Worden v. Crow

427 S.W.3d 143, 2013 Ark. App. 234, 2013 WL 1457837, 2013 Ark. App. LEXIS 239
CourtCourt of Appeals of Arkansas
DecidedApril 10, 2013
DocketNo. CA 12-807
StatusPublished
Cited by3 cases

This text of 427 S.W.3d 143 (Worden v. Crow) 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
Worden v. Crow, 427 S.W.3d 143, 2013 Ark. App. 234, 2013 WL 1457837, 2013 Ark. App. LEXIS 239 (Ark. Ct. App. 2013).

Opinion

WAYMOND M. BROWN, Judge.

| Appellant appeals from the trial court’s judgment in favor of and award of attorney’s fees to the appellees. On appeal, appellant argues that (1) the circuit court’s findings were clearly erroneous or clearly against the preponderance of the evidence when it found in favor of appellees, and (2) the trial court’s award of attorney’s fees should be reversed if we reverse the trial court’s decision. We affirm.

In November 1995, appellant entered into a lease agreement with Frank and Ruth Crow, who were trustees of the Frank M. Crow Revocable Trust and Ruth F. Crow Revocable Trust (the Crow Trusts), respectively. The lease allowed appellant to lease a certain building for a period of five years. The property was owned by the Crow Trusts. The lease agreement included a clause requiring that appellant receive written consent before she could | ¡.assign her lease.1 In April 1998, after receiving prior written consent, appellant assigned her lease to Community First Bank (CFB).

In March 2001, appellant and Frank M. Crow2 entered into a second lease (Wor-den Lease) for a term often years, beginning November 1, 2005, and ending October 30, 2015, with an option to renew for a second term often years. This lease also required that appellant receive prior written consent before she could assign her lease.3 In September 2001, Frank M. Crow entered into a lease with CFB for a term of fifty years, from October 1, 2001, to September 30, 2051. He did so in his capacity as trustee and successor trustee of the Crow Trusts. The lease included all assignments on the property, which included appellant’s lease. CFB was unaware of appellant’s option to renew her lease for an additional ten-year term. Accordingly, Frank M. Crow and CFB executed an addendum to the trusts’ lease agreement with CFB that reduced CFB’s lease payment by $1,200.00 per month beginning November 1, 2015.4

lain 2008, appellant attempted to receive prior written consent from CFB to assign her lease to Steve Stone and his company, Stone Financial and Tax Center, PLLC (Stone Financial). In September 2008, CFB advised appellant, via a letter from its attorney, that it believed it had no authority to consent to the assignment and that appellant should obtain consent from the Crow Trusts. Appellant contacted ap-pellee Frank Steven Crow (Steve Crow)5 to obtain consent as he was the successor trustee to both of the Crow Trusts; Frank M. Crow had died. Appellee Steve Crow never gave consent.6

Appellant sold her practice and assigned her lease to Steve Stone. In September 2009, appellee Steve Crow and CFB entered into a lease agreement for the reassignment of appellant’s lease to the Crow Trusts.7 Appellee Steve Crow terminated appellant’s lease in his capacity as successor trustee to the Crow Trusts in his March 2010 complaint against appellant for violating her lease agreement’s requirement that she obtain written consent prior to assigning her lease.8

|4The trial court entered judgment in favor of the Crow Trusts on June 8, 2012, and awarded attorney’s fees to the Crow Trusts in an order filed July 19, 2012. This appeal followed.9

Appellant first argues that the circuit court erred in finding that her sublease to Stone Financial was in violation of her lease with the Crow Trusts because she had a valid, signed consent from Frank M. Crow. Our standard of review on appeal from a bench trial is not whether there was substantial evidence to support the finding of the circuit court, but whether the circuit court’s findings were clearly erroneous or clearly against the preponderance of the evidence.10 A finding is clearly erroneous when, although there is evidence to support it, the reviewing court on the entire evidence is left with a firm conviction that an error has been committed.11 Facts in dispute and determinations of credibility are within the province of the fact-finder.12 We exercise de novo review of the court’s application of legal principles to those facts.13

| ¿Troutman Oil Co., Inc. v. Lone, the case upon which appellant bases this argument, was not about an assignment and does not, as asserted by appellant, stand for the premise that a lessor’s written consent to allow a lessee to sublease is valid even without mention of consideration.14 Troutman dealt with whether an option to renew was void and whether that option was properly exercised where there was no prior written notification of intent to exercise that option.15 The issue in that case regarding the appellee’s sublease was only mentioned in passing as it was the grounds upon which the appellant terminated his contract with the appellee as prior written consent was required by their lease agreement.16 Other than this case, which is not on point, appellant gives no authority for this argument. We have repeatedly made clear that we will not address arguments that are not sufficiently developed and lack citation to authority.17 Therefore, because appellant submits no authority for her argument that consideration is not required when modifying an existing contract, we do not address it. However, we must address whether Frank M. Crow’s signed consent was valid before we can discuss whether the trial court erred in finding that appellee Steve Crow validly exercised his right to terminate the lease.

^Consideration is any benefit conferred or agreed to be conferred upon the promisor to which he is not lawfully entitled, or any prejudice suffered or agreed to be suffered by the promisor, other than such as he is lawfully bound to suffer.18 Under Arkansas law, there must be additional consideration when the parties to a contract enter into an additional contract.19 When no benefit is received except that in which the obligee was entitled to under the original contract, and the other party to the contract leaves with nothing more than what he was already bound for, there is no new consideration for the additional contract.20

The weight of authority is that a subsequent agreement that purports to modify or change an existing agreement must be supported by consideration other than the consideration involved in the existing agreement.21 Where there is no new consideration | presented for the bargained for item, “the new agreement is void and of no effect for lack of mutuality of consideration.”22

We find that the consent form signed by Frank M. Crow lacked consideration where it conferred a benefit on appellant— being able to sublease her assignment without prior consent — with no benefit being conferred upon the Crow Trusts. The Crow Trusts’ position had not changed beyond what they initially contracted to do. We find that the signed consent form was not supported by valid consideration and was therefore not valid. Because the consent was invalid, appellee Steve Crow had a right to terminate appellant’s lease. We now address whether appellee Steve Crow validly exercised his right to terminate the lease.

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Bluebook (online)
427 S.W.3d 143, 2013 Ark. App. 234, 2013 WL 1457837, 2013 Ark. App. LEXIS 239, Counsel Stack Legal Research, https://law.counselstack.com/opinion/worden-v-crow-arkctapp-2013.