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Arkansas Realtors Ass'n v. Real Forms, LLC
442 S.W.3d 845
Ark.
2014
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*1 a claim complaint fails to for man’s Ark. exaction. illegal ARKANSAS REALTORS Consequently, to the extent that Nelson ASSOCIATION, Appellant/Cross- it overruled. In inapposite, should be distinguish it is my opinion, difficult case. present Although from the Nelson distinguish attempts Takeda Nelson on FORMS, LLC, Appellee/Cross- REAL appropriation that the challenged

the basis (when Appellant. was illegal at the time it made was at paid asphalt price- the state for the a No. CV-13-87. amount) appropriation versus the fixed case, illegal at present becomes Supreme Court of Arkansas. (when future, time some indeterminate court law determines Takeda is Sept. 2014. theory presented), under either I liable think this distinction is without merit. Im- purchased

portantly, at the time it sufficiently

asphalt, State was author- yet

ized to do so. No court had deter- companies

mined that the oil had acted

unlawfully. Similarly, yеt no court has that Takeda for wrong-

found is liable

doing connected to its Actos-related medi-

cations.

Moreover, majority distinguishes on the basis Nelson alleged

Nelson asphalt the State overpaid of an grade

inferior than what had been con- for, case, present

tracted whereas in the paid drug State exactly prescribed by physician. The ma- misses the

jority point. State was pay expenditure

authorized to both

instances; third-party potential liability in way expenditure

no transforms the lawful illegal the State into an exaction. significant

Because I can differ- find no present

ence between the case and the locase, I it

Nelson would overrule to the

extent conflicts with decision. this HOOFMAN, JJ., join

CORBIN opinion.

this *3 Grooms,

Quattlebaum, Tull & Burrow PLLC, III, by: John E. Tull E.B. Chiles IV, IV, and Everett Tucker appel- C. lant. PLC, digitally edit ‍​‌​​​​​‌​‌​​​​​​​​‌​‌​‌‌‌​‌​​‌​‌​​​‌‌​​​‌​‌​‌‌‌​‍Group, real-estate transaction Law Asa Hutchinson Hudson, III, In Matt each form. appellee. Asa Hutchinson

by: W. company, Lynergy, negotiated through his CORBIN, Justice. an Appellant L. a contract with DONALD comple- of the software to online version | ,This arises from a breach-of appeal Bodily’s desktop Appel- version. ment in which Real contract action to use both the online lant’s members were LLC, Forms, Appellant sued Arkansas desktop synchronize versions and to Association, Appellant after ter- Realtors However, the online and them as needed. agree- software-development minated a synchro- always versions did not desktop appeals an order ment. bids properly, nize solicited denying Washington County Circuit Court for another software vendor. *4 notwithstanding judgment motion for its ultimately Lynergy hired instead of Bodi- (“JNOV”) or, alternative, in the the verdict brother, and his David Hud- ly. Hudson reversal, ar- Appellant trial. For for new son, Appellant’s Director of Tech- who court erred because gues that the circuit nology, Appellee. then formed the does not substantial evidence 12, 2010, Hudson, Matt August breach-of-con- On jury’s finding Appellee’s law, claim; that, Appellee, Henry, of and Mike as as a matter of three behalf tract entered into a cus- parties’ agree- Appellant’s president, separate provisions (“contract”), tom-development agreement to terminate the Appellant ment entitled contract; provide Ap- that would specifying Appellee that the circuit court abused its services, software refusing pellant including to instruct the with by discretion development, support, that the technical mainte- impossibility; on the law of and nance, to make record on the and other related services for an circuit court failed a years. five to parties’ Appellee period motions in limine. cross- initial of ^Pursuant parties’ agreement, circuit soft- appealed Appellee’s from the court’s the were de- | gpostjudgment computer programs denial of its motion for at- ware and jurisdic- signed require- and costs. have to meet the “business torneys’ fees We Supreme Appellant specifically Arkansas ments” of and “to pursuant tion to Court 2(b)(1) (5) (2014), create, execute, report, print, manage as this and ap- Rule and 1— impression of first and all of the forms and contracts associated peal presents issues in compli- of the law. affirm with a real-estate transaction needing clarification We laws, rules, governing we reverse and remand the ance with all appeal, and regulations.” Appellant’s Because cross-appeal. expire

contract forms were set to at the I. Facts year, parties’ end of the con- calendar required Appellee complete tract to instal- organization Appellant, a statewide Decem- lation of its software no later than whose members work the real-estate 1, ber 2010. business, provides standard real-estate reasons, Appellee aid its in con- For several did contract forms to members not by complete transactions. Between the installation of its software ducting real-estate 1, 1998, Appellant, into a the December 2010 deadline. Appellant 1997 and entered contract, to required by attempted Robert to create soft- as contract with software, but, Bodily’s copy ware of the con- obtain a of as for an electronic version owner, Bodily refused to release it tract that members the sole forms so Because of refusal prepare separate Appellant. could forms for each to software, $1,500 contrary though Appellant, paid Ap- his had to to release contract, pro- pellee premium. Appel- of for the insurance terms Appellee requested policy in a format lant vided its fоrms to insurance result, acquired Appellee As than Microsoft Word. be amended to cor- other time rect required deficiency, up- additional to devel- but it was never Appellee However, software, Appellant. its allowed dated to cover ac- op Hudson, Appellee requested. cording testimony time David additional of he was also scheduled to tried obtain the insurance but of the “type coverage with a Microsoft Word version learned that days sixty they asking contract no later were for” did exist." forms When than Ap- conveyed Ap- the date of the While Hudson that information to from contract. No- pellant, response. made most of revisions he never received a pellant its the last contract form in vember On March Appellee launched a final submitted Appellee version was not final version of the on Appel- December 2010. until lant’s Twenty-five Appellant’s website. Crowson, given beta testers were access continue On December Karen Robinson, testing the software. J.D. representa- one authorized beta tives, tester Director of Software De- permission gave Appellee to launch *5 velopment Technologies, at with Mainstream software as it existed on that date the repeatedly gained unauthorized access to understanding Appellee would the user’s Ap- individual software accounts. function as continue “to address errоrs pellant by later notified e-mail Appellee day, arise.” The next on December those allegedly that it “an 2010, had identified issue 29, its 2011 Appellee launched soft- regarding |5the security provided the system, was available pur- ware which for Real Forms software solution that has Appellant’s by chase and use members. However, 14experienced protect failed to the confidential client in- those members (1) system.” formation contained in the problems, Appellant identified as exposure of ac- Appellant’s an financial 21, 2011, On sent Appellant March writ- improper by parties; to third count access terminating ten parties’ notice the contract (2) an access and unintentional of confiden- pursuant to sections 16.2 and 16.4 of the data tial of other realtors’ Subse- clients. soft-, on that the contract based its belief a letter from quently, Appellee received ware allowed users to access confidential the alleging that software “failed Appellant improperly client that the soft- data and protect the adequately confidential requisite ware did not meet the business sys- information contained in the client requirements set forth in the contract. tem,” Appellee and requiring deactivate letter, Appellant With the also enclosed a software. honored Appellee Appel- the alleged the purportedly depicting video request lant’s and deactivated the software deficiency in the referenced no- 12, 2011, January Ap- day. that same On sent Appellant subsequently Appel- tice. leadership, pellee met with notification, clarifying lee an additional staff, legal specif- and team discuss citing in reason for termination and detail deficiency. the software ics improper-access issue. In its alleged communication, Appellant identified the January Appellant In that' learned reason for termination as follows: acquired an and Appellee had not “Error policy Appellant’s security system for of the Omissions” insurance failure benefit, is an required by agreement, protect as al- confidential information by the productive separately use of the shall be determined prevents

error that was not corrected Court.” system. The error (2) days two business Real Forms within 4, 2012, filed its mo- Appellee On June Therefore, the ARA being notified. and costs attorneys’ pursuant tion fees terminating right to and

has the Annotated section 16- Arkansas Code Paragraph 5.6 of the contract under motion, In (Repl.1999). Appel- 22-308 its agreement. $100,000 attorneys’ lee fees requested $1,341.75 and in costs based on hours against Ap- Appellee complaint filed a attorneys representing Appellee. of two 11, 2011, alleging wrongful pellant May motion, pur- later filed a JNOV contract on termination Rule of Procedure suant to Arkansas Civil 21, 2011. filed its answer March 50(b), jury’s verdict was arguing that counterclaim, including a counterclaim evidence and supported substantial contract, tortious interfer- for breach that, law, a matter of court as circuit relationship or busi- ence with contractual jury must set the verdict aside and enter deceit, expectancy, ness fraud and violation or, judgment in favor of in the Deceptive of the Arkansas Trade Practices alternative, trial. order a new On June Act, parties defamation. Both filed ruled that the the circuit court summary judgment. cross-motions supported by verdict was substantial evi- trial, Prior to the circuit court dismissed dence, motion, denied JNOV prejudice Appellant’s with counterclaims and denied motion for attor- Appellee’s for fraud and deceit and for a violation of |7July 27, 2012, neys’ fees and On costs. Deceptive Trade Practices Arkansas Appellant timely appeal, filed a notice of Act. cross-appeal filed a notice of August parties 2012. Both now |fiOn May five-day jury trial *6 bring appeals. their trial, At the circuit court commenced. off-the-record, an in-chambers

conducted II. Substantial Evidence parties’ conference the five motions in on Material Breach and, record, the ruled on one of limine on concerning the motion limine mention of Appellant makes two substantial-evi- evidence, insurance. At the close of the arguments appeal. dence on For the first the a verdict in favor circuit court directed point on the appeal, Appellant argues that counterclaim Appellee Appellant’s on for denying circuit court erred in its motions with a intentional interference contractual for directed verdict and JNOV motion be- expectancy or and relationship business support cause substantial evidence did not prej- later dismissed the counterclaim with jury’s finding on the breach-of-eontraet Ap- udice. The circuit court also denied Specifically, Appellant counterclaim. con- pellant’s jury motion to instruct the on the evidence not tends substantial does impossibility. jury law of returned a allegation inability of its on Appellee verdict favor of the breach- deliver the software that constitut- breach; of-contract and defamation counterclaims Appellee ed a material failed $150,000in Appellee compen- and awarded complete installation of the software in a manner; satory damages. May On timely Appellee’s and that failure reflecting policy circuit court entered its order an for Appel- to obtain insurance jury “payment verdict and stated that Appellant’s perform- lant’s benefit excused Alternatively, Appellee requests of the ance. on parties’ attorneys’ costs and fees appeal procedures that this court reverse remand Appellee termination. also jury’s for a new trial because the verdict argues that substantial evidence pre- was clearly against preponderance was sented at trial that Appellant did give not the evidence. Appellee proper notice or a chance to cure alleged deficiency found in that the circuit Appellee responds court Appellee March 2011. maintains Ap- motion for di- properly Appellant’s denied pellant was not any entitled to effect ter- motion, rected verdict and as sub- JNOV mination under these three provisions, nor supported stantial evidence its breach-of- did comply with the contract’s Specifically, Appellеe contract claim. as- required procedures for termination. serts that the found evi- substantial by Ap- dence of three different breaches We discuss two (1) pellant as follows: failure breach-of-contract arguments in tandem. to deliver software and source Our standard of review for a denial' of ¾ contract, by the required code as directed-verdict motion is well settled: any predated alleged breaches (2) Appellee; Appellant’s failure to act in reviewing the denial of a 19[I]n motion good performance par- faith in its verdict], directed [a we will reverse which, contract, claims, ties’ only if there is no substantial evidence (3) ability perform; thwarted its verdict, to support jury’s wrongful termination of the [scontract moving party is entitled to judgment as Appellant. Appellee further asserts a matter law. Substantial evidence is breaches of.these excused its future goes beyond that which suspicion or con- obligation perform as a matter of law. jecture and is compel sufficient to way conclusion one or the other. It is

For the point appeal, Appel- second fact; place try our issues of we argues jury’s finding lant that the that it simply review the record for substantial breached the contract not supported by evidence to support jury’s verdict. substantial evidence. asserts determining In whether there is sub- that, law, separate as a ‍​‌​​​​​‌​‌​​​​​​​​‌​‌​‌‌‌​‌​​‌​‌​​​‌‌​​​‌​‌​‌‌‌​‍matter of three еvidence, stantial we view the evidence provisions of the contract entitled it to and all reasonable arising inferences terminate the contract repercus- without light therefrom the most favorable to Specifically, Appellant sion. contends that party judgment whose behalf conclusively substantial evidence showed *7 entered. A motion directed verdict (1) Appellee failed to correct an error should be denied when there conflict prevented productive use of the soft- n inthe evidence, or when the evidence is ware, (2) contract; per section 5.6 of the people might such that fair-minded Appellee’s Appel- software failed to meet reach different conclusions. requirements, required lant’s business as (3) contract; by section 16.2 of the Cline, 474, 10, Carter v. 2011 Ark. at 385 Appellee materially agree- breached the 745, Nance, (quoting S.W.3d 752 Carr v. ment and failed to cure the breach within 497, 15-16, 826, 2010 Ark. at 370 S.W.3d thirty days prescribed by the section 16.4 836). The same standard holds true for a of the contract. motion for Id. A may JNOV. circuit court

Appellee responds that only substantial evi- enter a JNOV if there is no substan- supported jury’s dence the verdict be- tial evidence to the verdict and the support cause, law, as moving party judgment a matter of did is entitled a to as comply with the required contract’s matter of law. Id.

852 code, 2.4 .try required by issues of fact source as section of do nоt but

We parties’ to determine whether the contract. claims examine the record to the support Appellee materially pro- evidence breached this there is substantial Study v. by failing Boellner Clinical the contract to deliver jury’s verdict. vision of 88, Ctrs., LLC, Ark. 378 745. 2011 S.W.3d Appellee’s timely software a manner sufficiency of the evi testing the Appellee’s inability When and that to obtain a review, only we need appellate copy Bodily delayed dence of the its testimony appellees consider the obligation complete of the of installation and. appel- most favorable to that is evidence system. Stores, Dolph, Inc. v. 308 lees. Wal-Mart Section 2.4 of the contract states (1992). 439, 810 dеfer S.W.2d We Ark. 825 copy would of the of the issue unless resolution jury’s to the Bodily Appel- software and source code to say probabil is no reasonable we can there lee “to enable Real Forms to convert the Appellee’s version. ity prior years ARA Realtor Forms for into Roth, 318, v. 315 Ark. Motor Co. Wheeler Management Real Forms Contract (1993). will not over 867 446 We S.W.2d According testimony Software.” to the clearly unless it is turn a verdict Bryan Ruggeri, Matt Hudson and Matt prejudice. Duggar v. passion or result partner, Hudson’s former business Lines, Inc., 288 Ark. 707

Arrow Coach Bodily software and source code were es- (1986). Upon appellate 316 review S.W.2d they provided sential because would have light the evidence most we сonsider quick to the access 2010 forms in a Micro- | Tnsupported if favorable to the verdict and format, soft and those forms could Word evidence, we affirm. by substantial will easily been converted into new lnhave Davis, Chrysler-Plymouth v. 283 Petrus system. Bodily Because the- software and (1984). Ark. 671 749 S.W.2d accessible, Appellee code were not was claim, On a breach-of-contract documents, forced to use converted PDF duty under a con performance when original instead Microsoft Word for- contemplated, any nonperformance tract is mat, reason, project and for that v. duty of that is a breach. Archi delayed. Additionally, source Zufari Plus, tecture 323 Ark. S.W.2d Appellee cap- code would have allowed (1996). rule, general As a the failure of ture, system the data in the old without party perform one his contractual obli having program import- to write a new gations party from releases the other his ing the data from the 2009 2010 data- Hall, obligations. 269 Ark. Stocker system. bases into the 2011 software (1980). However, a rela S.W.2d 662 that, reasons, Hudson testified for these tively on the performance minor failure of away took time from its software part party justify of one does not the other development to its revision of the forms. seeking escape any responsibility un “painstaking” Hudson testified to the as- contract; der the for one terms of *8 pects project of this because of party’s obligation рerform be dis failure to the software 'and charged, party’s the other must be breach testified, expecta- source code. He “Our Boellner, 83, material. 2011 Ark. 378 [y]ou just basically tion was.... would S.W.3d 745. make the then changes print Word However, We now turn to first it in PDF. that was not allow- argument concerning got they breach-of-contract able. We were Word but it — Bodily’s Forty-four junk,” its failure to deliver a mess. forms of was

853 that, Hudson testified because the forms the Foods, whole case. Tyson Inc. v. formatted, Davis, were not properly spent he 566, 347 Ark. 66 S.W.3d 568 (2002). much time importing the 2009 and 2010 general Where a jury verdict is into newly developed used, data the software. this court speculate will not on Ruggeri spent also testified that he from what the jury found. Primm v. U.S. four to eight extra weeks modifying and Fidelity Guaranty Corp., Ins. 324 Ark. converting 409, the forms because they (1996). were 922 S.W.2d 319 spe When not Microsoft Word documents. Hudson cial interrogatories concerning liability explained also the initial incorrect or damages are requested, not this court data import caused the lack of the is left in the position of not knowing the Bodily software contributed ‍​‌​​​​​‌​‌​​​​​​​​‌​‌​‌‌‌​‌​​‌​‌​​​‌‌​​​‌​‌​‌‌‌​‍to security the basis jury’s verdict, for the and this issue experienced by the realtors. Based court -will not question nor theorize on this testimony, jury could have about jury’s findings. Esry v. Car found den, substantial evidence that Appellant’s 153, 328 Ark. 942 S.W.2d 846 (1997). failure to deliver software and

source code was a material breach. 615, Id. at Therefore, 110 S.W.3d at 764. jury

We have stated that a because substantial evidence supported determines the credibility jury’s of the witnesses and the breach-of-contract verdict this in- stance, weight evidence, and value of their we and it decline to reach Appellant’s re- may maining believe or testimony disbelieve the breach-of-contract arguments. witnesses, Boellner, one or all See though 2011 Ark. 378 S.W.3d 112of such evidence is 745. uncontradicted and unim-

peached. Co., Dovers v. Stephenson Oil Jury Instruction 11SIII. Inc., (2003). 354 Ark. S.W.3d For point the third appeal, Ap such, As jury determined the credibili- pellant argued that the circuit court ty of the parties’ witnesses gave abused its discretion refusing to in weight to these witnesses’ testimony. struct the jury on the law impossibility Viewing this evidence in the light most proffered when it AMI Civ. 2439 regarding Aрpellee, favorable .to we hold that sub- the impossibility performance. Specifi stantial supports evidence jury’s ver- cally, Appellant claims that the circuit dict that Appellant materially breached its court’s conclusion that the impossibility Appellee contract -with by failing to deliver subjective, objective, constituted a Bodily’s software and source code as re- mistake of law. responds that quired by Thus, contract. we there was no basis in the evidence sup jury’s affirm the verdict on grounds. these port giving of AMI Civ. 2439 and that Further, recognize we jury that the re- the circuit court did not abuse its discre turned a verdict for Appellee Appel- tion in denying proffered instruction. lant’s breach-of-contract counterclaim on a general verdict form without specifying law, Under party Arkansas particular breach occurred. With entitled to a instruction when is a regard general forms, verdict we stated correct statement of the law and there is Inc., in Hyden Highcouch, 353 Ark. some basis in the evidence support giv (2003), 110 S.W.3d 760 as follows: ing the instruction. See ProAssurance In If jury’s Co., verdict is rendered on a dent. Inc. v. Metheny, 2012 Ark. general form, verdict it is an indivisible S.W.3d 689. We will not reverse a *9 or, words, entity in other finding upon a circuit court’s refusal give proffered to 854 Appellant]: Your Hon- there was an abuse of unless

instruction [Counsel or, we also somewhat talked about an Id. discretion. that I don’t impossibility instruction the standard to deter This cоurt set out I typed up proffer. have to think [it] in performance Fri impossibility mine AMI 2439. 266 Ark. gillana Frigillana, v. Well, I as discussed Court: (1979), which states as follows: S.W.2d 30 chambers, going give I’m not to that impossibility of proving The burden of I think there is a instruction because its nature and extent and performance, subjective impossibil- difference between upon party causative effect rests In ity objective impossibility. and this show that he took alleging it. He must view, subjective im- Court’s this involves virtually every power action within his possibility, objective impossibility. duty his under the contract. perform to referring to the And of course we’re be thing It must be shown to .that code, will, provision you of the source if by any done cannot be effected means. software previous to Real Forms an question requires Resolution of the your proffer I’ll developer. And note par- examination into the conduct of the supposed for the record. I do think it’s ty pleading the defense order to de- an to be tendered and marked as exhib- or fault presence termine the absence of it. failing perform. his part [to] Appellant]: We’ll mark [Counsel (citations 302-08, at 33 Id. at 584 S.W.2d copy. omitted). This court has drawn a “distinc- Here, agree we with the circuit court’s objective impossibility, tion between which give refusal to AMI as the evidence thing cannot be saying, ‘[t]he amounts to at trial did not the im- presented done,’ | ^subjective impossibility[,] T and According Meters, defense. to possibility ” Pilkinton, Christy cannot do it:’ procure Bodily’s was unable to (1954) Ark. 273 S.W.2d stated, Meyers and source code. software (First) (quoting Restatement of Contracts get right it. We no “[We] [c]ouldn’t [had] (1932)). § 455 cmt. a to it.... He owned it.” He testified that bar, In at Appellant proffered the case understanding was his 11fithat Jury Arkansas Model Instruction-Civil years doing found out after thirteen as provides follows: Bodily business with that he owned the Appel- source code. When asked whether of the contract was im- [P]erformance attempted buy lant the software or the possible [Appellant] has the burden Bodily, Meyers respond- source code from proving each of the two essential ed, Meyers that I “Not know of.” also propositions: testified that he was not aware of offer First, [Appellant] diligently at- by Appellant buy Bodily’s either to soft- contract; tempted perform Mey- ware or source code or to license it. Second, im- performance became simply ers stated that he understood that possible a result of as Robert Bodily for the soft- Appellant had asked ownership sole of the 2010 ARA Realtor code, Bodily ware and refused. This Forms Software and his unwillingness suggests evidence failed to ARA. “every ’power take action within [its] duty The circuit under the contract” subsequently perform [its] court refused neglecting instruction as to obtain the and ruled follows: *10 courtroom, Frigillana, code. 266 Ark. at and source circuit court stated as reasons, follows: 584 S.W.2d at 33. For these tеstimony, sup- on no evidence based this Okay. Alright, the second Court: ports finding impossibility of ob- is, issue I believe Mr. Hutchinson has a —either jective subjective Appellant or tó Motion in Limine concerning the men- —for comply with section 2.4 of the contract. tion of insurance in this case. We did Thus, we hold that the circuit court did not deal with that issue in chambers. It’s abuse its discretion in refusing give the been the Court’s—it is the Court’s deci- proffered AMI instruction. going sion that I’m question to allow the

to be asked concerning or whether insurance by was obtained Real Forms IV. Motions in Limine Contract, pursuant to the for the limited argument For the fourth on ap purpose of showing breach- in a term of peal, Appellant ‍​‌​​​​​‌​‌​​​​​​​​‌​‌​‌‌‌​‌​​‌​‌​​​‌‌​​​‌​‌​‌‌‌​‍argues that the circuit the Cоntract. court failed to make a to trial prior record Furthermore, I’ve instructed the De- parties’ on four of the five motions in fendant that they way, in no shape, or Appellee responds

limine. that the circuit form will infer the amount of the cover- court’s failure to make a on the record Further, age. they question will not or motions in limine is not reversible error infer that liability it was E coverage, & alleged and that has not that the coverage, any or coverage other any rulings circuit court erred in of its provision would relate to either of dam- limine, subject in nor has it motions ages by party sustained in this lawsuit alleged any subject motions are provision litigation or of costs this material to the outcome Ap- case. my lawsuit. So that is intent. pellee maintains that this omission bars ... So that’s where we stand. Mr. seeking from a remand to the Hutchinson, your I’ll consider argument circuit court. your motion at this time. point, At that parties pre- counsel for both | relevant facts this supporting is- mThe sented argument motion in trial, sue are as follows. Prior to the par- limine, circuit court reiterated its ties filed five motions in limine. ruling that it would allow a reference to lay- filed two motions in limine to exclude insurance for a purpose limited in the opinion testimony witness that its software breach-of-contract action. The circuit functionality design had flaws that did court made no remaining reference to the not meet require- business four motions limine at that time. ments and to exclude evidence of insur- ance. then filed three motions issue then is whether the circuit 117The to exclude evidence of failing contract court erred in to make a record on Appellant; with to exclude the interpreta- motions in limine. Adminis- by that, tion of the contract terms provides Hunter trative Order No. 4 “[u]nless Jones, a software-development expert wit- waived on parties, the record ness; and to duty any exclude the evidence of hours shall be the circuit court to worked Matt require Hudson and David Hud- that a verbatim record be made of ' trial, son. On the day proceedings first the circuit all ... pertaining con- court held a motion-in-limine hearing tested matter before the court or the added.) where it considered jury.” (Emphasis these motions off the See also Ark. n § returning record chambers. When Ann. (Repl.2010). Code 16-13-510 We *11 Thus, applied given specif- Admin- the circuit court. these construed and strictly have State, circumstances, No. 4. Robinson v. Order ic we adhere to our rule istrative (2003); 372, 108 S.W.3d 622 Ark. Appellant required bring 353 that was to 394, State, 351 Ark. 94 Bradford, error, v. S.W13d to record sufficient demonstrate (2003) that a verbatim (emphasizing 904 say preju- that Appellant we cannot is a proceedings require- record of the by diced the circuit court’s failure to follow ment). The rule has been described as Accordingly, Order No. 4. Administrative Guthrie, “mandatory.” Thompson v. 373 decline invitation to order a we (2008). 455, Ark. 284 S.W.3d 457 ground. limited rеmand on this party’s have held that a silence this We at trial will not be construed as an issue Cross-Appeal V. re- implied waiver of the verbatim-record cross-appeal, Appellee For State, 345, George v. 356 Ark. quirement. of the circuit ruling seeks reversal court’s (2004) (holding 151 770 this S.W.3d 28, postjudgment in the 2012 order June could not review the circuit court’s court denying attorneys’ its motion for fees and transcript on the motion without a ruling argues costs and that the circuit court did proceedings remanding for the provide any not reason for its decision to of the circuit court to con- purpose limited deny attorneys’ fees and costs. In re hearing duct a on the record on defen- that; sponse, Appellant pursuant asserts to suppress). dant’s motion to 16-22-308, giv section the circuit court'is Nevertheless, case replete our law is discretionary authority en attor award principle

with the well-established is neys’ and properly fees exercised that dis upon appellant bring up incumbent an cretion. record sufficient error. demonstrate Arkansas Code Annotated section 16- Admin., Dep’t Hankins v. Fin. & 330 (1997). gives authority 22-308 the circuit court 492, Here, Ark. 954 S.W.2d 259 attorneys’ fees in award contract actions Appellant’s argument misplaced for the First, provides pertinent part: following reasons. mo- tion limine to exclude evidence of In any civil action to recover on ... contract with was ad- contract, pro- breach of unlеss otherwise by dressed the circuit court in a side-bar by vided law or the contract which is the time, At during conference trial. action, subject prevail- matter of the questions court reminded counsel of what may ing party be allowed a reasonable they regarding could ask con- attorney’s by fee to be assessed Second, regard tract. with to Appellant’s court and collected as costs. |18to motion in limine exclude Hunter fees, attorneys’ the award of we ImOn interpretation Jones’s the contract Sutter, Kosin, & v. stated PLLC Harrill terms, Appellee, Jones testified for and the 135,145 2011 Ark. at 378 S.W.3d as objection circuit court sustained an made follows: by during direct examination suggests case law Our the circuit interpret and ruled that Hunter could not give explanation court must an for its Third, testimony. Ap- the contract in his in denying attorney’s decision fees. Lit pellant’s in limine motion to exclude the Utility Larry tle Rock Wastewater v. hours worked Hudson brothers was Inc., court, Moyer Trucking, not 321 Ark. 902 addressed the circuit but (1995) (remanding 760 to the objected during never trial or S.W.2d when the court for a determination parties presented argument trial of wheth attorney’s er to to give award fees and was a material breach of contract. I so); explanation doing an would not reach the Whetstone issue. Chadduck, Ark. 871 S.W.2d It is uncontested that ARA did pro- (1994) (remanding for reconsidera vide Real Forms with the Bodily software gives tion when the trial court’s order no and sourcе codes. majority holds that *12 explanation that can be founded However, this was a breach. majority law). proper application of the does not discuss whether the breach was waived performance. continued We Here, Appellee filed its motion ‍​‌​​​​​‌​‌​​​​​​​​‌​‌​‌‌‌​‌​​‌​‌​​​‌‌​​​‌​‌​‌‌‌​‍for attor note that the issue of waiver was not ar- neys’ fees and costs on June re gued so, appeal. on Even in Grayson- $101,341.75 questing an award of ex with McLeod Lumber Co. v. Slack-Kress Tie &

hibits in the motion. On June Co., Stave Ark. 143 S.W. 581 102. 28, 2012, the circuit court entered an order (1912), this court stated was the denying both JNOV new- duty party breach, who asserted trial Appellee’s motion and motion for at when it discovered the apparent breach of order, torneys’ fees and costs. In its сontract, to assert the forfeiture imme- summarily circuit court denied the motion diately. By proceeding perform- with the by stating, “Plaintiffs Motion Attor ance of the contract it waived the breach. ney's’Fees and hereby Costs should be and Here, Id. Real Forms was made aware is denied.” Accordingly, we are unable to that ARA would not be provide the Bodily exactly discern on what basis the circuit software and continued performance of the court denied the attorneys’ fees. See Harr Therefore, contract. question there is a ill, 2011 Ark. 378 S.W.3d 135. We whether its claim of breach on this matter therefore reverse and remand to the cir waived. cuit court purpose for the limited of mak result, however, I cоncur in ing findings that will enable us to because review I believe that there fee decision. was substantial evi dence that ARA breached the contract Affirmed on appeal; reversed and re- based on its noncompliance with the con manded on cross-appeal. required procedures tract’s termin ation.1 jury The here used general HART, JJ., BAKER and concur. jury’s verdict form. aWhen verdict form, general rendered on a verdict it is a BAKER, Justice, KAREN R. case; finding upon the whole this court concurring. speculate will not on jury what the found agree While I with the majority on the general jury where a verdict is used. Carr case, outcome of this I would reach the Nance, Ark. 370 S.W.3d 826. result through different means. There- jury could have found that ARA fore, I concur. breached through the contract either not majority holds that a jury providing could the Bodily software or not com la/The have found substantial evidence that plying with the provisions notice in the ARA’s failure to deliver Robert speculate contract. will not We as to software and source Therefore, code to Real Forms which breach the found. 1. There is substantial evidence show requirements; the software met business ARA did not notice given thirty days of an error that that Real Forms was not prevented productive alleged use of the software as correct the deficiencies under section contract; required by section 5.6 of the 16.4 of the contract. evidence that substantial there is

because provi with the notice comply

ARA did not in the con set out termination

sions for

tract, affirm the case without would I appeal. on point first

reaching the reach the issue of

I also would denying court erred the circuit

whether in- impossibility-of-performance

ARA’s I would affirm on Because

struction. reaching without appeal point

second software,

the matter of point under that impossibility

matter of *13 no moment.

appeal is of Ark. 398 SLOCUM,

Kenneth Petitioner Arkansas, Respondent.

STATE

No. CR-95-1039. of Arkansas.

Supreme Court 25, 2014.

Sept.

Case Details

Case Name: Arkansas Realtors Ass'n v. Real Forms, LLC
Court Name: Supreme Court of Arkansas
Date Published: Sep 25, 2014
Citation: 442 S.W.3d 845
Docket Number: CV-13-87
Court Abbreviation: Ark.
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