443 S.W.3d 574
Ark. Ct. App.2014Background
- Thompson filed foreclosure against SMG on January 10, 2013 for a loan to Cedar Break and a mortgage securing the indebtedness on property in Randolph County.
- Cedar Break loaned $47,500; promissory note signed by Wallis (agent for Cedar Break, now deceased) due March 31, 2011.
- Cedar Break conveyed the property to SMG by warranty deed on May 4, 2011, securing Thompson’s loan.
- Foreclosure complaint sought judgment in rem for $47,500 plus interest, fees, and costs, with eventual sale if unpaid.
- SMG’s answer on February 14, 2013 was filed by Shirley Matthews, a nonlawyer, disputing claims and alleging unlawful acquisition of the deed and agreement without her permission.
- Foreclosure hearings occurred April 8, 2013 (first, with a recusal and transfer) and April 22, 2013 (second); Matthews requested a continuance to hire counsel, which the court denied.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether denial of a continuance to permit an unrepresented corporation to obtain counsel was an abuse of discretion | SMG argues continuance was needed due to unauthorized practice by Matthews and corporate representation issues. | Thompson contends Matthews could be admonished but no continuance was warranted since already continued once. | Yes; denial was an abuse of discretion and the matter is remanded. |
Key Cases Cited
- Hill v. Ark. Dep’t of Human Servs., 2013 Ark. App. 760 (Ark. Ct. App. 2013) (good-cause standard for continuances)
- Ark. Bar Ass’n v. Union Nat’l Bank, 224 Ark. 48, 273 S.W.2d 408 (Ark. 1954) (corporate representation through licensed attorney required)
- Nisha, LLC v. Tribuilt Constr. Grp., LLC, 2012 Ark. 130, 388 S.W.3d 444 (Ark. 2012) (unauthorized practice of law by a corporation is serious)
- Roma Leathers, Inc. v. Ramey, 68 Ark. App. 1, 2 S.W.3d 82 (Ark. Ct. App. 1999) (unauthorized practice of law by non-attorney representative)
- Ford Motor Co. v. Nuckolls, 320 Ark. 15, 894 S.W.2d 897 (Ark. 1995) (error of law can constitute abuse of discretion)
- Crowder v. Flippo, 263 Ark. 433, 565 S.W.2d 138 (Ark. 1978) (abuse of discretion context in trial rulings)
- Downum v. Downum, 101 Ark. App. 243, 274 S.W.3d 349 (Ark. Ct. App. 2008) (continuance and representation issues considered)