Opinion ID: 1762219
Heading Depth: 1
Heading Rank: 3

Heading: Timeliness of the Counterclaim

Text: Nameloc cites Jones v. Double D Properties, Inc., 352 Ark. 39, 98 S.W.3d 405 (2003), and Allison v. Long, 336 Ark. 432, 985 S.W.2d 314 (1999), for the proposition that a compulsory counterclaim need only be filed sometime during the pendency of the action. Based on the language from Allison and Jones, Nameloc asserts that there was nothing wrong in filing the counterclaim just before trial started. In Jones, a counterclaim was not filed until after a decision was rendered. This court stated that the counterclaim should have been brought before or during the trial of this matter. Jones, 352 Ark. at 52, 98 S.W.3d 405. In Allison , the appellee filed an answer March 26, 1996, and filed a compulsory counterclaim August 5, 1996, apparently after receiving discovery responses that justified filing the counterclaim. A hearing was held in December 1996, and the court considered a motion to dismiss the counterclaim for failure to assert the claim in the answer. We stated that a counterclaim is compulsory in the sense that it must be brought within the pending action, not that it must necessarily be raised within the defendant's answer. Allison, 336 Ark. at 434, 985 S.W.2d 314. Neither the holding in Allison nor the holding in Jones is determinative of the issue before us. Arkansas Rule of Civil Procedure 13(a) requires that [a] pleading shall state as a counterclaim any claim which, at the time of filing the pleading, the pleader has against any opposing party. . . . Nameloc has presented nothing to show that it did not know of the alleged malpractice at the time it filed its answer. The facts show that Nameloc was aware of its potential cause of action against Jack at that time. It thus appears that Nameloc omitted the counterclaim from its answer. However, Ark. R. Civ. P. 13(e) provides that an omitted counterclaim may be stated by amended or supplemental pleading subject to Ark. R. Civ. P. 15. The reporter's note 5 to Rule 13 states that Ark. R. Civ. P. 13(e) follows superceded Ark. Stat. Ann. § 27-1160 (Supp.1975), by permitting a counterclaim to be asserted by amended pleading as any other amendment, subject to the conditions of Rule 15. Arkansas Rule of Civil Procedure 15(a) provides in part: With the exception of pleading the defenses mentioned in Rule 12(h)(1), a party may amend his pleadings at any time without leave of the court. Where, however, upon motion of an opposing party, the court determines that prejudice would result or the disposition of the cause would be unduly delayed because of the filing of an amendment, the court may strike such amended pleading or grant a continuance of the proceeding. Nameloc filed its omitted counterclaim on the morning of trial. Jack opposed the counterclaim on the morning of trial by an oral motion to strike the counterclaim. The circuit court granted the motion by Jack, finding the counterclaim improper and untimely at that point. The standard of review on accepting or rejecting pleadings is abuse of discretion. Davenport v. Lee, 348 Ark. 148, 72 S.W.3d 85 (2002). We note that Nameloc waited until the day of trial to file its omitted counterclaim even though it had previously filed pleadings and knew at the time of filing those pleadings that it had a claim against Jack. Where a counterclaim is brought thirty minutes before trial is to commence, the likelihood of prejudice is high. The complaint that was to be tried that day asserted that Nameloc had failed to pay fees due. The counterclaim alleged that Jack was negligent in providing legal services. There is nothing to show that Jack was prepared to defend on the malpractice claim on the morning of trial. The written motion filed a few days later did not alter the tardiness of the attempt to amend the pleadings. Nameloc attempted to file an omitted counterclaim, and Jack brought the required motion opposing it, claiming the counterclaim was untimely and prejudicial. The circuit court properly complied with the requirements of Ark. R. Civ. P. 13 and Ark. R. Civ. P. 15 in considering both the issue of the attempted filing of the counterclaim and the issue of the motion for leave to file the counterclaim. There was no abuse of discretion. As an additional basis for our decision, we note that a court has the inherent power to maintain an orderly administration of justice. See Johnson v. Johnson, 343 Ark. 186, 33 S.W.3d 492 (2000); Clements v. State, 306 Ark. 596, 817 S.W.2d 194 (1991). The trial court has a duty to maintain order in the proceedings. See Berry v. St. Paul Fire & St. Marine Ins. Co., 328 Ark. 553, 944 S.W.2d 838 (1997). Certainly the filing of a counterclaim on the day of trial affects the orderliness of the proceedings and the administration of justice.