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121970P.pdf 03/26/2013 Universal Cooperatives, Inc. v. AAC Flying Service, Inc.
U.S. Court of Appeals Case No: 12-1970
U.S. District Court for the Eastern District of Arkansas - Little Rock
[PUBLISHED] [Gruender, Author, with Riley, Chief Judge, and
Wollman, Circuit Judge]
Civil case. In an action brought to recover attorneys' fees from third-
party crop-dusters following Universal's successful defense of an action
by farmers seeking damages arising for off-target aerial application of an
herbicide it had manufactured, the district court did not err in dismissing
the action for failure to state a claim; with respect to Universal's
negligence claim, the defendant crop-dusters did not owe any duty to
Universal; further, their alleged conduct failed to fit within the scope of
unconscionable trade practices; finally, the Arkansas Supreme Court
recently rejected any cause of action against a third-party for attorneys'
fees incurred in earlier litigation against another party and, in this case,
there is no duty running from the third party to plaintiff which would
support such a cause of action, and the district court did not err in
dismissing Universal's claims based on the third-party-litigation
exception to the American Rule and Restatement (Second) of Torts
section 914(2).