The 8th Circuit Court of Appeals this week ruled against LaDonna Humphrey in her yearslong legal battle with her former boss, Anthony Christopher, over his purchase of her appellate rights in Arkansas state court.
In the messy and complicated legal case, Benton County Circuit Judge Xollie Duncan in 2019 ordered Humphrey to pay $3.57 million in damages to Christopher and his clinic, Absolute Pediatric Therapy of Bentonville, over allegations that Humphrey schemed to ruin him and his company’s reputation and business.
Duncan also dismissed Humphrey’s counterclaim against Christopher.
After Duncan’s ruling, Humphrey filed for Chapter 7 bankruptcy, which leads to liquidation. In January 2020, she appealed Duncan’s decision to the Arkansas Court of Appeals.
In bankruptcy court, Christopher, through his clinic, bought Humphrey’s claims to the appeal of the $3.57 million judgment and any potential claims that Humphrey may have had against Christopher for $12,500. Humphrey never asked for a stay of the sale in bankruptcy court, but she later appealed the federal bankruptcy court’s decision to allow the sale of the appellate rights. U.S. District Judge P. K. Holmes III ruled in Humphrey’s favor. Holmes found that the purchase of the appellate rights was not reasonable because she lost the opportunity to oppose the $3.57 million debt.
Christopher and his clinic then appealed Holmes’ ruling to the 8th Circuit. A three-member panel of appeals judges — Lavenski R. Smith, Bobby E. Shepherd and Jonathan A. Kobes — disagreed with Holmes. Because Humphrey didn’t seek and obtain a stay of the sale in bankruptcy court, they ruled that the case is “statutorily moot.” The panel voided Holmes’ order and dismissed the appeal from bankruptcy court.
Closure and Accountability
The 8th Circuit’s decision means Humphrey’s bankruptcy case will be closed, but her debt to Christopher and his clinic will remain in place. And Humphrey’s appeal of the $3.57 million in state court will be closed because Christopher effectively owns the right to appeal.
“This September will mark seven years since this entire nightmare began with LaDonna Humphrey,” Christopher told Arkansas Business. “There’s been a lot of a lot of heartache along the way and a lot of stress in dealing with this, but I can say that this 8th Circuit ruling and opinion not only is a relief, but it’s a reminder that the justice system does work.
“I look forward to closing this chapter and ensuring that LaDonna Humphrey is held accountable for her actions,” he said.
At the 8th Circuit, Christopher was represented by attorneys Charles Coleman, Glenn Ritter and Anthony Price of Wright Lindsey Jennings of Little Rock.
Humphrey was represented by William B. Putman of Fayetteville.
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