Dyson v. Ferncliff Properties, Inc.

696 S.W.2d 767, 16 Ark. App. 64, 1985 Ark. App. LEXIS 2178
CourtCourt of Appeals of Arkansas
DecidedOctober 2, 1985
DocketCA 85-66
StatusPublished

This text of 696 S.W.2d 767 (Dyson v. Ferncliff 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
Dyson v. Ferncliff Properties, Inc., 696 S.W.2d 767, 16 Ark. App. 64, 1985 Ark. App. LEXIS 2178 (Ark. Ct. App. 1985).

Opinion

Tom Glaze, Judge.

This appeal ensues from appellants’ unsuccessful action to cancel a deed. Appellants contend the trial court erred (1) in finding that they failed to present sufficient evidence that their signatures on the deed were forged, (2) in correcting the property description in the disputed deed, and (3) in not sequestering a witness from the courtroom.

The appellants owned a tract in Sherwood upon which they built a house. They later sold their son and daughter-in-law a portion of the tract and, on 19 August 1980, sold the remainder of the tract, including their house, to Ray Wolf Company, Inc. (Wolf Company). Wolf Company paid the appellants $125,000 in cash and gave them a $50,000 or $55,000 promissory note for the balance of the purchase price. The note was secured by a second mortgage that described only that part of the tract upon which the house was located. The Citizens National Bank at Jacksonville held a first mortgage on the same portion to secure the $125,000 it loaned Wolf Company for the purchase of the entire tract. The remaining, unencumbered, portion of the tract sold Wolf Company is the focus of this litigation.

This controversy evolved from two deeds prepared in Judge Milas Hale’s office. Both deeds were dated 20 August 1981. One deed transferred title to the unencumbered property from Wolf Company to appellants; the second deed, containing the alleged forgeries, conveyed the same property from the appellants to Ferncliff, Inc. (Ferncliff).1 At this point, we note that Ray Wolf was president of Wolf Company and secretary/treasurer of Ferncliff. While appellants and Ray Wolf agree that the first deed was prepared and executed, they are in total disagreement concerning the second. It is undisputed that appellant John Dyson took the first deed to his attorney, who corrected the property description. That correction deed was executed by Ray Wolf on behalf of the Wolf Company on 28 August 1981 and recorded on 17 September 1981. The second or alleged forged deed, dated 20 August 1981, was not recorded until 27 January 1982. John Dyson testified that he first discovered the disputed deed when he checked his property taxes in March 1983. He and his wife, Sybil, promptly filed this suit to set the deed aside.

The parties agree that appellants had the burden of proving that their signatures on the Ferncliff deed were forged. They disagree, however, on the quantum of proof required. Appellants contend the forgery need only be established by a preponderance of the evidence, while appellee asserts the proof must be clear and convincing. On this point, we hold appellants are correct.

In determining the required degree of proof, the cases distinguish between when it is contended there has been fraud or duress in obtaining a deed, and when forgery is alleged. As the court clearly stated in Davidson v. Bell, 247 Ark. 705, 710, 447 S.W.2d 338, 340 (1969):

[w]here it is contended that a deed was obtained by duress or fraud . . . the law requires that the proof be clear, cogent and convincing before the deed can be set aside. Here, it is simply asserted. . .that the deed was a forgery, and the quantum of proof necessary to sustain such an allegation is a preponderance of the evidence. Coulter v. Clemons, 237 Ark. 227, 372 S.W.2d 396 (1963).

See also McCarty v. Blaylock, 248 Ark. 645, 648, 453 S.W.2d 35, 37 (1970) (deed found not to be a forgery where “proof heavily preponderates” in favor of party claiming not a forgery); Kennedy v. Couillard, 237 Ark. 353, 372 S.W.2d 825 (1963) (party did not sustain burden of proving, by a preponderance of the evidence, that her signature on a deed was a forgery); Temple, Adm’r v. Smith, et al., 222 Ark. 834, 262 S.W.2d 898 (1953) (burden on party to prove forgery of deed by a preponderance of the evidence); Fuller v. Norwood, 267 Ark. 900, 592 S.W.2d 452 (Ark. App. 1979) (parties alleging forgery of signatures on contract must sustain burden of proof by a preponderance of the evidence).

Although the appellants’ burden here was to show the forgeries by a preponderance of the evidence rather than by clear and convincing proof, we believe the record supports the chancellor’s decision, upholding the disputed document. Appellants insist they never signed the Ferncliff deed nor gave any consideration for such a deed. While appellants argue the failure of consideration alone would invalidate any conveyance from them to Ferncliff, our courts have held no consideration is required since a deed constitutes a present grant rather than a mere promise to be performed in the future. Parkey v. Baker, 254 Ark. 283, 492 S.W.2d 891 (1973); Goodwin v. Lofton, 10 Ark. App. 205, 662 S.W.2d 215 (1984). Appellants also presented testimony by Judge Hale who stated he could not recall talking with appellants about the deed or seeing them sign it. Judge Hale further testified, however, that Mr. Wolf and Mr. Dyson were doing a lot of trading or at least talking about trading back and forth, and he did not remember what they finally came up with. He said that the person who notarized the deed was not an employee in his office. In fact, the record reflects that the disputed document bore the signature of Ray Wolfs sister-in-law as the notary.

The appellee countered appellants’ testimony with evidence from which it could be inferred by the chancellor that the appellants did sign the Ferncliff deed. In this respect, Ray Wolf testified he saw appellant John Dyson sign the deed in Judge Hale’s office and that, a day or so later, Mr. Dyson told him his wife had also signed it. Wolf testified that the appellants were long-time friends, and because he was having marital problems with his wife and financial difficulties with the Citizens National Bank, he deeded the unencumbered portion of his property to appellants, who in turn deeded this same property to Ferncliff, a firm in which he owned stock and was an officer. This transaction, he said, kept Citizens Bank from “clouding the property” and from “attaching it.” He indicated these two conveyances would serve to protect his and the appellants’ interests. Apparently, his intent was to show the appellants as record title owners when, in fact, Ferncliff — a company in which Wolf had an ownership interest — held title by an unrecorded deed.2 Although appellants argue appellee should not be allowed to benefit from such a scheme, the established law is that the parties may be bound to such an agreement. See Murphy v. Murphy, 165 Ark. 246, 262 S.W. 677 (1924) (wherein the court held a deed executed to defraud creditors is good between the parties); see also McCune v. Brown, 8 Ark. App. 51, 648 S.W.2d 811 (1983).

Other evidence was presented from which the chancellor could find the appellants executed the disputed deed.

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Related

Davidson v. Bell
447 S.W.2d 338 (Supreme Court of Arkansas, 1969)
Tenwick v. Byrd
659 S.W.2d 950 (Court of Appeals of Arkansas, 1983)
Integon Life Insurance v. Vandegrift
669 S.W.2d 492 (Court of Appeals of Arkansas, 1984)
McCune v. Brown
648 S.W.2d 811 (Court of Appeals of Arkansas, 1983)
Turner v. Pennington
646 S.W.2d 28 (Court of Appeals of Arkansas, 1983)
Goodwin v. Lofton
662 S.W.2d 215 (Court of Appeals of Arkansas, 1984)
Fite v. Friends of Mayflower, Inc.
682 S.W.2d 457 (Court of Appeals of Arkansas, 1985)
Murphy v. Murphy
262 S.W. 677 (Supreme Court of Arkansas, 1924)
Temple v. Smith
262 S.W.2d 898 (Supreme Court of Arkansas, 1953)
Coulter v. Clemons
372 S.W.2d 396 (Supreme Court of Arkansas, 1963)
Kennedy v. Couillard
372 S.W.2d 825 (Supreme Court of Arkansas, 1963)
McCarty v. Blaylock
453 S.W.2d 35 (Supreme Court of Arkansas, 1970)
Parkey v. Baker
492 S.W.2d 891 (Supreme Court of Arkansas, 1973)
Fuller v. Norwood
592 S.W.2d 452 (Court of Appeals of Arkansas, 1979)

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Bluebook (online)
696 S.W.2d 767, 16 Ark. App. 64, 1985 Ark. App. LEXIS 2178, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dyson-v-ferncliff-properties-inc-arkctapp-1985.