Case Title: Chlanda v. Killebrew

Citation: 

Docket Number: 96-1382

State: arkansas

Court: Arkansas Supreme Court

Date: 1997-06-09T00:00:00Z

Document:
Shirley A. CHLANDA and Thomas D. Ledbetter v.
Lewis KILLEBREW

96-1382                                            ___ S.W.2d ___

                    Supreme Court of Arkansas
                 Opinion delivered June 9, 1997


1.   Attorney & client -- attorney's fees -- proof required for
     award under Ark. Code Ann. 16-22-309(a)(1) and Ark. R. Civ.
     P. 11. -- To obtain an attorney's fee pursuant to Ark. Code
     Ann.  16-22-309(a)(1), the prevailing party must show that
     there was "a complete absence of a justiciable issue of either
     law or fact raised by the losing party or his attorney"; to
     obtain an attorney's fee pursuant to Ark. R. Civ. P. 11, it
     must be shown that an attorney or party signed a pleading not
     grounded in fact, not warranted by existing law, or good-faith
     argument for a change in the law, or filed for an improper
     purpose.  

2.   Attorney & client -- claim not grounded in fact -- how such 
     violation is established. -- A violation under the statute and
     rule because a claim is not grounded in fact may be
     established only when it is patently clear that a claim has no
     chance of success. 

3.   Attorney & client -- disputed factual issues remained
     unanswered -- award of attorney's fees reversed and remanded.
     -- Where it had been previously determined that disputed
     factual issues remained unanswered, it could not be said that
     appellants were pursuing a claim that was not grounded in
     fact; because an essential element for sanctions under Rule 11
     or Ark. Code Ann.  16-22-309 was a determination that
     appellants were pursuing a claim that was not reasonably based
     in fact or law, and because that issue had been resolved by an
     earlier decision, the award of attorney's fees was reversed
     and remanded.


     Appeal from Boone Circuit Court; John Lineburger, Judge;
reversed and remanded.
     Eichenbaum, Scott, Miller, Liles & Heister, P.A., by:  Peter
B. Heister and Ledbetter & Associates, Ltd., by:  Thomas D.
Ledbetter, for appellants.
     Davis & Goldie, by:  James Goldie, for appellee.

     Ray Thornton, Justice.
     This is an appeal from the trial court's order awarding
attorneys' fees pursuant to Ark. Code Ann.  16-22-309 (Repl. 1994)
and Ark. R. Civ. P. 11.  Appellant Shirley Chlanda and her
attorney, appellant Thomas D. Ledbetter, were ordered to pay the
amounts of $ 5,000.00 and $ 7,663.93 respectively as partial
payment of Lewis Killebrew's attorney's fees expended by Mr.
Killebrew in defending an action for conversion.  Both appellants
argue on appeal that the trial court erred in finding that they
filed a lawsuit that was not well grounded in fact and could not be
supported by a good-faith argument for the extension, modification,
or reversal of existing law.  Their argument is well taken, and we
reverse and remand.
     The facts of the underlying case are set out in full in
Chlanda v. Killebrew, 326 Ark. 791, 934 S.W.2d 227 (1996).  Those
facts necessary to understand the instant case are as follows.  Mr.
Killebrew was appointed coadministrator of the estate of Milford
Fuller, who was Mrs. Chlanda's brother-in-law.  After Mr. Fuller's
death, Mrs. Chlanda claimed that Mr. Killebrew was holding some
jewelry, which had been given to her by her sister, Evelyn Fuller,
who had predeceased Mr. Fuller by less than two months.  Mr.
Killebrew maintained that he did not have the jewelry.  The trial
court granted summary judgment, and we reversed, holding that there
were disputed factual issues to be resolved.  It was during the
pendency of this appeal that Mr. Killebrew petitioned the trial
court for sanctions. 
     To obtain an attorney's fee pursuant to Ark. Code Ann.  16-
22-309(a)(1), the prevailing party must show that there was "a
complete absence of a justiciable issue of either law or fact
raised by the losing party or his attorney . . . ."  Id.  To obtain
an attorney's fee pursuant to Ark. R. Civ. P. 11, it must be shown
that an attorney or party signed a pleading not grounded in fact,
not warranted by existing law, or good-faith argument for a change
in the law, or filed for an improper purpose.  Ark. R. Civ. P. 11;
Cowan v. Schmidle, 312 Ark. 256, 848 S.W.2d 421 (1993).
     We determined in Chlanda I that disputed factual issues
remained unanswered.  Chlanda v. Killebrew, 326 Ark. at 794, 934 S.W.2d  at 228.  Therefore, it cannot be said that appellants were
pursuing a claim that was not grounded in fact.  Such violations
under the statute and the rule are established only when it is
patently clear that a claim has no chance of success. 
See Jones v. Jones, 320 Ark. 449,