Turnbo v. Hamlett

2024 Ark. App. 128, 686 S.W.3d 813
CourtCourt of Appeals of Arkansas
DecidedFebruary 21, 2024
StatusPublished
Cited by1 cases

This text of 2024 Ark. App. 128 (Turnbo v. Hamlett) 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
Turnbo v. Hamlett, 2024 Ark. App. 128, 686 S.W.3d 813 (Ark. Ct. App. 2024).

Opinion

Cite as 2024 Ark. App. 128 ARKANSAS COURT OF APPEALS DIVISION III No. CV-22-140

Opinion Delivered February 21, 2024 CLARENCE E. TURNBO, INDIVIDUALLY AND AS TRUSTEE OF APPEAL FROM THE PULASKI BEAU TURNBO TRUST NUMBER COUNTY CIRCUIT COURT, FIFTH ONE DIVISION APPELLANT [NO. 60CV-20-3293]

HONORABLE WENDELL GRIFFEN, V. JUDGE

AFFIRMED OSCAR HAMLETT, JR. APPELLEE

WENDY SCHOLTENS WOOD, Judge

Clarence E. Turnbo, individually and as trustee of Beau Turnbo Trust Number One

(“Turnbo”), appeals an order entered by the Pulaski County Circuit Court granting summary

judgment in favor of Oscar Hamlett, Jr., in this land-sale contract case. On appeal, Turnbo

contends that the circuit court erred by (1) rejecting Turnbo’s statute-of-limitations defenses

to Hamlett’s counterclaim for unlawful detainer and breach of contract; (2) granting

Hamlett’s motion for summary judgment and denying Turnbo’s motion for summary

judgment; (3) adjudicating the unlawful-detainer counterclaim before Turnbo’s complaint

for declaratory judgment; and (4) denying Turnbo’s motion for stay of the writ of possession.

We affirm. I. Relevant Background

On August 28, 2013, Turnbo and Hamlett entered into a written contract wherein

Turnbo agreed to buy and Hamlett agreed to sell a commercial property in North Little Rock

for $394,959.60. The purchase price was to be paid within fifteen years in 180 monthly

payments of $2,500, with $305.78 of each amount to be applied to the property taxes. Upon

full payment of the $394,959.60 purchase price, Turnbo would receive a warranty deed

conveying the fee-simple title to the property.

Under the terms of the 2013 contract, Turnbo was obligated to furnish and maintain

insurance on the property and name Hamlett as the beneficiary of the insurance policy. The

contract also provided that until the purchase price was paid in full, the payments thereunder

and any improvements made to the premises would be regarded as rent. It further included

a forfeiture clause that provided that time was of the essence and that Hamlett could take

possession and remove Turnbo from the premises for the nonpayment of such sums or for

any breach of the contract with the same force and effect as the nonpayment of rent in the

usual landlord-tenant relationship. The forfeiture clause also provided that, in the event of

any breach, Hamlett would be deemed relieved and discharged of any claim or obligation of

any kind under the contract, and all payments and improvements would be deemed rent for

the use and occupancy of the premises. The contract also provided that a waiver by Hamlett

of any breach by Turnbo would not bar Hamlett from pursuing subsequent breaches by

Turnbo, and it contained a “no-unwritten-modification clause” that provided that the terms

2 and conditions of the contract could be amended or modified only by a written instrument

signed by the parties. Finally, Turnbo promised to personally guarantee the contract.

On May 18, 2020, Hamlett gave Turnbo notice of his intent to enforce the forfeiture

clause and terminate the contract because Turnbo failed, after multiple requests, to cure the

following defaults: (1) failure to insure the property; (2) nonpayment of twelve payments; (3)

failure to pay the property taxes; and (4) breach of the personal guarantee. The notice

informed Turnbo that he had ten days to have his personal property removed from the

premises. Turnbo did not remove his personal property.

On June 5, Turnbo filed a complaint for declaratory judgment that Hamlett waived

any default by Turnbo and was barred from enforcing the forfeiture clause. Three days later,

Turnbo was served with a notice to quit, demanding that he surrender possession of the

property to Hamlett within three days. Turnbo did not surrender possession.

On June 18, Hamlett filed an answer and counterclaim for unlawful detainer and

breach of contract, seeking immediate possession of the property and damages under the

unlawful-detainer statute, Arkansas Code Annotated section 18-61-104 (Repl. 2015).

Relevant to this appeal, Hamlett alleged that Turnbo was in default for failure to obtain

insurance on the property, failure to pay increased property taxes in 2017 and 2019, and

nonpayment of rent between March and August 2014 in the amount of $15,000. Hamlett

also alleged that because Turnbo had been convicted and sentenced to prison earlier that

year for raping a thirteen-year-old girl on the subject property, he could not satisfy his

obligation to personally guarantee the contract.

3 On June 22, a notice of intention to issue writ of possession was filed, advising

Turnbo that he had five days to file an objection to Hamlett’s unlawful-detainer action. The

notice also stated that if Turnbo continued to possess the property, he would be required to

deposit into the court’s registry a sum equal to the amount of rent due on the property and

to continue paying rent into the court’s registry during the pendency of the proceedings in

accordance with the terms of the contract. The notice warned that “failure to tender the rent

due without justification is grounds for the court to grant the writ of possession.”1

On June 26, Turnbo filed an objection and a motion to dismiss Hamlett’s

counterclaim, alleging that Hamlett’s unlawful-detainer claim was barred by the three-year

“peaceable and uninterrupted” possession defense set forth in Arkansas Code Annotated

section 18-61-104 (Repl. 2015). He also alleged that Hamlett’s breach-of-contract claim for

nonpayment of rent in 2014 was barred by the five-year statute of limitations applicable to

written contracts set forth in Arkansas Code Annotated section 16-56-111 (Repl. 2005).

Following a hearing, the circuit court denied Turnbo’s motion to dismiss.

On November 5, the circuit court held a hearing on Hamlett’s unlawful-detainer

claim. Hamlett testified that Turnbo had not paid approximately $15,000 in rent. Several

checks totaling $15,000, signed by Turnbo and given to Hamlett between March and August

1 Turnbo did not tender the outstanding rent balance of $15,000 that Hamlett alleged was due for March through August 2014. Beginning in September 2020, Turnbo did, however, deposit into the court’s registry one payment of $7,500 and three payments of $2,500 (totaling $15,000) to represent the rent due from July 2020 through December 2020.

4 2014, were introduced. It was undisputed that when Turnbo tendered the checks to Hamlett,

he (Turnbo) did not have the funds to cover them. Hamlett testified that because of Turnbo’s

financial difficulty, he held the checks on Turnbo’s promise to make the checks good as soon

as business picked up. According to Hamlett, Turnbo never made the checks good or paid

the unpaid rent, despite Hamlett’s having talked to Turnbo about the outstanding payments

both himself, and through his attorney.

Hamlett also testified that he spoke to Turnbo multiple times about Turnbo’s

obligation to furnish and maintain insurance on the property, but Turnbo still had failed to

do so. An October 16, 2013 letter from Hamlett’s former attorney, Herman Eubanks, to

Turnbo was admitted into evidence. According to Hamlett, this letter was sent as a reminder

to Turnbo of his unfulfilled obligation to insure the property. Hamlett further testified that

he had paid an increase in property taxes in 2017 and 2019 that Turnbo was contractually

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Bluebook (online)
2024 Ark. App. 128, 686 S.W.3d 813, Counsel Stack Legal Research, https://law.counselstack.com/opinion/turnbo-v-hamlett-arkctapp-2024.