Justia Utah Supreme Court Opinion Summaries

Jeffrey Campbell sold investments in Beverly Hills Development Corporation (BHDC) while he was a registered agent of Horner, Townsend & Kent, Inc. (HTK), a broker-dealer licensed to sell securities in the state. After resigning from HTK, Campbell began soliciting investments from and selling BHDC notes to Plaintiffs. When they discovered that they had been scammed, Plaintiffs filed suit against Campbell and HTK. During discovery, Campbell pleaded no contest to selling unregistered securities and was ordered to pay restitution. The district court granted summary judgment for HTK on Plaintiffs’ claims of securities violations, negligent misrepresentation, and negligent training and supervision, and regarding a release signed by one investor; and (2) denied Plaintiffs’ motion for reconsideration in which they alleged negligence, control-person liability, and material aid. The Supreme Court remanded in part, holding that the district court erred when it denied all of Plaintiffs’ requests for attorney fees. The Court otherwise affirmed. Remanded. View "Burdick v. Townsend" on Justia Law

Legacy Resources, Inc. brought several claims against Liberty Pioneer Energy Source, Inc. The district court dismissed Legacy's breach of contract and trade secret claims on summary judgment, determining (1) Legacy violated the securities laws by acting as an unlicensed broker in recruiting investors on behalf of Liberty; and (2) Legacy's securities violations rendered its contract unenforceable under Utah Code 61-1-22(8). The Supreme Court affirmed in part and reversed in part, holding (1) the undisputed facts sustained the conclusion that Legacy acted as an unlicensed broker, which violation foreclosed the enforcement of one of its contracts; but (2) another of Legacy's contracts was not implicated by the securities violation, and thus the district court erred by granting summary judgment on Legacy's claim under that contract, along with its trade secret claim. View "Legacy Res., Inc. v. Liberty Pioneer Energy Source, Inc." on Justia Law

Defendant Money & More Inc. (M&M) allegedly maintained and operated a Ponzi scheme. Pursuant to a petition filed by the State, the district court issued a temporary restraining order freezing Defendants' assets and later entered a preliminary injunction. Several hundred individuals and dozens of corporations that made fraudulent investments formed Money & More Investors LLC (MMI) and assigned to it their rights, interests, and claims against Defendants, who included the individuals comprising M&M. After reaching a settlement agreement with Defendants, MMI filed a motion to intervene in the State's preservation action. The district court granted MMI both intervention as of right under Utah R. Civ. P. 24(a) and, in the alternative, permissive intervention under Utah R. Civ. P. 24(b). The Supreme Court affirmed the grant of intervention as of right, holding that MMI met all the elements of rule 24(a) where (1) MMI's motion to intervene was timely; (2) MMI had a direct interest relating to the property; (3) MMI sufficiently established that the original parties to the suit would inadequately represent MMI's interests; and (4) MMI would be bound by the judgment. View "State v. Bosh" on Justia Law