Hudson v. Cook

105 S.W.3d 821, 82 Ark. App. 246, 2003 Ark. App. LEXIS 437
CourtCourt of Appeals of Arkansas
DecidedMay 21, 2003
DocketCA 02-263
StatusPublished
Cited by15 cases

This text of 105 S.W.3d 821 (Hudson v. Cook) 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
Hudson v. Cook, 105 S.W.3d 821, 82 Ark. App. 246, 2003 Ark. App. LEXIS 437 (Ark. Ct. App. 2003).

Opinion

Larry D. Vaught, Judge.

This is an appeal from a Pulaski County Circuit Court jury verdict awarding actual and punitive damages to appellee, Keith Cook, on claims of replevin, conversion, and interference with business and business expectancy. 1 Appellant Charles R. Hudson, Jr. (Hudson Jr.), raises seven points on appeal. The first three assert that the trial court erred in failing to direct a verdict because appellee failed to prove: (1) ownership of the property alleged to have been converted; (2) market value of the property at the time of the alleged taking; (3) lost profits or loss of business expectancy. The next four points deal with the award of punitive damages, alleging that the trial court erred: (4) in instructing the jury on punitive damages under the facts of this case; (5) in failing to direct a verdict with regard to the punitive-damages award; (6) in failing to direct a verdict with regard to the amount of punitive damages awarded as being excessive; (7) in failing to direct a verdict with regard to punitive damages because the amount awarded violates the Fourteenth Amendment’s Due Process Clause, which imposes on state courts the Eighth Amendment prohibition against excessive fines and cruel and unusual punishment. An eighth point on appeal has been raised by appellant Deborah Tidwell Hudson asserting that the trial court erred in finding that funds in her possession, as a garnishee in the case, obtained by her to pay Hudson Jr.’s attorney’s fees are subject to garnishment by appellee. Finally, appellee cross-appeals the reduction in punitive damages awarded by the trial judge.

While there has been a long-running dispute regarding rights to certain property that has been farmed by Hudson Jr.’s family for many years, the instant case deals with a specific incident that occurred on February 17, 1996. Hudson Jr. owns and operates a marina on the Little Maumelle River in Pulaski County, Arkansas. Part of the marina business is conducted on a segment of a fifty-six-acre tract of real property leased by Hudson Jr. from his stepmother, Glenna Hudson. The balance of the fifty-six-acre tract has for many years been farmed by the Hudson family. In January 1986, Glenna Hudson purchased the property at a commissioner’s sale.

Appellee had a close relationship with Hudson Jr.’s father, Hudson Sr., and began helping him farm the fifty-six-acre tract of land in 1992. Appellee alleges that in 1995, he entered into an oral lease to farm that part of the Glenna Hudson property not under lease to Hudson Jr.’s marina. Appellee also states that he purchased a Case 1570 tractor and an International Harvester disc from Hudson Sr. for $30,000 in June 1995 in order to farm the land. He made a down payment of $5000 and agreed to pay Hudson Sr. the balance of the purchase price out of his portion of the crop sales.

A dispute arose over the location of the boundaries between the lease to the marina and that property subject to appellee’s farm lease. On February 17, 1996, while discing the farm land, appel-lee came upon seven stakes located approximately 100-200 feet out in the area that was included in the area that had been farmed since at least 1986. Appellee did not know who had put the stakes there, 2 but he considered them to be on the property he had leased from Hudson Sr., and started discing up the stakes.

Upon noticing appellee’s actions, Hudson Jr. drove his truck into the field and blocked appellee’s tractor, and a confrontation ensued between the two. Hudson Jr. allegedly jumped on the tractor and verbally and physically attacked appellee, at which point appellee supposedly grabbed a pistol to scare Hudson Jr. off the tractor. Hudson Jr. then reportedly grabbed a rifle, the two exchanged more words, and Hudson Jr. called the sheriff s office. The sheriff responded to the call and eventually arrested appellee. The charges were later dismissed. Hudson Jr. then called Routh Wrecker Service, Inc., and without permission from appellee, had appellee’s tractor and disc removed from the property. Appellee subsequently attempted to recover the tractor and disc, but Routh Wrecker Service, Inc., would not release them without payment of towing and storage fees.

The boundary issues were joined in Pulaski County Chancery Court, Case No. 97-3056, and on June 5, 2000, an order was entered. Paragraph five of that order construed the lease agreement to permit farming up to the base of the levee road. On November 26, 1996, appellee filed the original action in this matter, seeking replevin of the tractor and damages against Routh Wrecker Service, Inc. On April 21, 1997, appellee amended his complaint and named Hudson Jr. as an additional defendant. On January 12, 2001, appellee filed a second amended and substituted complaint seeking replevin, damages for conversion, and for interference with business and business expectancy. The matter was tried before a jury on June 20, 2001. Appellee orally dismissed his claim for replevin during the trial. At the close of appellee’s case, Hudson Jr. moved for a directed verdict on the basis that appellee failed to establish ownership of the tractor and disc, and that appellee had failed to prove damages. The motions were denied. At the close of the evidentiary part of the trial, Hudson Jr. once again moved for directed verdict on the same bases; again, the motions were denied. The jury returned a verdict against Hudson Jr. for $20,000 on the conversion claim, $15,000 on the claim for interference with business and business expectancy, and $250,000 in punitive damages. 3 Judgment was entered on July 25, 2001.

On July 31, 2001, Hudson Jr. filed his motion for judgment notwithstanding the verdict, pursuant to Rule 50(b) of the Arkansas Rules of Civil Procedure. On August 22, 2001, the trial court heard and denied the motion, but granted a remittitur as to the punitive damages, reducing them to $200,000. The trial court’s written order was signed on August 30, 2001, and entered on September 7, 2001. Hudson Jr. filed his notice of appeal on September 24, 2001. Appellee filed his notice of cross-appeal on September 27, 2001.

Appellee subsequently attempted to enforce the judgement. On September 7, 2001, appellant Deborah Tidwell Hudson was served with a writ of garnishment as a result of Hudson Jr.’s deposition, in which he described his sale to her of his one-half interest in a boat and other personal property, indicating that she had not yet paid him and owed him $12,500. In her responses to the writ of garnishment, Mrs. Hudson denied owing Hudson Jr. any money. At a hearing on October 31, 2001, Mrs. Hudson explained that the money was not owed to Hudson Jr., but rather to his attorney. She testified that $6000 had been paid to Hudson Jr.’s attorney after being served with the writ of garnishment. She added that the purpose of her purchase was to obtain a loan to pay Hudson Jr.’s attorney’s fees. The trial court found the funds to be subject to garnishment and entered an order on November 5, 2001, granting app eñe e judgment against Deborah Tidweñ Hudson for $6000. The trial judge also ordered her to produce any checks that she contended were written and deposited related to the remaining balance. She faded to do so, and on November 30, 2001, the trial judge granted appeüee judgment against her for the remaining $6500. Deborah Tidweñ Hudson filed her notice of appeal on December 5, 2001.

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Bluebook (online)
105 S.W.3d 821, 82 Ark. App. 246, 2003 Ark. App. LEXIS 437, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hudson-v-cook-arkctapp-2003.