Clifford W. Christian and Karen D. Christian v. Swo Properties, Inc., an Arkansas Corporation Doing Business in Boone County, Arkansas

2024 Ark. App. 524, 700 S.W.3d 226
Court of Appeals of Arkansas·Decided October 30, 2024·Published

Opinion

Cite as 2024 Ark. App. 524 ARKANSAS COURT OF APPEALS DIVISION IV

No. CV-22-469

CLIFFORD W. CHRISTIAN AND Opinion Delivered October 30, 2024 KAREN D. CHRISTIAN APPEAL FROM THE BOONE

APPELLANTS COUNTY CIRCUIT COURT [NO. 05CV-17-363]

V.

HONORABLE JOHNNIE A.

SWO PROPERTIES, INC., AN COPELAND, JUDGE ARKANSAS CORPORATION DOING BUSINESS IN BOONE COUNTY, ARKANSAS APPELLEE AFFIRMED

STEPHANIE POTTER BARRETT, Judge Appellants Clifford W. Christian and Karen D. Christian (“Christians”) appeal the decision of the Boone County Circuit Court in favor of SWO Properties, Inc. (“SWO”), finding them in contempt for failure to vacate the subject property on February 1, 2021.

On October 25, 2002, the Christians entered into a contract of sale with Robert Domme to purchase a residence located at 1267 Hawkins Drive, Harrison, Boone County, Arkansas. Domme was also sole owner of separate appellee SWO. SWO purported to be the successor in interest to Domme's interest, rights, and title in the property and contract. Robert Domme passed away in February 2009. On December 13, 2013, the Christians filed an emergency petition in Chapter 13 bankruptcy. On November 24, 2014, the bankruptcy court entered an agreed order modifying the contract for deed. In 2015, after the Christians

had failed to honor an agreed payment schedule set by the bankruptcy court, SWO asked for and received a relief from stay from the bankruptcy court on October 17, 2017, and the stay was lifted in the bankruptcy case. The case then reverted to the Boone County Circuit Court.

On December 14, 2017, SWO filed an unlawful detainer (“First Case”) against the Christians, alleging a material breach of agreement with SWO. The Christians filed an answer, alleged affirmative defenses, and moved to dismiss. There was a hearing on March 14, 2018, and the Christians were ordered to make monthly payments of $622.00 during the pendency of the action.

SWO filed a petition for citation of contempt on July 8, 2019, because the Christians had failed to make any court-ordered payments. On July 23, 2019, the Christians filed a petition to quash the petition for citation of contempt, and they filed an answer and counterclaim on July 24, 2019. On July 29, a hearing was held on SWO’s contempt petition against the Christians for failure to pay monthly payments as ordered. The court entered a temporary payment order on August 5, 2019, directing the Christians to pay monthly into the court registry where the funds were to remain until a final hearing on the issues. The circuit court found that the Christians had failed to pay SWO as ordered by the court on March 14, 2018, and they were currently behind in the amount of $6,842. The Christians were ordered to pay SWO $777.50 a month, commencing August 1, 2019, which represented $622.00 for rent plus $155.50 for 25 percent of the monthly rental value to be applied to the arrears.

On November 19, 2020, the circuit court entered an order of ejectment, ordered the release of rental payments to SWO, and granted SWO judgment for payments either paid late or not at all by the Christians. In addition, the court awarded SWO judgment for unpaid rent due for September, October, and November 2020 in the sum of $2,332.50. The order left blank the date that the Christians had to vacate the premises.

On November 23, 2020, the circuit court entered an amended order of ejectment, the release of rental payments to SWO, and granted judgment for the missed payments and for rent through January 2021, and denied all outstanding claims or motions not specifically addressed therein upon proof that the Christians had not made payments as ordered. The trial court also ordered the Christians to vacate the property before February 1, 2021. The motion for reconsideration and vacate by the Christian’s was not ruled on and was deemed denied after thirty days pursuant to Ark. R. App. P.–Civ. 4(b)(1).

The Christians did not appeal the November 23, 2020 order, continued to refuse to make the monthly payments as ordered, in the amount of $622.00 and did not move out of the residence by February 1, 2021. Thereafter, the circuit clerk was ordered to release the $10,127.50 in its registry to SWO; SWO was also awarded a judgment against Clifford and Karen Christian for not paying the ordered payments for September, October, November, December 2020, and January 2021, payments for a judgment of $3,875.00.

On September 7, 2020, while the unlawful-detainer action was pending, the Christians filed a case against SWO for fraud and misrepresentation; declaratory judgment and slander of title; and conversion of property, and they named additional defendants.

(Second case) On August 31, 2021, the circuit court dismissed the second case with prejudice against SWO and all other named parties and denied the Christians’ motion to consolidate and stay unlawful detainer. The circuit court’s dismissal of the fraud case was based on the doctrine of res judicata, not on a determination of whether the facts and evidence presented left material facts in dispute pursuant to Ark. R. Civ. P. 56.

The Christians appealed from the August 31, 2021 order dismissing the second case with prejudice in favor of SWO; Carol Norton, individually, as personal representative of the estate of Robert W. Domme and as trustee of the Robert W. Domme Living Trust; and Stephanie Shriner d/b/a Lakeland Escrow Title and Services. In their appellant’s brief, the Christians argued that the circuit court erred in that the order entered in the first case was (1) not a final, appealable adjudication on the merits as required for the application of res judicata; (2) dismissing the instant case with prejudice by finding that the order in a previous action was a final judgment on the merits with the same issues between the same parties; (3) depriving appellants of due process; and (4) denying appellants a full and fair opportunity to be heard before an impartial tribunal. The Christian filed an appeal reported in Christian v. SWO Properties, Inc., 2023 Ark. App. 265, 667 S.W.3d 556. This court affirmed the circuit court’s order dismissing the second case with prejudice.

On May 26, 2021, SWO filed a motion for contempt and for an order to show cause against the Christians alleging the Christians had intentionally and willfully disobeyed and failed to comply with the circuit court’s order in the first case by failing to vacate the subject property before February 1, 2021, and continuing to reside in the residence and were in

violation of the November 23, 2020 order. The circuit court signed an order to show cause, and the Christians were served with the motion and order. A hearing was held on September 20, 2021. In the contempt hearing, the circuit court received testimony, took evidence, heard arguments of counsel, and extended a ten-day deadline for posttrial briefs by both parties. On April 15, 2022, the court issued it order finding the Christians in willful contempt for failure to vacate the residence on or before February 1, 2021, as ordered in the November 23, 2020 order. The court found that the order was definite and clear as to the Christians’ duties to move from the property on or before February 1, 2021, and make the previously ordered monthly payments. The circuit court then ordered the Christians to comply with the November 23, 2020 order to vacate the property by August 1, 2022. Additionally, the circuit court entered judgment in favor of SWO for the monthly rental value of the property beginning on February 1, 2021, to August 1, 2022, at the rate previously assessed in the August 5, 2019 order, $622.00 per month, for a total of $11,196.

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Clifford W. Christian and Karen D. Christian v. Swo Properties, Inc., an Arkansas Corporation Doing Business in Boone County, Arkansas, 2024 Ark. App. 524, 700 S.W.3d 226 (Ark. Ct. App. 2024).

2024 Ark. App. 524 (Clifford W. Christian and Karen D. Christian v. Swo Properties, Inc., an Arkansas Corporation Doing Business in Boone County, Arkansas) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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