McIlroy Bank & Trust v. Acro Corp

In McIlroy Bank & Trust v. Acro Corp., 30 Ark. App. 189, 785 S.W.2d 47 (1990), the bank and Ralston Purina, an intervenor, sued Acro in a foreclosure action. Eventually, Acro's attorney and the other parties' attorneys appeared and announced to the court that the case had been settled. The parties agreed that the court would enter a consent judgment in favor of McIlroy Bank against Acro for $ 541,772.24, that the settlement would have no effect on a related lawsuit pending in another county, and that Ralston Purina would be awarded a reasonable attorney's fee. The attorney for the bank was asked to prepare the decree. When the proposed order was submitted to him for approval, Acro's counsel refused to sign it because it awarded an attorney's fee of more than $ 54,000, and because he did not like the language reserving the rights of the parties in the other lawsuit. Acro's counsel then prepared his own decree, in which the attorney's fee was only $ 1,000, and which also substantially altered the retained rights for the other lawsuit. Both decrees were presented to the judge, who signed the one presented by Acro's attorney, even though none of the other attorneys had approved it. McIlroy Bank appealed, and the Court held that "it was error to sign the consent decree under these circumstances."