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