Mike Woodall and Mike Woodall Auto Sales, Inc. v. Chuck Dory Auto Sales, Inc.

Summary

The Arkansas Supreme Court reversed a judgment dismissing Mike Woodall’s usury claim and awarding Chuck Dory Auto Sales, Inc. $102,230 on a counterclaim for returned checks. The court held that evidence that a $75-per-title charge was compensation for the use of money constituted substantial evidence that the charge was interest, and that the trial court improperly resolved credibility issues at the close of the plaintiff’s case. The case was remanded for further proceedings, including resolution of whether the counterclaim amount included transaction fees.

Holdings

1. Woodall presented substantial evidence that the $75-per-title charge was interest because it was compensation paid to Dory for the use of money; therefore, dismissal of the usury claim at the close of Woodall's case was improper.
2. The trial court could not resolve credibility or determine conclusively that the transactions were sales rather than loans when ruling on the motion at the close of Woodall's case.
3. The judgment awarding Dory $102,230 on the counterclaim was also reversed and remanded because the record did not establish whether that amount included any of the $75 transaction fees.

Questions Presented

1. Whether the circuit court improperly dismissed Woodall's usury claim at the close of his case by determining that the $75-per-title charge was a transaction fee rather than interest.
2. Whether the circuit court improperly awarded Dory $102,230 on its counterclaim before resolving whether that amount included any allegedly usurious transaction fees.

Disposition

reversed_and_remanded