Opinion

RAY & ELIZABETH EVANS v. O.A.K. CONSTRUCTION, INC.

Court
Court of Appeals of Arkansas
Filed
Oct 8, 2025
Status
Published
Cited by
0 cases
Authority
More cited than 35.6%

The opinion

Cite as 2025 Ark. App. 474

ARKANSAS COURT OF APPEALS

DIVISION III

No. CV-24-541

ELIZABETH AND RAY EVANS Opinion Delivered October 8, 2025

APPEAL FROM THE BENTON

V.

COUNTY CIRCUIT COURT

[NO. 04CV-24-645]

O.A.K. CONSTRUCTION, INC.; AND

HONORABLE DOUG SCHRANTZ,

OLIVER KIESEL

JUDGE

APPELLEES DISMISSED WITHOUT PREJUDICE

WENDY SCHOLTENS WOOD, Judge

Elizabeth and Ray Evans (the Evanses) filed an interlocutory appeal from an order of

the Benton County Circuit Court denying their motion to partially dismiss O.A.K.

Construction, Inc.’s (O.A.K.’s), counterclaims against them for breach of contract. On

appeal, the Evanses argue that the circuit court erred in finding that the underlying home-

construction contract was in compliance with Arkansas Code Annotated section 18-44-

115(a)(7) (Supp. 2023) and, as a result, in refusing to bar and dismiss O.A.K.’s counterclaim.

We dismiss for lack of a final, appealable order.

The Evanses own the property located at 79 Rivercliff Road in Rogers. They entered

into two contracts with O.A.K. for construction at the property—the June 22, 2021 home-

construction contract (“Home Contract”) and the April 20, 2022 pool-cabana-construction

contract (“Cabana Contract”). On March 1, 2024, the Evanses filed a complaint against

O.A.K., Oliver Kiesel, and John Doe defendants alleging numerous causes of action. These

included breach of contract against O.A.K., negligence against all defendants, breach of

implied warranty of sound workmanship and sound construction against O.A.K. and Kiesel,

and fraud against O.A.K. and Kiesel. The contracts at issue were attached to the complaint

as exhibits. O.A.K. filed an answer on May 1 and a counterclaim on June 12 alleging breach

of contract and unjust enrichment related to the same construction contracts.

On June 27, the Evanses moved to “partially dismiss counterclaims” pursuant to

Arkansas Rule of Civil Procedure 12(b)(6), alleging that O.A.K. had failed to “plead sufficient

facts upon which relief could be granted related to providing the required Important Notice

to Owner prior to the Construction of the Evans home.” The Evanses alleged that O.A.K.

(as a contractor under Arkansas Code Annotated section 17-25-502(2) (Supp. 2023)) failed

to plead that it provided the “Important Notice to Owner” before it commenced

construction. The Evanses further contended that the Home Contract did not contain the

statutory notice required by Arkansas Code Annotated section 18-44-115(a)(7), which

provides as follows:

(7) The notice set forth in this subsection may be incorporated into the contract

or affixed to the contract and shall be conspicuous, set out in boldface type, worded

exactly as stated in all capital letters, and shall read as follows . . . .

Ark. Code Ann. § 18-44-115(a)(7) (Supp. 2023).1

1

The version of the statute in effect when the Home Contract was entered into

provided the following in part:

(a)(4) If a residential contractor fails to give the notice required under this

subsection, then the residential contractor is barred from bringing an action either at

2

Specifically, the Evanses argued that because the notice provided by O.A.K. was not

in “boldface,” it did not strictly comply with the statutory language; therefore, pursuant to

section 18-44-115(a)(4), O.A.K. was barred from bringing an action at law or in equity to

recover under the Home Contract. O.A.K. responded to the motion to dismiss, arguing that

the required notice provided in the Home Contract was in “boldface.”

In a July 18 letter opinion, the circuit court denied the Evanses’ motion to partially

dismiss O.A.K’s counterclaims:

[The Evanses] filed a motion to dismiss the counterclaim of [O.A.K.] alleging

failure to comply with A.C.A. § 18-44-115(a)(7) because this important language

notice in the contract between the parties was not set out in boldface type. [O.A.K.]

has responded. The [Evanses have] replied.

The fact is the contract between these parties contained the “Important Notice

to Owner” as set forth and required by A.C.A. § 18-44-115(a)(7) word for word in all

capital letters. The notice had signature blocks below the notice and was in fact signed

by the [Evanses]. [The Evanses] now complain that the “Important Notice” was not

in boldface type.

The parties both acknowledge that this statute requires strict compliance

because it is in derogation of the common law as memorialized in Books-A-Million, Inc.

v. Arkansas Painting and Specialties Co., 340 Ark. 467 (2000).

Clearly this contract makes the “Important Notice” conspicuous as it is in all

capital letters (as required) and it is signed by both parties acknowledging receipt of

law or in equity, including without limitation quantum meruit, to enforce any

provision of a residential contract.

Ark. Code Ann. § 18-44-115(a)(4) (Supp. 2017). It was amended in 2021 to bar a lien from

being obtained only for failure to provide the required notice. This amendment went into

effect after the parties entered into the Home Contract but before they signed the Cabana

Contract. Thus, the Evanses motion to dismiss as to the statutory notice addressed only the

Home Contract.

3

the notice. The type used, capital letters, is certainly thicker than lower case letters.

The notice is certainly conspicuous in its placement within the contract. [The

Evanses] clearly had actual notice of this language as indicated by their signatures

directly below the “Important Notice.” The Court finds this complies with the statute

and accordingly the motion is denied.

In a July 29 letter to the court, counsel for the Evanses requested that the circuit court

incorporate the language of the letter opinion into the written order or restate its findings

and conclusions. However, the circuit court entered a written order on July 31 stating,

“Upon examination of the record,” the motion to partially dismiss O.A.K.’s counterclaims

is denied. The order did not incorporate the letter ruling or otherwise contain findings and

conclusions. This appeal followed.

Whether an order is final and appealable is a jurisdictional question, and we are

obligated to consider the issue on our own even if the parties do not raise it. Panhandle Oil

& Gas, Inc. v. BHP Billiton Petroleum (Fayetteville) LLC, 2016 Ark. App. 376, at 5, 499 S.W.3d

667, 670. This case involves the denial of a motion to partially dismiss pursuant to Rule

12(b)(6). Ordinarily an appeal may not be taken from an order denying a motion to dismiss.

Univ. of Ark. for Med. Scis. v. Adams, 354 Ark. 21, at 23, 117 S.W.3d 588, 590 (2003).2

The Evanses filed a notice of appeal on August 16 appealing the July 31 order and

the July 18 letter opinion. They acknowledge that this is an interlocutory appeal but claim it

2

Our appellate rules allow for an interlocutory appeal of an order denying a motion

to dismiss based on the defense of sovereign immunity. Ark. R. App. P.–Civ. 2(a)(10) (2025).

The rationale justifying an interlocutory appeal is that the right to immunity from suit is

effectively lost if the case is permitted to go to trial. State of Ark. v. Goss, 344 Ark. 523, 42

S.W.3d 440 (2001).

4

is appropriate because it “had the effect of determining and striking out the [Evanses’]

complete statutory defense to certain of [O.A.K.’s] Counterclaims in accordance with

Arkansas Civil Rule of Appellate Procedure 2(a)(4).” Rule 2(a)(4) provides that an appeal

may be taken from “[a]n order which strikes out an answer, or any part of an answer, or any

pleading in an action[.]” Ark. R. App. P.–Civ. 2(a)(4). In their jurisdictional statement, the

Evanses cite BPS, Inc. v. Parker, 345 Ark. 381, 47 S.W.3d 858 (2001), in support of the claim

that their interlocutory appeal is appropriate. Parker, however, does not support the Evanses’

claim.

In Parker, the supreme court permitted the appellant to bring an appeal from a denial

of a motion for summary judgment after the circuit court engaged in improper fact-finding

that effectively ruled on the appellant’s defense and prevented the appellant from presenting

its defense to the jury. Unlike Parker, the circuit court in the instant case did not engage in

improper fact-finding. Although the circuit court explained its reasoning for the denial of

the motion to partially dismiss O.A.K.’s counterclaims in its letter opinion, that reasoning

is absent from the circuit court’s order.3

3

The decisions, opinions, and findings of a court—including those expressed in a letter

opinion—do not constitute a judgment or decree; they merely form the bases upon which

the judgment or decree is subsequently to be rendered and are not conclusive unless

incorporated into a judgment. Wilkinson v. Smith, 2012 Ark. App. 604, at 3. To give effect to

an unincorporated letter opinion would violate the requirement that a judgment or decree

must be set out in a separate document in order to be effective. Ark. R. Civ. P. 58. Rather,

the order simply denied the Rule 12(b)(6) motion without any specific findings or

conclusions.

5

This case is more factually analogous to Kenmark Optical, Inc. v. Ford, 2023 Ark. App.

431. Kenmark appealed the denial of a partial motion for summary judgment, contending

that it was appealable under Arkansas Rule of Appellate Procedure–Civil 2(a)(4) because the

denial effectively ruled on its affirmative defense, preventing presentation of a defense at

trial. Kenmark relied on Parker, supra, to establish appellate jurisdiction. In dismissing the

appeal for lack of a final, appealable order, we distinguished Parker, concluding that the order

(1) did not serve as a final disposition regarding the constitutionality of the statute, which

was raised as a defense, and (2) did not prevent Kenmark’s presentation of any defense at

trial. We stated that for this court to have jurisdiction under Rule 2(a)(4), the appeal must

be from “[a]n order which strikes out an answer, or any part of an answer, or any pleading

in an action. . . .” Kenmark, 2023 Ark. App. 431, at 6.

In this case, the circuit court did not engage in any improper fact-finding as was the

case in Parker. As in Kenmark, the order in this case did not strike a pleading. Instead it was

a general denial of a motion to dismiss pursuant to Arkansas Rule of Civil Procedure

12(b)(6). Finally, the order in this case did not contain a certification pursuant to Arkansas

Rule of Civil Procedure 54(b), which could have provided jurisdiction under Arkansas Rule

of Appellate Procedure–Civil 2(a)(11). For the foregoing reasons, we must dismiss this appeal

for lack of jurisdiction.

Dismissed without prejudice.

KLAPPENBACH, C.J., and VIRDEN, J., agree.

Miller, Butler, Schneider, Pawlik & Rozzell, PLLC, by: George M. Rozzell IV, for appellants.

6

Kutak Rock LLP, by: J.R. Carroll, Peyton Watts, and Kayla M. Sherrill, for appellees.

7

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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