Combined Healthcare Federal Credit Union v. Arands Corp.

378 S.W.3d 878, 2011 Ark. App. 277, 2011 Ark. App. LEXIS 294
CourtCourt of Appeals of Arkansas
DecidedApril 13, 2011
DocketNo. CA 10-320
StatusPublished

This text of 378 S.W.3d 878 (Combined Healthcare Federal Credit Union v. Arands Corp.) 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
Combined Healthcare Federal Credit Union v. Arands Corp., 378 S.W.3d 878, 2011 Ark. App. 277, 2011 Ark. App. LEXIS 294 (Ark. Ct. App. 2011).

Opinions

DOUG MARTIN, Judge.

| TAppelIant Combined Healthcare Federal Credit Union (CHFCU) appeals from the Garland County Circuit Court’s denial of its motion to vacate judgment pursuant to Arkansas Rule of Civil Procedure 60. The underlying judgment involved the trial court’s denial of appellant’s “Motion for Reconsideration or In the Alternative A More Specific Ruling and Letter Brief and Response to Motion for Summary Judgment as Directed,” referring to the trial court’s previous decision to grant a motion for summary judgment filed by appellee, The Arands Corp. d/b/a Mr. Mark’s Autos (Arands), with respect to the lien status on a vehicle. For the reasons cited herein, we affirm.

A brief recitation of the facts is necessary for a complete understanding of this case. On August 9, 2007, Arands filed a complaint against an individual who had sold Arands a 2000 Lincoln LS automobile and represented that there were no liens on the vehicle. Arands subsequently filed an amended complaint, acknowledging that CHFCU claimed a lien on the | ¡vehicle. Between the filing of the original complaint and the amended complaint, CHFCU filed a cross-complaint in replev-in, contending that it was a lien holder on the automobile and that Arands was in possession of and unlawfully detaining the vehicle. Thereafter, Arands sought and obtained an order entered April 2, 2009, extinguishing any interest in the vehicle held by two named individuals. The trial court noted, however, that the order did not affect the interests of CHFCU, which was identified as having a potential lien interest in the vehicle, which would be adjudicated at a later date.1

On September 21, 2009, Arands moved for summary judgment, alleging that CHFCU had released its lien, as noted on the face of the vehicle’s certificate of title dated April 11, 2007, which was attached to Arands’s motion along with other supporting documents. CHFCU responded to Arands’s motion, denying that Arands was entitled to summary judgment, and submitted documentation in support of the motion. Among other things, CHFCU argued that its lien was never released. Rather, CHFCU maintained that it had filed subsequent liens and security interests contemporaneously with the issuance and payoff of the first and second notes.

In a letter dated October 18, 2009, the trial court informed the parties that it was granting Arands’s motion for summary judgment and requested that a precedent be prepared. _JjThree days later, counsel for CHFCU wrote to the judge asking for a hearing, or in the alternative, “a letter” stating all points and findings of law upon which the decision to grant summary judgment was based.

On October 27, 2009, a formal order granting the motion for summary judgment was placed of record. The order provided that CHFCU had released its lien interest in the vehicle by a release on the face of the certificate of title dated April 11, 2007, and that no validly executed lien appeared on the certificate of title after the noted release.

On October 28, 2009, counsel for CHFCU wrote another letter to the judge, noting that the precedent offered by Arands’s counsel failed to address three specific issues. CHFCU’s counsel concluded his letter by requesting that the trial court state the reasons for its ruling. The court responded on November 3, 2009, by advising counsel that the issues raised in his letter needed to be presented by motion with an accompanying brief.

On December 3, 2009, CHFCU filed a pleading entitled “Motion for Reeonsideration or In the Alternative A More Specific Ruling and Letter Brief and Response to Motion for Summary Judgment as Directed.” On December 14, 2009, the trial court denied CHFCU’s motion on the basis that it was untimely.

On December 22, 2009, CHFCU filed a “Motion to Vacate Under Rule 60,” in which CHFCU recounted the events leading up to what CHFCU contended was a miscarriage of justice. CHFCU argued that, in a letter dated October 16, 2009, CHFCU sought a hearing or a letter containing findings in response to the trial court’s letter ruling granting Arands’s motion for summary judgment on October 13, 2009. On October 22, 2009, CHFCU received a “proposed order” based on the letter ruling, and on October 28, |42009, counsel for CHFCU objected to the proposed order’s form and content. CHFCU contended that, based upon the trial court’s correspondence dated November 3, 2009, directing CHFCU to submit a motion and brief, as well as the fact that nothing was mentioned in the correspondence about the entry of the order, counsel for CHFCU believed that his objections were well taken and that the trial court had not entered an order pending receipt of CHFCU’s motion and brief. CHFCU contended that it was not aware that the order had already been entered on October 27, 2009, and that no file-marked copy of the order had ever been provided until counsel made inquiry at the circuit clerk’s office on December 9, 2009. Also, CHFCU argued that the entered precedent contained no provision as to whom the precedent should be distributed and that Arands did not allege in its response that it had distributed a copy of the executed order to counsel for CHFCU. In conclusion, CHFCU maintained that an order under Ark. R. Civ. P. 60 was a proper remedy to rectify a mistake or miscarriage of justice and requested a hearing on its motion. By order entered January 13, 2010, the trial court denied CHFCU’s motion to vacate under Rule 60. CHFCU thereafter timely filed its notice of appeal to this court.

Arkansas Rule of Civil Procedure 60 provides that, to correct errors or mistakes or to prevent a miscarriage of justice, the court may modify or vacate a judgment within ninety days of its having been filed with the clerk. York v. York, 2010 Ark. App. 343, 374 S.W.3d 827. The decision whether to grant or deny a motion to vacate or set aside a judgment under Rule 60 lies within the trial court’s discretion and will not be reversed unless the trial court has abused that discretion. Toombs v. Toombs, 2010 Ark. App. 858, 2010 WL 5132006 (citing Williams v. First Unum Life Ins. Co., 358 Ark. 224, 188 S.W.3d 908 (2004)). A miscarriage of justice is a “grossly unfair outcome in a judicial proceeding.” Rownak v. Rownak, 103 Ark.App. 258, 288 S.W.3d 672 (2008).

According to CHFCU, at almost every step of the proceedings below, the trial court committed errors that culminated with its denial of CHFCU’s motion to vacate under Rule 60, resulting in what CHFCU calls “a textbook case of a miscarriage of justice.” CHFCU argues that the trial court committed a series of errors involving discretionary matters, including (1) granting Arands’s motion for continuance thirteen days before trial; (2) “entering” a one-sentence decision granting summary judgment to Arands; (3) failing to respond to CHFCU’s request for findings of fact and conclusions of law;2 (4) failing to set a | shearing upon CHFCU’s objections to the proposed precedent; and (5) denying CHFCU’s motion to vacate under Rule 60. Because CHFCU failed to seek appropriate relief, we affirm.

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Bluebook (online)
378 S.W.3d 878, 2011 Ark. App. 277, 2011 Ark. App. LEXIS 294, Counsel Stack Legal Research, https://law.counselstack.com/opinion/combined-healthcare-federal-credit-union-v-arands-corp-arkctapp-2011.