Heinrich v. Anders
2017 Ark. App. 413
| Ark. Ct. App. | 2017Background
- In May 2009 Allison and Larry Heinrich contracted to buy real property from David Myhand, paid the purchase price in full by installment, and were entitled to a warranty deed conveying clear title.
- On July 8, 2010 David executed a warranty deed conveying the property to Seth Heinrich (son), not to Allison and Larry.
- An unsigned, unrecorded assignment authorizing conveyance to Seth was produced; Allison had executed a durable power of attorney in favor of Larry in 2001 but revoked it in July 2011.
- Allison sued David, Larry, and Seth for breach of contract and for fraudulent transfer; the circuit court found David breached, the conveyance to Seth was fraudulent, the assignment was unsigned/unrecorded, and the power of attorney was not used to effect the transfer.
- The court ordered David to convey to Allison and Larry as tenants in common, Seth to quitclaim any interest, and the deed to Seth to be stricken; Larry and Seth appealed raising res judicata and the power-of-attorney issues.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether res judicata (claim preclusion) barred Allison's suit | Allison: prior divorce decree did not resolve property or breach claim | Larry/Seth: divorce proceedings disposed of property issues; suit barred | Held: No. Divorce did not adjudicate this claim; David and Seth not parties; property belonged to Seth, so res judicata did not apply |
| Whether Allison's 2001 durable power of attorney was used to convey title to Seth | Allison: POA was not used; she never authorized conveyance or signed assignment | Larry/Seth: Larry had authority under POA to sign assignment for Allison | Held: No. Court found assignment unsigned/unrecorded, no evidence Larry signed as attorney-in-fact; not clearly erroneous to conclude POA was not used |
Key Cases Cited
- Francis v. Francis, 343 Ark. 104 (discussing conversion of 12(b)/(c) motion to summary judgment when extrinsic matters considered)
- Ruth R. Remmel Revocable Tr. v. Regions Fin. Corp., 369 Ark. 392 (standard for reviewing summary-judgment-related legal questions)
- Pentz v. Romine, 75 Ark. App. 274 (elements of claim-preclusion/res judicata)
- El Paso Prod. Co. v. Blanchard, 371 Ark. 634 (fact-finder’s province over credibility and disputed facts)
- Waddell v. Ferguson Home Builders, LLC, 513 S.W.3d 271 (standard of review for civil bench trials)