427 S.W.3d 688
Ark. Ct. App.2013Background
- Newsom and Roberts enter an Arkansas joint venture to farm about 5,100 acres; Newsom provides labor/equipment/expertise, Roberts provides capital; Rabo refinances Roberts’ existing lines but allegedly unaware of Newsom’s involvement; Newsom unpaid crop-related expenses while Roberts seeks financing; July 2010 Rabo loan approved with language about second or best lien; Newsom files suit seeking equitable lien and priority dispute over crop proceeds; circuit court holds Rabo lien valid and superior, Newsom equitable lien lesser, and Roberts’ lender-liability claim defeated by waiver/ release.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Lien priority between Rabo and Newsom | Newsom argues Rabo’s lien is not superior to equitable lien | Rabo asserts its UCC lien is valid and senior | Rabo’s lien is valid and superior; Newsom’s equitable lien subordinated. |
| Roberts’s lender-liability claim and release | Roberts contends release was duress/unconscionable/unsupported by consideration | Rabo argues release was negotiated, voluntary, supported by consideration | Summary judgment upheld; release valid and bars lender-liability claim. |
Key Cases Cited
- First Nat’l Bank of Lewisville v. Bank of Bradley, 96 S.W.3d 773 (Ark. 2003) (description of collateral sufficiency under UCC 4-9-108/B)
- Simmons First Bank of Ark. v. Bob Callahan Servs., Inc., 13 S.W.3d 570 (Ark. 2000) (priority of liens; equitable considerations on appeal)
- Cox v. McLaughlin, 867 S.W.2d 460 (Ark. 1993) (duress standard for contract formation)
- Totem Marine Tug & Barge, Inc. v. Alyeska Pipeline Service Co., 584 P.2d 15 (Alaska 1978) (duress/real-world context of releases in limited cases)
- Sims v. First Nat’l Bank, 590 S.W.2d 270 (Ark. 1979) (duress and unconscionability standards)
- Litten v. Jonathan Logan, Inc., 286 A.2d 913 (Pa. Super. 1972) (release validity context in contract disputes)
- Adkinson v. Kilgore, 970 S.W.2d 327 (Ark. App. 1998) (equitable lien principles and unjust enrichment constraints)
- Feagin v. Jackson, 419 S.W.3d 29 (Ark. App. 2012) (appellate standard for equitable relief)
- Bank of Lewisville v. Bank of Bradley, N/A (N/A) (relevance of collateral description in UCC filing (cited as supporting authority))