404 S.W.3d 173
Ark. Ct. App.2012Background
- Bank of America obtained a 2002 judgment against Sammie Jackson and IIMG for $290,359.05 plus interest, later assigned to Buckeye.
- Buckeye filed a 2009 foreclosure action seeking to foreclose its judgment lien on Lot 13, Normanwood Subdivision, Walter being the current owner.
- Chain of title includes: 1999 Ziegler warranty deed to IIM, 2005 IIM quitclaim to Whittington, 2005 State redemption deed to Angela Jackson, 2005 quitclaim by IIM to Whittington, 2007 Walter warranty deed from Whittington.
- Trial evidence included title-company testimony that IIM was not in good standing and that Buckeye’s lien would be discoverable if due diligence were performed.
- Walter moved for directed verdict; trial court granted based on the redemption deed eliminating Buckeye’s lien, and dismissed Buckeye’s complaint with prejudice.
- Appellant Buckeye contends the redemption deed does not extinguish the lien, but the court affirms for other reasons: lien never attached because debtors did not own the property.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did the redemption deed extinguish Buckeye’s lien? | Buckeye asserts lien survived redemption; not extinguished by state deed. | State redemption deed wipes prior encumbrances, including Buckeye’s lien. | Redemption did not extinguish Buckeye’s lien as a matter of law. |
| Did Buckeye prove Walter had notice of the lien? | Buckeye showed title-search negligence could reveal lien. | No proof IIMG/Sammie Jackson owned Walter’s property; lien could not attach. | Lien never attached because debtors did not own the property. |
| Did Buckeye present sufficient evidence to establish ownership chain linking IIMG or Sammie Jackson to the property? | Record implied ownership by debtors through chain of title. | Deeds involving IIM were void; no proper transfer to debtors, thus no lien attachment. | Ownership chain failed; lien could not attach. |
Key Cases Cited
- Gott v. Moore, 218 Ark. 800 (Ark. 1951) (redemption deed does not convey title; extinguishes state’s lien only)
- Mabrey v. Milkman, 208 Ark. 289 (Ark. 1945) (redemption does not transfer ownership)
- Chavis v. Taylor & Co., 211 Ark. 252 (Ark. 1947) (redemption does not establish ownership)
- Meyer v. Snell, 89 Ark. 298 (Ark. 1909) (redemption confirms right to redeem but not ownership)
- Delgado v. Delgado, 2012 Ark. App. 100 (Ark. App. 2012) (affirming dismissal with proper reasoning even if the grounds differ)