Opinion ID: 1756693
Heading Depth: 1
Heading Rank: 2

Heading: Claims Raised by Individual Appellants

Text: The circuit court concluded that a default judgment in favor of Sims and against JMFH from the Lonoke County Circuit Court was void because the Arkansas Legislature had specifically provided that the court conducting a judicial dissolution and appointing a receiver had exclusive jurisdiction over a corporation. The statute upon which the circuit court relied, and upon which the appellees now rely, is Arkansas Code Annotated section 4-27-1432(a), which provides that [t]he court appointing a receiver or custodian has exclusive jurisdiction over the corporation and all of its property wherever located. However, Sims argues on appeal that, when the dissolution statutes are read as a whole, other courts in the state were not precluded from exercising in personam jurisdiction over JMFH. The two statutes we must consider in conjunction with section 4-27-1432(a) are Ark.Code Ann. § 4-27-1405(b) and § 4-27-1432(c) (Repl.2001), which provide in pertinent part: (b) Dissolution of a corporation does not: ... (5) prevent commencement of a proceeding by or against the corporation in its corporate name; (6) abate or suspend a proceeding pending by or against the corporation on the effective date of dissolution ... Ark.Code Ann. §§ 4-27-1405(b)(5-6) (Repl.2001). (c) The court shall describe the powers and duties of the receiver or custodian in its appointing order, which may be amended from time to time. Among other powers: (1) the receiver (i) may dispose of all or any part of the assets of the corporation wherever located, at a public or private sale, if authorized by the court; and (ii) may sue and defend in his own name as receiver of the corporation in all courts of this state; ... Ark.Code Ann. § 4-27-1432(c)(1) (Repl. 2001) (emphasis added). In addition to the rules of statutory construction previously laid out in this opinion, this court also seeks to reconcile statutory provisions to make them consistent, harmonious, and sensible. See Sykes v. Williams, 373 Ark. 236, 283 S.W.3d 209 (2008). When the above two statutory sections are read together, the mere fact that Pulaski County Circuit Court had a pending judicial dissolution and receivership before it regarding JMFH did not prohibit other courts of this state from having concurrent in personam jurisdiction over JMFH on issues not directly involved in the process of dissolution. The circuit court misapplied the law and erred by finding the Lonoke County Circuit Court's judgment against JMFH was void; therefore, we reverse and remand on this point. Appellant Reshel individually argues that the circuit court erred in denying her claim against JMFH because she had a valid judgment against Jewell & Moser, P.A., and Jewell & Moser, A Professional Association, which Reshel alleged were one and the same with JMFH, and because she fully satisfied the evidentiary burden required by the court to support the claim. On February 20, 2007, the circuit court entered a judgment in favor of Reshel in the amount of $418,833.69 against Keith Moser, Jewell & Moser, P.A., Jewell & Moser, A Professional Association, and Moser & Associates under a different case number. However, in that order, the circuit court also concluded that it did not have jurisdiction over JMFH because of the pending judicial dissolution. Therefore, the judgment was limited to Keith Moser, Jewell & Moser, P.A., Jewell & Moser, A Professional Association, and Moser & Associates. Reshel attempted to amend the proof of her claim against JMFH in the dissolution proceedings on February 23, 2007, with the judgment rendered in her favor against Keith Moser, Jewell & Moser, P.A., Jewell & Moser, A Professional Association, and Moser & Associates. The circuit court held a hearing on May 30, 2007, to consider Reshel's claim, and accepted three exhibits on behalf of Reshel: (1) the judgment against Keith Moser, Jewell & Moser, P.A., Jewell & Moser, Professional Association, and Moser & Associates; (2) a certificate of fact from the Secretary of State stating what previous legal names were on record for the entity of Jewell, Moser, Fletcher, & Holleman, A Professional Association; and (3) a portion of Keith Moser's deposition. The circuit court requested to proceed and decide the matter on the pleadings, to which Reshel's counsel agreed. The circuit court then denied Reshel's amended proof of claim on June 5, 2007. Here, the circuit court's hearing on Reshel's claim was the equivalent of a bench trial. The standard of review on appeal for bench trials is not whether there is substantial evidence to support the finding of the circuit court, but whether the judge's findings were clearly erroneous or clearly against the preponderance of the evidence. See Omni Holding & Dev. Corp. v. C.A.G. Invs., Inc., 370 Ark. 220, 258 S.W.3d 374 (2007). A finding is clearly erroneous when, although there is evidence to support it, the reviewing court on the entire evidence is left with a firm conviction that an error has been committed. See id. Facts in dispute and determinations of credibility are within the province of the fact-finder. See id. A change in a corporation's name does not establish a new corporation when the evidence shows that the name change did not alter the identity of the corporate entity. See, e.g., Bass v. Service Supply Co., 25 Ark.App. 273, 757 S.W.2d 189 (1988). In the instant case, there was a dispute over whether the various name changes of JMFH were also accompanied by changes in the corporate status. The record reveals that the circuit court considered Reshel's claim after a full hearing. Based upon our review of the evidence submitted on this claim, we cannot say that the circuit court's order denying the claim was clearly erroneous.