Parker v. Johnson

244 S.W.3d 1, 368 Ark. 190, 2006 Ark. LEXIS 593
CourtSupreme Court of Arkansas
DecidedNovember 30, 2006
Docket06-606
StatusPublished
Cited by7 cases

This text of 244 S.W.3d 1 (Parker v. Johnson) 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
Parker v. Johnson, 244 S.W.3d 1, 368 Ark. 190, 2006 Ark. LEXIS 593 (Ark. 2006).

Opinions

Betty C. Dicicey, Justice.

Appellants Sherry Parker and Sherry Crow appeal the order of the Union County Circuit Court finding that their judgment liens did not attach to the homestead of Robert and Tiffany Johnson, due to Robert Johnson’s assertion of his homestead exemption over that property. We conclude that Robert Johnson abandoned his homestead right to the property, and we therefore reverse and remand to the trial court.

The Appellants in this case obtained separate judgments against Tiffany Johnson in July 2002. Subsequently, Tiffany Johnson was divorced from her husband, Robert Johnson, for the second time. After their first divorce, Robert Johnson had repurchased the home in which the couple had resided. Robert immediately left their home upon Tiffany’s filing for the second divorce in early July 2002, while Tiffany Johnson remained in the home for a period of weeks, through July 2002. The Johnsons entered into a property settlement agreement with each other, whereby their home was to be sold and the proceeds from the sale used to satisfy their mortgage debt on the home. This agreement was incorporated into their divorce decree, which was entered on July 30, 2002. After Tiffany vacated the premises, Robert retained the only key to the home, and maintained the premises prior to its sale. On November 8, 2002, the home was sold at a public sale to Robert Johnson’s family corporation, and the corporation then sold the property to third persons in May 2003. The proceeds from the first sale were insufficient to satisfy the mortgage debt on the property, but the family corporation voluntarily retired that debt. Robert Johnson never resided in the home after his initial vacation.

Appellees Raymond and Loree Johnson, Robert’s parents, brought the present declaratory action in Union County Circuit Court against the judgment creditors of Tiffany Johnson on September 23, 2003, seeking to clear title to the home. Both parties filed motions for summary judgment, and a hearing on the motions was held on January 14, 2004, at which the Johnsons argued that the home was exempt from the judgment liens because of Robert Johnson’s homestead rights in the property. In a judgment dated February 27, 2004, the trial court declined to rule on the homestead issue, and found that the judgment liens attached to the property but were subsequently extinguished when the Johnson family corporation paid the outstanding mortgage debt on the property. The judgment creditors then filed an appeal with the Arkansas Court of Appeals. The court of appeals reversed and remanded, finding that the judgment liens attached, but that the voluntary payment of the mortgages did not extinguish the liens. Parker v. Johnson, 90 Ark. App. 161, 204 S.W.3d 586 (2005). A trial was held on July 22, 2005, at which the Appellants argued that the homestead issue was barred by res judicata. On September 6, 2005, the trial judge entered an order finding that Robert Johnson’s homestead exemption prevented the attachment of the judgment liens. The judgment creditors again filed an appeal, and the Arkansas Court of Appeals affirmed the trial court, ruling that the homestead issue was not barred by res judicata, and that the trial court did not clearly err in finding that the liens were excluded by Robert Johnson’s homestead rights. Parker v. Johnson, 95 Ark. App 213, 236 S.W.3d 1 (2006). The Appellants then filed a petition for review, which we granted pursuant to Ark. Sup. Ct. R. 2-4 (2006).

The Appellants’ first point on appeal is: The court erred in holding that res judicata did not apply in this case to bar an issue that had been argued and submitted to the circuit court previously. The Appellants’ second point on appeal is: The court erred when it addressed the attachment of the judgment liens in the second trial aj.ter previously finding that the liens attached with the same facts before the court.

The Appellants argue that the doctrine of res judicata bars the trial court’s conclusion that the homestead exemption asserted by Robert Johnson prevented the attachment of the Appellants’ liens, because the trial court decided in the initial trial that the homestead exemption was not applicable and that the liens attached to the property. The Appellees retort that the trial court came to no decision as to the applicability of the homestead exemption in the initial trial, and that therefore res judicata is inapplicable here.

This case is before us upon petition for review from the Arkansas Court of Appeals; therefore, we have jurisdiction pursuant to Ark. Sup. Ct. R. l-2(e). When we grant review following a decision by the court of appeals, we review the case as though it was originally filed with this court. Edens v. Superior Marble & Glass, 346 Ark. 487, 58 S.W.3d 369 (2001).

The doctrine of collateral estoppel, or issue preclusion, bars the relitigation of issues of law or fact actually litigated by the parties in the first suit, provided that the party against whom the earlier decision is being asserted had a full and fair opportunity to litigate the issue in question and that issue was essential to the judgment. Zinger v. Terrell, 336 Ark. 423, 985 S.W.2d 737 (1999). Arkansas law provides that the following elements must be present in order to establish collateral estoppel: (1) the issue sought to be precluded must be the same as that involved in the prior litigation; (2) the issue must have been actually litigated; (3) the issue must have been determined by a final and valid judgment; and (4) the issue must have been essential to the judgment. See Looney v. Looney, 336 Ark. 542, 986 S.W.2d 858 (1999); Fisher v. Jones, 311 Ark. 450, 844 S.W.2d 954 (1993).

The Appellees point to the following language in the trial court’s initial judgment on the motions for summary judgment as evidence that there was no final and valid judgment on the homestead exemption in that case: “[T]he argument of counsel centered on the homestead exclusion. The existence of a homestead involves the intentions of the claimants of a homestead which is a fact issue ill suited for summary judgment motions.”

The trial court’s initial judgment also stated, “[t]he satisfaction of that priority claim or equity eliminated all interest of Tiffany Johnson in the property, which in turn caused the liens attached to that interest to terminate also.” And, in the course of reversing that judgment and concluding that the judgment liens were not extinguished by the elimination of the prior mortgages, the court of appeals stated in Parker v. Johnson I, “[hjere, the judgment liens attached before the land was ordered to be sold,” and, “[ajppellees purchased the land with the knowledge that it was subject to appellants’ judgment liens.” Thus, both the trial court in its initial judgment, and the court of appeals in its consideration of that judgment, decided that the judgment liens attached to the property. Despite these conclusions, upon remand the trial judge concluded that Robert Johnson’s assertion of the homestead exemption prevented the attachment of the liens.

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Cite This Page — Counsel Stack

Bluebook (online)
244 S.W.3d 1, 368 Ark. 190, 2006 Ark. LEXIS 593, Counsel Stack Legal Research, https://law.counselstack.com/opinion/parker-v-johnson-ark-2006.