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J.B. Hunt, LLC v. Thornton
2014 Ark. 62
| Ark. | 2014
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Background

  • Hunt, a judgment creditor, seeks to attach the Thorntons’ contingent trust distributions to satisfy a $12.7M judgment.
  • Thorntons are trustees and life beneficiaries of five charitable-remainder trusts; distributions are quarterly and contingent on survival.
  • Hunt filed an attachment action under Ark. Code Ann. § 16-66-418 to reach future distributions and named the trusts’ custodian.
  • The circuit court consolidated Hunt’s action with related proceedings; it dismissed Hunt’s complaint for failure to state a claim under Rule 12(b)(6).
  • The court also sustained subsequent writs of garnishment for other creditors; Hunt appealed the dismissal and the garnishments.
  • The majority affirmed the dismissal; the dissent would allow a creditor’s bill under § 16-66-418 to reach the trusts’ future distributions.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether § 28-73-501 permits attachment of future distributions Hunt argues attachable present/future distributions exist Appellees argue attachment not permissible under facts Affirmed; future distributions cannot be reached by attachment under § 28-73-501 under these facts.
Whether § 16-66-418 is proper when garnishment fails Hunt contends § 16-66-418 provides equitable remedy when other remedies fail Appellees contend § 16-66-418 is inappropriate here Affirmed; § 16-66-418 not applicable given the contingent nature of distributions.
Whether Miller v. Maryland Casualty Co. supports a creditor’s bill here Hunt relies on Miller to reach a debtor’s trust interest by creditor’s bill Appellees distinguish Miller as inapplicable to these facts Affirmed; Miller does not control; distributions are contingent and not currently reachable.
Whether Cummings v. Fingers supports equitable attachment in this context Hunt cites Cummings to justify equitable attachment Appellees argue Cummings is distinguishable Affirmed; Cummings does not authorize this remedy here.
Whether the circuit court properly dismissed the action Hunt contends dismissal too broad and alternative remedies exist Appellees maintain complaint fails to state a claim under the statute Affirmed; dismissal was not an abuse of discretion.

Key Cases Cited

  • Miller v. Maryland Casualty Co., 207 Ark. 312 (1944) (creditor’s bill may reach a debtor’s trust interest when regular process is insufficient)
  • Thompson v. Bank of Am., 356 Ark. 576 (2004) (garnishment reaches debtor’s property; contingent future payments not garnishable)
  • Cummings v. Fingers, 296 Ark. 276 (1988) (equitable attachment appropriate when no other legal remedy)
Read the full case

Case Details

Case Name: J.B. Hunt, LLC v. Thornton
Court Name: Supreme Court of Arkansas
Date Published: Feb 13, 2014
Citation: 2014 Ark. 62
Docket Number: CV-13-692
Court Abbreviation: Ark.