Litigation

Arkansas Attorney's Fee Statute Does Not Apply to Declaratory Action, but Plaintiff Can Get Costs

By H. William Allen et al.

The Arkansas Supreme Court reversed a grant of attorney's fees in Hanners v. Giant Oil Co. of Arkansas, Inc., 07-1314 (5/15/08) (previously posted 3/21/07).

Giant Oil filed a declaratory action to decide the parties' rights under a contract. There were no claims for damages. The trial court entered judgment for Giant Oil and granted attorney's fees and costs pursuant to Ark. Code Ann. § 16-22-308.

The supreme court reversed, holding that Ark. Code Ann. § 16-22-308 only applies to a breach of contract. It does not apply to a declaratory action. However, the Arkansas Declaratory Judgment Act does provide for costs. The case was remanded for the trial court to enter an award of costs.

Full post as published by Arkansas Business Litigation Blog on May 15, 2008 (boomark / email).