Djs Development, LLC v. Debra Brawley, Hope Bawcom, Stephanie Davis, and Freeman Davis ( 2022 )


Menu:
  •                                   Cite as 
    2022 Ark. App. 199
    ARKANSAS COURT OF APPEALS
    DIVISION III
    No. CV-20-657
    Opinion Delivered May   4, 2022
    DJS DEVELOPMENT, LLC
    APPELLANT
    APPEAL FROM THE SHARP
    V.                                                COUNTY CIRCUIT COURT
    [NO. 68CV-18-256]
    DEBRA BRAWLEY, HOPE BAWCOM,
    STEPHANIE DAVIS, AND FREEMAN DAVIS                HONORABLE ROB RATTON, JUDGE
    APPELLEES
    REVERSED AND DISMISSED WITHOUT
    PREJUDICE
    MIKE MURPHY, Judge
    This case arises from a boundary-line dispute. The real property at issue is an
    approximately seven-acre strip of land running north-south located in Sharp County. Appellees
    Debra Brawley and Hope Bawcom filed this quiet-title action against Michelle Norris (as agent
    of DJS Development, LLC) and Stephanie and Freeman Davis. The court quieted title in
    Bawcom and Brawley on the basis of a finding of boundary by acquiescence. Appellant DJS
    Development filed a posttrial motion to vacate the judgment and dismiss for lack of subject-
    matter jurisdiction, which the court denied. We reverse and dismiss without prejudice.
    On December 31, 2018, Bawcom and Brawley filed their petition to quiet title alleging
    adverse possession and boundary by acquiescence; they also asserted a claim for damages. The
    court conducted a hearing on March 9, 2020, to determine the ownership interest.
    At the hearing, DJS, Brawley, and Bawcom stipulated that they owned the adjoining
    parcels on the disputed boundary line.1 Evidence established that appellees own land to the east
    of the north-south fence line; the Brawleys owned the southern tract and Bawcom owned the
    northern tract. Bawcom testified that the property had been in her family for a long time, and
    it was deeded to her in 1991. Russell Brawley (Debra’s husband) testified that when they
    purchased the property in 1991, Max Sams owned the adjoining parcel on the west side. Max
    Sams was the predecessor in title to the Davises. Freeman Davis testified that he purchased the
    property in 2000, and when he divorced his wife in 2003, she quitclaimed her interest in the
    land to him. Freeman testified he sold the land to DJS in 2018. Dale Schamel testified on behalf
    of DJS that the company had acquired record title to the 43.453 acres west of the fence line by
    warranty deed and the 7.011 acres east of the fence line by quitclaim deed.
    On July 13, the court entered an order finding that the fence line served as the boundary
    by acquiescence between the adjoining parcels and quieting title to the 7.011 acres east of the
    old fence line in Bawcom and Brawley. The court denied their request for damages. DJS timely
    filed its notice of appeal on August 11.2
    DJS obtained a new attorney, and on September 2, it moved to vacate the judgment and
    to dismiss the action for lack of subject-matter jurisdiction in accordance with Arkansas Rule of
    1
    The parties introduced two joint exhibits and explained that DJS received title to part
    of its land from Freeman Davis by warranty deed and the seven acres at issue by quitclaim deed.
    One exhibit was a survey from 2000, and the other exhibit was a 2018 survey. When appellees’
    attorney asked whether he should introduce the actual deeds, DJS’s attorney responded, “I’m
    fine on ownership. I think, Judge, instead of introducing copies of all their deeds, I just think
    we’re stipulating to where we marked on that survey is what the tracts are.”
    2
    Appellees filed a timely notice of cross-appeal but elected not to pursue it.
    2
    Civil Procedure 60. In its motion, DJS argued that it never actually had record title to the 7.011
    acres east of the old fence line that adjoined appellees’ parcels. DJS contended that upon a review
    of the relevant land records, the deed that transferred title from Anita and Mack Sams to the
    Davises identified the old fence line as the eastern boundary of the parcel. Thus, the quitclaim
    deed from Freeman Davis to DJS did not transfer title to the disputed 7.011 acres east of the
    fence line because it was not Davis’s to transfer. DJS argued that the Samses, not DJS, still have
    record title to the disputed 7.011 acres and therefore should have been put on proper notice
    and made parties to the proceedings.
    A hearing was held on October 6 that consisted only of arguments by counsel. DJS
    expounded upon its argument that the Samses still have record title to that property, and they
    should have been given proper notice in accordance with the quiet-title statutes. In response,
    appellees generally claimed that this was inconsequential because there was never a dispute as to
    legal title on this particular piece of property. The court took the issue under advisement, and
    on October 9, it entered an order denying DJS’s motion. DJS amended its notice of appeal to
    incorporate the court’s order denying the motion.
    On appeal, DJS challenges both the circuit court’s subject-matter jurisdiction and its
    finding of boundary by acquiescence. Because we agree that the order granting quiet title in
    appellees must be vacated and dismissed, we do not reach DJS’s alternative argument.
    Arkansas Rule of Civil Procedure 60(a) provides that “[t]o correct errors or mistakes or
    to prevent the miscarriage of justice, the court may modify or vacate a judgment, order or decree
    on motion of the court or any party, with prior notice to all parties, within ninety days of its
    having been filed with the clerk.” Arkansas Code Annotated section 18-60-502(b)(2)(A) (Supp.
    3
    2021) provides, “The petitioner shall send notice by certified mail to the last known address in
    duplicate, with one (1) copy addressed by name to the person entitled to notice and the other
    copy addressed to ‘occupant’, and if the certified mail is returned undelivered, the petitioner
    shall send a second notice by regular mail.” Arkansas Code Annotated section 18-60-502(b)(3)
    additionally provides, “If the petitioner has knowledge of any other person who has, or claims
    to have, interest in the lands, the petitioner shall so state, and the person or persons shall be
    summoned as defendants in the case.” Further, Arkansas Code Annotated section 18-60-503
    (Repl. 2015) states in part,
    (a)(1) Upon the filing of the petition, the clerk of the court shall publish a notice of
    the filing of the petition on the same day of each week, for four (4) weeks in some
    newspaper published in the county, if there is one, and if not, then in some newspaper
    having a circulation in the county.
    It has long been held that when there is no compliance with the statutory-notice
    requirements, the circuit court lacks jurisdiction to adjudicate the rights to the land. See Koonce
    v. Mitchell, 
    341 Ark. 716
    , 
    19 S.W.3d 603
     (2000); see also XTO Energy, Inc. v. Thacker, 
    2015 Ark. App. 203
    , 
    467 S.W.3d 161
     (reversing a court’s order upholding a decree that failed to comply
    with the notice requirement thirty years prior).
    We find Koonce and its progeny persuasive despite classifying the notice requirement as
    a jurisdictional issue. In Koonce, the issue of the missing party was not challenged, and the court
    attempted to resolve the issue on its own without joining the record title owner. Here, we have
    jurisdiction because DJS appeals from the denial of its Rule 60 motion. The circuit court’s denial
    of a Rule 60 motion is an appealable decision.
    4
    Through DJS’s motion, the court was informed that not all necessary parties were
    present. DJS presented evidence that, while Freeman Davis quieted title to it in the strip of land
    at issue, he did not have an interest to deed because the land was still retained by the Samses or
    their heirs. Appellees failed to join the Samses or their heirs nor did they comply with the notice
    requirements—they published notice for only two weeks instead of the required four weeks’
    notice. Due to this failure and oversight, the court erred in denying the motion to vacate.
    Appellees defend their lack of compliance with the notice requirements by attempting to
    distinguish a statutory quiet-title action from a common-law form of action. However, they fail
    to provide persuasive authority distinguishing the two. Further, appellees’ contention––that DJS
    should be estopped from arguing that it is not the owner of the disputed strip of land––was not
    raised in the Rule 60 proceedings and is thus not preserved for appellate review. Accordingly,
    we vacate the order quieting title and dismiss this action.
    Reversed and dismissed without prejudice.
    VIRDEN and WHITEAKER, JJ., agree.
    Jeremy B. Lowrey, for appellant.
    Taylor & Taylor Law Firm, P.A., by: Tory H. Lewis, Andrew M. Taylor, and
    Tasha C. Taylor, for separate appellees Debra Brawley and Hope Bawcom.
    5
    

Document Info

Filed Date: 5/4/2022

Precedential Status: Precedential

Modified Date: 5/4/2022