Derrick v. Haynie
2017 Ark. App. 327
| Ark. Ct. App. | 2017Background
- Patricia Derrick rented an office on a month-to-month basis from Ruth Ellen Haynie beginning November 2011 and stored antique-inventory there.
- Derrick was personally served on October 29, 2014 with a written Notice of Termination (signed by Haynie’s attorney) directing her to vacate and remove all personal property by December 1, 2014.
- Derrick did not remove the inventory; she later claimed she was ill and disputes whether she paid rent for November.
- Haynie sold the inventory in early December 2014 (received $3,000 from the subsequent tenant after declining a $1,200 offer from a flea-market owner).
- Derrick sued seeking return of the property or $261,000 in conversion damages; Haynie moved for summary judgment relying on Ark. Code Ann. § 18-16-108, which treats property left after lease termination as abandoned and subject to disposal by the lessor.
- The trial court granted summary judgment for Haynie; the court of appeals affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the termination Notice was proper and lease terminated | Derrick argued the Notice was not appropriate and disputes rent/payment for November | Haynie presented evidence of month-to-month tenancy, prior notice, and Derrick’s receipt of the October 29 Notice directing vacation by Dec. 1 | Court held Notice was proper; no evidence Derrick paid or that tenancy continued past Dec. 1, so lease terminated |
| Whether property left on premises after termination was "abandoned" so Haynie could dispose of it | Derrick argued factual dispute over abandonment and relied on distinctions among lost/mislaid/abandoned property | Haynie relied on Ark. Code Ann. § 18-16-108 declaring property left after lease termination is abandoned and may be disposed without recourse | Court held statute controls: property left after termination is deemed abandoned and Haynie could lawfully dispose of it; no genuine issue of material fact |
Key Cases Cited
- Mitchell v. Lincoln, 366 Ark. 592, 237 S.W.3d 455 (summary-judgment standard)
- Aloha Pools & Spas, Inc. v. Employer’s Ins. of Wausau, 342 Ark. 398, 39 S.W.3d 440 (courts view evidence favorably to nonmoving party on summary judgment)
- Lopez v. United Auto. Ins. Co., 427 S.W.3d 154 (appellate review where facts agreed focuses on legal entitlement)
- Preston v. Stoops, 373 Ark. 591, 285 S.W.3d 606 (de novo review of legal issues)
- Entmeier v. City of Fort Smith, 506 S.W.3d 253 (nonmoving party must "meet proof with proof" to avoid summary judgment)
- Terry v. A.D. Lock, 343 Ark. 452, 37 S.W.3d 202 (discusses categories of found property; distinguished here by controlling statute)
