Ark-La-Tex Fin. Servs., Inc. v. Willis, CA11-1271
Decision Date | 03 October 2012 |
Docket Number | No. CA11-1271,CA11-1271 |
Citation | 2012 Ark. App. 557 |
Parties | ARK-LA-TEX FINANCIAL SERVICES, INC., d/b/a BENCHMARK HOME LOANS APPELLANT v. TERRY L. WILLIS APPELLEE |
Court | Arkansas Court of Appeals |
HONORABLE JOHN HOMER
Ark-La-Tex Financial Services, Inc., d/b/a Benchmark Home Loans, appeals from a judgment entered against it in favor of appelleeTerry Willis.We dismiss this appeal because it is moot.
This lawsuit was the result of fraudulent actions taken by appellee's former wife, Lesley Willis.The Willises were married in 1991 and divorced in 1997.After they remarried in 2000, appellee sold his house, which was premarital property, and used the proceeds as a down payment to purchase another residence in his name.With appellee's assent, Mrs. Willis assumed control of the parties' finances, which were in bad shape.In January 2007, Mrs. Willis surreptitiously prepared a quitclaim deed that conveyed the property to appellee and herself.She used the quitclaim deed to refinance the property with Homecomings Financial, LLC, using the proceeds to pay some family debts.Wendy Strickland, who handled the closing at Lenders Title Company and notarized the quitclaim deed, testified at trial that shedid not remember whether she had seen appellee sign it.
In April 2008, Mrs. Willis forged appellee's signature on a special power of attorney she had prepared that purportedly appointed her as his attorney-in-fact.Mrs. Willis's friend, Cathy Johnson, notarized this power of attorney without seeing appellee sign it.Mrs. Willis used this power of attorney to refinance the property with appellant through Hot Springs Title Company, and used the proceeds to pay the family's credit-card debt and to make a deposit into appellee's checking account.The note and deed of trust to appellant were subsequently assigned to Countrywide Home Loans, Inc., now Bank of America.
Appellee discovered the refinancing transactions when he reviewed his credit report in October 2008.After he had sued for divorce, he filed this action against Mrs. Willis, Homecomings, Lenders, appellant, Countrywide, Hot Springs Title, and Garland County Educators Federal Credit Union.He alleged that the defendants were negligent and asked for declaratory relief stating that he was not responsible for the void notes, mortgages, or deed of trust.He asked the circuit court to set aside those instruments and the void power of attorney.1Appellee; Cathy Johnson; Mrs. Willis; Delania Watson, who handled the closing for Hot Springs Title; Wendy Strickland; and Steven Remmington, appellant's Executive Vice President, testified at trial.
The trial court entered judgment on May 24, 2011, in favor of appellee, finding thatMrs.Willis, who was "totally lacking in credibility," forged appellee's signature without his knowledge.The court set aside the quitclaim deed, the mortgages and notes to Homecomings (except to the extent that they extinguished the valid original debt) and the deed of trust and promissory note to appellant(except to the extent that they represented the valid original debt).The court reformed the mortgage and note to appellant to conform to the terms of appellee's original loan.It also set aside the power of attorney; found that Mrs. Willis had committed fraud; directed that appellee be placed in the position in which he would have been if the forgeries had not occurred; and found that Mrs. Willis was liable to the financial defendants in the full amounts of the debts.The court found that the financial defendants had been negligent in failing to ascertain or confirm, by any method, that appellee had executed any of the documents purporting to bear his signature.It found that appellee had been damaged as a result of their negligence in the amount of $94,695.72 (the difference between the current balance and appellee's legitimate debt), which would be satisfied by a reduction of the debt to $149,545.83.The court directed the financial defendants to take all reasonable steps to remove any negative marks on appellee's credit.It further granted him judgment for attorney's fees in the amount of $32,490 and costs of $6,345.15, for a total of $38,835.15, to be allocated equally among all of the defendants.Appellant then pursued this appeal.
On appeal, appellant challenges only the circuit court's finding that it was negligent, which was the basis for the declaratory and monetary relief the court awarded appellee.Appellee has filed a motion to dismiss this appeal on the ground that the case is moot becauseappellant has voluntarily paid the judgment.We agree.Appellant concedes that it has already paid the judgment for its share of appellee's attorney's fees and costs.2There is, therefore, no justiciable issue between the parties.A case becomes moot when any judgment rendered would have no practical legal effect upon a then-existing legal controversy.3If an appellant voluntarily pays a judgment, the appeal from that judgment is moot, and we will not decide it.4
Appellant contends that this appeal is not moot because the trial court's finding...
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