Lenders Title Co. v. Chandler

107 S.W.3d 157, 353 Ark. 339, 2003 Ark. LEXIS 268
CourtSupreme Court of Arkansas
DecidedMay 22, 2003
Docket02-936
StatusPublished
Cited by32 cases

This text of 107 S.W.3d 157 (Lenders Title Co. v. Chandler) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lenders Title Co. v. Chandler, 107 S.W.3d 157, 353 Ark. 339, 2003 Ark. LEXIS 268 (Ark. 2003).

Opinions

Jim Hannah, Justice.

Appellant Lenders Title Company appeals the order of the Garland County Circuit Court certifying Appellee Don Chandler’s suit as a class action, pursuant to Ark. R. Civ. P. 23. For reversal, Lenders argues that both the trial court’s order and the record itself are insufficient to support certification of a class. Lenders also argues that the trial court erred in denying its motion to dismiss for failure to state facts upon which relief may be granted, pursuant to Ark. R. Civ. P. 12(b)(6). This appeal presents issues of substantial public interest requiring further development or clarification of the law regarding class actions; hence, this court’s jurisdiction is pursuant to Ark. Sup. Ct. R. 1-2(b)(4) and (5). We reverse and remand for further analysis of the class-certification issue, and we dismiss the appeal from the denial of the motion to dismiss.

The record reflects that Chandler filed suit against Lenders on October 23, 2001. In his complaint, Chandler alleges that on January 3, 2001, he sold property in Hot Springs, for which Lenders acted as the settlement and escrow agent. During that transaction, Lenders charged and received $50 each from Chandler and the buyer, Everett Lawless, for document preparation. Chandler alleges that the document-preparation fees received by Lenders are for documents prepared by Lenders, including legal documents such as deeds, mortgages, and notes. Chandler claims that the act of charging a separate fee for the preparation of legal documents constitutes the unauthorized practice of law. Chandler asserts that Lenders’s actions violate the Arkansas Deceptive Trade Practices Act (DTPA), Ark. Code Ann. § 4-88-101 to -115 (Repl. 2001). He further asserts that Lenders was negligent in failing to explain the fees charged. He claims that by failing to communicate to him that the fees charged were unlawful and illegal, and by charging such an unlawful and illegal fee, Lenders breached the standard of care owed to Chandler and others similarly situated.

On December 20, 2001, Lenders filed a motion to dismiss for failure to state facts upon which relief may be granted, pursuant to Rule 12(b)(6). A hearing was held on Lenders’s motion on February 25, 2002. In a letter sent to counsel on March 13, the trial court denied the motion, stating that Chandler had stated causes of action for both negligence and violation of the DTPA. An order was entered reflecting the trial court’s decision on March 21.

On March 18, 2002, Chandler filed a motion for class certification. Lenders filed its response in opposition, to the motion for certification on April 5. On May 31, Lenders filed a motion for specific findings and conclusions, requesting the trial court to make specific findings of fact and conclusions of law in the order either granting or denying Chandler’s motion for certification of a class. On June 2, Lenders filed its proposed findings and conclusions.

A hearing was held on the motion for certification on June 3 and 4, 2002. Lenders presented testimony from several witnesses, and both parties offered numerous exhibits. At the conclusion, the trial court announced that it would allow the parties to submit their proposed findings of fact and conclusions of law before the court made a decision. Both sides submitted their proposals on June 14. On July 17, the trial court issued its findings of fact and conclusions of law and sent a letter to the parties defining the class as “all who engaged in a real estate closing handled by the Defendant on or after October 23, 1996 who were charged a document preparation fee.”

Following entry of that order, on August 5, 2002, Lenders filed a motion for a ruling on its proposed findings of fact and conclusions of law and, alternatively, for additional findings and conclusions. The trial court denied that motion on August 13. On August 16, Lenders filed a notice of appeal from the trial court’s July 17 order and letter; the August 13 order denying the motion for specific findings and conclusions; and the March 21 order denying Lenders’ motion to dismiss. Five days later, on August 21, the trial court entered a final order certifying Chandler’s suit as a class action. Lenders filed an amended notice of appeal that same date to include the final certification order.

Lenders purports to raise two issues on appeal; in reality, however, there are three issues presented for this court’s resolution. First, Lenders argues that the certification order must be reversed because the trial court failed to make sufficient findings and conclusions on each of the criteria required for class actions. Second, Lenders argues that certification was improper because the record itself does not support any of the six criteria required for class actions. Third, Lenders argues that the trial court erred in denying its motion to dismiss Chandler’s suit pursuant to Rule 12(b)(6).

Sufficiency of the Certification Order

Lenders argues that the certification order in this case should be reversed because the trial court failed to make specific findings of fact and conclusions of law on each of the required elements of a class action, as provided in Rule 23(a) and (b). Under Rule 23, six criteria must be met before a suit may be certified as a class action: (1) numerosity; (2) commonality; (3) typicality; (4) adequacy; (5) predominance; and (6) superiority. THE/FRE, Inc. v. Martin, 349 Ark. 507, 78 S.W.3d 723 (2002); USA Check Cashers of Little Rock, Inc. v. Island, 349 Ark. 71, 76 S.W.3d 243 (2002); BPS, Inc. v. Richardson, 341 Ark. 834, 20 S.W.3d 403 (2002). Lenders asserts that it made a timely request for specific findings and conclusions pursuant to Rule 23, Ark. R. Civ. P. 52, and this court’s decision in BPS, Inc., 341 Ark. 834, 20 S.W.3d 403. Lenders asserts that because the trial court’s certification order does not reflect findings on each of these six criteria, the order should be reversed. Lenders contends that the lack of findings, particularly as to the common questions of law or fact, will hinder its ability to defend against the suit.

Chandler contends that the trial court’s order is sufficient enough and that this court should affirm if it finds that the record supports the trial court’s conclusion to certify the class. He argues that the trial court is not required to conduct a rigorous analysis for certification or to address every fact or conclusion proposed by Lenders. He contends further that BPS, Inc., does not control this case, because the trial court made some findings and conclusions. He relies on this court’s decision in Tay-Tay, Inc. v. Young, 349 Ark. 675, 80 S.W.3d 365 (2002).

In BPS, Inc., the appellants asserted that the class-certification order should be reversed because the trial court failed to make specific findings of fact and conclusions of law pursuant to Ark. R. Civ. P. 52. The appellees responded to the argument by-contending that a motion for class certification is merely a motion and, as such, is not subject to Rule 52. This court rejected that contention, noting that it had previously stated in Mega Life & Health Ins. Co. v. Jacob, 330 Ark.

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Cite This Page — Counsel Stack

Bluebook (online)
107 S.W.3d 157, 353 Ark. 339, 2003 Ark. LEXIS 268, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lenders-title-co-v-chandler-ark-2003.