TIrE DEVELOPING LAW
Significant Changes From 1987 A look at the economics of law practice and natural resources law
By Carol j. Cannedy Economics of Law Practice The Arkansas legislature. in passing Act 519 of 1987. brought about the most significant change in 1987 in the area of attorneys' fees. That Act. codified in Ark. Code Ann. Sec. 16-22-308. allows reasonable attorneys' fees to be assessed and collected as costs against the losing party in certain civil actions. and in particular. those actions brought to recover on an open account,
statement of account. account stated. promissory note. bill. negotiable instrument or contract relating to the purchase or sale of goods. wares or merchandise or for labor or services. unless provided by law or the contract which is the subject matter of the action.
Also in 1987. the legislature passed legislation allowing the recovery of attorneys' fees in actions lacking a justiciable issue. Ark. Code Ann. Sec. 16-22-309. The court. upon finding a complete absence of a justiciable issue of either law or fact raised by the losing party or his attorney. shall award attorneys' fees in an amount not to exceed $5.000 or 10 percent of the amount in controversy. whichever is less. One of the key provisions of this statute lI8/Arkansas Lawyer/April 1988
"The Developing Law" is a new feature designed especially for our readers that will be devoted to case synopses in the major areas of law. Responses to a recent survey of Arkansas Bar Association members reflect a desire for case synopses in The Arkansas Lawyer. In the April issue. we have focused on cases affecting the economics of law practice and natural resources law. Future issues of the magazine will carry case synopses affecting financial institutions. real estate. tax. probote and trust. lahar and workers' compensation law.
is that the court may grant this award of attorneys' fees without written motion and with or without presentation of additional evidence. A statutory addition to Ark. Code Ann. Sec. 9-12-309 provides that the court shall award a minimum of 10 percent of the support amount due as attorneys' fees in actions for the enforcement of payment of alimony. maintenance and support provided for in the decree. judgment or order. Other case synopses of interest include: Dempsey v. McGowan. 291 Ark. 147. __ SW2d _ • (February 2. 1987). This case involved a priority dispute of liens on real property. The trial court awarded attorneys' fees to one of the materialmen. which in effect gave this award equal status with the mechanics' liens. The Arkansas Supreme Court held it was an error to place the materialman's lien and the attorneys' fees for the materialman on the sarne level of priority. There is no statutory provision making attorneys' fees for a supplier of materials or labor a part of the lien. The Court did approve an award of attorneys' fees in favor of the materialman's attorney on the basis of a contract between the supplier and