[ Appellants Bennett & DeLoney, P.C., and its shareholders, Michael Bennett and
The facts are these. On April 8, 2008, the State, by Attorney General Dustin McDaniel, brought a consumer-protection action against Bennett & DeLoney, a Utah law firm, and Bennett and DeLoney, the owners and principals thereof, to redress and restrain alleged violations of the ADT-PA. The thrust of the complaint alleged that Bennett & DeLoney violated the ADTPA by attempting to collect penalties on dishonored checks greater than those amounts permitted by Ark. Code Ann. § 4-60-103.
Bennett & DeLoney denied the allegations, аnd on November 21, 2008, the State moved for partial summary judgment, asserting that section 4-60-103 provided the exclusive | sremedy for collection on dishonored checks. Bennett & DeLoney responded and filed a cross-motion for partial summary judgment. In response, Bennett & DeLoney asserted that section 4-60-103 was not the exclusive remedy because the dishonored checks at issue also constituted breaches of contract, actionable under Article 2 of thе Uniform Commercial Code. Pointing to Ark.Code Ann. §§ 4-2-709 and 4-2-710, they contended that those sections provided an incidental-damages remedy against a purchaser who failed to pay and constituted an alternative remedy. In reply, the Stаte maintained its previous arguments. On July 28, 2009, the circuit court held a hearing on the cross-motions and granted partial summary judgment to the State; the circuit court’s decision was later memorialized in its order of August 4, 2009, in which it found that section 4-60-103 provided an exclusive remedy for recovery on dishonored checks and that use of the remedies set forth in section 4-2-710 was not permitted.
LDeLoney
Bennett & DeLoney and Bennett also responded and cross-motioned for summary judgment. Like DeLoney, they maintained that the practice of law was not subject to the ADTPA. They further eon-tended that a violation of section 4-60-103 was not а violation of the ADTPA. A hearing was ultimately held on the cross-motions by the circuit court on April 4, 2011. On May 24, 2011, the circuit court entered its order, granting partial summary judgment to the State and finding that the “collection of fees on dishonored cheсks in excess of those set forth in ARK. CODE ANN. § 4-60-103 is a violation of the ADTPA as applied to Bennett & De-Loney, P.C.” The circuit court then denied summary judgment as to whether Bennett and DeLoney were personally liable, and it denied the cross-motions for summary judgment filed by DeLoney and Bennett & DeLoney and Bennett. After ^withholding any ruling as to whether the defenses of good faith, advice of counsel, or discontinuation of a business practice were available under the ADTPA, the circuit court issued a Rule 54(b) certificate. De-Loney and Bennett & DeLoney and Bennett filed separate notices of appeal from the circuit court’s orders and now appeal.
I. Application of the ADTPA
For this point, Bennett & DeLoney, Bennett, and DeLoney argue that the сircuit court erred in its conclusion that the ADTPA applied to its provision of legal services. They point to this court’s recent decisions, claiming that we have held the ADTPA has no application to the practice of law. Thе State counters that this court’s prior decisions do not create absolute immunity for attorneys in violation of the ADTPA. It urges that our prior decisions are distinguishable and that the conduct undertaken by Bennett & DeLoney is not of the type trаditionally regulated by this court.
The question presented here is whether the ADTPA had any application to the actions of Bennett & DeLoney in seeking to settle matters with Arkansаs consumers on their clients’ behalf. We hold that it did not. In Preston v. Stoops,
In Campbell, we held that “Stoops thus stands for the proposition that the unauthorized practice of law is not cognizable under the ADTPA, where an attorney not licensed in Arkаnsas attempts to practice law in Arkansas.”
Simply put, the ADTPA has no application to the practice of law by attorneys. Here, Bennett & DeLoney was a law firm that was practicing law, while engaged in the practice of |7debt collecting. Neither Bennett & DeLoney, nor Bennett or De-Loney, dispute the fact that they were practicing law; to the contrary, they concede that they were and the State does not contest their concession.
While the State avers that the fact that the instant action was brought by the Attorney General somehow precludes any application of the foregoing case law, we disagree. The allegations made by the State against Bennett & DeLoney were brought under the context of the ADTPA, which we have clearly held has no application to the practice of law by |sattorneys. For these reasons, the circuit court erred in concluding otherwise, and we reverse and dismiss. Because of our disposition on this issue, we need not address Bennett & DeLoney’s remaining arguments.
Reversed and dismissed.
Notes
. In accord with the requirements set forth in Arkansas Rule of Civil Procedure 54(b)(2011), the circuit court issued a certificate making the requisite findings for certification of its order.
. The complaint also alleged that Bennett & DeLoney failed to correctly identify debtors prior to initiating contact; contаcted consumers about debts Bennett & DeLoney knew, or should have known, were not owed by the consumers; and refused to verify alleged debts upon consumers' requests.
. DeLoney stated in his response that he resigned from Bennett & DeLoney in early 2009.
. Even if Bennett & DeLoney did not concede that it engaged in the practice of law, it is clear that it did. We have held that "the practice of law is not confined to services by an attorney in a court of justice; it also includes any service of а legal nature rendered outside of courts and unrelated to matters pending in the courts." Judicial Discipline & Disability Comm'n v. Simes,
a settlement offer to settle all potentiаl claims our client may have against you for a lesser amount before this matter proceeds any further within our office.... It is our position that our client may pursue such damages under any or all of several possible claims, such as the uniform commercial code, other statutory law and/or common law. If permitted by your state, some of these potential claims may allow our client to recover its collection costs, attorney fees, and punitive or exemplary damages from you, totaling far more than the original purchase price.
Clearly, Bennett & DeLoney was rendering service of a legal nature to its clients by engaging in settlement negotiations; therefore, it engaged in the practice of law. See, e.g., Kentucky Bar Ass'n v. Trumbo,
