5:25-bk-70138
Bankr. W.D. Ark.Aug 14, 2025Background
- Debtor Ernest Joe Neil entered into a real estate contract on August 25, 2022, agreeing to sell property to creditors Danny and Rebecca Hames.
- The contract called for closing on September 30, 2022, where Neil would deliver an executed deed; Neil did not attend the closing or sign the deed.
- Creditors filed suit in state court seeking specific performance; no specific performance was ordered before Neil filed for Chapter 13 bankruptcy on January 29, 2025.
- Neil moved in bankruptcy court to determine the nature of the contract and reject it as executory; creditors objected and sought dismissal or relief from stay.
- Summary judgment was sought by Neil on facts surrounding the non-delivery and non-acceptance of the deed.
- The case's outcome hinges on whether the contract was finalized under Arkansas law despite no deed being delivered or accepted.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether debtor delivered a deed to creditors | Neil: No delivery ever occurred | Hames: Admit no signed or delivered deed | Court finds as a fact there was no delivery |
| Whether creditors accepted a deed | Neil: Creditors never accepted a deed | Hames: Admit deed never signed; argue legal dispute over 'acceptance' | No genuine factual dispute; no acceptance |
| Presumption of acceptance of deed under Arkansas law | Neil: No presumption without delivery | Hames: Would have accepted if delivered | No presumption arises without delivered deed |
| Whether contract was finalized under Arkansas law | Neil: Not finalized absent delivered/accepted deed | Hames: Dispute legal impact; do not concede contract incomplete | Court declines to hold contract not finalized |
Key Cases Cited
- Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574 (summary judgment standards)
- Celotex Corp. v. Catrett, 477 U.S. 317 (summary judgment burden-shifting)
- Graham v. Suddeth, 133 S.W. 1033 (Ark. 1911) (requirements for deed delivery and acceptance)
- Adickes v. S.H. Kress & Co., 398 U.S. 144 (standard for non-movant’s obligations on summary judgment)
- Butner v. United States, 440 U.S. 48 (state law governs property interests in bankruptcy)