Opinion ID: 2411808
Heading Depth: 1
Heading Rank: 3

Heading: right to subrogation

Text: We further hold that the circuit court was correct in deciding that Farms had no legal right to be subrogated to PCA's cross-claim against Cargill. The 1980 promissory notes made payable to PCA were signed by Horace Cupples and Jacob Cupples on behalf of Brothers and individually as well. The debt was paid off, however, by Farms. Only Farms sought to intervene in 1991not Horace Cupples or Jacob Cupples as individuals. The circuit court found that Farms was a separate and distinct entity from Brothers and had no legal obligation to pay Brothers' debt. The court then dismissed Farms' theory that it felt compelled to pay Brothers' debt because, otherwise, PCA would have ceased lending Farms money. The court stated that there was no convincing evidence to support it. We agree with the circuit court and observe no legal interest of Farms in the action and can discern no legal obligation requiring Farms to pay Brothers' debt in 1980. With no legal interest to protect, Farms was little more than a volunteer and intermeddler which renders subrogation unavailable as a remedy. Moon Realty Co. v. Arkansas Real Estate Co., 262 Ark. 703, 560 S.W.2d 800 (1978); see also Baker v. Leigh, 238 Ark. 918, 385 S.W.2d 790 (1965) (one having interest in real property who pays off debt is entitled to subrogation and is not a volunteer). Accordingly, subrogation is not appropriate. See Blackford v. Dickey, 302 Ark. 261, 789 S.W.2d 445 (1990). There is one final point. Horace Cupples and Jacob Cupples were principal partners of both Brothers and Farms from 1979 until Jacob Cupples' death in 1990. If Brothers and Farms were found to be identical entities due to the commonality of partners or had ceased to exist, as Horace Cupples maintained at the hearing, then subrogation would not lie because the partners of the supposed subrogee, Farms, in effect, would be satisfying their own debt owed as the partners for Brothers. Subrogation is only available when one, not primarily responsible for the obligation, pays it off. Blackford v. Dickey, supra ; Whitley v. Irwin, 250 Ark. 543, 465 S.W.2d 906 (1971). Here, arguably at least, Horace Cupples and Jacob Cupples satisfied their own debt using Farms as a vehicle for that purpose. In sum, Farms claimed an interest in the litigation but does not qualify as a subrogee under these facts. Moreover, the motion to intervene was untimely. The circuit court, therefore, was correct in its decision, and there was no abuse of discretion. Because we affirm the circuit court on the twin grounds of untimeliness and the absence of a subrogation right, there is no need to address the remaining issues raised in this appeal. Affirmed. GLAZE, J., concurs.