Bollinger v. Farm Credit Midsouth, Pca

2021 Ark. App. 112, 619 S.W.3d 398
CourtCourt of Appeals of Arkansas
DecidedMarch 10, 2021
StatusPublished
Cited by2 cases

This text of 2021 Ark. App. 112 (Bollinger v. Farm Credit Midsouth, Pca) is published on Counsel Stack Legal Research, covering Court of Appeals of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bollinger v. Farm Credit Midsouth, Pca, 2021 Ark. App. 112, 619 S.W.3d 398 (Ark. Ct. App. 2021).

Opinion

Cite as 2021 Ark. App. 112 Elizabeth Perry I attest to the accuracy and ARKANSAS COURT OF APPEALS integrity of this document DIVISION II 2023.06.22 15:08:29 -05'00' No. CV-19-635 2023.001.20174 FRED N. BOLLINGER JR.; BOLLINGER LONE OAK, INC.; AND Opinion Delivered: March 10, 2021 BOLLINGER PARTNERS, INC. APPELLANTS APPEAL FROM THE CRITTENDEN COUNTY CIRCUIT COURT V. [NO. 18CV-09-414]

FARM CREDIT MIDSOURTH, PCA; AND TRAVELERS CASUALTY & HONORABLE PAMELA SURETY COMPANY OF AMERICA HONEYCUTT, JUDGE APPELLEES AFFIRMED

BART F. VIRDEN, Judge

Aspects of this case have been before this court twice previously. See Farm Credit

Midsouth, PCA v. Bollinger, 2018 Ark. App. 224, 548 S.W.3d 164 (Bollinger I) (merits); Farm

Credit Midsouth, PCA v. Bollinger, 2020 Ark. App. 36, 595 S.W.3d 3 (Bollinger II)(attorney’s

fees). 1 In this appeal, Bollinger Lone Oak, Inc., and Bollinger Partners, Inc. (collectively

with their principal, Fred Bollinger Jr., the Bollingers), challenge the circuit court’s order

declining their request to enter judgment against Travelers Casualty & Surety Company of

America (Travelers) as surety on an appeal bond posted by Farm Credit Midsouth, PCA,

when Farm Credit appealed the judgment entered against it leading to Bollinger I. The

1 The issues leading to Bollinger II arose while the appeal in Bollinger I was being perfected but are not relevant to the issues currently before us. The Bollinger II appeal was stayed while the appeal in Bollinger I was pending before ultimately being dismissed for lack of finality in January 2020, some seven months after entry of the order in the appeal now before us. Bollingers also challenge the circuit court’s denial of their request for a 12 percent statutory

penalty, interest, and reasonable attorney’s fees. We affirm because we cannot reach the

merits of the Bollingers’ arguments.

I. Facts

In Bollinger I, we set forth in detail the facts of the dispute between the Bollingers

and Farm Credit. We will not repeat the facts in detail but provide the following summary.

This case began as an action for foreclosure and replevin brought by Farm Credit against

the Bollingers, based on the Bollingers’ default on certain agricultural loans made by Farm

Credit to the Bollingers. While the case was pending in the circuit court, the issues

surrounding the debt owed to Farm Credit were resolved. The Bollingers had filed a

counterclaim against Farm Credit, asserting many causes of action, each with many theories,

which fell within three basic claims: (1) that Farm Credit improperly required the Bollingers

to “book” their crops as a condition of receiving loans; (2) that Farm Credit wrongfully

asserted a lien on the proceeds of the Bollingers’ 2008 soybean crop; and (3) that Farm

Credit mishandled the Bollingers’ crop-insurance applications and claims. Bollinger I, 2018

Ark. App. 224, at 2, 548 S.W.3d at 169.

The Bollingers’ counterclaims were tried before a jury over several days. The circuit

court directed verdicts in favor of Farm Credit on certain theories. The jury found in favor

of the Bollingers on all three of their claims, based on multiple other theories on each claim.

In entering judgment on the jury’s verdict, the court found that the Bollingers were entitled

to only one recovery on each of their claims. Thus, the Bollingers were awarded a total

2 judgment of approximately $1.5 million. The circuit court also granted the Bollingers’

request for prejudgment interest. Bollinger I, 2018 Ark. App. 224, at 4, 548 S.W.3d at 170.

Farm Credit appealed, leading to Bollinger I. Farm Credit posted an appeal bond, with

Travelers as surety. The circuit court approved the bond and stayed execution on the

judgment pending appeal.

Our opinion in Bollinger I was delivered on April 4, 2018. We reversed as to the

Bollingers’ claims for improper booking and interference with the 2008 soybean crop for

failure to make a prima facie case on those claims. We also reversed the circuit court’s award

of prejudgment interest on the soybean-crop verdict. We affirmed the verdict in favor of

the Bollingers on the crop-insurance claim based on theories of negligence and promissory

estoppel. The net effect of our decision was a reduction in the judgment against Farm Credit

from approximately $1.5 million to approximately $90,000.

Our mandate in Bollinger I issued June 21, 2018. Following issuance of the mandate,

the Bollingers’ attorney made separate demands, with calculations of the amounts due, for

payment of the judgment from both Farm Credit and Travelers.

On August 20, 2018, the Bollingers filed a petition for contempt against Farm Credit,

alleging that Farm Credit was refusing to pay the judgment or to comply with the judgment

by listing its assets.

On Farm Credit’s motion, the mandate was recalled on August 22, 2018. The

amended mandate was issued on September 25, 2018.

Farm Credit responded to the contempt motion, noting this court’s recall of the

mandate. Farm Credit also noted that judicial economy favored waiting until its appeal in

3 Bollinger II was concluded so that the circuit court could determine and set off the amounts

due and owing between the parties.

After this court issued its amended mandate, the Bollingers filed an amended petition

for contempt on October 17, 2018. Farm Credit responded, again arguing that the case

remained stayed pending the outcome of Bollinger II. Farm Credit further argued that a

favorable ruling in Bollinger II would likely lead to an award of attorney’s fees to Farm Credit

once the issue was remanded to the circuit court.

Farm Credit also filed a motion asking the court to allow it to deposit the amount of

the judgment into the court’s registry pending the final resolution of Bollinger II and any

subsequent attorney’s fees award. Farm Credit’s position was that such an arrangement best

promoted judicial economy in winding down the case.

On October 22, 2018, the Bollingers filed a motion seeking judgment against

Travelers on the appeal bond. In their motion, the Bollingers also asked the court to award

them the 12 percent penalty, interest, and attorney’s fees pursuant to Arkansas Code

Annotated section 23-79-208 (Repl. 2014). Travelers responded, arguing that the

Bollingers’ motion was improper and without merit for multiple reasons. The Bollingers

later amended their motion. Travelers again responded.

The circuit court held a hearing on the Bollingers’ amended contempt petition and

Farm Credit’s motion on November 13, 2018. At the end of the hearing, the court took

the matter under advisement. The court later held a hearing on the Bollingers’ motion on

the bond against Travelers on January 8, 2019. The court again took the matter under

advisement.

4 On April 8, 2019, the circuit court issued a letter opinion deciding the various

pending motions. The court found that it did not have authority to delay execution of the

judgment or to allow Farm Credit to deposit the remaining judgment amount into the

court’s registry. The court ordered Farm Credit to pay the amount due on the judgment

within thirty days. The court reserved ruling on the Bollingers’ request to hold Farm Credit

in contempt but found that Farm Credit had a good faith belief in its arguments. The court

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2021 Ark. App. 112, 619 S.W.3d 398, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bollinger-v-farm-credit-midsouth-pca-arkctapp-2021.