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Telcoe Credit Union v. Eackles
Citations: 293 Ark. 149; 732 S.W.2d 477; 1987 Ark. LEXIS 2220Docket: 87-93
Court: Supreme Court of Arkansas; July 20, 1987; Arkansas; State Supreme Court
In this debtor-creditor case, Versa Eackles borrowed $3,675.00 secured by her 1978 Cougar XR7 and an additional unsecured loan of $483.00 from Telcoe Credit Union. After defaulting on her payments following her employment termination, Telcoe repossessed the car. Eackles sued for unlawful conversion, claiming Telcoe refused her offers to pay the secured loan amount. The trial resulted in a jury awarding Eackles $3,000.00 in compensatory damages and $8,000.00 in punitive damages, while Telcoe was awarded $1,831.25 on its counterclaim. Telcoe appealed, arguing that Eackles failed to make a lawful tender of payment, a necessary element for her conversion claim. The court emphasized that legal tender requires an unconditional offer to pay, accompanied by the ability to perform immediately, which Eackles did not demonstrate since she never actually produced the money owed. The court referenced the precedent set in Cook v. Talbert, asserting that without the actual cash or equivalent presented, Telcoe was not obligated to return the vehicle. Furthermore, Telcoe contested the jury's award, stating that Eackles owed $2,358.47 instead of the awarded $1,831.25, but Eackles suggested the lower amount reflected the impact of Telcoe's alleged wrongful conversion. The court concluded that Eackles’s failure to make a valid tender negated her conversion claim. The court ruled that no conversion occurred, leading to the conclusion that the jury improperly considered this factor in determining damages. Eackles owed Telcoe on two loans, and any damages from her default can be clearly quantified. As a result, the court reversed the previous judgment and remanded the case for a new trial to accurately assess damages. The judgment awarding punitive damages to Eackles was also reversed. The dissenting opinion noted that Telcoe's demand for payment of both loans before returning the vehicle suggested that requiring Eackles to tender payment on only the secured loan was unnecessary. However, since the waiver theory was not raised during the trial or on appeal, and the jury was instructed solely on the requirements for Eackles to claim her vehicle, it could not be considered in this case.