Damages – Automobile Collisions – Penalties for Failure to Settle Small Claims Promptly

Recent Arkansas legislation provides for double damages, reasonable attorney’s fees of not less than fifty dollars, and court costs for failure to pay property damage claims arising from automobile collisions within sixty days after the submission of estimates of damage. Application of the statute is limited to claims under two hundred dollars. Furthermore, if the defendant presents a “meritorious defense,” liability under the statute does not attach. Acts of Arkansas (1957), Act 283, Senate Bill 166.