Arkansas Law of Conversion: Defendant Owns Converted Property When Judgment to the Plaintiff is Satisfied
The Arkansas Court of Appeals affirmed judgment in an odd conversion case. Huffman v. Landers Ford North, Inc., No. 07-157 (10/24/07).
The Huffmans were interested in buying a Ford Freestyle from Landers Ford. They took the Freestyle home for an overnight test drive and left their 1996 Taurus at Landers. They had to sign a Retail Buyer's Order Form, which has language to suggest it is not a contract. The next day Ms. Huffman called to say they did not want to buy the Freestyle. This is where it gets interesting. On the way to Landers, she wrecked the Freestyle. Landers claimed the Retail Buyer's Order Form was a contract to purchase the Freestyle, and they refused to return the Taurus.
The jury made three key findings: (1) there was no contract between the parties; (2) Ms. Huffman negligently operated the Freestyle and inflicted $12,2410 damages on Landers; and (3) Landers committed conversion of the Taurus, inflicting $6,500 damage on the Huffmans. The trial court entered judgment for Landers of $5,740 and held that Landers now owns the Taurus.
The court of appeals affirmed. When a defendant converts property and satisfies judgment to the plaintiff, the defendant becomes the new owner of the property. Meyer Bros. Drug Co. v. Davis, 68 Ark. 112 (1900).