Litigation

Default Judgment Reversed Because of Procedural Error

By H. William Allen et al.

The Arkansas Court of Appeals reversed a grant of default judgment in Brooks v. Farmers Bank and Trust Co., No. 07-694 (2/20/08).

Farmers Bank properly served Brooks with the complaint, but he failed to answer. The bank did not move for default judgment, but there was a "hearing on the Bank's complaint" (we're not sure what that is). Brooks appeared at this hearing. The bank orally moved for default judgment, and the trial court granted it.

The court of appeals reversed on procedural grounds. When a motion for default judgment is filed, the defendant must have at least 3 days' notice before the hearing. See Ark. R. Civ. P. 55(b). This point is probably academic; it seems Brooks has no defense to his failure to answer, and the default judgment will probably be reinstated.

Full post as published by Arkansas Business Litigation Blog on February 21, 2008 (boomark / email).