Walker v. Stephens

626 S.W.2d 200, 3 Ark. App. 205, 1982 Ark. App. LEXIS 927
CourtCourt of Appeals of Arkansas
DecidedJanuary 20, 1982
DocketCA 81-141
StatusPublished
Cited by38 cases

This text of 626 S.W.2d 200 (Walker v. Stephens) 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
Walker v. Stephens, 626 S.W.2d 200, 3 Ark. App. 205, 1982 Ark. App. LEXIS 927 (Ark. Ct. App. 1982).

Opinions

George K. Cracraft, Judge.

Appellants appeal from a summary judgment order entered by the Circuit Court of Pulaski County which dismissed their actions for personal injuries against appellee, Stanton Owen Stephens, on a finding that their claims had previously been compromised and settled by their then attorney. Appellants contend that as they had offered proof that the compromise was agreed upon without their knowledge or consent, the question of the attorney’s authority was one of fact which should not have been determined on summary motion and that the court further erred in upholding the settlement as to their minor children as same had never been authorized or approved by the Probate Court. We agree.

At the outset we wish to make it clear that the attorney presently representing these appellants did not represent them when the shameful conduct giving rise to this litigation occurred. That attorney has admitted his misconduct and voluntarily surrendered his license to practice law in the State of Arkansas. Due to the nature of the case and the manner in which it was presented, a more extensive than usual recitation of background is deemed necessary for an understanding of our decision.

FACTS

On March 8, 1979, the appellant, Betty Walker, was driving a motor vehicle which collided with one operated by appellee, Stanton O. Stephens. The appellant, Angela Maxwell, and her child Terri, and Mrs. Walker’s two minor children, Roderick and Kimberly, were passengers in the Walker vehicle and all of them suffered personal injuries in that accident.

The appellee was insured against such liability by Allstate Insurance Company. Shortly after the accident an adjuster for Allstate contacted both appellants and was informed that all of them were represented by an attorney in Little Rock. The adjuster then contacted their then attorney requesting estimates on property damage, medical reports and expenses, all of which were furnished by their counsel as the condition of the parties progressed.

Shortly after the accident a settlement for appellant Maxwell’s property damage was agreed upon by counsel and Allstate. Allstate issued its check in settlement of that claim in the amount of $630. No complaint is made here of either the authority of the attorney to make that settlement or the disposition of the funds.

Thereafter and for a considerable period counsel continued to furnish reports and other data to Allstate in settlement negotiations on the personal injury claims of all appellants. The appellant Walker, a member of the armed forces, prior to reporting to her duty station in South Carolina, executed to her then attorney a power of attorney authorizing him to compromise and settle her claim and to receive and endorse any drafts which were received in her behalf. She made the power conditioned upon her approval. There is no indication in the record that this power of attorney was ever furnished to Allstate or that Allstate relied on it in any way.

On July 13 appellants’ then attorney and Allstate agreed upon a settlement of appellant Walker’s claim for $7,400, inclusive of $170 in settlement of the claims of the two minors. Allstate issued its check in that amount payable jointly to the appellant and her then attorney. Mrs. Walker denied that settlement was made with her knowledge, consent or approval. The attorney admitted that the settlement was made without appellant’s knowledge or consent and that he forged the endorsement upon that check and pocketed the proceeds.

On the 13th of August, after negotiation of counsel, the Allstate agent met with appellant Maxwell and her then attorney, at which meeting several offers and counter-offers were rejected. Before concluding that meeting appellant Maxwell and her counsel conferred privately on settlement figures. The attorney then informed the agent that they would settle the claim for no less than $30,000.

On August 14th the representative of Allstate communicated to the attorney an offer to settle the claim of appellant Maxwell for $18,500 and thatof her child for $500. Later that day the attorney informed Allstate that the offer was accepted by her. Her attorney then received from Allstate a check payable jointly to appellant Maxwell, her child and the attorney and two release forms. The release forms were returned to Allstate duly executed by appellant Maxwell. Appellant Maxwell admitted signing the release, but stated that the purpose for which it was being executed had been misrepresented to her. She expected to receive the sum of $25,000 in settlement and did not approve the settlement in lesser amount which was made without her knowledge and consent. The attorney in his affidavit admitted this to be true and that he had forged the endorsements on the settlement check.

Upon learning of the action of their attorney the appellants, Walker and Maxwell, retained their present counsel who filed personal injury suits against the appellee on behalf of the appellants and their minor children, and demanded a trial by jury. Appellee responded by motion to dismiss the complaint under Rule 12 (b), Arkansas Rules of Civil Procedure, asserting that the claims made by appellants had been compromised by their former attorney and that they could not now maintain these actions. Appellants responded that the compromise was void for want of authority on the part of the attorney to compromise the claims of the adult appellants, Walker and Maxwell, and that the claims of the minor children could not be effectively compromised without authorization from the Probate Court as required by law.

At a hearing held on the motion it was agreed by the parties that under the provisions of Rule 12 (b), Arkansas Rules of Civil Procedure, matters outside the pleadings were to be submitted in support of the motion, and the court should therefore treat the matter as a motion for summary judgment and dispose of it under provisions of Rule 56, Arkansas Rules of Civil Procedure. Our rules do so provide and the motion was so disposed of.

At that hearing affidavits and counter-affidavits were introduced and evidence presented to the court establishing those facts heretofore outlined. The court found that the then attorney did have the authority to compromise the claims of his clients, and granted the motion for summary judgment dismissing all of the appellants’ complaints. We agree with the appellants that this was in error.

The principle of law which we must follow in review of summary judgment decisions is well established. On such motions the moving party has the burden of demonstrating that there is no genuine issue of fact for trial and any evidence submitted in support of the motion must be viewed most favorably to the party against whom the relief is sought. Summary judgment is not proper where evidence, although in no material dispute as to actuality, reveals aspects from which inconsistent hypotheses might reasonably be drawn and reasonable men might differ. Hendricks v. Burton, 1 Ark. App. 159, 613 S.W. 2d 609 (1981); Dodrill v. Arkansas Democrat Co., 265 Ark. 628, 590 S.W. 2d 840 (1979); Braswell v. Gehl, 263 Ark. 706, 567 S.W. 2d 113 (1978). The object of summary judgment proceedings is not to try the issues, but to determine if there are any issues to be tried, and if there is any doubt whatsoever the motion should be denied. Trace X Chemical, Inc. v. Highland Resources, Inc., 265 Ark. 468, 579 S.W. 2d 89 (1979); Ashley v.

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Bluebook (online)
626 S.W.2d 200, 3 Ark. App. 205, 1982 Ark. App. LEXIS 927, Counsel Stack Legal Research, https://law.counselstack.com/opinion/walker-v-stephens-arkctapp-1982.