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Ark. Real Estate Co. v. Ark. State Hwy. Commission
Citations: 237 Ark. 1; 371 S.W.2d 1; 1963 Ark. LEXIS 477Docket: 5-3031
Court: Supreme Court of Arkansas; October 7, 1963; Arkansas; State Supreme Court
The Arkansas State Highway Commission incorrectly designated Arkansas Real Estate Company, Inc. as the owner of a 31.7-acre tract in an eminent domain proceeding, leading to the company receiving $9,400 deposited by the Commission. Following the intervention of W. H. Laney and others, who claimed rightful ownership, the Arkansas Supreme Court confirmed their ownership in the case of Laney v. Arkansas Real Estate Company. Consequently, the Circuit Court awarded the Laneys $9,400, acknowledging the Highway Commission's admission of taking their land without correctly identifying them as the owners. The Highway Commission's appeal against this judgment affirmed the Laneys' entitlement to just compensation under the Arkansas Constitution, as they were not at fault for the Commission's error. Additionally, the Highway Commission successfully sought repayment from the Real Estate Company for the amount withdrawn. The Circuit Court's judgment favoring the Laneys was upheld, emphasizing their lack of negligence or delay in asserting their rights. The judgment affirmed the Highway Commission's decision against the Real Estate Company concerning the ownership of 31.7 acres. The Highway Commission initially accepted the Real Estate Company's ownership claim and allowed it to withdraw $9,400 from the court’s registry, which was done via a Circuit Court Order. The Real Estate Company argued that the eminent domain proceeding was in rem, that the Highway Commission is bound by its ownership allegations, and that the withdrawal payment is res judicata. It referenced Bentonville RR. Co. v. Stroud, which stated that when a railroad company initiates proceedings against named defendants, it admits their ownership, thereby risking its position. However, the judgment distinguished this case from Bentonville, noting that state agencies can recover voluntary payments made in error, unlike private entities. The case Vick School Dist. v. New supported the idea that the Highway Commission could recover the payment since the Real Estate Company was not the property owner at the time of the payment. The judgment confirmed the Circuit Court's ruling in favor of the Highway Commission and established that the Laneys would recover their costs from the Highway Commission, while the Highway Commission would recover its costs from the Real Estate Company. The judgment concerning the Laneys was officially recorded on September 7, 1962. The Real Estate Company cited various legal precedents and statutes regarding the withdrawal of deposits prior to trial.