Stokes v. Stokes
2016 Ark. 182
| Ark. | 2016Background
- In 1999 George and his wife executed and recorded a warranty deed conveying Chicot County farmland to their son Mason and grandson George II as tenants in common; George later recorded a power of attorney (POA) appointing himself to act for Mason and George II.
- Mason and George II revoked the POA in 2007 and recorded the revocations.
- In October 2009 George recorded a quitclaim deed purporting to transfer the same farmland back to himself, claiming to act under the earlier POA.
- Mason sued in 2010 to quiet title, to void the 2009 quitclaim deed, and for related equitable relief; George counterclaimed seeking to set aside the 1999 warranty deed.
- The circuit court: (a) granted summary judgment voiding the 2009 quitclaim deed (finding the POA revoked and/or George exceeded authority), (b) after bench trial denied George’s counterclaim and upheld the 1999 warranty deed as unambiguous, and (c) awarded Mason attorney’s fees under Ark. Code Ann. § 16-22-308 (later reduced).
- On appeal the Arkansas Supreme Court affirmed the rulings on jury trial right, the 1999 warranty deed, and the 2009 quitclaim deed, but reversed the attorney’s- fees award as not authorized by § 16-22-308 in this quiet-title/unjust-enrichment action.
Issues
| Issue | Plaintiff's Argument (George) | Defendant's Argument (Mason) | Held |
|---|---|---|---|
| Whether George was denied a constitutional jury trial | Jury trial on legal claims should precede equitable adjudication to preserve right | Setting aside deeds and accounting are equitable; no right to jury on equitable claims | Court: No violation—claims were equitable; no right to jury attached |
| Validity of 1999 warranty deed; parol-evidence admissibility | Deed was part of a larger oral agreement/condition; parol evidence should be allowed to show delivery/condition | Deed is complete, unambiguous, recorded, and presumption of delivery; parol evidence barred | Court: Deed unambiguous and valid; parol-evidence rule barred extrinsic terms; counterclaim denied |
| Validity of 2009 quitclaim deed executed by George under POA | Genuine issue of fact exists whether POA remained effective and whether George had authority to retake title | POA was revoked in 2007; George offered no proof of valid authority and breached fiduciary duty/self-dealt | Court: Summary judgment proper; quitclaim void because POA revoked and/or George exceeded authority |
| Entitlement to attorney’s fees under Ark. Code Ann. § 16-22-308 | Fees allowed because deed is a contract and litigation is based on contractual obligations | Action is a quiet-title/unjust-enrichment action, not a breach-of-contract suit covered by statute | Court: Reverse fee award—§ 16-22-308 does not authorize fees for this quiet-title/unjust-enrichment litigation |
Key Cases Cited
- First Nat’l Bank of DeWitt v. Cruthis, 360 Ark. 528 (discusses jury-trial right after merger of law and equity)
- Duke v. Shinpaugh, 375 Ark. 358 (2009) (set-aside of deed where agent acted under undue influence/exceeded POA authority)
- Crowder v. Crowder, 303 Ark. 562 (deed requires delivery; presumption from recording/possession may be rebutted)
- Parker v. Lamb, 263 Ark. 681 (recording a deed drafted by grantor raises presumption of delivery)
- Childs v. Adams, 322 Ark. 424 (fees under § 16-22-308 may be available when breach-of-contract actions seek equitable remedies)
