Arkansas Insured's Award of Attorney's Fees was Small but Reasonable
The Arkansas Supreme Court affirmed an award of attorney's fees in Running M Farms, Inc. v. Farm Bureau Mut. Ins. Co. of Arkansas, Inc., No. 07-212 (10/25/07).
This case has a long history. It all began in 1997 when Farm Bureau denied coverage based under a crop-hail insurance policy when Running M's wheat crop was damaged by a hail storm. Running M filed suit in 1999 and, although Farm Bureau twice confessed judgment of $76,500, the case proceeded to two trials and two appeals. See 366 Ark. 480 (2006) and 348 Ark. 313 (2002).
On the third appeal, the final issue here was the award of attorney's fees pursuant to A.C.A. § 23-79-208. Judgment was entered on the $76,500 confessed by Farm Bureau. The trial court awarded Running M attorney's fees of $16,800. The trial court applied the requisite 8 factors to determine a reasonable fee. Newcourt Financial v. Canal Ins. Co., 341 Ark. 452 (2000).
Running M appealed the ruling and argued that the fee award was too small for 2 trials and 2 appeals spread across 7 years of litigation. The supreme court affirmed the award, noting that the trial court properly applied the 8 factors. The court paid special attention to the fact that Running M could have avoided much of the time and expense in this litigation by accepting the confession of judgment.
