Enforcing or Disputing an Oral Agreement to Divide Wrongful Death Proceeds in Arkansas | Arkansas Probate | FastCounsel
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Enforcing or Disputing an Oral Agreement to Divide Wrongful Death Proceeds in Arkansas

Can you enforce or dispute an oral agreement dividing wrongful death proceeds in Arkansas?

Short answer: Sometimes. Whether an oral agreement to divide wrongful-death proceeds is enforceable in Arkansas depends on who made the promise, whether the agreement conflicts with statutory distribution rules or court orders, the quality of the evidence proving the agreement, and whether the agreement must be in writing under law. If someone refuses to honor an oral deal, parties commonly start with documentation and demands, then move to mediation or court to enforce the agreement or seek an accounting and proper distribution.

Background: how wrongful death proceeds are handled in Arkansas

Under Arkansas law, a wrongful-death action is a statutorily created claim brought for the benefit of certain relatives and dependents; these statutes control who may sue and how recovery is treated. See Arkansas Code, Title 16, Chapter 62 (wrongful death statutes). The proceeds from a wrongful-death claim are typically collected by a personal representative, the liable party’s insurer, or directly by the beneficiaries under a settlement. The personal representative and the probate court have duties to collect, account for, and distribute assets consistent with the statutes, any will, and court orders.

(Arkansas wrongful death statutes: see Ark. Code Ann. §16-62-101 et seq.; Arkansas Code available at the Arkansas General Assembly website: https://www.arkleg.state.ar.us/.)

When is an oral agreement enforceable?

  • Parties: The agreement must be between people who actually have authority to commit the estate or the authorized representative (executor/administrator) if the settlement or distribution involves estate administration.
  • Legal requirement for writing: Some agreements must be in writing to be enforceable (for example, contracts that fall under the statute of frauds). Many agreements dividing money that will be paid shortly are not within the statute of frauds and thus can be oral. But agreements that alter probate court orders or transfer real property may require written documentation or court approval.
  • Court approval and minors: If the wrongful-death proceeds are payable to minors or persons under a legal disability, the court often must approve settlements or distributions. An oral agreement that tries to alter that protected distribution may be set aside without proper court approval.
  • Clear evidence: Oral agreements are harder to prove. Courts will enforce them only if the party seeking enforcement shows the terms with sufficient evidence—witness testimony, contemporaneous notes, texts or emails, recorded statements, bank transfers, or conduct consistent with the agreement (e.g., partial payments).

Typical scenarios and how courts treat them

Common fact patterns include:

  • Heirs agree among themselves to split a settlement a certain way (no personal representative involved). Courts may enforce such agreements if the evidence proves an agreement and it does not violate statute or public policy.
  • The personal representative or administrator agrees orally with beneficiaries about distribution. If that representative lacks authority or the distribution conflicts with probate law, the probate court can reject the arrangement and require formal accounting and distribution.
  • Insurer or defendant verbally promises beneficiaries a division before a formal settlement. Courts will consider whether that promise created a binding contract and whether the insurer had authority to pay or release the claim.

How to prove an oral agreement

Strong evidence increases the chance of enforcement. Useful items include:

  • Multiple witness statements from people who heard the agreement.
  • Text messages, emails, voice recordings, or contemporaneous notes documenting the terms.
  • Conduct showing performance—e.g., part of the money was paid according to the agreement or a beneficiary acted in reliance (changed position based on that promise).
  • A release or partial written confirmation later referencing the oral deal.

Practical steps to enforce an oral agreement

  1. Collect evidence: preserve texts, emails, notes, and witnesses. Make a written summary of what happened while memories are fresh.
  2. Demand letter: send a clear written demand to the person who refuses to comply. State the agreement terms and request payment or performance within a deadline.
  3. Mediation or negotiation: try a mediated settlement. Courts and insurers favor resolving probate and wrongful-death disputes outside litigation when possible.
  4. Ask the probate court for relief: if a personal representative is involved, you can petition the probate court for an accounting, to compel distribution, or to remove a representative who breaches duties.
  5. Sue for breach of contract or unjust enrichment: if negotiation fails, file a civil suit asking a court to enforce the oral agreement or award damages. If the agreement related to estate administration, file the appropriate probate petition.

How to dispute an alleged oral agreement

If someone claims an oral agreement exists and you disagree, common defenses include:

  • Denial: say there was never an agreement.
  • Statute of frauds: assert the alleged agreement falls within writing requirements.
  • Lack of authority: show the person who made the promise had no authority to bind the estate or insurer.
  • Fraud, duress, or mistake: show the agreement was induced by improper means or was mistaken.
  • Failure of consideration: show you gave nothing in exchange or the promised consideration never occurred.

Timing and deadlines

Different claims have different statutes of limitations and deadlines. For wrongful-death actions, probate petitions, or contract claims, you must act within Arkansas’ applicable time limits. Because deadlines vary by claim and circumstance, get legal advice early to avoid losing rights.

When to talk with an attorney

Contact an attorney if any of the following apply:

  • The amount at stake is significant.
  • One side alleges an agreement and the other denies it.
  • Minors or disabled persons are beneficiaries and court approval may be required.
  • The alleged agreement involves changing a probate court order or the duties of a personal representative.

Key Arkansas legal references

Relevant provisions include the Arkansas wrongful death statutes (Ark. Code Ann. §16-62-101 et seq.) and the probate rules and statutes that govern estate administration. For primary texts, search the Arkansas Code at the Arkansas General Assembly site: https://www.arkleg.state.ar.us/. If your situation involves deadlines or technical probate procedure, consult a lawyer promptly.

Helpful Hints

  • Document everything. If an agreement is made orally, immediately create a contemporaneous written record and share it with the other party by email or letter.
  • Preserve digital evidence. Save texts, emails, voicemail, and social media messages. Don’t delete them.
  • Get witnesses’ contact information and written statements while memories are fresh.
  • Ask the personal representative for a full accounting in writing before taking other steps.
  • Use a demand letter to show you attempted resolution before filing suit—courts and insurers often respond to a firm, documented demand.
  • Consider mediation early. Mediation can resolve disputes faster and cheaper than litigation and is a common requirement in probate or settlement processes.
  • Be mindful of deadlines. Different claims (probate petitions, contract suits, claims related to wrongful death) have different timelines—delay can forfeit your rights.

Disclaimer: This article explains general principles of Arkansas law and is for informational purposes only. It does not constitute legal advice, create an attorney-client relationship, or cover every legal nuance. If you have a specific dispute about wrongful death proceeds or an alleged oral agreement, consult a licensed Arkansas attorney promptly.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney.