Justia Utah Supreme Court Opinion Summaries

Articles Posted in Professional Malpractice & Ethics
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The Supreme Court affirmed the ruling of the district court that Plaintiff's post-judgment motion was timely, holding that the district court's order of dismissal did not constitute a separate judgment under Utah R. Civ. P. 58A(1), and therefore, the judgment was not complete and entered until 150 days after the clerk recorded the order of dismissal.This appeal stemmed from a legal malpractice claim. The district court dismissed the complaint. On April 10, the district court signed the proposed order of dismissal with prejudice. On May 9, Plaintiff filed a post-judgment motion requesting various forms of relief. Defendant argued that the motion was untimely because it was filed more than twenty-eight days after the April 10 order. The district court granted Plaintiff's motion and vacated the April 10 order, concluding that the order was not a separate judgment under Rule 58A(a) and therefore did not start the time to file post-judgment motions. The Supreme Court affirmed, holding (1) the district court did not err in concluding that the April 10 order was not a separate judgment pursuant to Rule 58A(a); and (2) because the April 10 order did not constitute an "entry of judgment" that started the time to file post-judgment motions, Plaintiff's post-judgment motion was timely. View "Griffin v. Snow Christensen & Martineau" on Justia Law

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The Supreme Court declined to accept Cypress Fund, LLC's request that the Court declare, as a matter of public policy, that Cougar Canyon Loan, LLC cannot foreclose on Cypress's cause of action for legal malpractice, holding that the policy concerns raised by Cypress were insufficient to override the plain language of Utah R. Civ. P. 64 and 64E, the rules governing the foreclosure of legal claims through a writ of execution.In a separate case, Cougar Canyon obtained a $4 million judgment against Cypress. Cypress filed a malpractice suit against its former legal counsel, believing that the judgment resulted from that counsel's malpractice. In its effort to collect on its judgment against Cypress, Cougar Canyon foreclosed on Cypress's right to bring the malpractice claim. At issue on appeal was whether public policy requires that this foreclosure be undone. The Supreme Court affirmed the district court's denial of Cypress's motion to quash the writ of execution, holding that the plain language of the rules of civil procedure allowed Cougar Canyon to execute on Cypress's legal malpractice claim, and any change to those rules should be sought through the normal rule-making process. View "Cougar Canyon Loan, LLC v. Cypress Fund, LLC" on Justia Law

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The Supreme Court reversed the judgment of the district court dismissing Plaintiffs' malpractice claim against Defendant, their attorney, as untimely, holding that Plaintiffs' claim was timely.Plaintiffs lost their opportunity to collect $874,805.68 owed to them in a bankruptcy proceeding when Defendant failed to file Plaintiffs' nondischargeability claim before the expiration of the statute of limitations. Plaintiffs later brought this malpractice action against Defendant. The district court dismissed the claim as untimely, finding that the statute of limitations had expired four years after Defendant missed the filing deadline for the nondischargeability claim. The Supreme Court reversed, holding that the malpractice claim did not accrue until the bankruptcy court confirmed the final distribution plan, and therefore, Plaintiffs' claim was timely. View "Moshier v. Fisher" on Justia Law

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The Supreme Court affirmed the judgment of the district court declining to grant Defendant's motion for summary judgment in this legal malpractice action, holding that Thomas v. Hillyard, __ P.3d __ (Utah 2019), squarely addressed the issues presented in this case.On advice from Defendant, Plaintiff, an optometrist, pled guilty to charges arising out of Plaintiff's Medicaid billing for his services. Plaintiff later sued Defendant for legal malpractice, alleging that Defendant failed to inform him of the consequences of pleading guilty or to advise him of the likelihood of success at trial. Defendant moved for summary judgment asking the district court to conclude that Plaintiff's claims failed as a matter of law under two rules embraced in other jurisdictions - the exoneration rule and the actual innocence requirement. The district court declined to adopt either rule. Around the time the Supreme Court heard Plaintiff's appeal, the Court decided Thomas, holding that neither the exoneration rule nor the actual innocence requirement have a place in malpractice law. Thus, based on Thomas, the Court affirmed in this case. View "Paxman v. King" on Justia Law

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The Supreme Court reversed the judgment of the district court granting summary judgment in favor of Defendant on grounds that Plaintiff's malpractice action was barred by the statute of limitations, holding that Plaintiff's claim was timely filed.In his complaint, Plaintiff alleged that he was convicted of two felonies due to the malpractice of Defendant, his trial counsel. After Plaintiff hired new counsel he secured a new deal that replaced his two felony convictions and three misdemeanor convictions. At issue in this case was when Plaintiff's cause of action accrued. The district court concluded that Plaintiff's malpractice action was untimely filed. The Supreme Court affirmed, holding that Plaintiff's malpractice claim accrued at the conclusion of his criminal case when he pled guilty to three misdemeanors, and not at the time the jury first returned its guilty verdict, and therefore, Plaintiff's malpractice action was filed within the statute of limitations. View "Thomas v. Hillyard" on Justia Law

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The Supreme Court vacated the jury’s $2.75 million award for non-economic damages in this legal malpractice and breach of contract case, holding that the case did not qualify as one of the “rare” cases where non-economic damages can be recovered for breach of contract.Plaintiff sued Defendants for legal malpractice, breach of contract, breach of fiduciary duty, and negligent hiring, training, and supervision after Defendants failed to bring Plaintiff’s claim before the statute of limitations ran. The jury found in favor of Plaintiff on each of the claims, awarding her $750,000 in damages for breach of contract and $2.75 million for the emotional distress Plaintiff suffered as the result of the malpractice. The Supreme Court vacated the non-economic damages award, holding that, under either a breach of contract or breach of fiduciary duty theory, the district court erred in upholding the award for emotional distress damages. The Court also vacated the attorney fees award and held that the district court correctly denied Plaintiff’s litigation expenses. View "Gregory & Swapp, PLLC v. Kranendonk" on Justia Law

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In this case presenting the question of whether a treating therapist owes a duty of reasonable care to a nonpatient parent when treating that parent’s child for potential allegations of sexual abuse, the Supreme Court remanded this case for proceedings consistent with its opinion in Mower v. Baird, __ P.3d __ (Utah 2018), a companion case also decided today.As a result of the actions of Kayelyn Robinson, a therapist who treated Plaintiff’s child, Rocio Smith lost visitation with her children for several years and “endured personal defamation, lost income and employment, and incurred enormous legal expenses.” Smith filed suit against Robinson for malpractice and negligent infliction of emotional distress. The district court granted Robinson’s motion to dismiss the malpractice and negligent infliction of emotional distress claims. Smith appealed the district court’s decision on her malpractice claim. The Supreme Court reversed and remanded the case for the district court to conduct proceedings consistent with its opinion in Mower. View "Smith v. Robinson" on Justia Law

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Legal malpractice claims are presumed to be voluntarily assignable.Eagle Mountain City entered into a contractual arrangement with Cedar Valley Water Association to share in recovery from a legal malpractice action brought against Parsons Kinghorn & Harris, P.C. The City brought the legal malpractice action in its own name. At issue was whether the contractual arrangement transferred sufficient control over the malpractice claim from the City to Cedar Valley to constitute an assignment. The district court dismissed the case without prejudice on the ground that the assignment of legal malpractice claims violates public policy. The Supreme Court reversed, holding that, even assuming the City assigned its legal malpractice claim, this assignment does not violate public policy. View "Eagle Mountain City v. Parsons Kinghorn & Harris, P.C." on Justia Law

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USA Power, LLC developed a power plant project in Mona, Utah called the “Spring Canyon vision.” Meanwhile, PacifiCorp entered into negotiations to purchase USA Power’s Spring Canyon assets, and USA Power provided PacifiCorp with details on the entire project. PacifiCorp terminated the negotiations, however, and began construction on a power plant project in Mona that was very similar to the Spring Canyon project. PacifiCorp also retained Jody Williams, USA Power’s former attorney, to help it obtain water rights for its project, called the Currant Creek project. USA Power brought suit against Williams, asserting malpractice claims for Williams’s alleged breach of her fiduciary duties of confidentiality and loyalty, and against PacifiCorp, alleging misappropriation of USA Power’s trade secrets. The trial court granted summary judgment for Defendants. The Supreme Court reversed. On remand, the jury returned a special verdict against PacifiCorp and Williams. The trial court reduced the unjust enrichment award against PacifiCorp, granted Williams’s judgment notwithstanding the verdict motion for lack of evidence related to causation, and determined that USA was entitled to attorney fees. Both parties appealed. The Supreme Court affirmed the trial court’s rulings as to each issue presented on appeal, holding that the court did not err in its judgment. View "USA Power, LLC v. PacifiCorp" on Justia Law

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In 2010, Plaintiff was negotiating the sale of three limited liability companies of which he was the sole shareholder. The companies were S Corporations. Plaintiff retained an Accounting Firm to advise him on his tax liability from the contemplated sale. Altaview Concrete, one of the companies, was named as the client. Jeffrey Bickel, a partner at the Accounting Firm, advised Plaintiff that he could restructure the deal to reduce his tax liability to $663,000. The buyer agreed to the restructuring proposals, and the sale closed. Later Bickel and the Accounting Firm (collectively, Defendants) discovered they had greatly underestimated Plaintiff's tax liability. Plaintiff filed a professional negligence claim in district court. The district court granted Defendants' motion for summary judgment, finding that Plaintiff's claim failed to satisfy the writing requirement of Utah Code 58-26-602, which provides that accountants are not liable to third parties unless the accountant identified in writing to the client that the professional services were intended to be relief upon by the third party. The Supreme Court reversed, holding that Defendants were liable to Plaintiff as a third party under section 602 because Defendants identified in writing that the professional services were intended to be relied upon by Plaintiff.View "Reynolds v. Bickel" on Justia Law