The Arkansas Court of Appeals has dismissed an appeal from Stermer Distribution, LLC, in a case involving a breach of contract dispute with Edward Burgess, who operates Boggy Creek Timber Company. The court ruled on September 2, 2026, that Stermer Distribution's appeal was not valid because there was no final judgment regarding all claims in the case. This ruling affects both parties and highlights the importance of finality in legal judgments.
The dispute began when Burgess filed a complaint against Stermer Distribution and Dean Stermer in May 2019, claiming they breached a contract related to the lease of logging equipment. Burgess alleged that Stermer Distribution failed to make payments and mishandled the equipment, which was left in Texas. The case was filed in the Miller County Circuit Court, where Burgess sought damages for the alleged breach.
Initially, Stermer Distribution contested the court's jurisdiction over them. In February 2023, the court agreed to dismiss Dean Stermer from the case but found that it had personal jurisdiction over Stermer Distribution. Despite multiple motions to dismiss based on jurisdiction, the court maintained its position and allowed the case to proceed to trial.
During the jury trial held in September 2024, the court ruled that only the breach of contract claim would be submitted to the jury. The jury ultimately sided with Burgess, awarding him $52,000 in damages, along with additional attorney's fees and interest, bringing the total to $89,031.70. Stermer Distribution filed an appeal shortly after the judgment was entered.
However, the Court of Appeals ruled that the appeal could not proceed because the judgment was not final. The court explained, “The judgment from which Stermer Distribution appeals is not a final order because there has been no final disposition of Burgess’s negligence claim.” This indicates that the negligence claim filed by Burgess remains unresolved, which is a crucial factor in determining the appeal's validity.
The court referenced Arkansas Rules of Appellate Procedure, stating that an appeal can only be taken from a final judgment. In this case, since the jury did not address the negligence claim and there was no order disposing of it, the court lacked jurisdiction to hear the appeal. The court emphasized that without a final resolution of all claims, including any counterclaims, the appeal could not proceed.
This ruling may have significant implications for future cases in Arkansas. It reinforces the necessity for lower courts to ensure that all claims are resolved before an appeal can be considered. This decision also serves as a reminder to parties involved in litigation to be aware of the status of all claims in their cases before attempting to appeal.
Moving forward, Stermer Distribution may need to address the unresolved negligence claim before pursuing any further legal action. The court's dismissal was without prejudice, meaning that the parties can still resolve their disputes in the lower court. It is unclear whether Stermer Distribution will seek to resolve the negligence claim or if they will pursue other legal options.
Details were not available in the court filing regarding the potential for an appeal on the negligence claim or whether there are any related cases pending. However, the dismissal indicates that the legal battle between Stermer Distribution and Burgess is not over, and further proceedings may be necessary to fully resolve the matter.