United States District Court, W.D. Arkansas, Harrison Division
OPINION AND ORDER
P.K.
HOLMES, III U.S. DISTRICT JUDGE
Plaintiff
Cheriese Kiddie proceeds against Defendants Johnnie Copeland,
Meridee Kaiser, and Adrian Woodbury[1] in connection with property
once owned by George Woodbury, her deceased grandfather.
Following a bench trial (Doc. 199), the Court entered an
opinion and order (Doc. 200) granting judgment in favor of
Defendants on Plaintiff's claims for declaratory relief
premised on her allegations that George Woodbury lacked
capacity to execute a trust and directing Plaintiff to show
cause why Defendants should not have summary judgment on her
remaining claims. Following briefing, the Court entered
summary judgment (Doc. 207) for Defendants, and Plaintiff
appealed. The Court of Appeals found “no genuine issue
of fact on most of the claims” and affirmed this
Court's decision on those claims. (Doc. 213-1, p. 1).
However, the Court of Appeals explained that the probate
exception to federal subject matter jurisdiction does not
apply to Plaintiff's claims “against a person for
their conduct with property that ultimately became estate
property.” Id., p. 3. The Court of Appeals
held that this Court “erred in declining to rule on the
vehicles issue.” Id. “Kiddie's
vehicle claim encompasses pre-existing ownership of the
vehicles, not distribution of assets.” Id. The
Court of Appeals reversed and remanded for further
proceedings. Id.
Plaintiff
requests a finding that title to certain vehicles owned by
her and George Woodbury should have passed to her upon
George's death. In particular, Plaintiff's final
amended complaint requests that:
The following should be determined as a matter of law without
need to proceed to a jury trial.
I. ANY VEHICLES REGISTERED IN OR PERSONAL PROPERTY HELD IN
THE JOINT NAMES OF PLAINTIFF AND [George Woodbury] BECAME THE
SOLE PROPERTY OF PLAINTIFF UPON THE DEATH OF [George
Woodbury], AND ADJUDGING ANY SUCH PROPERTY OR THE PROCEEDS
THEREOF BE RETURNED TO PLAINTIFF BY THE PERSONS HOLDING OR
RECEIVING THEM.
(Doc. 181, p. 25). Plaintiff is correct with respect to this
finding of law. See Gladson v. Gladson, 800 S.W.2d
709, 710 (Ark. 1990) (“[A] devise by a joint tenant,
who is survived by other joint tenants, is not effective to
pass any title to the real estate in joint tenancy for the
reason that the title passes by operation of law to the
survivor or survivors. Such a rule applies in full measure to
personal property. In sum, title to property held in joint
tenancy takes precedence over the claim of a devisee, legatee
or heir, as the case may be.” (citations omitted)). Any
vehicles or personal property co-owned by Plaintiff and
George Woodbury at the time of his death became solely
Plaintiff's, and she is entitled to the proceeds of any
sale of that property.
That
being the law, the Court must apply it to the facts. In
addition to the findings of fact (Doc. 200, pp. 1-3) the
Court made following the bench trial, the Court finds the
following facts to be established from the record by a
preponderance of the evidence:
• At the time of George Woodbury's death, he owned a
2002 trailer, VIN 4G7US10132T000566, registered with Arkansas
license plate number AA15221. (Doc. 86-3, p. 1). He also
owned a white 1996 Dodge Ram Van, VIN 2B6KB31Y5TK119498,
registered with Arkansas license plate number 490PKM. (Doc.
86-3, p. 2). He also owned a white 2009 Chevrolet Silverado
1500, VIN 1GCEC14X59Z204070, registered with Arkansas license
plate number 448OEF. (Doc. 86-3, p. 3). He also owned a
Kubota L3400145T tractor. (Doc. 31-14, p. 1).
• Plaintiff Cheriese Kiddie was co-owner of those
vehicles and the tractor, according to the title or bill of
sale for each. (Docs. 31-14, p. 1; 86-3).
• Following George's death, Johnnie Copeland
exercised full control over what had been George
Woodbury's property, and transferred it to others in
accordance with his trust. The tractor sold at auction for
$13, 600. (Doc. 98, p. 4). The van sold at auction for $5,
600. (Doc. 98, p. 5). The trailer sold at auction for $415.
(Doc. 98, p. 1). The pickup had a market value of $10, 000 at
the time and place of George Woodbury's
death.[2]
• Those Defendants, and anyone else, receiving property
as a result of the distribution of trust assets had a good
faith belief that they were then entitled to full ownership
of that property.
Applying
Arkansas law to these facts, the Court finds that no
reasonable juror would disagree that when Defendant Johnnie
Copeland treated the tractor, trailer, van, and pickup-items
that became the sole property of Plaintiff Cheriese Kiddie
upon the death of George Woodbury- as trust property and
distributed it or had it sold at auction, she committed the
tort of conversion. See Hatchell v. Wren, 211 S.W.3d
516, 521 (Ark. 2005) (“If the defendant exercises
control over the goods in exclusion or defiance of the
owner's rights, it is a conversion, whether it is for the
defendant's own use or another's use. The proper
measure of damages for conversion of property is the market
value of the property at the time and place of the
conversion.” (citation omitted)). Because the other
Defendants took in good faith under what they believed to be
a valid trust or through what they believed to be valid
sales, no reasonable juror would find that any of those
Defendants was unjustly enriched by distribution of assets to
them, or converted the property.
Accordingly,
judgment must be entered for Cheriese Kiddie against Johnnie
Copeland for the tort of conversion, in the amount of $29,
615, representing the value of the tractor, trailer, and
vehicles converted at the time of George Woodbury's
death. Plaintiff Kiddie is also entitled under Arkansas law
to prejudgment interest on the value of converted property.
Dugal Logging, Inc. v. Ark. Pulpwood Co., 988 S.W.2d
25, 31 (Ark. App. 1999) (finding prejudgment interest
appropriate in conversion case). Despite constitutional
amendments affecting the basis for awarding and calculating
prejudgment interest, in Arkansas tort cases it appears to
remain simple interest that accrues at the rate of 6% per
year. See Howard W. Brill, 1 Arkansas Law of Damages
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