Clifford W. Christian and Karen D. Christian v. Swo Properties, Inc.

2023 Ark. App. 265, 667 S.W.3d 556
CourtCourt of Appeals of Arkansas
DecidedMay 3, 2023
StatusPublished
Cited by3 cases

This text of 2023 Ark. App. 265 (Clifford W. Christian and Karen D. Christian v. Swo Properties, Inc.) 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
Clifford W. Christian and Karen D. Christian v. Swo Properties, Inc., 2023 Ark. App. 265, 667 S.W.3d 556 (Ark. Ct. App. 2023).

Opinion

Cite as 2023 Ark. App. 265 ARKANSAS COURT OF APPEALS DIVISION IV No. CV-21-629

CLIFFORD W. CHRISTIAN AND KAREN D. Opinion Delivered May 3, 2023 CHRISTIAN APPEAL FROM THE BOONE COUNTY APPELLANTS CIRCUIT COURT [NO. 05CV-20-211] V. HONORABLE JOHNNIE A. COPELAND, SWO PROPERTIES, INC.; CAROL A. JUDGE NORTON, INDIVIDUALLY; CAROL A. NORTON, PERSONAL REPRESENTATIVE OF THE ESTATE OF ROBERT W. DOMME; CAROL A. NORTON, TRUSTEE, THE ROBERT W. DOMME LIVING TRUST DATED FEBRUARY 1, 2007; AND STEPHANIE SHRINER D/B/A LAKELAND ESCROW TITLE & SERVICES

APPELLEES AFFIRMED

WAYMOND M. BROWN, Judge

Appellants Karen and Clifford Christian appeal from the August 31, 2021, order of the Boone

County Circuit Court dismissing the litigation with prejudice in favor of appellees SWO Properties,

Inc. (“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. On appeal, appellants argue that the circuit court erred in (1) dismissing

with prejudice the instant case by applying Arkansas Rule of Civil Procedure 56 analysis; (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. Finding that the doctrine of res judicata bars the instant case, we affirm.

At its core, this is a simple mortgage-default case. On October 25, 2002, appellants Karen

and Clifford Christian, husband and wife, purchased a home located at 1267 Hawkins Drive,

Harrison, Boone County, Arkansas (the property), from Robert W. Domme via escrow contract for

deed (“escrow contract”). Domme, from 2002 through his death in February 2009, was the sole

legal and record owner of the property subject to appellants’ contract. 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. In September 2011, SWO sent a letter to appellants regarding late payments

in the amount of $5,414.13. In response, appellants issued a check for the full amount to bring the

debt current. On June 13, 2013, following tax default, the property was forfeited to the State of

Arkansas Commissioner of Lands (COSL).1 Again, in October 2013, appellants were substantially

behind in payments. Appellants requested additional time to catch up. Consequently, the parties

entered into an agreement (addendum to the contract) detailing how the past-due debt would be

paid.

Appellants filed for Chapter 13 bankruptcy in December 2013. 2 SWO was listed as the

secured party. Appellants filed several motions and an objection to SWO’s claim. The objection to

The redemption deed of appellants’ successful redemption of the property was recorded on 1

April 17, 2019. 2 Appellants had previously filed Chapter 13 bankruptcy in 2004.

2 SWO’s claim and motion for adequate protection and relief from stay was set for hearing on

November 19, 2014. The parties reached an agreement modifying the contract for deed that was

filed on November 24, 2014, as an agreed order in appellants’ bankruptcy case.

SWO again filed for relief from stay on June 1, 2015, alleging nonpayment under the

modified contract for deed. On September 30, the bankruptcy court found appellants in arrears

$601.74 and imposed a strict compliance upon appellants and stated that upon an affidavit from

SWO, the court would grant relief from stay.

SWO filed a verified motion for relief without hearing on August 2, 2017. Appellants, in

turn, filed a motion for contempt and sanctions on August 7. A hearing was held September 13 in

which the court granted SWO’s motion for relief and denied appellants’ motion for contempt and

sanctions.

On September 17, an order was entered in the United States Bankruptcy Court, Western

District of Arkansas, lifting the stay in appellants’ bankruptcy case.

On December 13, SWO filed unlawful detainer against appellants, alleging material breach

of agreement with SWO. Appellants filed an answer and motion to dismiss and asserted affirmative

defenses. SWO requested and was granted a protective order precluding discovery until pending

motions were ruled upon. Following a March 14, 2018, hearing, appellants were ordered to make

monthly payments of $622 during the pendency of the action. Beginning August 2018, payments

ceased except one payment made in October.

At the July 29, 2019, hearing, the circuit court stated,

I can’t remember how many motions back there is whether that was the issue on one of those motions that I was going to try to do some research on. Quite frankly, I don’t have time to do the extensive research that this case would require. I don’t have that luxury. I will admit

3 I am not – I probably am not the Judge who should be hearing this in some respects just because I am getting very, very frustrated with the way this case is proceeding, but I am doing the best I can. Well, I’m ruling that SWO is the real party in interest here. So that’s who it goes to.

Regarding appellants’ motion to dismiss, the circuit court further elaborated,

We haven’t had our hearing on that but at this point, I’m saying let’s get the payments made that go to SWO, the original party in interest and I’ve seen nothing that suggests they’re not a proper party in interest. I’m not convinced at this point. In essence, at this point, they are renters from SWO.

On August 5, the court entered a temporary payment order directing appellants to pay the

court registry monthly, where funds were to remain until a final hearing on the issues. Also on August

5, appellants filed an amended answer and affirmative defenses against SWO. Appellants also

counterclaimed for constructive trust, accounting and return of improper payments, conversion of

property, and breach of contract or unenforceable contract.

Without hearing, upon receipt of a fax from SWO requesting eviction and damages due to

alleged default pursuant to the payment order, on November 23, 2020, the circuit court entered an

order of ejectment and release of rental payments, granting ejectment of appellants from the real

property, releasing to SWO the registry funds totaling $10,127.50, and denying “all claims and

motions not specifically addressed herein.” Appellants filed a motion to reconsider and vacate the

order. Appellants did not tender any further payment nor did they move from the property. SWO

filed a motion for contempt and failure to vacate.

On September 7, 2020, while the unlawful-detainer action was pending, appellants filed the

instant case against SWO for fraud and misrepresentation; declaratory judgment and slander of title;

and conversion of property, and they named additional defendants. On August 31, 2021, the circuit

4 court dismissed the second case, the fraud case, with prejudice against all appellees, and denied

appellants’ motion to consolidate and stay unlawful detainer. Appellants now bring this appeal.

I. Standard of Review

We generally review a circuit court’s decision on a motion to dismiss by treating the facts

alleged in the complaint as true and viewing them in the light most favorable to the plaintiff.3 When

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2023 Ark. App. 265, 667 S.W.3d 556, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clifford-w-christian-and-karen-d-christian-v-swo-properties-inc-arkctapp-2023.