C. A. R. Transportation Brokerage Co. v. Seay

255 S.W.3d 445, 369 Ark. 354
CourtSupreme Court of Arkansas
DecidedApril 12, 2007
Docket06-1122
StatusPublished
Cited by11 cases

This text of 255 S.W.3d 445 (C. A. R. Transportation Brokerage Co. v. Seay) 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
C. A. R. Transportation Brokerage Co. v. Seay, 255 S.W.3d 445, 369 Ark. 354 (Ark. 2007).

Opinion

Donald L. Corbin, Justice.

Appellant C.A.R. Transportation Brokerage Co., Inc., appeals the order of the Benton County Circuit Court entering judgment against Appellee Michael Seay. On appeal, C.A.R. Transportation argues that the court erred in finding that: (1) Appellee Cheryl Seay did not convert property belonging to it; and (2) an equitable lien did not attach from the time ofits inchoate inception. Appellees Michael and Cheryl Seay cross-appeal, arguing that the trial court erred in finding that: (1) Michael converted property of C.A.R. Transportation; and (2) an equitable hen was warranted and should date back to the date of the trial of this matter. As this is a second or subsequent appeal, see Seay v. C.A.R. Transportation Brokerage Co., Inc., 366 Ark. 527, 237 S.W.3d 48 (2006) (Seay I), our jurisdiction is pursuant to Ark. Sup. Ct. R. l-2(a)(7). We affirm on appeal as modified and affirm on cross-appeal.

The underlying facts of this action reveal that Regions Bank 1 filed a foreclosure action against the Seays for real property located at 507 Paige Boulevard, Lowell, Arkansas, and all equipment therein. On September 16, 2003, the circuit court entered an order granting summary judgment in favor of Regions on its foreclosure action. The order entered monetary judgments against the Seays as to Regions, and directed that should the judgments not be paid within ten days, an appointed commissioner would sell the real estate at a public auction, with the proceeds of the sale being applied first to the costs of the auction, and then the principal and interest of the judgments. The order further directed the Seays to deliver all equipment to Regions, which held a security interest on the property.

On October 29, 2003, the commissioner executed a commissioner’s sale notice on the property, setting the sale for November 18, 2003, at 10:00 a.m. The notice described the property and further provided “Also: All equipment[.]” On November 18, 2003, the commissioner filed her report of the sale of the Paige Boulevard property to C.A.R. Transportation. The report described the property and further read “Also: All equipmentf.]”

On November 20, 2003, the circuit court entered an order of confirmation. Later that day, the Seays filed a motion to set aside the judicial foreclosure sale. In it, they claimed that the court’s order did not direct that the equipment be sold in concert with the real estate, and that by selling the two together, the commissioner’s sale failed to conform with the court’s order and was thus prejudicial to them. The Seays asked the court to set aside the sale.

On November 21, 2003, C.A.R. Transportation filed a motion for body attachment and show-cause order asserting that substantial equipment had been removed from the premises of Paige Boulevard, both of which C.A.R. Transportation had purchased at the sale. That same day, the circuit court entered an order directing the Seays to turn over to C.A.R. Transportation all property, “including equipment listed on the Commissioner’s Report of Sale.” The order further directed the Seays “to preserve and not remove, sell, or move any of the aforesaid property,” including any of the property that had been previously removed. Three days later, the circuit court ordered Michael Seay brought before the court to show cause.

■ On December 12, 2003, C.A.R. Transportation filed its amended response to the Seays’ motion to set aside the foreclosure sale. It argued that the court’s foreclosure decree speaks for itself and that the Seays’ motion had been filed too late, because the sale had already been confirmed by the order of the court, and the Seays had already cashed their check from the sale. C.A.R. Transportation further asserted a counterclaim asserting that the Seays should be held in contempt for willful violation of the court’s November 26, 2003 order.

On January 12, 2004, C.A.R. Transportation filed a motion for summary judgment, again alleging that the Seays’ motion to set aside the judicial foreclosure was not timely filed and thus could not be considered on its merits. On January 27, 2004, C.A.R. Transportation filed its second amended response to the motion to set aside and asserted a counterclaim against the Seays for conversion.

On March 23, 2004, the circuit court entered an order granting C.A.R. Transportation’s motion for summary judgment. The circuit court found that from the uncontested proof submitted by C.A.R. Transportation the judicial sale was properly noticed, C.A.R. Transportation was the successful bidder, the sale price was paid, an order of confirmation was entered, and Michael received a check for the excess proceeds of the sale. The circuit court further found that “no objection was made to the manner of the sale, the procedure of the sale, or any alleged irregularities of the sale prior to the entry of the Order of Confirmation.” The court then ruled that the confirmation order was a final order, that C.A.R. Transportation was the owner of the real property sold at the foreclosure sale, and that the motion to set aside was not timely filed. The court reserved ruling on the issues of ownership of certain items of personal property that were in dispute. No notice of appeal was filed from this order.

On October 19, 2004, the circuit court issued a letter opinion in which it found for C.A.R. Transportation on its conversion claim against Michael Seay, in the amount of$481,625, for conversion of equipment and fixtures. The court further found Michael in contempt for his failure to return certain items; however, the court held that Michael could purge himself of the contempt by returning the missing items or by paying their value within ten days of the order.

On February 15, 2005, the trial court entered a judgment against Michael Seay, together with findings of fact and conclusions of law. Judgment was awarded to C.A.R. Transportation against Michael Seay in the amount of $481,625, together with an equitable lien as of the date of trial on the proceeds of the judicial sale, an equitable lien on the inventory at the property, and absolute ownership of all equipment located at the Paige Boulevard property, as well as the real estate. The court further found Michael Seay in contempt of court and ordered a judicial lien on the inventory and items possessed by Michael, with the proceeds from a judicial sale to be transferred to C.A.R. Transportation. 2

The Seays appealed the trial court’s order to the Arkansas Court of Appeals, and C.A.R. Transportation cross-appealed. The case was certified to this court. In Seay I, 366 Ark. 527, 237 S.W.3d 48, this court dismissed with prejudice the Seays’ appeal of the trial court’s order granting summary judgment in favor of C.A.R. Transportation on the basis that their notice of appeal was not timely filed. With regard to the conversion claims raised by the Seays and C.A.R. Transportation, we determined that the trial court failed to issue a ruling with regard to the allegation that Cheryl had committed conversion.

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Bluebook (online)
255 S.W.3d 445, 369 Ark. 354, Counsel Stack Legal Research, https://law.counselstack.com/opinion/c-a-r-transportation-brokerage-co-v-seay-ark-2007.