Schmidt v. Stearman

374 S.W.3d 254, 2010 Ark. App. 274, 2010 Ark. App. LEXIS 269
CourtCourt of Appeals of Arkansas
DecidedMarch 31, 2010
DocketNo. CA 09-1126
StatusPublished

This text of 374 S.W.3d 254 (Schmidt v. Stearman) 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
Schmidt v. Stearman, 374 S.W.3d 254, 2010 Ark. App. 274, 2010 Ark. App. LEXIS 269 (Ark. Ct. App. 2010).

Opinion

JOHN B. ROBBINS, Judge.

|; This is the second appeal in this case. Appellant Paul Schmidt brought an action against appellee Gary Stearman, Sr., for conversion, trespass, and the tort of outrage. In the first trial, the trespass and outrage counts were dismissed by directed verdict, and the conversion count went to a jury, which found in favor of Mr. Stear-man. Mr. Schmidt appealed, seeking a new trial on his conversion claim, and reversal of the directed verdicts on trespass and outrage. Mr. Schmidt further assigned error to the trial court’s exclusion of certain evidence and its refusal to give two of his proffered jury instructions.

In the first appeal, Schmidt v. Stearman, 98 Ark. App. 167, 253 S.W.3d 35 (2007), we affirmed the directed verdicts on trespass and outrage, and we also affirmed the trial court’s evidentiary rulings and refusal to give the proffered jury instructions. However, we reversed |2and remanded for a new trial on Mr. Schmidt’s conversion action on the basis that the elements of conversion were proven beyond dispute, and thus the jury’s verdict in favor of Mr. Stearman was not supported by substantial evidence. We recognized in the first appeal that there was evidence that the converted property had been returned to Mr. Schmidt, but we nonetheless held that this would not have negated the conversion. We explained:

Thus, the jurors in this case, if they gave credence to the Stearmans’ return of the property, were constrained to fill out their verdict form in favor of Schmidt on conversion but award a reduced amount, possibly zero, in damages. The return of property could not support the jury’s outright finding in favor of Stearman, which amounts to a finding that no conversion took place.

98 Ark. App. at 177, 253 S.W.3d at 43.

Pursuant to our instructions on remand, a new trial was held only on Mr. Schmidt’s conversion claim. At the conclusion of the second jury trial, the jury found in favor of Mr. Schmidt on his conversion claim and awarded $500 in compensatory damages and $1000 in punitive damages. Unsatisfied with these awards, Mr. Schmidt now brings this second appeal.

For reversal, Mr. Schmidt raises three arguments. First, he argues that the trial court erred in precluding him from introducing evidence of the fair market value of his five dogs and that Mr. Stearman had shot and killed them on the property where the conversion occurred. Next, Mr. Schmidt takes issue with some of the trial court’s comments made in the presence of the jury. Finally, Mr. Schmidt contends that the trial court erred in allowing | ajury instructions on the statutes pertaining to unlawful detainer and criminal possession of real property. We affirm.

We set forth the elements of conversion in our first opinion as follows:

Conversion is a common-law tort action for the wrongful possession or disposition of another’s property. Buck v. Gillham, 80 Ark. App. 375, 96 S.W.3d 750 (2003). The tort of conversion is committed when a party wrongfully commits a distinct act of dominion over the property of another that is inconsistent with the owner’s rights. Id. The intent required is not conscious wrongdoing but rather an intent to exercise dominion or control over the goods that is in fact inconsistent with the plaintiffs rights. Id. A person can be held liable to the true owner of stolen personal property for conversion notwithstanding that he or she acted in the utmost good faith and without knowledge of the true owner’s title. Id.

Schmidt, 98 Ark. App. at 173-74, 253 S.W.3d at 41.

The testimony in the second trial was substantially the same as the first trial with regard to Mr. Schmidt’s conversion claim. Mr. Schmidt lived on a 458-acre farm in Washington County, which he leased from Farm Services Agency (FSA) for a five-year period ending in February 2003. However, Mr. Schmidt continued to occupy the property and lived in the house after expiration of the lease, pursuing administrative remedies to enforce what he believed was an agreement by FSA to allow him to repurchase the farm. Those efforts would ultimately prove unsuccessful. In July 2004, FSA quitclaimed the farm to Travis Stearman, the son of appel-lee, Gary Stearman. Mr. Schmidt considered this sale unauthorized and stayed on the land.

There was disputed testimony as to whether Mr. Schmidt had agreed to pay Travis Stearman rent after Travis Stear-man bought the property. Mr. Schmidt denied any such ^agreement. However, Travis Stearman testified that Mr. Schmidt had agreed to pay $200 in monthly rent, which was never paid. As a result of the rent not being paid, Travis Stear-man decided to pursue eviction proceedings against Mr. Schmidt. At his son’s request, Gary Stearman hired an attorney and a process server, and the process server posted an eviction notice on Mr. Schmidt’s house on February 23, 2005. The notice informed him that he must vacate within twenty days or litigation would be commenced seeking his forcible removal.

Mr. Schmidt testified that he was initially unaware of the eviction notice, and that he and his girlfriend, who also lived on the property, went on vacation. Before doing so, they left food for Mr. Schmidt’s five dogs, and the dogs could drink from a nearby spring. When Mr. Schmidt returned in early or mid-April, Mr. Schmidt had to restore the electricity and water to the house, which had been cut off. It was then that Mr. Schmidt found the eviction notice. Mr. Schmidt contacted his attorney, who wrote a letter to Gary Stear-man’s attorney on April 15, 2005, advising that Mr. Schmidt had not agreed to pay rent, that he had a right to live on his homestead, and that he considered the sale of the property to Travis Stearman illegal.

Mr. Schmidt testified that he and his girlfriend went on another short trip and returned on April 17, 2005. When they returned, Mr. Schmidt discovered that nearly 100 items had been removed from his house. He testified that the house had been “trashed.” Mr. Schmidt contacted the sheriff and expressed his suspicion that Gary Stearman was involved, but the sheriff considered it a civil matter and did not arrest Mr. Stearman. Mr. Schmidt made an | sitemized list of everything allegedly taken with fair-market values for each item, and while he conceded that some of the items had been returned to him, he estimated the aggregate value of the unre-turned items at $122,000.

Gary Stearnian admitted that he arranged for the personal property to be removed. However, he indicated that he did so only because it appeared that the farm had been abandoned. Gary Stearni-an told his ex-wife, Teresa Stearnian, that she could help herself to any items on the property and that he intended to doze the house down. He also acknowledged that he had a mechanic remove a tie rod from an old Mack truck on the property. Mr. Schmidt estimated the value of the tie rod at $500. Mr. Stearnian testified that the only removed item that he personally had in his possession was the tie rod, and that when he found out that Mr. Schmidt was still living there he advised the sheriff that all of the items would be returned to Mr. Schmidt.

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72 S.W.3d 841 (Supreme Court of Arkansas, 2002)
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95 S.W.3d 801 (Supreme Court of Arkansas, 2003)
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Bluebook (online)
374 S.W.3d 254, 2010 Ark. App. 274, 2010 Ark. App. LEXIS 269, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schmidt-v-stearman-arkctapp-2010.