Aceva Techs. LLC v. Tyson Foods Inc. , 2013 Ark. App. 495 ( 2013 )


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  • Susan
    Williams       Cite as 
    2013 Ark. App. 495
    2019.01.
    02       ARKANSAS COURT OF APPEALS
    12:11:24               DIVISION I
    -06'00'              No. CV-12-923
    Opinion Delivered   September 18, 2013
    ACEVA TECHNOLOGIES, LLC, AND
    SUNGARD AVANTGARD, LLC                           APPEAL FROM THE WASHINGTON
    APPELLANTS                     COUNTY CIRCUIT COURT
    [NO. 2007-1677-2]
    V.                                               HONORABLE KIM M. SMITH,
    JUDGE
    AFFIRMED ON DIRECT APPEAL;
    TYSON FOODS, INC.                                REVERSED AND REMANDED ON
    APPELLEE        CROSS-APPEAL
    JOHN MAUZY PITTMAN, Judge
    Aceva Technologies, LLC, and Sungard Avantgard, LLC (collectively “Aceva”),
    bring an appeal from a jury verdict in the Washington County Circuit Court in favor of
    appellee, Tyson Foods, Inc. Aceva challenges several of the trial court’s rulings, and Tyson
    brings a cross-appeal from its refusal to award prejudgment interest. We affirm on the direct
    appeal and reverse and remand on the cross-appeal.
    In 2004, the parties entered into a Value Assessment Agreement (VAA), in which
    Aceva agreed to evaluate Tyson’s credit department’s processes and software needs for
    $30,000. Aceva advised Tyson that it would save about $2,000,000 by implementing Aceva’s
    software. Following that recommendation, Tyson purchased Aceva’s software and entered
    into a Software License Agreement (SLA) in February 2005, whereby Tyson paid Aceva a
    licensing fee of $400,000 and a first-year maintenance fee of $80,000. Tyson also agreed to
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    pay approximately $170,000 for Aceva to customize and install the software in accordance
    with Tyson’s needs. Aceva agreed to complete the work in twelve weeks, beginning in
    March 2005. The SLA contained the following limitation-of-liability clause:
    a) Limitation: EXCEPT AS PROVIDED FOR IN THIS AGREEMENT, ACEVA’S
    AGGREGATE LIABILITY TO CUSTOMER IN ANY WAY RELATED TO
    THIS AGREEMENT, AND REGARDLESS OF WHETHER THE CLAIM FOR
    SUCH DAMAGES IS BASED IN CONTRACT, TORT, STRICT LIABILITY,
    OR OTHERWISE, WILL NOT EXCEED THE LICENSE FEES RECEIVED BY
    ACEVA FROM CUSTOMER FOR THE AFFECTED SOFTWARE FOR THE
    12 MONTH PERIOD PRECEDING THE OCCURRENCE OF SUCH
    LIABILITY.
    b) No Consequential Damages. EXCEPT AS PROVIDED FOR IN THIS
    AGREEMENT NEITHER PARTY WILL BE LIABLE FOR ANY INDIRECT,
    INCIDENTAL, SPECIAL, PUNITIVE OR CONSEQUENTIAL DAMAGES.
    Aceva did not meet the twelve-week deadline. During the next year, Aceva billed
    Tyson almost $900,000 for license and maintenance fees and services; according to Tyson,
    the software never met its requirements and could not be used. Tyson notified Aceva of
    breach on April 11, 2006, and demanded cure by May 12, 2006; in the alternative, it
    demanded reimbursement for its out-of-pocket costs of $887,199.60. Aceva did not satisfy
    those demands.
    Tyson sued Aceva in 2007, asserting breach of the VAA, the agreement to provide
    professional services, the SLA, express warranty, and implied warranties, and the implied
    covenant of good faith and fair dealing in the VAA and SLA; negligence in performing the
    VAA and professional services; promissory estoppel; unjust enrichment; negligent
    misrepresentation; deceptive trade practices; and fraud. Tyson notified Aceva that, pursuant
    to paragraph 10(f) of the SLA, the governing law would be that of Delaware. Aceva asserted
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    various affirmative defenses, including Tyson’s material breach; it also contended that the
    VAA and SLA had merged and that there was only one contract between the parties (the
    SLA). Aceva also brought a counterclaim against Tyson for breach of contract, promissory
    estoppel, and unjust enrichment.
    Aceva moved for partial summary judgment to enforce the limitation-of-liability
    provision of the SLA. It also filed a motion in limine, asking the court to permit it to produce
    evidence of that provision and to preclude Tyson from introducing any evidence of damages
    in excess of $400,000. Aceva asked the court to instruct the jury that the limitation-of-
    liability clause applied to all of Tyson’s claims (except the fraud claims, if they survived). In
    response, Tyson argued that all remedies under the Uniform Commercial Code were available
    if it could prove that the limited remedy failed of its essential purpose, and that whether a
    limited remedy failed of its essential purpose is a question of fact for the jury.1 It also argued
    that the VAA was a separate agreement, which contained no limitation-of-liability clause, and
    was not merged into the SLA.
    The circuit court partially granted Aceva’s motions in limine and for partial summary
    judgment, leaving the “failure-of-essential-purpose” question for the jury. The court stated
    that if that provision did not fail of its essential purpose, it applied to the SLA-related claims
    1
    Delaware’s version of section 2-719 of the UCC, like the comparable statute in
    Arkansas, provides that a seller’s right to limit remedies in a UCC contract to “repair or
    replacement” or “return and refund” is subject to subsection (2) where circumstances cause
    an exclusive or limited remedy to “fail of its essential purpose”; if it fails, the UCC’s remedies
    are available and the buyer may disregard that term of the contract. Del. Code Ann. Tit. 6,
    § 2-719 (2013).
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    (including negligence) but not to the VAA. The court dismissed several claims, leaving those
    for breach of the VAA, the SLA, and express warranty; negligence in performance of
    professional services; promissory estoppel; unjust enrichment; deceptive trade practices; and
    fraud for trial.
    The case was tried before a jury. Tyson nonsuited its claim for breach of the VAA.
    During its case-in-chief, Tyson called witnesses who testified about Aceva’s failure to perform
    adequately, using documentary evidence consisting of computer screen shots, emails, and
    software-generated reports. The court denied Aceva’s motions for directed verdict based on
    the limitation-of-liability clause. Over Tyson’s objection, the trial court permitted Aceva to
    present the testimony of Harit Nanavati, a software engineer with Aceva during the relevant
    time frame, who performed a live demonstration of the software using a computer server
    provided by Aceva. Tyson argued that it needed an opportunity to first inspect the computer
    server used by Nanavati in the demonstration to verify whether he was using the same
    software that Tyson had on its server. Aceva assured the trial court that the software was the
    same version that Tyson had, and the trial court permitted Nanavati to demonstrate that the
    software worked at that time. Tyson asked for a recess to inspect the software before
    conducting its cross-examination of Nanavati. The trial court denied Tyson’s request for a
    recess. Nevertheless, after Nanavati had testified, during the presentation of the remainder
    of Aceva’s case-in-chief, the circuit court allowed Tyson to inspect the computer. Kevin
    McManus, a management consultant, testified that the software worked properly.
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    Michael Mader, an IT employee of Tyson, testified on rebuttal that, based on his
    limited inspection of the Aceva server and software, there were significant differences between
    those files and the software files on Tyson’s server. He stated that, although he could not
    identify the precise changes, “digital fingerprints” indicated that the software used by Aceva
    during the demonstration was an altered version of the Aceva software that had been installed
    on Tyson’s servers. Mader testified that he set up a computer so that Regina Villines, Tyson’s
    next witness on rebuttal, could remotely access Tyson’s server and enable her to demonstrate
    the actual software that had been installed on Tyson’s server. Villines then demonstrated the
    problems with the version of the Aceva software running on Tyson’s system. During Aceva’s
    cross-examination of Villines, it asked for a recess to permit McManus to inspect the version
    of the Aceva software installed on Tyson’s server before Aceva finished asking questions of
    Villines. After the trial court denied this motion for a recess during Villines’s testimony, Aceva
    decided not to ask her any further questions and stated that it had no further rebuttal
    witnesses. At that time, the testimony was completed.
    About fifteen minutes later, Aceva asked to present McManus as a surrebuttal witness
    so that he could testify that the software on Tyson’s server had an expired business calendar.
    The trial court denied this request and Aceva proffered McManus’s testimony. In his
    proffered testimony, McManus acknowledged that months before trial, Aceva had been given
    a copy of the software on Tyson’s server and that it had been given an opportunity to log
    onto Tyson’s server to further review the software, but had declined because he saw no need
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    to do so. McManus acknowledged that he had been aware of the business-calendar issue
    before trial.
    The jury found that Aceva had breached the SLA, causing Tyson damages; that Aceva
    had not breached an express warranty to Tyson; that Aceva was negligent in performing the
    VAA, causing Tyson damages; that Aceva had not committed deceit; that Aceva had not
    violated the Arkansas Deceptive Trade Practices Act; that Tyson had not breached the SLA;
    and that the limitation-of-liability remedy in the SLA had failed of its essential purpose. The
    jury awarded damages of $512,000 to Tyson and no damages to Aceva. Tyson moved for
    prejudgment interest, attorney’s fees, and costs. The circuit court entered judgment on the
    jury verdict and awarded attorney’s fees of $300,000 to Tyson, plus $100,000 in costs. The
    court denied Tyson’s request for prejudgment interest. Aceva then pursued this appeal and
    Tyson filed a cross-appeal from the order denying its motion for prejudgment interest.
    In its first point on appeal, Aceva argues that the trial court abused its discretion in
    refusing to call a recess so that it could inspect Tyson’s computer and software that was shown
    to the jury during rebuttal on the last day of trial. Aceva further asserts that after the record
    was closed, it discovered that Tyson had “rigged the software to fail by mis-configuring the
    business calendar setting,” and that when it sought to reopen the record to introduce this
    newly-discovered evidence, the circuit court refused to do so.2 Aceva argues that it had no
    choice but to rest its case after the circuit court refused to give it any time in a recess to
    2
    We address whether the court abused its discretion in refusing to reopen the record
    in the next point.
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    inspect the computer and software on the laptop computer that Villines had shown the jury
    while accessing the Aceva software running on Tyson’s servers through a wireless internet
    connection.
    Trial courts have considerable discretion in the control and management of
    proceedings at trial. Walcott & Steele, Inc. v. Carpenter, 
    246 Ark. 95
    , 
    436 S.W.2d 820
    (1969);
    Coca Cola Bottling Co. v. Jordan, 
    186 Ark. 1006
    , 
    54 S.W.2d 403
    (1932). The trial court has
    an affirmative obligation to administer the docket efficiently. Odaware v. Robertson Aerial-AG,
    Inc., 
    13 Ark. App. 285
    , 
    683 S.W.2d 624
    (1985). We cannot say that the trial court abused
    its discretion in denying Aceva’s request for a recess because the jury had already heard nine
    days of testimony and Aceva had presented its lengthy case-in-chief, during which its
    witnesses had testified (with a demonstration) that the software did work and that the only
    problems were caused by Tyson. Because it is not at all apparent that a short recess to permit
    Aceva to prepare a witness for surrebuttal would have changed the outcome of the trial, we
    affirm on this point.
    In its second point, Aceva argues that the circuit court erred in refusing to reopen the
    record to permit it to introduce evidence concerning Tyson’s computer and software that
    was shown to the jury. Aceva argues that McManus had his first opportunity to inspect the
    laptop and software that Tyson had shown to the jury after the record was closed; at that
    time, he discovered that the software had appeared to malfunction when Tyson showed it
    to the jury only because Tyson had erroneously set the software’s business calendar function
    (for the wrong year). According to Aceva, the court abused its discretion in refusing to
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    reopen the record to admit McManus’s testimony and correct the misimpression that Tyson
    had left with the jury.
    Whether to reopen the record was within the trial court’s discretion, in light of all of
    the relevant circumstances. Sugarloaf Development Co., Inc. v. Heber Springs Sewer Improvement
    District, 
    34 Ark. App. 28
    , 
    805 S.W.2d 88
    (1991). Evidence should be reopened where to do
    so would serve the interests of justice and cause no undue disruption of the proceedings or
    unfairness to the party not seeking to have it reopened. 
    Id. The general
    rule is that we will
    not reverse the trial court’s decision to admit or refuse evidence in the absence of an abuse of
    that discretion and a showing of prejudice. Mason v. Mason, 
    319 Ark. 722
    , 
    895 S.W.2d 513
    (1995); Acker Construction, LLC v. Tran, 
    2012 Ark. App. 214
    , 
    396 S.W.3d 279
    ; Simpson v.
    Braden, 
    2011 Ark. App. 250
    . The factors to be considered have been explained in Trial
    Handbook for Arkansas Lawyers:
    A court should not reopen a case except for good reason and on proper
    showing. The exigencies of each particular case have much weight in controlling the
    discretion of the court. Factors taken into consideration in allowing a party to reopen
    a case to introduce new evidence include:
    1. Failure to introduce evidence occurred because of inadvertence, calculated
    risk, or the court’s mistake. 75 Am. Jur. 2d Trial § 382.
    2. Surprise or unfair prejudice inuring to the opponent by the new evidence.
    75 Am. Jur. 2d Trial § 382.
    3. Failure to prove a basic element of a crime; e.g., value of property stolen or
    age of the defendant or victim. Bland v. State, 
    251 Ark. 23
    , 
    470 S.W.2d 592
                  (1971) (value); George v. State, 
    306 Ark. 360
    , 
    813 S.W.2d 792
    (1991), opinion
    supplemented on denial of reh’g, 
    306 Ark. 360
    , 
    818 S.W.2d 951
    (1991) (age
    of defendant).
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    4. Diligence of the party seeking introduction of the new evidence. 75 Am.
    Jur. 2d Trial § 382.
    5. Admissibility, relevance, and lack of cumulativeness of new evidence to the
    proponent’s case. Walker v. State, 
    240 Ark. 441
    , 
    399 S.W.2d 672
    (1966).
    6. Time or stage of the proceedings at which the motion is made. 75 Am. Jur.
    2d Trial §§ 386 to 394.
    7. Time and effort expended upon the trial. 75 Am. Jur. 2d Trial § 382.
    8. Effect reopening the proof will have on completing the trial, considering the
    opponent’s right to respond to it. 75 Am. Jur. 2d Trial § 382.
    9. Any cogent reasons which justify denying the request. 75 Am. Jur. 2d Trial
    § 382.
    Greater liberty should be allowed in the matter of reopening the proof when
    the case is tried to the court without a jury. Midwest Lime Co. v. Independence
    County Chancery Court, 
    261 Ark. 695
    , 
    551 S.W.2d 537
    (1977).
    John Wesley Hall, Jr., Trial Handbook for Arkansas Lawyers § 86:5 (2006).
    We cannot say that the trial court abused its discretion in refusing to reopen the record
    for Aceva to present the surrebuttal testimony of McManus. During nine days of testimony,
    the jury had heard both parties’ versions of what had gone wrong with the software and had
    seen two computer demonstrations. Aceva had previously declined the opportunity to log
    onto Tyson’s server, and its expert witness was aware of the business-calendar issue before
    trial. If Aceva had chosen to do so, McManus could have testified about this matter during
    Aceva’s case-in-chief. We affirm on this issue.
    In its third point, Aceva argues that the circuit court erred as a matter of law in failing
    to enforce the limitation-of-liability clause and in permitting the jury to decide whether it
    failed of its essential purpose. Because we hold that the SLA did not supersede or encompass
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    the VAA, addressed below, we need not decide the limitation-of-liability issue. The jury
    rendered a general verdict for damages after finding that Aceva was negligent in performing
    the VAA and that it breached the SLA. Because the verdict was general, there is no way to
    ascertain the allocation of damages as to negligence and breach of contract. Where the jury
    verdict is rendered on a general-verdict form, it is an indivisible entity or, in other words, a
    finding upon the whole case. Bradshaw v. Alpha Packaging, Inc., 
    2010 Ark. App. 659
    , 
    379 S.W.3d 536
    . We will not speculate on what the jury found where special interrogatories on
    damages are not requested and a general jury verdict is used. Hyden v. Highcouch, Inc., 
    353 Ark. 609
    , 
    110 S.W.3d 760
    (2003). We affirm on this point.
    In its fourth point, Aceva argues that the circuit court erred in refusing to enforce the
    limitation-of-liability clause against Tyson’s claim for negligent performance of the VAA.
    Aceva asserts that Tyson’s allegations relating to negligent performance of the VAA directly
    relate to the SLA and, therefore, come within the limitation-of-liability clause’s broad terms.
    Under this point, Aceva also argues that the SLA superseded the VAA because of the
    integration clause found at paragraph 10(g) of the SLA. That clause stated: “This agreement
    constitutes the entire agreement and supersedes any prior or contemporaneous oral or written
    agreements regarding the subject matter . . . .”
    The trial court did not err in its construction of the SLA as not encompassing the
    VAA, which Aceva had already performed. A merger clause in a contract, which extinguishes
    all prior and contemporaneous negotiations, understandings, and verbal agreements, is simply
    an affirmation of the parol-evidence rule. 
    Simpson, supra
    . The parol-evidence rule is a rule
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    of substantive law in which all antecedent proposals and negotiations are merged into the
    written contract and cannot be added to or varied by parol evidence. 
    Id. It is
    a general
    proposition of the common law that, in the absence of fraud, accident, or mistake, a written
    contract merges, and thereby extinguishes, all prior and contemporaneous negotiations,
    understandings, and verbal agreements on the same subject. 
    Id. Merger is
    largely a matter of
    intention of the parties; in fact, intention is a prerequisite for merger and the trial court will
    use a “totality-of-the-circumstances” approach to determine the parties’ intention. 
    Id. Although whether
    the subsequent writing included a merger or integration clause is important
    to the question of intention, it is not determinative; the court will look to all of the other
    circumstances evidencing the parties’ intent before deciding whether merger applies. 
    Id. Merger only
    happens, however, when the same parties to an earlier agreement later enter into
    a written integrated agreement covering the same subject. 
    Id. The cases
    cited by Aceva do
    not support its argument that under Delaware law, the SLA’s integration clause superseded
    the VAA.
    Tyson contended that the VAA and SLA did not cover the same subject, and the trial
    court agreed, as do we, because the VAA and SLA were completely separate contracts dealing
    with different subject matters. Under the VAA, Aceva gave Tyson professional advice for a
    separate consideration. Pursuant to the SLA, it sold licensed software and related services to
    Tyson. The agreements were executed months apart and were not part of the same
    transaction. The parties entered into the VAA in April of 2004 for Aceva to perform an
    independent study of Tyson’s credit department’s systems and software needs in exchange for
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    $30,000. Aceva performed this analysis and recommended that Tyson choose its software.
    Tyson then followed that recommendation and entered into the SLA with Aceva in February
    2005. We affirm on this point.
    In its last point, Aceva argues that, even if we affirm on the other issues, we should
    hold that the circuit court erred in awarding Tyson $100,000 in costs under the SLA’s
    indemnification clause found in Section 7(c),3 which provided:
    Indemnification: Aceva shall indemnify, defend, and hold harmless Customer, its
    affiliates, directors, officers, employees and agents from and against any all suits, claims,
    demands, losses, damages, costs and expenses of any nature whatever, including
    without limitation, litigation expenses, attorney’s fees and liabilities, incurred in
    connection therewith, arising out of: (a) injury to, or death of, any person whatsoever
    or damage to property of any kind by whomever owned, proximately caused in whole
    or in part by the acts or omissions of Aceva, any of its members, employees, agents or
    other persons directly or indirectly employed by or associated with Aceva; or (b) any
    breach by Aceva of a representation, warranty or covenant contained herein or in any
    Schedule.
    Aceva contends that it is not obligated to reimburse Tyson for its costs expended in
    suing Aceva, but is only required to indemnify Tyson if it is sued by a third party. The scope
    of the indemnity clause is a matter of contract interpretation, which is governed by Delaware
    law. If a writing is plain and clear on its face, i.e., its language conveys an unmistakable
    meaning, the writing itself is the sole source for gaining an understanding of intent. City
    Investing Company Liquidating Trust v. Continental Casualty Co., 
    624 A.2d 1191
    (Del. 1993).
    When there is uncertainty in the meaning and application of the terms of the contract, the
    appellate and trial courts will consider testimony pertaining to antecedent agreements,
    3
    Aceva does not challenge the reasonableness of the award.
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    communications, and other factors which bear on the proper interpretation of the contract.
    Pellaton v. Bank of New York, 
    592 A.2d 473
    (Del. 1991). In that situation, the language used
    by the parties is subject to different meanings and is, thus, ambiguous, or more precisely, not
    reflective of the parties’ shared intent. City 
    Investing, supra
    . The agreement’s language is not,
    however, rendered ambiguous simply because the parties in litigation differ concerning its
    meaning. Id.; see also Mahani v. Edix Media Group, Inc., 
    935 A.2d 242
    (Del. 2007).
    Aceva cites Oliver B. Cannon & Son, Inc. v. Dorr-Oliver, Inc., 
    394 A.2d 1160
    (Del.
    1978), in support of its assertion that the Delaware Supreme Court has held that an
    indemnification clause nearly identical to that set forth in the SLA was limited to third-party
    claims and did not cover costs related to litigation between the parties. We disagree. The
    indemnity clause in Cannon was significantly different from the one in this case. It provided:
    SUBCONTRACTOR (Cannon) shall hold CONTRACTOR (Dorr-Oliver)
    and Owner (Barcroft) harmless from any and all claims, liabilities and causes of action
    for injury to or death of any person, and for damages to or destruction of any property,
    resulting from any and all acts or omissions of SUBCONTRACTOR, its agents,
    employees and subcontractors, in connection with the performance of the Work, and
    shall defend any such claim asserted or brought against CONTRACTOR or Owner,
    provided, however, the CONTRACTOR and Owner shall have the right, without
    relieving SUBCONTRACTOR of any obligations hereunder, to participate in the
    defense of such suit if CONTRACTOR or Owner so elects.
    
    Id. at n.2.
    The Cannon court found that the indemnity clause was of a kind “commonly
    found in construction contracts” that were “intended to protect the general contractor (and
    owner) from suits brought by third parties who are injured by acts of the subcontractor.” 
    Id. at 1165.
    The Cannon indemnity clause, is therefore, easily distinguished from the provision
    in this case, which stated that Aceva would indemnify Tyson “from . . . all . . . losses . . .
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    damages, costs and expenses . . . arising out of . . . a breach by Aceva of a representation,
    warranty or covenant contained herein . . . .” This provision unambiguously included the
    litigation costs of this lawsuit. We affirm on this point.
    On cross-appeal, Tyson argues that the trial court erred in denying it an award of
    prejudgment interest because the damages were capable of ascertainment at the time of the
    loss. Prejudgment interest is compensation for recoverable damages wrongfully withheld from
    the time of loss until judgment. Spann v. Lovett & Co., 
    2012 Ark. App. 107
    , 
    389 S.W.3d 77
    .
    It is allowable where the amount of damage is definitely ascertainable by mathematical
    computation or if the evidence furnishes data that makes it possible to compute the amount
    of damages without reliance on opinion or discretion. 
    Id. If a
    method exists for fixing an
    exact value on the cause of action at the time of the occurrence of the event that gives rise to
    the cause of action, prejudgment interest should be allowed, because one who has the use of
    another’s money should be justly required to pay interest from the time it lawfully should
    have been paid. 
    Id. However, where
    conflict exists over the validity of the damages sought
    by the plaintiff and the fact-finder is required to use its discretion to determine the amount
    of damages, prejudgment interest should not be awarded. 
    Id. It is
    always dependent upon
    the initial measure of damages being determinable immediately after the loss and with
    reasonable certainty. Baptist Memorial Hospital – Forrest City, Inc. v. Neblett, 
    2012 Ark. App. 191
    , 
    393 S.W.3d 573
    . In Arkansas Law of Damages, the author explains:
    Unlike the requirement for statutory penalty interest in the insurance statute,
    the controlling factor for pre-judgment interest is not whether the plaintiff recovers a
    particular amount. If a sum certain is sought and a lesser amount awarded, pre-
    judgment interest is still appropriate. In Brown v. Summerlin Associates, Inc., [
    272 Ark. 14
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    298, 
    614 S.W.2d 227
    (1981),] a surveyor claimed over $16,000 for the value of his
    services, but the court awarded only $11,000 on a quantum meruit basis. Pre-
    judgment interest was appropriate, although the opinion does not clarify whether the
    interest was from the time the bill was submitted. It is unclear how the damages were
    “ascertainable as to amount and time.” If the case satisfies the test by having “the
    initial measure of damages” known, most cases certainly will. The court determined
    that at some prior point, the defendant knew how much was to be paid and when it
    was to be paid. Thus, pre-judgment interest was appropriate.
    Howard W. Brill, Arkansas Law of Damages § 10:3, at 142 (5th ed. 2004). An award of
    prejudgment interest is a question of law, to be decided by the court. 
    Spann, supra
    . The
    appellate court gives no deference to conclusions of law, which it reviews de novo. 
    Id. Tyson states
    that the date of breach was May 12, 2006, when Aceva failed to comply
    with the thirty-day deadline for curing the breach and that at that time, Tyson’s out-of-pocket
    expenses, of which it demanded a refund, were undisputed. They included (1) $30,000 paid
    to Aceva for the VAA; (2) the $400,000 license fee Tyson paid to Aceva pursuant to the SLA;
    (3) $162,000 that Tyson paid to Aceva for two years’ maintenance fees; and (4) $314,000 that
    Tyson paid to Aceva for professional services. In its notice demanding that Aceva cure the
    breach by May 12, 2006, Tyson sought its total out-of-pocket payments to Aceva
    ($887,199.60). According to Tyson, the amount awarded by the jury (which was less than
    its total out-of-pocket expenses) was equal to the sum of the $30,000 VAA fee, the $400,000
    license fee, and one year of maintenance fees, $82,000. We agree with Tyson that it is
    irrelevant that the damages were contested and that the amount of loss was ascertainable on
    May 12, 2006. The trial court, therefore, erred in denying Tyson’s motion for prejudgment
    interest.
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    Affirmed on direct appeal; reversed and remanded on cross-appeal.
    WYNNE and GRUBER, JJ., agree.
    Wright, Lindsey & Jennings, LLP, by: Gary D. Marts, Jr.; and
    Blank Rome, LLP, by: Daniel E. Rhynhart and Inez R. McGowan, pro hac vice, for
    appellants.
    Reece Moore Pendergraft, LLP, by: Timothy C. Hutchinson; and
    Brown & James, P.C., by: Steven H. Schwartz, pro hac vice, for appellee.
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