Summary
The Supreme Court of Arkansas held that the appellant's argument concerning a common defense was not preserved because it was raised for the first time on appeal. The court affirmed the default judgment establishing liability and the $775,000 indemnity award, concluding that the settlement was supported by proof of liability, reasonableness, and actual loss. The court reversed the award of attorney's fees because no statutory or other legal authority supported it.
Holdings
- The argument was not preserved because Jean-Pierre relied below on Southwoods's answer to Mills's complaint, not on BHS's answer to Southwoods's cross-claim.
- A default judgment establishes liability, although it does not establish the amount of damages.
- A defaulting defendant may not introduce evidence to defeat the plaintiff's cause of action, but may contest the amount of damages, present mitigation evidence, cross-examine witnesses, and challenge the sufficiency of damages evidence.
- An indemnitee may settle an underlying claim and recover from the indemnitor without first being compelled by a judgment, provided the indemnitee proves liability, actual loss or payment, and the reasonableness of the settlement.
- The attorney-fee award was improper because the trial court identified no statute or rule authorizing attorney fees in the implied-indemnity action.
Questions Presented
- Whether an answer filed by Behavioral Health Services to Southwoods's cross-claim inured to Dr. Jean-Pierre's benefit and prevented entry of default judgment.
- Whether the default judgment established Dr. Jean-Pierre's liability to indemnify Southwoods without requiring Southwoods to prove its underlying liability to the Mills estate.
- Whether Southwoods's settlement was sufficiently compelled, reasonable, and supported by proof to permit recovery from Dr. Jean-Pierre after default judgment.
- Whether Jean-Pierre could introduce evidence to defeat Southwoods's cause of action after default judgment.
- Whether the trial court properly awarded attorney fees to Southwoods in an implied-indemnity action.
Disposition
other
Cases Cited (21)
- Laird v. Shelnut, 348 Ark. 632, 74 S.W.3d 206 (2002)(followed)
- Hurst v. Holland, 347 Ark. 235, 61 S.W.3d 180 (2001)(followed)
- Ghegan & Ghegan, Inc. v. Barclay, 345 Ark. 514, 49 S.W.3d 652 (2001)(followed)
- B.A.R. Enterprises, Inc. v. Palin Mfg. Co., 312 Ark. 500, 850 S.W.2d 322 (1993)(followed)
- Tharp v. Smith, 326 Ark. 260, 930 S.W.2d 350 (1996)(followed)
- Byrd v. Dark, 322 Ark. 640, 911 S.W.2d 572 (1995)(followed)
- B & F Engineering v. Cotroneo, 309 Ark. 175, 830 S.W.2d 835 (1992)(followed)
- Clark v. Michael Motor Co., 322 Ark. 570, 910 S.W.2d 697 (1995)(followed)
- Polselli v. Aulgur, 328 Ark. 111, 942 S.W.2d 832 (1997)(followed)
- Carpetland of Northwest Arkansas, Inc. v. Howard, 304 Ark. 420, 803 S.W.2d 512 (1991)(followed)
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