Crain v. Fulmer.403

2024 Ark. App. 485
CourtCourt of Appeals of Arkansas
DecidedOctober 9, 2024
StatusPublished

This text of 2024 Ark. App. 485 (Crain v. Fulmer.403) 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
Crain v. Fulmer.403, 2024 Ark. App. 485 (Ark. Ct. App. 2024).

Opinion

Cite as 2024 Ark. App. 485 ARKANSAS COURT OF APPEALS DIVISION IV No. CV-23-403

Opinion Delivered October 9, 2024 SHIRLEY CRAIN APPELLANT APPEAL FROM THE SEBASTIAN COUNTY CIRCUIT COURT, FORT V. SMITH DISTRICT [NO. 66FPR-20-137]

R. RAY FULMER II, ADMINISTRATOR HONORABLE GREG MAGNESS, CTA OF THE ESTATE OF H.C. JUDGE “DUDE” CRAIN, JR., DECEASED APPELLEE AFFIRMED

N. MARK KLAPPENBACH, Judge

This appeal arises out of the probate administration of the estate of H.C. “Dude”

Crain, Jr., deceased. Appellant Shirley Crain is the widow of the deceased, and appellee R.

Ray Fulmer II is the administrator of the estate. Mrs. Crain appeals from an order of the

circuit court prohibiting certain communication between her and individuals associated with

assets of the estate.1 We affirm.

Premier Foam, Inc., and Dude, Inc. (collectively, the “companies”), are both assets

owned by the estate. In fulfilling his duties as administrator, Fulmer was tasked with

gathering information about the companies. On January 18, 2023, the court held a hearing

1 This order was entered more than four months after the order on appeal in Crain v. Fulmer, 2024 Ark. App. 484, ___ S.W.3d ___, also handed down today. on the motion of Brian Pope, a contingent beneficiary to the estate, and denied Pope’s

objection to Fulmer’s planned visit to the Premier Foam plant. An unrelated issue was raised

by counsel for Phillip Richmond, CPA, at the hearing. Richmond had served as accountant

for the companies and as Mrs. Crain’s personal accountant. His counsel stated that if

Richmond were to remain the accountant for the companies, he wanted to make sure there

were no conflicts of interest with Mrs. Crain and asked to be “permitted to share with Mrs.

Crain in full disclosure of what’s going on between all the parties.” The court stated that if

Richmond remained as the accountant to the companies, his disclosures should be to

Fulmer, not Mrs. Crain. Regarding Pope’s objection to Fulmer’s plant visit, the court

questioned why anyone with Premier Foam had informed Pope about the visit. After hearing

that corporate counsel for Premier Foam had “sent an email to everybody” and that Fulmer

did not trust the information he had been getting about the operations of Premier Foam,

the court stated that it would enter an order requiring that it be informed if anyone from

the companies was dealing with anyone other than Fulmer.

The court subsequently entered an order that it amended the following day. The

amended order stated that Mrs. Crain, the other beneficiaries of the estate, and their

attorneys should have no communication with any officer, employee, attorney, or accountant

of the companies pertaining to the business of the companies without prior court approval.

The order stated that any prohibited communication shall be reported to the court, that

Fulmer should report any refusal to cooperate, and that Mrs. Crain’s counsel shall provide

a copy of the court’s order to legal counsel for Premier Foam. Finally, the order stated that

2 Richmond shall have no communication with Mrs. Crain pertaining to the companies

without prior court approval.

At a status hearing several days later, Fulmer’s attorney informed the court that after

having been made aware of the court’s order, Premier Foam’s counsel was now cooperating

with Fulmer, whereas before, she was “straddling the fence, trying to take directions from

two groups.” Counsel for Mrs. Crain and Richmond both suggested that the order needed

to be amended regarding their clients’ communication with each other. Mrs. Crain

subsequently filed a motion to reconsider the amended order because it “poses practical

difficulties and hardship in its implementation.” She argued that she should not be

prohibited from communicating with the company employees due to her history and

involvement with the companies and that it was necessary to communicate with Richmond

regarding her personal taxes and other entities. She requested that the court enter a more

limited order that would ensure Fulmer obtains needed information without undue

restrictions or interference.

Another status hearing was held before the court ruled on the motion to reconsider.

Noting that it had never before seen an administrator have so much difficulty administering

an estate, the court said that the purpose of the order was to promote cooperation with

Fulmer. Fulmer and his counsel argued that the order was “doing its job” and had facilitated

a flow of information. Contrary to arguments made by Mrs. Crain’s counsel, the court stated

that the order allowed communication with the companies about matters other than their

3 business operations; however, the court was open to amending the order to allow Mrs. Crain

to communicate with Richmond regarding her personal tax returns.

The court subsequently denied in part and granted in part Mrs. Crain’s motion to

reconsider and entered a second amended order. The order was the same as the prior one

with the exception that Richmond was authorized to discuss with Mrs. Crain the financial

history of the companies to the extent necessary to prepare or amend her personal tax

returns. Mrs. Crain appealed.

Pursuant to Arkansas Code Annotated section 28-1-116(a) (Repl. 2012), a person

aggrieved by an order of the circuit court in probate proceedings may obtain a review of the

order by the supreme court or the court of appeals. The appellate court reviews probate

proceedings de novo, and the decision of the circuit court will not be disturbed unless clearly

erroneous, giving due regard to the opportunity and superior position of the circuit court to

determine the credibility of witnesses. Nicholson v. Ark. Dep’t of Hum. Servs., 2017 Ark. App.

52, 511 S.W.3d 903.

Mrs. Crain first argues that the circuit court’s order constitutes a sua sponte

injunction that was improperly entered without compliance with Rule 65 of the Arkansas

Rules of Civil Procedure. Specifically, she claims that the circuit court abused its discretion

in issuing the injunction without requiring that Fulmer (1) move for injunctive relief; (2)

prove that irreparable harm will result in the absence of an injunction; or (3) prove a

likelihood of success on the merits. Fulmer argues that there was no request for injunctive

4 relief, and the court’s order does not reference an injunction; instead, the circuit court

entered the order on its own accord to aid in the administration of the estate.

The supreme court has defined an injunction as a command by a court to a person

to do or refrain from doing a particular act. IBAC Corp. v. Becker, 371 Ark. 330, 265 S.W.3d

755 (2007). It is mandatory when it commands a person to do a specific act and prohibitory

when it commands him or her to refrain from doing a specific act. Id. However, the mere

fact that a circuit court orders something to be done in the progress of a case does not make

that order a mandatory injunction. Monticello Healthcare Ctr., LLC v. Goodman, 2010 Ark.

339, 373 S.W.3d 256. All court orders are mandatory in the sense that they are to be obeyed,

but not all orders are mandatory injunctions. Id. To be a mandatory injunction, the order

must be based on equitable grounds to justify the use of the extraordinary powers of equity,

such as irreparable harm and no adequate remedy at law. Id. In addition, the order must

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Related

IBAC CORP. v. Becker
265 S.W.3d 755 (Supreme Court of Arkansas, 2007)
Tate v. Sharpe
777 S.W.2d 215 (Supreme Court of Arkansas, 1989)
Nicholson v. Arkansas Department of Human Services
2017 Ark. App. 52 (Court of Appeals of Arkansas, 2017)
Monticello Healthcare Center, LLC v. Goodman
2010 Ark. 339 (Supreme Court of Arkansas, 2010)
Arkansas Department of Human Services v. Hudson
994 S.W.2d 488 (Supreme Court of Arkansas, 1999)
Crain v. Fulmer.10
2024 Ark. App. 484 (Court of Appeals of Arkansas, 2024)

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2024 Ark. App. 485, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crain-v-fulmer403-arkctapp-2024.