Swindle v. Southern Farm Bureau Casualty Insurance Co.

Summary

The Arkansas Supreme Court held that Swindle was not the prevailing party entitled to attorney’s fees under Arkansas Code Annotated section 16-22-308 because the insurer’s payment was not the result of an adjudication on the merits. The court reversed the Rule 11 sanctions because the required procedural protections, including notice, were not provided. The circuit court’s decision was affirmed in part, reversed in part, and the court of appeals’ opinion was vacated.

Holdings

1. Swindle was not the prevailing party and was not entitled to attorney's fees under section 16-22-308 because SFB's payment was not the result of a court adjudication resolving the merits of the underlying claim.
2. The circuit court could not impose Rule 11 sanctions on Swindle without notice and the procedural protections required by the applicable version of Rule 11.
3. The court declined to affirm the attorney's-fee award on the alternative statutory basis because the circuit court did not award fees under section 16-22-308 or rule on SFB's request for fees under that statute.

Questions Presented

1. Whether Swindle was the prevailing party entitled to attorney's fees under Arkansas Code Annotated section 16-22-308 because SFB paid the $24,500 after the lawsuit was filed.
2. Whether the circuit court could impose Rule 11 sanctions without the notice and separate-motion procedures required under the version of Arkansas Rule of Civil Procedure 11 in effect when the action was filed.
3. Whether SFB could alternatively recover attorney's fees under section 16-22-308 when the circuit court awarded fees only as Rule 11 sanctions and did not rule on the statutory fee request.

Disposition

reversed