Terry v. Lock
2001 Ark. LEXIS 23, 37 S.W.3d 202, 343 Ark. 452 (2001)
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Rule of Law:
Property that is intentionally placed in a certain location and later forgotten is classified as mislaid property. The owner of the premises where mislaid property is found has the right of possession against all others except the true owner.
Facts:
- Joe Terry and David Stocks were hired as independent contractors to prepare the Best Western motel in Conway for renovation.
- The motel was owned by Lock Hospitality Inc., a corporation wholly owned by A.D. Lock and his wife.
- On February 1, 1999, while removing ceiling tiles in room 118, Terry and Stocks discovered a cardboard box concealed near a heating and air vent.
- A.D. Lock was present in the room when the discovery occurred.
- Terry opened the box, revealing it was filled with old, dusty currency.
- Lock took possession of the box and its contents.
- The currency was later determined to have a face value of $38,310.00.
Procedural Posture:
- Joe Terry and David Stocks (plaintiffs) filed a complaint in Faulkner County Chancery Court against Lock Hospitality Inc. and A.D. Lock (defendants).
- The plaintiffs sought an injunction and a finding that the defendants were holding the discovered money in trust for them.
- The chancery court issued a temporary restraining order requiring the defendants to deposit the money with the court.
- The chancery court, as the trial court, found that the money was 'mislaid' property and ruled that Lock Hospitality, Inc., as the owner of the premises, was entitled to its possession.
- Terry and Stocks (appellants) appealed the chancery court's decision to the Arkansas Supreme Court, where Lock Hospitality and Lock were the appellees.
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Issue:
Does a sum of money, intentionally concealed in a motel ceiling and subsequently found by contractors, constitute mislaid property, thereby giving the motel owner a superior right of possession over the finders?
Opinions:
Majority - Ray Thornton
Yes. The money constitutes mislaid property, and the owner of the premises has the superior right to possession. The court adopted the common law classifications of found property: abandoned, lost, mislaid, and treasure trove. The court reasoned that the circumstances of the finding—the money being carefully placed in a box and concealed in a ceiling vent—strongly suggest it was intentionally placed there for security and later forgotten. This fits the definition of mislaid property, distinguishing it from lost property (involuntarily parted with), abandoned property (voluntarily forsaken), or treasure trove (requiring antiquity). Citing precedent from other jurisdictions like Benjamin v. Linder Aviation, Inc., the court held that for mislaid property, the owner of the locus in quo (the premises) becomes a gratuitous bailee for the true owner, and thus has a right to possession superior to that of the finder.
Analysis:
This case formally adopts the common law distinctions between lost, mislaid, abandoned, and treasure trove property into Arkansas law. It establishes a clear precedent that the original owner's inferred intent determines the property's classification and, consequently, the rights of the finder versus the owner of the premises. By categorizing the found money as mislaid, the court reinforces the legal principle that owners of premises act as bailees for property intentionally left behind, creating a more stable and predictable outcome than a simple 'finders keepers' rule. This decision provides a framework for future cases, prioritizing the potential for returning property to the true owner over rewarding the finder when circumstances suggest the property was intentionally placed and forgotten.
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