Ingram v. Chandler

971 S.W.2d 801, 63 Ark. App. 1, 1998 Ark. App. LEXIS 516
CourtCourt of Appeals of Arkansas
DecidedJuly 1, 1998
DocketCA 97-847
StatusPublished
Cited by1 cases

This text of 971 S.W.2d 801 (Ingram v. Chandler) 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
Ingram v. Chandler, 971 S.W.2d 801, 63 Ark. App. 1, 1998 Ark. App. LEXIS 516 (Ark. Ct. App. 1998).

Opinion

D. Franklin Arey, III, Judge.

This is a summary-judgment case. The appellants, Cynthia E. Ingram, Phyllis Ingram, and Deborah I. Moll, brought an action to specifically enforce a contract concerning the sale of certain stock in the possession of the appellee, Bill Chandler. The Sebastian County Chancery Court granted appellee’s motion for summary judgment, despite having already scheduled a hearing in the matter. Appellants present three arguments for reversal: (1) that the trial court erred by granting summary judgment as a matter of law; (2) that the trial court abused its discretion by granting summary judgment before discovery, without notice, and prior to a scheduled hearing; and (3) that the trial court erred by denying appellants’ motion for default judgment. We affirm in part, and reverse and remand in part.

On May 13, 1981, Ralph and Una Irene Ingram, husband and wife, sold their twelve shares of stock in Commercial Underwriters, Inc., to appellee. Appellee agreed to pay $200,000 for the stock, with $35,000 payable at closing and the balance payable with interest at the rate of $1,380.13 per month for twenty years. The sale was memorialized in a contract of purchase (“1981 contract”) and a promissory note payable to the Ingrams jointly. Six days later, the Ingrams and appellee executed an escrow agreement with First National Bank of Fort Smith. The bank agreed to hold the 1981 contract, stock certificates, and promissory note as security for the performance of the contract by the parties.

Ralph Ingram died on September 3, 1987. His last will and testament specifically devised all of his stock ownership in Commercial Underwriters, Inc., to his wife, Una Irene Ingram. On September 11, 1990, Una Irene Ingram executed a living trust. It included a distribution of her interest in the sale of Commercial Underwriters, Inc., to three of her stepdaughters, appellants herein.

On April 5, 1993, Una Irene Ingram and appellee entered into an agreement (“1993 agreement”) that purported to modify the 1981 contract. The 1993 agreement provided that appellee’s obligation to make payments under the promissory note would terminate upon the death of Una Irene Ingram, if she died prior to payment in full of the promissory note. The 1993 agreement recited consideration of “$1.00 and other good and valuable consideration in hand paid, the receipt of which is acknowledged. . .” by Una Irene Ingram.

Una Irene Ingram died on July 19, 1996, with seventy-six payments remaining due under the promissory note. This represented a balance due of $104,889.88. On August 7, 1996, First National Bank delivered the stock to appellee.

On December 31, 1996, appellants filed a complaint in equity to specifically enforce the 1981 contract, impose a constructive trust in their favor for all monthly payments due under the promissory note, set aside the 1993 agreement, require appel-lee to account for monthly payments on the promissory note, and enjoin appellee from disposing of the stock. Appellants alleged that the 1993 agreement lacked consideration. Appellee filed a motion for summary judgment or in the alternative motion to dismiss for failure to state facts on January 31, 1997, but never filed an answer to the appellants’ complaint. Appellants responded to these alternative motions on February 27, 1997.

On that same date, appellants filed a first amended complaint in equity. The first amended complaint essentially sought the same relief as the original complaint, but it added an allegation that the consideration recited in the 1993 agreement was so insufficient and so inadequate as to be unconscionable as a matter of law and equity. Appellee never responded to the first amended complaint, either by filing a new motion for summary judgment or dismissal, or by filing an answer.

On March 10, 1997, appellee requested that the matter be set on the trial court’s contested docket at its earliest convenience. The trial court responded by letter dated March 21, 1997, notifying the parties that the case had been set for hearing on June 5, 1997. It appears from the record that the only motions pending at this time were appellee’s alternative motions for summary judgment or dismissal.

At an earlier point in the proceedings, appellants’ attempt to take appellee’s deposition failed when the trial court granted appellee’s motion for protective order. On April 11, 1997, appellants filed a second notice to take appellee’s deposition. Appellee filed another motion for protective order on April 14, 1997.

The following day, April 15, 1997, without notice to the parties, the trial court entered its order granting summary judgment for the appellee. In the order, the chancellor stated that there was no issue of material fact and that appellee was entitled to judgment as a matter of law. The court found that appellee’s motion for summary judgment should be granted for the following reasons: (1) that the cause of action was barred by the statute of limitations set forth in Ark. Code Ann. § 16-56-105 (1987); (2) that the appellants had no standing to complain of the matters alleged in the complaint, or first amended complaint; and (3) that the consideration stated in the 1993 agreement was conclusive evidence of the sufficiency of the consideration. The Court’s order specifically stated that it granted appellee’s motion for summary judgment; no mention was made of appellee’s motion to dismiss.

Appellants filed a motion for reconsideration and motion for default judgment on April 22, 1997. Appellants noted their ongoing attempts to conduct discovery, and appellee’s failure to respond to their first amended complaint. After the trial court denied the motions, appellants brought this appeal.

Our standard of review for an appeal from the grant of summary judgment is well-settled. We need only decide if the granting of summary judgment was appropriate based on whether the evidentiary items presented by the moving party in support of the motion left a material question of fact unanswered. Milam v. Bank of Cabot, 327 Ark. 256, 937 S.W.2d 653 (1997). However, if the parties agree on the facts, we simply determine whether the appellee was entitled to summary judgment as a matter of law. Earp v. Benton Fire Dept., 52 Ark. App. 66, 914 S.W.2d 781 (1996).

The rules concerning whether to grant a motion for summary judgment in the first instance are equally well-settled. Summary judgment “shall be rendered forthwith if the pleadings, depositions, answers to interrogatories and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” Ark. R. Civ. P. 56(c). The burden in a summary-judgment proceeding is on the moving party and cannot be shifted when there is no offer of proof on a controverted issue; any doubts and inferences must be resolved against the moving party. Schultz v. Farm Bureau Mut. Ins. Co., 328 Ark. 64, 940 S.W.2d 871 (1997).

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Bluebook (online)
971 S.W.2d 801, 63 Ark. App. 1, 1998 Ark. App. LEXIS 516, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ingram-v-chandler-arkctapp-1998.