Carla Muruaga-Atkins; Carol Ann Martin; Laura Martin, Individually; Laura Martin, as Mother and Next Friend of Two Unemancipated Minor Children; Caitlyn Peterson, Individually; Caitlyn Peterson, as Mother and Next Friend of Three Unemancipated Minor Children; And Kathryn Ahlefeld v. Melanie Foster; Forest Roberts; Kathryn Clark; Christie Waggoner; Lillian Van Houten; Sawney Huckabay; And Allen Family Farm, Inc., an Arkansas Non-Profit Corporation
── Carla Muruaga-Atkins; Carol Ann Martin; Laura Martin, Individually; Laura Martin, as Mother and Next Friend of Two Unemancipated Minor Children; Caitlyn Peterson, Individually; Caitlyn Peterson, as Mother and Next Friend of Three Unemancipated Minor Children; And Kathryn Ahlefeld v. Melanie Foster; Forest Roberts; Kathryn Clark; Christie Waggoner; Lillian Van Houten; Sawney Huckabay; And Allen Family Farm, Inc., an Arkansas Non-Profit Corporation ──
Court: Court of Appeals of Arkansas
Date: May 20, 2026
Category: General
Cite as 2026 Ark. App. 336
ARKANSAS COURT OF APPEALS
DIVISION IV
No. CV-25-386
CARLA MURUAGA-ATKINS; CAROL Opinion Delivered May 20, 2026
ANN MARTIN; LAURA MARTIN,
APPEAL FROM THE BENTON
INDIVIDUALLY; LAURA MARTIN, AS
COUNTY CIRCUIT COURT
MOTHER AND NEXT FRIEND OF
[NO. 04CV-21-2909]
TWO UNEMANCIPATED MINOR
CHILDREN; CAITLYN PETERSON,
INDIVIDUALLY; CAITLYN PETERSON, HONORABLE JOHN R. SCOTT,
AS MOTHER AND NEXT FRIEND OF JUDGE
THREE UNEMANCIPATED MINOR
CHILDREN; AND KATHRYN
AHLEFELD
APPELLANTS
V.
MELANIE FOSTER; FOREST ROBERTS;
KATHRYN CLARK; CHRISTIE
WAGGONER; LILLIAN VAN HOUTEN;
SAWNEY HUCKABAY; AND ALLEN
FAMILY FARM, INC., AN ARKANSAS
NON-PROFIT CORPORATION
APPELLEES
AFFIRMED
CINDY GRACE THYER, Judge
This case involves an action to prevent certain real property owned by Allen Family
Farm, Inc. (AFF), from being listed for sale and to resolve the issue of membership in that
organization. Appellants here, plaintiffs below, are Carla Muruaga-Atkins; Carol Ann
Martin; Laura Martin, individually and as next friend of her two minor children; Caitlyn
Peterson, individually and as next friend of her three minor children; and Kathryn Ahlefeld.
Appellees here, defendants below, are Melanie Foster, Forest Roberts, Kathryn Clark,
Christie Waggoner, Lillian Van Houten, Sawney Huckabay, and AFF.
Appellants raise four points on appeal: (1) the circuit court applied the wrong legal
standard when it determined that they were required to demonstrate they had been
defrauded in order to prevail; (2) the circuit court incorrectly found that the membership
restrictions implemented in the bylaws were not in conflict with the articles of incorporation
and were valid; (3) the circuit court erroneously held that AFF could sell all its land and
abandon its corporate purpose in contravention of our supreme court’s opinion in Giss v.
Apple, 239 Ark. 1124, 396 S.W.2d 813 (1965); and (4) the circuit court further erred in its
determination that the election was valid and not void despite allegedly “inaccurate”
information being conveyed.
I. Factual and Procedural History
James R. Allen was the original owner of the property subject to this lawsuit. Allen
was widowed in 1936 and lived until 1944, never remarrying. He and his late wife had ten
children: Allie Belle, Neva, Daniel (Dan), James, Monell, Minnie Lou, Sam, Gilbert, Tom,
and Lois. All ten have passed away.
In 1940, Allen deeded 372.95 acres of his farm to his eldest child, Allie Belle Root,
reserving to himself ten acres around the house, barn, and associated structures. When he
2
died in 1944, each of the ten children received an equal undivided one-tenth interest in the
ten acres around the house.
In 1967, Allie Belle deeded the 372.95 acres to her siblings Sam, Tom, Gilbert, and
Monell. Monell passed away in 1983, leaving appellee Melanie Foster, formerly Melanie
Sawka, as her heir. Those four grantees each then owned by deed an undivided one-fourth
interest in 372.95 acres, along with their inherited undivided one-tenth interests in the ten
acres that James R. Allen had held solely in his name when he died in 1944.
In 1984, forty years after James R. Allen died, two of his children—Sam (father of
appellee Christie Waggoner) and Gilbert (father of appellee Lillian Van Houten)—along with
his grandchild, Melanie Foster, formed AFF as an Arkansas nonprofit corporation pursuant
to the 1963 Arkansas Nonprofit Corporation Act, c
{# E23 (Nick, ruling section 1 answer 10): quoting a bill or a court opinion works
the way quoting a news article works. Select a passage above and the same panel
opens: the passage goes to the official you choose, with this document's own
address as its source and its own type. #}