GREENNECKS LAWN SERVICES LLC D/B/A GREENNECKS LANDSCAPE MANAGEMENT LLC; AND JOSEPH SWAYZE, IN HIS INDIVIDUAL CAPACITY v. STEPHEN LEWIS
No. CV-23-379
ARKANSAS COURT OF APPEALS DIVISIONS I & II
September 4, 2024
2024 Ark. App. 404
HONORABLE SUSAN WEAVER, JUDGE
Opinion Delivered September 4, 2024
AFFIRMED
RITA W. GRUBER, Judge
Appellants are Joseph Swayze, in his individual capacity (Swayze), and Greennecks Lawn Services LLC d/b/a Greennecks Landscape Management LLC (the LLC). Swayze is the president and sole member of the LLC. Swayze and the LLC appeal four orders of the Faulkner County Circuit Court: an order denying a motion for extension of time to answer (MET), an order and an amended order granting appellee Stephen Lewis (Lewis) a default judgment on his complaint, and an order denying a motion to set aside the default judgment. Appellants raise four points on appeal: (1) the circuit court erred in finding that the MET was filed outside the initial thirty days that appellants had to respond to the complaint; (2) the “for cause” standard set forth in
I. Background
On July 21, 2022, appellants sent Lewis a ten-day notice of intent to file a lien. The lien was in connection with payment for services and materials that Lewis had hired the LLC to provide. On August 27, appellants were served with a letter from Lewis demanding that appellants withdraw the ten-day lien notice and pay Lewis for damages he alleged he had incurred due to the LLC‘s incomplete and unsatisfactory services, or Lewis would file suit. On October 13, Lewis filed a petition for discharge of notice of lien and complaint against Swayze and the LLC. Swayze and the LLC were both served with the complaint on October 26. On November 28, the MET was filed. It requested an additional thirty days to “move, plead or otherwise respond” to Lewis‘s complaint in order to “look[ ] for an attorney who can assist in this case.”
On November 30, 2022, the circuit court entered an order denying the MET. The order stated that the MET “lacks good cause as it was filed after the 30 days to respond, and the motion was made on behalf of the LLC.” On December 15, an objection to the denial of the MET was filed. It stated that “the defendant filed for Joseph Swayze and on behalf of llc,” invoked
That same day—December 15—Lewis moved for default judgment. He alleged that both appellants had been properly and timely served; that both had failed to appear or otherwise defend in the time and manner required by law; and that he was entitled to a default judgment against both as well as attorney‘s fees and costs. Neither appellant responded to the motion for default judgment. On December 21, 2022, a default judgment was entered against appellants, jointly and severally. The judgment set forth that appellants had failed to appear or otherwise defend the complaint against them in the time and
On January 10, 2023, appellants—for the first time by counsel—filed a motion to set aside the default judgment pursuant to
On January 18, 2023, Lewis responded to the motion to set aside. The response recognized that an answer had not been due from appellants until November 28, 2022. Nevertheless, Lewis asserted that
On February 10, 2023, the circuit court entered an order denying the motion to set aside. In the order, the circuit court acknowledged “that
II. The LLC
Although there are two parties on appeal, appellants’ arguments pertain to only Swayze. However, because the notice of appeal was filed on behalf of both Swayze and the LLC, we briefly address the LLC. The circuit court found that the MET was filed on behalf of the LLC. It is well-settled law that “a corporation can
III. Swayze
A. Timing of the MET
The first point on appeal is that the circuit court erred in finding that the MET was filed outside the initial thirty days that appellants had to respond to the complaint. When reviewing how a circuit court has interpreted an Arkansas Rule of Civil Procedure, the standard of review applied is de novo. Gatson v. Billings, 2011 Ark. 125, at 3. Appellants are correct that the MET was filed within the thirty-day deadline to file an answer. Swayze and the LLC were both served with the complaint on October 26. Thus, their respective answers were due on Friday, November 25. But because the clerk‘s office was closed that day due to the Thanksgiving holiday, the answers were not due until the following Monday—November 28—which is when the MET was filed. See
B. The MET and the Rule 6(b) Standards
In their second point, appellants contend that the MET satisfied the “for cause” standard found in
When by these rules . . . an act is required or allowed to be done at or within a specified time, the court for cause shown may at any time in its discretion (1) with or without motion or notice, order the period enlarged if request therefor is made before the expiration of the period originally prescribed or as extended by a previous order, or (2) upon motion made after the expiration of the specified period permit the act to be done where the failure to act was the result of mistake, inadvertence, surprise,
excusable neglect, or other just cause . . . .
The MET itself simply requested additional time “to move, plead or otherwise respond to the Plaintiff‘s complaint” in order to look for an attorney. The objection to the denial of the MET argued that the MET was timely filed and that securing legal counsel constituted “good cause,” specifically invoking
To preserve an issue for appeal, an appellant must specifically raise the argument relied on to the circuit court, develop the argument there, and obtain a ruling on the argument. McFadden-Gregory v. Johnson, 2023 Ark. App. 100, at 6. The failure to do so precludes appellate review. Id. at 6-7. Parties are bound by the scope and nature of arguments made at the circuit court level. Garrison v. Hodge, 2018 Ark. App. 556, at 12, 565 S.W.3d 116. Pro se litigants must follow the rules of civil procedure and are held to the same standards as attorneys. Lucas v. Jones, 2012 Ark. 365, at 8, 423 S.W.3d 580, 585.
No argument was made to the circuit court regarding our past interpretation of
C. The Default Judgment and the Motion to Set Aside
The third point on appeal attacks the entry of default judgment and the denial of the motion to set aside the default judgment. Appellants argue that the circuit court had no discretion under
The motion to set aside was made pursuant to
The dissent would hold that the circuit court clearly erred in finding that the MET was filed on behalf of the LLC only and abused its discretion in denying the MET as to Swayze. In arriving at that conclusion, the dissent identifies the issue of who filed the motion as one requiring the court to interpret our rules of civil procedure, thus dictating a de novo standard of review. See, e.g., Mullenix v. Mayberry, 2023 Ark. App. 139, at 4. Under that standard, the dissent engages in an analysis of
The dissent‘s approach and analysis—while well reasoned—is not found within the circuit court record or the briefs. An appellate court will not make a party‘s argument for it or consider an argument that is not properly developed, and the reviewing court will not look behind the order to determine whether it is valid. See, e.g., City of Little Rock v. Cir. Ct. of Pulaski Cnty., 2017 Ark. 219, 521 S.W.3d 113. There were no arguments made or developed to the circuit court regarding
Findings of fact will not be reversed unless they are clearly erroneous. Unimeks, LLC v. Purolite, 2012 Ark. 20, at 4, 386 S.W.3d 419, 422. A finding is clearly erroneous when, although there is evidence to support it, the reviewing court on the entire evidence is left with a firm conviction that an error has been committed. Alcoa World Alumina, L.L.C. v. Weiss, 2010 Ark. 94, at 3, 377 S.W.3d 164, 166. Even if the issue of who filed the MET was preserved, we would also affirm the circuit court‘s finding that the MET was filed on behalf of the LLC only in light of that standard. To do so does not elevate form over substance, as maintained by the dissent.
The substance of the MET—found in its body—is a request for more time, as reflected by both the substance and title. Generally, in our cases discussing the elevation of form over substance, there is a conflict between the title and the substance of the motion itself. See, e.g., Dodge v. Lee, 352 Ark. 235, 238, 100 S.W.3d 707, 710 (2003). On whose behalf the motion is
The other two signatures are on the certificate of service. An attorney‘s signature on a certificate of service is evidence of nothing more than a generic representation that a document has been served on other parties. It is not an affirmation of the substance of the foregoing document, and pro se parties are to be held to the same standards as attorneys. See Lucas, supra. As to the plural references in the MET, they are in the nature of “defendant(s).” The body of the motion—its substance—specifically states, “Defendant(s), GREENNECKS LAWN SERVICE, LLC, propose . . . .” It does not reference Swayze, individually, at all. The body also reflects that the motion was submitted on behalf of only the LLC.
It is not for this court to liberally construe the MET at issue. Rather, were the issue preserved, our task would be to determine whether the circuit court erred in finding that the MET was filed on behalf of only the LLC. Because we are not left with a firm conviction that a mistake was made in that regard, we hold that the circuit court did not err in finding that the MET was filed on behalf of the LLC.
D. Damages & Attorney‘s Fees
The fourth and final point on appeal argues that the damages and attorney‘s fees awarded were not sufficiently supported by the record. Our standard of review of a circuit court‘s award of damages is whether the circuit court‘s findings are clearly erroneous or clearly against the preponderance of the evidence. Ascentium Cap. LLC v. Marshall, 2023 Ark. App. 236, at 8, 666 S.W.3d 866, 872. We review an award of attorney‘s fees for an abuse of discretion. Piping Indus. Co. v. Future Fuel Chem. Co., 2013 Ark. App. 549, at 4.
Appellee‘s request for damages, attorney‘s fees, and costs was contained in his motion for default judgment. Support for those requests was contained within appellee‘s affidavit attached to that motion. Appellants failed entirely to respond to that motion. The default judgment and amended default judgment awarded damages, attorney‘s fees, and costs. The amended default judgment was challenged by the motion to set aside. However, the motion did not argue that the damages, attorney‘s fees, or costs awarded were not sufficiently supported by the record. Thus, these arguments are not preserved for our review. See McFadden-Gregory, supra; Garrison, supra.
For the reasons set forth herein, we affirm the denial of the MET, the denial of the motion to set aside, and the grant of the amended default judgment in its entirety.
Affirmed.
ABRAMSON, THYER, and BROWN, JJ., agree.
BARRETT and WOOD, JJ., dissent.
WENDY SCHOLTENS WOOD, Judge, dissenting. The majority erroneously concludes that appellant Joseph Swayze did not file a
On November 28, 2022, within the time allotted to file a responsive pleading to Stephen Lewis‘s complaint, Swayze filed a pro se motion for an extension of time on behalf of the LLC and on behalf of himself seeking an additional thirty days to “move, plead or otherwise respond” in order to find an attorney to “assist in this case.” However, the circuit court found that only the LLC filed the motion for an extension of time—not Swayze individually. This erroneous finding was the premise of the court‘s subsequent orders (1) denying Swayze an extension of time to file a responsive pleading, (2) finding Swayze in default because he did not appear or otherwise defend against Lewis‘s complaint, and (3) refusing to set aside the default judgment. In my view, the circuit court‘s finding that Swayze did not move for an extension of time is clearly erroneous.2
Motions are governed by
Here is Swayze‘s motion:
In concluding that Swayze did not file this motion on his own behalf, the majority has exalted form over substance, which we do not do. Nettles v. City of Little Rock, 96 Ark. App. 86, 91-92, 238 S.W.3d 635, 639 (2006) (stating that the supreme court has admonished us to not exalt form over substance). Further, it is illogical to conclude that Swayze—after he was named as an individual defendant in this lawsuit and was separately served—would file a motion for an extension of time to answer on behalf of the LLC and not for himself.
Moreover, our judicial canons and rules of civil procedure remind us of the importance of construing and administering our rules in a fair and just manner. For example,
[4] The growth in litigation involving self-represented litigants and the responsibility of courts to promote access to justice warrant reasonable flexibility by judges,
consistent with the law and court rules, to ensure that all litigants are fairly heard. Examples of accommodations that may be made include but are not limited to . . . (2) liberally construing pleadings to facilitate consideration of the issues raised . . . .
Although pro se litigants must follow the rules pursuant to the same standards as attorneys, the rules themselves require liberal construction of pleadings and motions. The majority‘s reasoning glosses over this construction and brings to mind the adage of making the “perfect the enemy of the good.” In this case, Swayze‘s motion for extension of time to answer was sufficient to state with particularity the timely extension that he sought. Therefore, I am left with a firm conviction that an error has been committed, and I would hold that the circuit court clearly erred in finding that Swayze individually did not move for an extension of time to answer.
The majority concludes that the issue of whether Swayze filed the motion for extension of time to answer “is not found within the circuit court record or briefs” and, therefore, is not preserved for appeal. I disagree.
It is well settled that an appellant must raise an argument below and obtain a ruling on it to preserve the issue for appellate review. Peck v. Peck, 2019 Ark. App. 190, at 11, 575 S.W.3d 137, 144 (emphasis in original). In the circuit court‘s order denying Swayze‘s motion for extension of time, the court found that the motion was filed on behalf of the LLC only. Swayze challenged that finding when he filed an “objection to denial of extension of time” two weeks later, stating that he filed the motion “for Joseph Swayze and on behalf of the LLC.” Therefore, he raised his objection below. The circuit court ruled on Swayze‘s objection twice: (1) when it entered
Having concluded that Swayze filed the motion for extension of time on his own behalf, I would further hold that the circuit court abused its discretion in denying Swayze‘s motion for extension of time to answer.4 Contrary to the circuit court‘s findings, Swayze‘s motion was timely filed (as the majority admits), and “good cause” (which the circuit court required) is not the bar for relief under
Accordingly, I would reverse the circuit court‘s order denying Swayze‘s motion for extension of time to answer and remand his case for further proceedings.
BARRETT, J., joins.
Table Law, by: Martha Ayres, for appellants.
Hilburn & Harper, Ltd., by: Zachary L. Nicholson, for appellee.
