Lead Opinion
|, This appeal arises from a dispute between a father and his son over the ownership of Chicot County farmland. The father, appellant George M. Stokes, Sr. (“George”), appeals an order of the Chicot County Circuit Court, denying and dismissing George’s motion to set aside title in the farmland and awarding attorney’s fees to his son, appellee Mason F. Stokes (“Mason”). For reversal, George argues that the circuit court erred (1) by denying his constitutional right to trial by jury, (2) by ruling that a 1999 warranty deed was valid, (3) by ruling that no genuine issue of material fact existed as to a 2009 quitclaim deed, and (4) by awarding attorney’s fees to Mason. Pursuant to Arkansas Supreme Court Rule 1 — 2(d) (2015), this case was transferred from the court of appeals to this court because it involves an issue concerning the interpretation of the Arkansas Constitution. We affirm in part and reverse in part.
|2I. Facts
In the 1970s, George and his wife, Penelope, acquired farmland in Chicot County. During the 1990s, their son, Mason, requested that some of the farmland be placed in his name. On April 12, 1999, George and his wife transferred ownership of the Chicot County farmland to Mason and George II, Mason’s son, as tenants in common by warranty deed. George recorded the deed on September 27, 1999. After executing the warranty deed, Mason and George II appointed George as their power of attorney to transact business on their behalves. On April 13, 2000, George recorded the power of attorney.
In 2007, Mason and George II revoked the power of attorney and recorded their revocations with the Chicot County Circuit Clerk. Subsequently, George became concerned about Mason’s personal life, health, and stability. In October 2009, George executed and recorded a quitclaim deed, transferring the disputed farmland in Chi-cot County back to himself by purporting to act as the power of attorney for Mason and George II.
On November 16, 2010, Mason and George II filed a petition to quiet title to the farmland.
The circuit court reserved ruling on George’s counterclaim and later denied it. In a letter order, the circuit court wrote,
[George] executed a warranty deed to his son and grandson, in what he admitted was an attempt to avoid probate of at least some of his estate and to avoid or evade some possible estate tax. ■When he did not die [from a stroke] as ■he contemplated, he wanted to undo it all[,] ... and at the end of the ten years [after executing his warranty'deed] he wanted to renege on the transaction through a half bogus and half revoked power of attorney.... [He] has failed to prove any grounds for setting it aside.
The circuit court entered an order, ruling that the 1999 warranty deed was a valid deed and transferred a one-half interest in the farmland to Mason; that George failed to prove any grounds for setting aside the 1999 warranty deed; that his counterclaim was denied and dismissed. The court found that Mason and George each owned an undivided one-half interest in the farmland as tenants in common. The court authorized distribution of one-half of the crop income to Mason. On January 26, 2015, the circuit court entered a final decree ordering distribution of the crop proceeds. George timely filed a notice of appeal;
Mason filed a motion for attorney’s 'fees seeking fees and costs in the amount of $63,021.81 pursuant to Arkansas Code Annotated section 16-22-308 (Repl. 1999). The circuit court found that the fee request was reasonable but that a portion of the fees was caused by Mason’s own actions, and as. a result, the circuit court reduced the fee request by 14one-third and awarded Mason $41,972.52. George filed a timely notice of appeal.
II.. Law and Equity
For his first point on appeal, George argues that the circuit court impaired his constitutional right to a trial by jury by adjudicating the equitable claims before the legal claims. Specifically, George had filed a demand for jury trial on “all pending legal claims prior to final determination of Plaintiffs’ equitable claims.”
The. applicable standard of review is that any claim to a jury trial is reviewed de novo on appeal. First Nat’l Bank of DeWitt v. Cruthis,
Amendment 80 to the Arkansas Constitution merged the chancery and circuit courts. See Cruthis,
Traditionally, setting aside a deed has been an equitable remedy in Arkansas. Wood v. Swift,
III. Warranty Deed
For his second point on appeal, George argues that the circuit court erred in validating the 1999 warranty deed.
The relevant facts pertaining to George’s argument are as follows. The 1999 warranty deed states that consideration was “for .,. the sum of Ten Dollars ($10.00) and the job as farm manager for ten (10) years, or until death.” However, George later sought to set aside the 1999 warranty deed by offering evidence of additional consideration that was not contained in the 1999 warranty deed.. After considering the evidence, the circuit court granted partial summary judgment:
3. That the warranty deed executed by George M. Stokes, Sr. and Penelope Stokes (now deceased) on April 12, 1999 and recorded on September 27, 1999, transferring the disputed farm land in Chicot County to Mason Stokes and George M. Stokes, II, as tenants in common, is hereby found to be | .¿unambiguous, and not subject to parol evidence as to its meaning.
The circuit court also ruled that “the claims of George M. Stokes, Sr., regarding consideration for, and delivery of, the 1999 warranty deed pursuant to his counterclaim” would be determined in a bench trial. Subsequently, the circuit court denied and dismissed George’s counterclaim and ruled that the warranty deed was a valid deed.
Because the circuit court disposed of George’s counterclaim concerning the 1999 warranty deed after trial, our standard of review on appeal is whether the circuit court’s findings were clearly erroneous or clearly against the preponderance of the evidence. Cochran v. Bentley,
The parol-evidence rule prohibits introduction of extrinsic evidence, parol or otherwise, which is offered to vary the terms of a written agreement. First Nat’l Bank v. Griffin,
Here, George’s 1999 warranty deed was complete on its face, unambiguous, and conveyed the farmland to Mason. We agree with Mason’s contention' that any additional evidence — George’s power of attorney and alleged authorization to retake title of the farmland, which George claims was a condition precedent to the deed— took place after the 1999 conveyance. Further, George’s recording of the 1999 warranty deed, which he drafted himself, raises a presumption of delivery to Mason. See, e.g., Parker v. Lamb,
IV. Quitclaim Deed
For his third point on appeal, George argues that the circuit court erred in- granting partial summary judgment and, specifically, in ruling that the 2009 quitclaim deed was void. George maintains that the record demonstrated a genuine .issue of material fact on Mason’s power of attorney and on his “right to re-take title to the property.”
The law is well settled regarding the standard of review used by this court in reviewing a grant of summary judgment. Quarles v. Courtyard Gardens Health & Rehab., LLC,
This court has held that a person holding a power of attorney has a fiduciary duty to the principal. Dent v. Wright,
The instant case presents facts similar to those in Duke. Here, the circuit court found the quitclaim deed “void and of no effect” because the power of attorney had been revoked, and ultimately, the circuit court denied George’s counterclaim. Based on the evidence, George failed to provide proof with proof in demonstrating the existence of a material issue of fact. He did not offer evidence that (1) he held a valid power of attorney to execute the quitclaim deed, and (2) even if the power of attorney was valid, he did not breach his | j(fiduciary duty by executing the 2009 quitclaim deed and by transferring the farmland back to himself Thus, we cannot say that the circuit court erred in granting summary judgment and in ruling that the 2009 quitclaim deed was void.
V. Attorney’s Fees
For his fourth point on appeal, George argues that the circuit court erred in awarding attorney’s fees to Mason pursuant to Arkansas Code Annotated section 16-22-308.
This court follows the American rule, which requires every litigant to bear his or her attorney’s fees absent statutory authority or a contractual agreement between the parties. Carter v. Cline,
In any civil action to recover on an open account, statement of account, account stated, promissory note, bill, negotiable instrument, or contract relating to the purchase or sale of goods, wares, or merchandise, or for labor or services, or breach of contract, unless otherwise provided by law or the contract which is the subject matter of the action, the prevailing party may be allowed a reasonable attorney’s fee to be assessed by the court and collected as costs.
This court has stated that a warranty deed should be considered a contract between a grantor and a grantee. See Schnitt v. McKellar,
| uThe statute permits attorney’s fees in foreclosure actions, see, e.g., Hudson v. Hilo,
George maintains that section 16-22-308 is inapplicable because a breach-of-contract claim was not asserted. We agree with his contention for the following two reasons. First, this court looks to George’s complaint as a whole and concludes that the litigation between the parties does not concern a breach of a contract between George and Mason. Moreover, the case at bar was not based on contract at all; instead, the complaint alleged a quiet-title -action. We look to the pleadings to determine the nature of the claim. See, e.g., L.L. Cole & Son, Inc. v. Hickman,
Second, Mason’s prayer for relief included a monetary claim based on unjust enrichment. Quantum .meruit is a claim for unjust enrichment that does not involve the enforcement of contract. Sisson v. Ragland,
Affirmed in part; reversed in part.
Notes
. The circuit court later granted a joint motion to dismiss George II, a minor. For this reason, we will refer only to Mason.
. At the circuit court and to this court, George cites Dairy Queen, Inc. v. Wood,
. When Arkansas had separate courts of law and equity, the clean-up doctrine provided that a court of chancery or equity could obtain jurisdiction over matters not normally .within its purview. Douthitt v. Douthitt,
Concurrence Opinion
concurring in part and dissenting in part.
I agree with the majority’s holdings on all of the points on appeal with the exception of its decision that the circuit court erred in awarding attorney’s fees to Mason. The decision to |13award attorney’s fees and the amount to award is discretionary and will be reversed only if the appellant can' demonstrate that the circuit court abused its considerable discretion. Harnil & Sutter, P.L.L.C. v. Kosin,
This court has stated many times that a deed is considered a contract. See Schnitt v. McKellar,
Moreover, since the codification of the statute, the Arkansas Court of Appeals has acknowledged our well-established- case law that says a deed is a contract and has applied it in the context of awarding attorney’s fees under section 16-22-308, See Lawrence v. Barnes,
Throúghout this case, George has made the claim that this action is based on an oral contract between him and Mason that was not integrated into the 1999 warranty deed. | ^George argues in his appeal brief that there was an “oral agreement” between George and Mason that George could take back the property at any time. In his counterclaim, George stated,
9. The Petition’s allegations are repugnant to, and in irreconcilable conflict ■ with, the parties’ original agreement, or the conditions, promises or consideration required by [George] pri- or to executing the original Warranty Deed. Accordingly, the Warranty Deed should be cancelled or set aside due to failure of consideration.
George stated in his motion to dismiss that Mason’s petition “shows a failure of consideration for the oiiginal Warranty Deed, or the breach of a condition imposed by the Warranty Deed.” (Emphasis addedl)
Furthermore, in his brief in support of his response to Mason’s motion for summary judgment, George very clearly acknowledged that this matter is based on a breach of contract, stating,
Plaintiffs should be estopped from -breaching, through the allegations of their Petition, the farm manager arrangement they accepted prior to Defendant’s execution of the 1999 Warranty Deed.
In his brief in support of his response to Mason’s amended motion for summary-judgment, George set forth his argument that he should be able to use parol evidence, stating,
Evidence of a parol agreement that a written agreement (in this case, the 1999 deed) is being conditionally' delivered constitutes an exception to the parol evidence rule_ Wheré an oral agreement has been acted upon and rights have accrued under it, the subsequent receipt of a written contract (the deed) varying from the oral agreement does not prevent proof of the oral agreement.
Moreover, at the summary judgment hearing, George’s attorney argued that,' under the parol-evidence rule, the 1999 deed was a “smaller part of a larger agreement.”
| ^George has consistently made the claim that this action is based on a contract and does not “merely [have] some connection to a contract” as stated by the majority. George not only admits that the 1999 deed itself is a contract; he acknowledges that the claims he makes are based on an oral contract. He does not make the assertion that the case is solely a quiet-title action until he reaches the issue of attorney’s fees.
Mason successfully asserted and defended his title to the farmland. While Mason received equitable relief when the court set aside the quitclaim deed and denied George’s request to set aside the 1999 warranty deed to -the farmland, the suit was clearly based in contract. Mason defended his title against George’s claim that Mason breached an oral contract that was not included in the 1999 warranty deed. Because the record is clear that the suit was based in contract, I cannot say that the circuit court abused its discretion in awarding Mason attorney’s fees. Accordingly, -I would affirm the circuit court on all points. ■
Wood, J-., joins.
Dissenting Opinion
dissenting.
The majority .erroneously concludes that the circuit, court properly refused to consider the parol evidence relating to the purported delivery of the 1999 warranty deed. Further, the majority errs in concluding that there were no genuine issues of material fact regarding whether the power of attorney given in 2000 to George M. Stokes, Sr., by Mason F. Stokes was revoked in 2007 or whether the power , of attorney authorized.George to execute the quitclaim deed. Thus, I respectfully dissent.
As the majority , notes, in the order granting partial summary judgment, the circuit hficourt stated that, the claims regarding George’s delivery of the 1999 warranty deed would be tried at the bench trial. The circuit court, however, further stated the 1999 warranty deed was unambiguous and not subject to parol evidence as to its meaning. . Thus, while acknowledging in thq, order that there were issues to be tried relating to the delivery of the .1999 warranty deed, the circuit court nevertheless precluded the admissibility of the evidence relating to. its purported delivery. In Crowder v. Crowder,
Further, the majority errs in affirming the circuit court’s conclusion that there were no genuine issues of material fact to be decided on whether the 2009 quitclaim deed was void |17and of no effect. George executed the 2009 deed pursuant to the power of attorney given by Mason. As stated in the 2000 power of attorney, it could be revoked by “written notification of the revocation, which notice shall not be considered binding unless actually received.” In his deposition testimony, George testified that he was unaware of Mason’s attempt to revoke the power of attorney until 2010. Thus, a question of fact remained regarding whether Mason gave George written notice of the purported revocation in 2007. Also, a question of fact remained regarding whether George could properly deed the property back to himself under the power of attorney. The majority overlooks this latter point by asserting that a person holding a power of attorney has a fiduciary duty to the principal. While that is a correct statement of the law, it does not take into consideration that, according to George’s deposition testimony, the power of attorney was given to him in part to allow him to deed the property back to himself. Given George’s deposition testimony, a question of fact remained regarding whether his execution of the 2009 quitclaim deed was within the powers granted by the power of attorney. Thus, there remained genuine issues of material fact to be determined. I would reverse and remand for a new trial.
