In Dark Knight Vending, LLC v. Allen d/b/a Feeze Kutz Barber Shop (Apr. 15, 2024), the Arkansas Court of Appeals affirmed a $6,555 attorney’s fee award to Felicia Allen after she successfully defended a breach-of-contract claim.
Background: Dark Knight claimed it had an exclusive agreement to place gaming machines in Allen’s barber shop and sued for more than $100,000 in damages. The jury rejected Dark Knight’s contract claim against Allen. Allen filed a counterclaim against Dark Knight that was dismissed by directed verdict.
In Arkansas, a court may award attorney’s fees in contract cases to the “prevailing party.” But who qualifies as the “prevailing party” can sometimes be murky.
On appeal, Dark Knight argued that (1) no party “prevailed,” (because Allen’s counterclaim was dismissed and the parties were left in the same position they started in) and (2) the fee was unreasonable. The court disagreed, holding:
- Allen was the prevailing party because she defeated Dark Knight’s contract claim, even though her own counterclaim was dismissed.
- The circuit judge acted within his discretion in awarding roughly half of the $12,779 requested, based on detailed billing and the court’s familiarity with the case.
Takeaway: In Arkansas, a party who successfully defends against a major claim can be treated as the prevailing party and recover fees. Courts have wide latitude in setting fee amounts, and appellate courts will rarely overturn those decisions.