Opinion ID: 2348800
Heading Depth: 1
Heading Rank: 5

Heading: Inadequate Consideration

Text: AOG next argues that given MacSteel will realize potentially millions of dollars in savings by use of the pipeline, and that the $44,796 accepted in consideration [2] for granting the easement was so grossly inadequate as to constitute fraud. AOG cites to Hammon v. Dixon, 232 Ark. 537, 338 S.W.2d 941 (1960), for the proposition that the County may not convey the interest for inadequate consideration. Hammon casts no light on the issue argued by AOG. The court in Hammon stated as follows: We do not reach the merits of the appellants' other two attacks upon the city's sale to the Lodge. It is contended that the purchase price of $1,000 was so grossly inadequate as to indicate fraud and that the sale should be set aside because five of the seven aldermen who voted for the sale were members of the Lodge, though not themselves pecuniarily interested in the transaction.... Hammon, 232 Ark. at 540, 338 S.W.2d at 944. Next we are cited to Gordon v. Woodruff County, 217 Ark. 653, 232 S.W.2d 832 (1950), for the proposition that excepting non-monetary consideration, a cash payment of $1 for the real property, was so palpably inadequate as to amount to fraud. As AOG notes, the court in Gordon was discussing Little Rock, supra ; however, the court in that case stated that if a county has the power to take the public advantage of the sale of county property into consideration at all, it has the right to base the conveyance entirely upon that as consideration. Little Rock, supra . Under section 14-16-205, the County has the authority to convey property for purposes of industrial development. AOG offers no convincing argument that there was a lack of consideration. This court does not consider arguments unsupported by convincing argument. Ganey v. Kawasaki Motors Corp., 366 Ark. 238, 234 S.W.3d 838 (2006).