O'Neal v. Love
2015 Ark. App. 689
| Ark. Ct. App. | 2015Background
- Property in Pulaski County originally owned by Herbert Love; in 1995 Herbert and his wife Gloria executed a warranty deed to themselves that was not recorded until 2014.
- In 1999 Herbert executed a quitclaim deed conveying (part of) the property to his sister, Ethel Love; Ethel then occupied the property, paid taxes and made improvements.
- Herbert died in 2004; in June 2014 Gloria executed a quitclaim deed conveying her interest to Adrianne O’Neal (Herbert’s daughter), who promptly sought to evict Ethel.
- Adrianne sued for unlawful detainer; Ethel counterclaimed to quiet title and pled adverse possession, payment of taxes since 1999, and good-faith purchaser defenses.
- At bench trial the court found the 1995 warranty deed created a tenancy in common between Herbert and Gloria, reformed the 1999 deed to include both lots, and quieted title as tenants in common (Adrianne and Ethel as equal owners).
- On appeal the Arkansas Court of Appeals held the trial court erred in treating the 1995 deed as creating a tenancy in common (presumption favors tenancy by the entirety) and reversed and remanded for further factual determination on purchaser-in-good-faith, adverse possession, and unlawful-detainer issues; it affirmed evidentiary rulings.
Issues
| Issue | Plaintiff's Argument (O’Neal) | Defendant's Argument (Ethel) | Held |
|---|---|---|---|
| Nature of 1995 deed: tenancy by entirety v. tenancy in common | 1995 deed created tenancy by entirety despite wording; presumption favors entirety when title placed in husband and wife | Trial court: deed did not expressly create tenancy by entirety, so it created tenancy in common | Court: Reversed trial court — presumption of tenancy by entirety applies; 1995 deed should be treated as creating tenancy by entirety |
| Effect of late recording / bona fide purchaser status of Ethel | Adrianne: Gloria’s 1995 interest (as spouse) survives and supports unlawful-detainer claim | Ethel: She was a good-faith purchaser for value without notice of the unrecorded 1995 deed; late recording may defeat Gloria’s claim | Court: Trial court failed to decide Ethel’s good-faith purchaser defense; remanded for factfinding on whether Ethel’s status defeats Gloria/Adrianne’s interest |
| Reformation of 1999 quitclaim deed to include Lots 7 & 8 | Adrianne: Reformation improper; 1999 deed’s legal description controls | Ethel: Deed should be reformed to reflect the street address and intent to convey whole property | Court: Trial court’s reformation was not addressed on merits due to other errors; remanded for reconsideration with correct legal framework |
| Admissibility of 1995 affidavit/letter and late-recorded deed | Adrianne: Letter and 1995 deed were admissible to show intent and title; hearsay exception applies to letter | Ethel: 1995 affidavit hearsay and improperly admitted; deed inadmissible because unrecorded/ signature challenged | Court: Affirmed admission — deed admissible (validity/weight, not admissibility); letter admissible under Ark. R. Evid. 803(3) and authentication rules not violated |
Key Cases Cited
- Weir v. Brigham, 218 Ark. 354, 236 S.W.2d 435 (Ark. 1951) (sets out common-law unities required for tenancy by entirety)
- Harmon v. Thompson, 223 Ark. 10, 263 S.W.2d 903 (Ark. 1954) (tenancy by entirety may be created where husband conveys interest to himself and wife)
- Lofton v. Lofton, 23 Ark. App. 203, 745 S.W.2d 635 (Ark. Ct. App. 1988) (presumption of tenancy by entirety where title placed in both spouses)
- Foster v. Schmiedeskamp, 260 Ark. 898, 545 S.W.2d 624 (Ark. 1977) (words ‘husband and wife’ not required to create tenancy by entirety)
- Curtis v. Patrick, 237 Ark. 124, 371 S.W.2d 622 (Ark. 1963) (same principle regarding presumption)
- Greenwood v. Wilson, 267 Ark. 68, 588 S.W.2d 701 (Ark. 1979) (admitting declarations of intent under hearsay exception)
- Honey v. Hickey, 26 Ark. App. 99, 760 S.W.2d 81 (Ark. Ct. App. 1988) (authority on admission of intent statements under Rule 803(3))
- Martindale v. Estate of Martindale, 82 Ark. App. 22, 110 S.W.3d 319 (Ark. Ct. App. 2003) (presumption discussion where spouses’ names appear on title)