State Farm Mut. Auto. Ins. Co. v. Thomas

• Decision Date: 29 March 1993
• Docket Number: No. 92-1224,92-1224
• Citation: 850 S.W.2d 4,312 Ark. 429
• Parties: STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY, Appellant, v. Steve THOMAS and Carol Thomas, As Parents and Natural Guardians of Lindsay Thomas, Appellees.
• Court: Arkansas Supreme Court

Page 4

850 S.W.2d 4

312 Ark. 429

STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY, Appellant, v. Steve THOMAS and Carol Thomas, As Parents and Natural Guardians of Lindsay Thomas, Appellees.

No. 92-1224.

Supreme Court of Arkansas.

March 29, 1993.

Clark S. Brewster, Bryant, for appellant.

John Doyle Nalley, Benton, for appellee.

BROWN, Justice.

Appellant State Farm Mutual Automobile Insurance Company appeals from a judgment assessing a twelve percent penalty and attorney's fees against it for failure to pay $25,000 in underinsured motor vehicle coverage to Lindsay Thomas within the time specified in the policy under Ark.Code Ann. § 23-79-208 (Repl.1992). We decline to reach the merits of this appeal due to the failure of State Farm to show compliance with Ark.R.Civ.P. 54(b).

According to the second amended complaint in this matter, appellees Steve Thomas and Carol Thomas brought suit individually and as parents and natural guardians of their daughters, Lindsay Thomas and Jennifer Thomas, against appellant State Farm, the estate of John Laughlin, and David Spears. The plaintiffs sued David Spears and the estate of John Laughlin for negligence and sought damages for personal injuries that arose out of a three-car traffic accident that occurred on March 29, 1991. Lindsay Thomas prayed for $285,000, according to counsel for appellees.

Steve Thomas settled his claim with the estate of John Laughlin. In addition, all four Thomases settled their claims with State Farm, although State Farm retained the right to appeal the issue of the penalty and attorney's fees with regard to Lindsay Thomas. Lindsay Thomas also settled with the liability carriers for David Spears and the estate of John Laughlin. The record and abstract, however, are silent on the disposition of 1) the claim of Steve Thomas against David Spears; 2) the claims of Carol Thomas and Jennifer Thomas against David Spears and the estate of John Laughlin; and 3) any additional claims that Lindsay Thomas might have had against David Spears and the estate of John Laughlin, in addition to her settlement with their liability carriers.

In discussing the history of Lindsay Thomas's claim for penalty and attorney's fees, the appellees make a general statement in their brief that "[the] cases were settled June 10, 1992, the day before trial." To support this statement reference is made to pages in the record, but the pages cited do not show disposition of the claims listed above. Nor is their disposition shown anywhere else in the record.

We, therefore, remain largely in the dark about the status of these remaining claims. The judgment appealed from awarded Lindsay Thomas the sum of $3,000 as penalty and $5,000 as attorney's fees. The judgment also contained language that "this court retains jurisdiction for such further orders as may be necessary," suggesting that there were other matters still to be resolved.

This court will only review final matters on appeal. Ark.R.App.P. 2(a). A judgment which adjudicates fewer than all of the claims of all of the parties does not terminate the action. Ark.R.Civ.P. 54(b). The failure to comply with Rule 54(b) by the absence of an order adjudicating the rights of all parties is a jurisdictional issue that we are obligated to raise on our own. Smith v. Leonard, 310 Ark. 782, 840 S.W.2d 167 (1992); Quality Ford, Inc. v. Faust, 307 Ark. 371, 820 S.W.2d 61 (1991). We have held in this regard that for an order to be final and appealable, it must dismiss the parties from the court, discharge them from the action, or conclude their rights to the subject matter in controversy. Id. It is not enough to dismiss some of the parties; the order must cover all parties and all claims in order to be appealable. See Parks v. Hillhaven Nursing Home, 309 Ark. 373, 829 S.W.2d 419 (1992). The trial court may direct final judgment with regard to fewer than all of the claims or parties by an...