)
- Ford Motor Co. v. Harper, 353 Ark. 328, 107 S.W.3d 168 (Ark. 2003) (recognizing exception when interlocutory order has practical effect of a final merits decision)
- Gipson v. Brown, 288 Ark. 422, 706 S.W.2d 369 (Ark. 1986) (discovery order treated as equivalent to decision on the merits and thus appealable)