Fred N. Bollinger D/B/A Fnb Farms; Fred N. Bollinger, Jr.; Bollinger Lone Oak, Inc.; And Bollinger Partners, Inc. v. Farm Credit Midsouth, Pca

2026 Ark. App. 167
Court of Appeals of Arkansas·Decided March 11, 2026·Published

Opinion

Cite as 2026 Ark. App. 167 ARKANSAS COURT OF APPEALS DIVISION II

No. CV-24-85

FRED N. BOLLINGER D/B/A FNB Opinion Delivered March 11, 2026

FARMS; FRED N. BOLLINGER, JR.;

APPEAL FROM THE CRITTENDEN BOLLINGER LONE OAK, INC.; AND COUNTY CIRCUIT COURT

BOLLINGER PARTNERS, INC.

[NO. 18CV-09-414]

APPELLANTS

HONORABLE PAMELA HONEYCUTT, V.

JUDGE

FARM CREDIT MIDSOUTH, PCA REVERSED AND REMANDED APPELLEE

BART F. VIRDEN, Judge

This is the fourth appeal in this long-running case between appellants, the estate of Fred Bollinger, Sr. (Bollinger Sr.’s Estate), his son Fred Bollinger, Jr. (Bollinger Jr.), and his farming entities (collectively, the “Bollingers”); and their creditor, appellee Farm Credit Mid-America PCA, successor in interest by merger to Farm Credit Midsouth PCA (“Farm Credit”). In the current appeal, the Bollingers appeal an October 2023 order and judgment in which the circuit court vacated a prior order and awarded attorneys’ fees to Farm Credit. For reversal, the Bollingers argue that (1) the circuit court erred in awarding attorneys’ fees to Farm Credit pursuant to Arkansas Code Annotated section 16-22-308 (Repl. 1999); (2) the circuit court abused its discretion by setting aside its December 2016 order on judgment; (3) the circuit court erred in failing to award Bollinger Sr.’s Estate and Bollinger

Jr. reasonable attorney’s fees under section 16-22-308 given that they prevailed on a collateral claim; (4) the circuit court erred in denying Bollinger Sr.’s Estate and Bollinger Jr. prejudgment interest from February 17, 2012, on the $169,742.98 they were compelled to pay in fees and escrow; and (5) the circuit court erred in finding that Bollinger Jr., Bollinger Lone Oak, and Bollinger Partners were jointly and severally liable for Farm Credit’s attorneys’ fees that it accumulated for defending separate tort counterclaims. We reverse on the first point and remand for further proceedings consistent with this opinion.

I. Background Facts and Procedural History This litigation has been ongoing for more than fifteen years. The background facts and procedural history are set out in detail in this court’s opinions in the previous three appeals, Farm Credit Midsouth, PCA v. Bollinger, 2018 Ark. App. 224, 548 S.W.3d 164 (“Bollinger I”), Farm Credit Midsouth, PCA v. Bollinger, 2020 Ark. App. 36, 595 S.W.3d 3 (“Bollinger II”), and Bollinger v. Farm Credit Midsouth, PCA, 2021 Ark. App. 112, 619 S.W.3d 398 (“Bollinger III”). Thus, we have included the facts only as necessary for an understanding of the issues in this appeal.

Beginning in 2003, Farm Credit made a series of agricultural loans to the Bollingers, which were secured by various security agreements and mortgages. After the Bollingers defaulted on those loans, Farm Credit filed a foreclosure and replevin action in the Crittenden County Circuit Court in 2009. The Bollingers filed a counterclaim asserting multiple tort causes of action. In 2011, the circuit court granted Farm Credit’s motion for summary judgment on its complaint as to liability but withheld entry of a final

summary judgment until after trial of the Bollingers’ counterclaim when the value of all the claims could be determined. Several defaulted loans between the Bollingers and Farm Credit were resolved during the pendency of the circuit court case, a condition of which the Bollingers agreed to pay $119,742.98 for legal fees accrued by Farm Credit to date and also to escrow an additional $50,000.00 to cover future fees. The counterclaims were then tried before a jury over several days. The circuit court granted a directed verdict in favor of Farm Credit on certain claims, but the jury found in favor of the Bollingers on others and awarded them a judgment of approximately $1.5 million. The circuit court also granted the Bollingers’ request for prejudgment interest totaling $173,867.45. Farm Credit appealed to this court, and the Bollingers filed a cross-appeal. This court reversed as to most of the Bollingers’ tort counterclaims, which resulted in a reduction in the Bollingers’ award from a total of more than $1.6 million to only $89,776.65. See Bollinger I, 2018 Ark. App. 224, 548 S.W.3d 164.

While the appeal in Bollinger I was pending, Farm Credit filed a motion for attorneys’ fees in circuit court on December 23, 2015. It asserted that it was entitled to fees pursuant to contractual provisions in its promissory notes with the Bollingers and pursuant to section 16-22-308 as the prevailing party in its foreclosure claims asserted against the Bollingers. The Bollingers objected and filed cross-motions for the return of the $169,742.98 previously paid for attorneys’ fees and escrow plus prejudgment interest on these funds and an award of attorney’s fees pursuant to section 16-22-308. On July 25, 2016, the circuit court entered an order finding that although Farm Credit prevailed on its

claims on the promissory notes, a money judgment was never actually entered due to the pending counterclaim against it. It further found that the amount awarded to the Bollingers on their tort claims greatly exceeded that awarded to Farm Credit. The order stated that “considering there can be but one prevailing party overall, the Court finds that overall Bollingers are the prevailing party, even though Farm Credit won on the Breach of Contract claim.” It nonetheless found that because the Bollingers’ recovery sounded in tort, section 16-22-308 was inapplicable because that statute applies to contracts. The circuit court further found that, because of the language in some of the promissory notes, Farm Credit was entitled to attorneys’ fees reasonably required to reach summary judgment on the notes, but it withheld an actual fee award pending documentation as to time spent on the case. Finally, it ruled that the $50,000 held in escrow should be refunded to the Bollingers.

The Bollingers moved for reconsideration of the July 2016 order, claiming that the promissory notes did not expressly provide for attorneys’ fees for seeking recovery on them. The circuit court entered an order on December 16, 2016, granting the motion for reconsideration and finding that

the court’s letter opinion dated July 21, 2016, is revised to reflect that Farm Credit is not entitled to recover attorney’s fees pursuant to contract language. This is because the contract language in the promissory notes/loan agreements does not provide for the recovery of attorney’s fees and expenses in enforcing the promissory notes the Bollingers executed in favor of Farm Credit. Instead, this contract language only entitles Farm Credit, upon a borrower’s default, to recover reasonable attorney’s fees and legal expenses in enforcing its remedies as to collateral, which is personal property and fixtures, as a secured party pursuant to the Uniform Commercial Code.

It also reaffirmed its earlier ruling that Farm Credit could not recover attorneys’ fees pursuant to section 16-22-308 because it was not the prevailing party in its overall litigation with the Bollingers. Finally, it ordered that the Bollingers should jointly recover judgment from Farm Credit for the $119,742.98 (representing sums previously paid by the Bollinger parties) to be apportioned as follows: $96,273.36 to Bollinger Sr. Estate and $23,469.62 to Bollinger Jr. It also ruled that $40,200.00 of escrowed funds held in the registry of the court be paid to Bollinger Sr.’s Estate and $9,800.00 to Bollinger Jr. The circuit court deferred ruling on the issue of prejudgment interest.

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Fred N. Bollinger D/B/A Fnb Farms; Fred N. Bollinger, Jr.; Bollinger Lone Oak, Inc.; And Bollinger Partners, Inc. v. Farm Credit Midsouth, Pca, 2026 Ark. App. 167 (Ark. Ct. App. 2026).

2026 Ark. App. 167 (Fred N. Bollinger D/B/A Fnb Farms; Fred N. Bollinger, Jr.; Bollinger Lone Oak, Inc.; And Bollinger Partners, Inc. v. Farm Credit Midsouth, Pca) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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