Boatmen's Nat. Bank of Arkansas v. Cole

947 S.W.2d 362, 329 Ark. 209, 1997 Ark. LEXIS 385
CourtSupreme Court of Arkansas
DecidedJune 23, 1997
Docket96-887
StatusPublished
Cited by7 cases

This text of 947 S.W.2d 362 (Boatmen's Nat. Bank of Arkansas v. Cole) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Boatmen's Nat. Bank of Arkansas v. Cole, 947 S.W.2d 362, 329 Ark. 209, 1997 Ark. LEXIS 385 (Ark. 1997).

Opinion

Annabelle Clinton Imber, Justice.

Pursuant to Ark. Sup. Ct. R. l-2(a)(6), Petitioner Boatmen’s National Bank of Arkansas, Inc., has filed a petition for a writ of prohibition alleging that venue for the underlying action does not lie in the Saline County circuit court. We deny the writ for the reasons stated below.

Respondent Fleming Electric, Inc., filed a complaint and an amended complaint in Saline County circuit court, substantially alleging as follows. Fleming, an Arkansas corporation located in Saline County, established a number of checking accounts at various times with Worthen National Bank of Arkansas (and therefore its successor in interest, Boatmen’s). 1 In 1990, Fleming hired Respondent Alicia Ives, a resident of Saline County, to handle its accounts payable. In 1992, Ives was designated as Fleming’s chief financial officer. Fleming notified Boatmen’s that Ives had authority to request information concerning Fleming’s accounts.

Beginning in - August of 1994, Ives allegedly presented a Fleming check to Boatmen’s, payable to Respondent L.C. Brock and bearing the forged signature of C. Ann Fleming, Fleming’s president and chief executive officer. Boatmen’s paid the $3,258.00 check despite having the actual signature of C. Ann Fleming on file. This check represented the first in a continuing course of alleged check forgeries that would continue through July of 1995. In September of 1994, Ives presented Boatmen’s with a letter bearing C. Ann Fleming’s forged signature, purporting to give Ives unlimited authority over all Fleming accounts. Fleming alleges that Boatmen’s had a duty to inquire to C. Ann or Loren Fleming in an attempt to confirm the letter, which it failed to do. Following September 1, 1994, Fleming alleges numerous instances where Ives forged the signature of C. Ann Fleming on Fleming checks, causing Boatmen’s to debit various Fleming accounts and to make various deposits or transfers into accounts not owned by Fleming. Boatmen’s allegedly paid these checks “despite the forged signature and despite the fact that the actual (and distinctly different) signature of C. Ann Fleming was on file with [Boatmen’s] at the time.” Some of the checks bearing the forged signatures were payable to Brock while others were payable to corporations, partnerships, or proprietorships owned by Ives and/ or Respondent Matthew Carman, a resident of Pulaski County.

Ives also allegedly made various transfers and deposits into a “forged” Fleming checking account that Ives created at Boatmen’s without authorization. At the time Ives opened this account, Fleming alleges that Boatmen’s did not require any corporate resolution authorizing its creation. After the creation of the forged Fleming account, Ives orally transferred funds from legitimate Fleming accounts into the forged Fleming account.

Ives eventually presented Boatmen’s with a forged Fleming resolution bearing Ives’s signature and the forged signature of C. Ann Fleming, purporting to authorize the creation of the forged Fleming checking account. Fleming further alleges that at various times Ives orally requested that Boatmen’s transfer Fleming funds into the forged Fleming checking account, and that Boatmen’s also allowed Ives to orally transfer funds from the forged account into accounts owned by entities other than Fleming. Fleming also contends that Boatmen’s permitted the placement of Fleming deposits in the forged account, despite its knowledge that Fleming normally placed its deposits into a designated “deposit” account. Ives additionally drew several checks on the forged Fleming account using the forged signature of C. Ann Fleming. These checks were made payable to L.C. Brock and various entities owned by Ives and Carman.

Fleming’s amended complaint alleges causes of action against Boatmen’s for negligence, conversion, breach of contract, breach of warranty, breach of fiduciary duty, and constructive fraud. On the negligence count, Fleming specifically alleges that Boatmen’s improperly disbursed funds credited to or payable to Fleming, and that it failed to act with due care in debiting and fading to credit Fleming’s account. Fleming also sued Ives for conversion, breach of fiduciary duty, and breach of warranty. The complaint contains an allegation that the defendants should be held joindy and severally liable.

Boatmen’s, a resident of Pulaski County, moved to dismiss the complaint for lack of venue. The trial court denied this motion, finding that venue was proper “due to the simultaneous or ‘successive’ tortious conduct of the various defendants in this suit which resulted in a single injury to [Fleming.]” The trial court also found that Fleming’s “well-pleaded” claim of constructive fraud against Boatmen’s established venue. Boatmen’s seeks a writ of prohibition from this court, arguing that venue does not he with the Saline County circuit court.

We have often stated that a writ of prohibition will issue only when the trial court completely lacks jurisdiction and there is no other way to stop the proceedings. See, e.g., Ford v. Wilson, 327 Ark. 243, 939 S.W.2d 258 (1997); Nucor Holding Corp. v. Rinkines, 326 Ark. 217, 931 S.W.2d 426 (1996). While venue is a procedural matter, rather than an issue of jurisdiction, this court has historically issued the writ when venue is improper as to a party. See Steve Standridge Ins., Inc. v. Langston, 321 Ark. 331, 900 S.W.2d 955 (1995). In doing so, we have characterized the venue issue “as one of jurisdiction of the person, the improper assertion of which, in that instance, justifies issuance of a writ of prohibition.” Id. (citing Prairie Implement Co., Inc. v. Circuit Ct., 311 Ark. 200, 844 S.W.2d 299 (1992) (explaining this court’s tradition of issuing writ of prohibition where venue is improper)). In deciding whether prohibition will lie, we confine our review to the pleadings. Wise Co., Inc. v. Clay Circuit, 315 Ark. 333, 869 S.W.2d 6 (1993).

Arkansas Code Annotated § 16-60-116(a) (1987), the “catch-all” venue provision, reads as follows:

(a) Every other action may be brought in any county in which the defendant, or one (1) of several defendants, resides or is summoned.

Additionally, this court has added a so-called “gloss” to this venue statute — when venue is appropriate as to one defendant, then it is only proper as to co-defendants who are jointly liable with the resident defendant. See Steve Standrige Ins., Inc. v. Langston, 321 Ark. 331, 900 S.W.2d 955 (1995). Therefore, we must decide whether Fleming has alleged joint liability as between Boatmen’s and Ives, the resident defendant.

It is of no consequence that Fleming has failed to allege that Boatmen’s and Ives acted together in causing it harm. Arkansas has long since abolished the requirement that joint tortfeasors act in concert to result in joint and several liability.

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Bluebook (online)
947 S.W.2d 362, 329 Ark. 209, 1997 Ark. LEXIS 385, Counsel Stack Legal Research, https://law.counselstack.com/opinion/boatmens-nat-bank-of-arkansas-v-cole-ark-1997.