Justia Real Estate & Property Law Opinion Summaries

Articles Posted in Arkansas Supreme Court
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Appellant Crafton, Tull, Sparks & Associates (CTSA) appealed an order of the circuit court finding that CTSA's lien was second in priority to Appellee Metropolitan National Bank's lien on certain property. The circuit court filed an order titled "Final Judgment and Rule 65(b) certificate" stating that certain parties and actions remained unresolved. CTSA then brought this appeal. Although neither party raised the issue, the Supreme Court sua sponte raised the question of whether the order was final and subject to appeal. The Court dismissed the appeal without prejudice, holding that there was no final order or a sufficient Ark. R. Civ. P. 54(b) certificate, and therefore, the Court lacked jurisdiction to hear the appeal. View "Crafton Tull Sparks & Assocs. v. Ruskin Heights, LLC" on Justia Law

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On November 15, 2011, Appellants filed a petition to modify a judgment entered on July 26, 2011 that granted two individuals a private road across property owned by Appellants. In Appellants' November petition they alleged that the order's failure to include the mandatory provisions required by Ark. Code Ann. 27-66-403 precluded it from being a final order from which an appeal could be taken. The county judge refused to act on Appellants' November petition, believing it was an untimely posttrial motion. On February 8, 2012, Appellants filed a petition seeking a writ of mandamus to compel the county judge to rule on the November petition to modify the July order. The circuit court refused to issue the writ. The Supreme Court affirmed, holding that the availability of direct appeal provided Appellants an adequate remedy at law and foreclosed their right to obtain an extraordinary writ. View "Veverka v. Gibson" on Justia Law

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The Arkansas Department of Community Correction (DCC) owned a prison complex in Jefferson County that was part of several tracts of state land annexed to the City of Pine Bluff in 1999. The property was automatically zoned as residential. In 2011, DCC, with the approval of the Board of Correction, decided to use three existing buildings on its property to house persons who had been granted parole. The City objected to DCC's adding transitional housing to its prison complex. The circuit court granted declaratory judgment and injunctive relief in favor of the City, concluding that Ark. Code Ann. 16-93-1603 acted as a waiver of sovereign immunity and that DCC was subject to the zoning laws of the City. The Supreme Court reversed, holding that the circuit court erred in concluding that the General Assembly intended to waive the State's sovereign immunity in section 16-93-1603, and therefore, the circuit court lacked jurisdiction to hear the City's petition pursuant to the doctrine of sovereign immunity. View "Ark. Dep't of Cmty. Corr. v. City of Pine Bluff" on Justia Law

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This matter began when the state insurance commissioner filed a petition for receivership against Signature Life Insurance Company of America, which had become insolvent. The commissioner was appointed receiver and began to rehabilitate Signature. The successor to the commissioner then filed a complaint against Frank Whitbeck, the sole shareholder and director of Signature, who obtained the loans from the company resulting in its insolvency, and several LLCs, all of which were owned by Whitbeck. This action was settled. The circuit court subsequently approved a rehabilitation plan for Signature. Due to Whitbeck's failure to perform under the rehabilitation plan, the receiver filed a petition for order of liquidation and for foreclosure and replevin. The circuit court entered an order of liquidation and a foreclosure and replevin decree ordering the sale of the real property. Whitbeck filed a complaint seeking a declaration that the receiver's alleged malfeasance and nonfeasance extinguished and released Defendants from any further liability. The circuit court dismissed the complaint. The Supreme Court affirmed, holding that Whitbeck's claims were barred by the claim preclusion facet of res judicata, and the circuit court did not err in dismissing Whitbeck's action. View "Whitbeck v. Bradford" on Justia Law

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This case involved the contest of several detachments and annexations of land from the city of Rockport to the city of Malvern. Rockpot contested the annexations. The circuit court granted Malvern's motion to dismiss, finding that the properties were contiguous and that Malvern had substantially complied with Ark. Code Ann. 14-40-2002. The Supreme Court affirmed the grant of Malvern's motion to dismiss, holding (1) the circuit court did not err in its interpretation of section 14-40-2002; (2) although the lands annexed by Malvern did not compose one area, nothing in the statute provided that a municipality cannot annex the land of several separate landowners at one time; and (3) although city streets separated the annexed lands from Malvern, the circuit court did not err in finding that the land was contiguous to Malvern. View "City of Rockport v. City of Malvern" on Justia Law

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This was an appeal from a circuit court judgment affirming the classification of real property for tax purposes. The Supreme Court affirmed, holding (1) the circuit court correctly found that the Arkansas Constitution and the Assessment Coordination Rules and Regulations allowed the land at issue to be classified as residential and not timber land; (2) ad hoc requirements were not imposed only on Appellants by Appellee Pope County Board of Equalization (BOE); (3) Appellants failed to demonstrate that they were similarly situated to any other taxpayer or landowner within the city limits, and therefore, Appellants' equal-protection claim that the circuit court erred in denying Appellants' petition without considering similarly situated property owners with similar property classified as timber and pasture within city limits was without merit; and (4) the circuit court did not abuse its discretion in allowing a site visit by BOE's expert witness between the first day of trial and the second day of trial. View "McWilliams v. Pope County Bd. of Equalization" on Justia Law

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Appellant Benefit Bank appealed from the circuit court's order finding that the mortgage it held to certain property was second and subordinate to the interest of Appellee Marilyn Rogers obtained in her divorce. Appellant appealed, arguing, among other things, that the circuit court erred in finding that Appellee's interest was prior to Appellant's interest because the divorce court lacked authority to impose a lien on real property to secure alimony payments. The Supreme Court affirmed the circuit court's order, holding (1) the divorce court did not lack the authority to impose the lien as it did, where it was stipulated to by the divorcing parties; and (2) the circuit court did not err in finding that the lis pendens filed by Appellee created or perfected a lien. View "Benefit Bank v. Rogers" on Justia Law

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The City of West Memphis passed an ordinance providing for a special election to vote for the annexation of 5700 acres to West Memphis. Meanwhile, property owners of 2340 acres within the same 5700 acres petitioned the county court for annexation to the City of Marion. The county court granted the petition for annexation to Marion, and Marion accepted the 2340 acres. Marion subsequently sought a writ of mandamus against West Memphis to remove the 2340 acres from the legal description of the special-election ballot. The circuit court denied the writ but issued a declaratory judgment finding that the 2340 acres belonged to Marion. West Marion held its scheduled election, and the 5700-acre legal description, including the 2340 acres that had been annexed to Marion, appeared on the ballot. The West Memphis voters approved the annexation measure. Litigation followed. Ultimately, the circuit court found (1) West Memphis was not required to amend the 5700-acre legal description, and (2) the Marion annexation frustrated only the 2340 acres annexed by Marion, and the remaining 3360 acres became part of West Memphis. The Supreme Court affirmed, holding that the circuit court reached the right result in finding the 3360 acres became a part of West Memphis. View "City of Marion v. City of West Memphis" on Justia Law

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Appellants appealed the order of the circuit court dismissing their claims and quieting title to mineral interests, including oil and gas rights, in appellee Upland Industrial Development Company, Inc. The Supreme Court affirmed on appeal, holding that the circuit court did not err in (1) interpreting the Strohacker doctrine and applying the doctrine to the facts of this case; (2) placing the burden of proof on Appellants; and (3) finding that this was an actino to quiet title and, thus, finding no constitutional right to a jury trial was present. In addition, the Court concluded that Appellant's had no standing to raise on appeal the argument that the circuit court erred in granting Appellee SEECO, Inc.'s motion for attorneys' fees because Appellants were not aggrieved by the court's order. View "Nicholson v. Upland Indus. Dev. Co." on Justia Law

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At issue in this appeal was whether a seventy-five-day lien notice sent by Appellant, Ground Zero Construction, to Appellees, Walnut Creek, LLC and Rees Development, complied with the requirements of Ark. Code Ann. 18-44-115(e)(2)(C)(i), which requires that the notice contain a "general description of the labor, service, or materials furnished." The lien notice was provided in connection with sums owed and unpaid for labor and materials provided to Appellees for the construction and improvements of water and sewer for a subdivision. The circuit court concluded that the notice did not comply with the materialman's statute. The Supreme Court affirmed, holding that Ground Zero's description of the labor, service, or materials furnished did not comply with the statute because Ground Zero essentially provided no description at all.