Justia Utah Supreme Court Opinion Summaries

Articles Posted in Real Estate & Property Law
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A dispute arose between SunStone Realty Partners X LLC (SunStone) and Bodell Construction Company (Bodell) over the postjudgment interest rate applied to a domesticated Hawaii judgment in Utah. Following arbitration in Hawaii over construction defects in a condominium development, SunStone obtained a judgment against Bodell exceeding $9.5 million, which it domesticated in Utah. Bodell requested the Utah court to apply Utah's lower postjudgment interest rate instead of Hawaii's higher one. SunStone opposed this, arguing that the Utah Foreign Judgment Act (UFJA) required the application of Hawaii's rate, or alternatively, that their contract or principles of comity mandated the Hawaii rate.The Supreme Court of the State of Utah affirmed the district court's decision to apply Utah's postjudgment interest rate. The court found that the UFJA, which does not specifically address postjudgment interest, instructs Utah courts to treat a foreign domesticated judgment like a Utah judgment for enforcement purposes. Since postjudgment interest serves, at least in part, as an enforcement mechanism, the UFJA requires the imposition of Utah’s postjudgment interest rate. Further, the construction contract did not require the application of the Hawaii postjudgment interest rate. The court did not consider principles of comity because the UFJA mandates a result. View "Sunstone Realty v. Bodell Construction" on Justia Law

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The Supreme Court affirmed the determination of the Utah State Tax Commission that the Property Tax Division correctly followed the requirements of the Aircraft Valuation Law, Utah Code 59-2-201 subsection 4, in determining the 2017 value of Delta Air Lines' aircraft, holding that Salt Lake County failed to demonstrate that the Law, as applied to Delta's 2017 assessment, violated the fair market value provision of the Utah Constitution.For tax year 2017, the Division valued Delta's aircraft according to section 59-2-201's preferred methodology. The County appealed, arguing that the valuation did not reflect the fair market value of Delta's aircraft, in violation of the Utah Constitution. The Commission upheld the assessment, concluding that the County did not establish that the Legislature's preferred method of valuation did not reasonably reflect fair market value. The Supreme Court affirmed, holding that the Aircraft Valuation Law was not unconstitutional as applied by the Commission to assess the value of Delta's aircraft for tax year 2017. View "Salt Lake County v. Utah State Tax Commission" on Justia Law

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The Supreme Court affirmed the judgment of the district court partially granting summary judgment concluding that a homeowners association (HOA) was entitled to collect past due assessments against Robbie Frank, the trustee of two trusts that each owned a lot within the HOA's boundaries, but that a bench trial was necessary to determine the amount owing, holding that the district court did not err.On appeal, Frank argued (1) the documents establishing the HOA were void as against public policy and that void documents cannot be ratified, and (2) in the alternative, the district court erred in determining that ratification had occurred in this case. The Supreme Court affirmed, holding (1) the governing documents were merely voidable, not absolutely void; and (2) the district court did not err in determining that the HOA had authority to assess the properties because the HOA members collectively ratified the HOA's authority. View "Hi-Country Estates Homeowners Ass'n, Phase II v. Frank" on Justia Law

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In this action brought by Utah Stream Access Coalition (USAC) after USAC members were cited for trespass for wading in the Provo River on property owned by VR Acquisitions the Supreme Court held that the district court correctly entered judgment against USAC.In its complaint, USAC claimed that the Public Waters Access Act (PWAA) violated Utah Const. art. XVII and XX and federal common law. The district court entered summary judgment against USAC on its article XVII and federal common law claims but, after a bench trial, determined that the PWAA violated article XX. On appeal, the Supreme Court determined that the district court made a threshold error in reaching its article XX determination and remanded with instruction that the court address the threshold question of whether the easement identified in Conaster v. Johnson, 194 P.3d 897 (Utah 2008), had a historical basis as a public easement at the time the Utah Constitution was framed. On remand, the district court granted summary judgment for VR Acquisitions and the State. The Supreme Court affirmed, holding that because USAC did not identify an affirmative, 19th-century legal basis for a Conaster easement, the district court correctly ruled that USAC did not make the threshold showing. View "Utah Stream Access Coalition v. VR Acquisitions, LLC" on Justia Law

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The Supreme Court affirmed the judgment of the district court in favor of a homeowners' association in this dispute against Owner over unpaid assessments concluding that the HOA was entitled to collect the assessments because the HOA members in general had ratified the HOA's authority, holding that protective covenants that were not signed by the property owner are capable of ratification.The HOA in this case sued the Owner of a lot within its boundaries for unpaid assessments. The Owner argued, in response, that the HOA's governing documents were unauthorized encumbrances on the lot and therefore violated the Wrongful Lien Act. The district court granted summary for the HOA. The Supreme Court affirmed, holding (1) protective covenants that were not signed by the property owner are voidable but not void as against public policy and are thus capable of ratification; (2) the district court correctly ruled that the HOA at the authority to assess the lot at issue and correctly calculated the unpaid assessments owing to the HOA; and (3) the HOA was entitled to its attorney fees on appeal. View "Hi-Country Estates v. MountainTop Properties" on Justia Law

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The Supreme Court affirmed the decision of the Utah State Tax Commission agreeing with the determination of Washington County that rental property owned by Durbano Properties, LC in the County did not qualify for a property tax exemption, holding that Durbano was not entitled to relief on its claims of error.For the 2010 through 2017 tax years Durbano received a residential tax exemption as provided by the Property Tax Act, Utah Code 59-2-103(3), under which property owners are allowed an exemption equal to forty-five percent of the fair market value of "property used for residential purposes as a primary residence," Utah Code 59-2-102(34)(a). Durbano brought a petition arguing that limiting the residential exemption to property used as a primary residence violated the permissive authority granted to the legislature. The Supreme Court disagreed and declined to disturb the Commission's decision, holding that Durbano provided no legal basis to invalidate the legislature's definition of "residential property" as authorized by Utah Const. art. XIII, 3. View "Durbano Properties, LC v. Utah Tax Comm'n" on Justia Law

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The Supreme Court affirmed the judgment of the district court granting summary judgment in favor of a homeowners association (HOA) in this lawsuit it brought to collect unpaid assessments against against the trustee (Trustee) of two trusts that each owned a lot (Lots) within the HOA's boundaries, holding that there was no error.Since at least 1979, prior owners of the Lots paid the HOA's annual assessments, but when Trustee purchased the Lots on behalf of the trust in 2009 he refused to pay the assessments. When the HOA brought this action Trustee argued that the HOA lacked authority to assess the Lots, which rendered the HOA's founding documents void and the HOA powerless. The district court concluded that the HOA was entitled to collect the past due assessments but that a bench trial was necessary to determine the amount owing. The Supreme Court affirmed, holding (1) the district court did not err in determining that the members of the HOA collectively ratified the HOA's authority; and (2) therefore, the HOA had authority to assess the Lots. View "Hi-Country Estates v. Frank" on Justia Law

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In this real estate case, the Supreme Court affirmed the judgment of the district court dismissing this complaint brought by Rocky Mountain Hospitality, LLC (Seller) against Mountain Classic Real Estate, Inc. (Buyer) and awarded Buyer its attorney fees on appeal, holding that because Seller failed to release its interest in the deposit before filing its complaint it was barred from pursuing other remedies.Buyer entered into a contract with Seller to purchase a motel. The purchase price included an earnest money deposit. Buyer failed to purchase the motel. Seller brought this action seeking damages but failed to release its interest in the earnest money deposit before filing the complaint. The district court dismissed the complaint. The Supreme Court affirmed, holding (1) under the contract's default provision, Seller was obligated to release its interest in an earnest money deposit before filing a complaint if Seller wished to pursue a remedy other than liquidated damages; and (2) Seller was deemed to have elected to retain the deposit as liquidated damages and was barred from pursuing its claims. View "Rocky Mountain Hospitality v. Mountain Classic Real Estate, Inc." on Justia Law

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In this quiet title action, the Supreme Court affirmed the district court's denial of Plaintiffs' motion for summary judgment, holding that the Wrongful Lien Act, the statute of frauds, and caselaw have not declared that restrictive covenants recorded without the signature of the affected landowner are absolutely void. In 1973, Charles Lewton signed and recorded documents purporting to create a homeowners association (HOA) covering 2,000 acres of land. Landowners purchased properties within the HOA's boundaries. In 2015, Landowners discovered that Lewton had owned just eight acres of the 2,000 acres purported to be included in the HOA, and no other landowners signed the recorded documents. Landowners subsequently brought this action to quiet title to their property, arguing that the HOA and its restrictive covenants were void ab initio based on public policy. The district court denied Landowners' motion for summary judgment, applying the two-factor test set forth in Ockey v. Lehmer, 189 P.3d 51 (Utah 2008). The Supreme Court affirmed, holding that restrictive covenants that are recorded without the signature of the affected landowner are voidable and therefore ratifiable. View "WDIS, LLC v. Hi-Country Estates Homeowners Ass'n" on Justia Law

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The Supreme Court affirmed the judgment of the district court dismissing the challenges brought by Salt Lake City to four provisions of the Utah Inland Port Authority Act, holding that the challenged zoning provisions did not violate the Utah Constitution.The Act requires that Salt Lake City, West Valley City, and Magna adopt specific zoning regulations and permissions favorable to developing an inland port in the area. Salt Lake brought this action alleging that four provisions of the Act violated the Utah Constitution's Uniform Operation of Laws and Ripper clauses. The district court rejected the City's claims. The Supreme Court affirmed, holding (1) the zoning provisions were rationally related to a legitimate legislative purpose and therefore did not violate the Uniform Operation of Laws Clause; and (2) the zoning provisions did not delegate municipal functions in violation of the Ripper Clause. View "Salt Lake City Corp. v. Inland Port Authority" on Justia Law