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