440 North SF v. Vista Heights Investments

2024 UT App 73, 550 P.3d 1019
CourtCourt of Appeals of Utah
DecidedMay 16, 2024
Docket20220785-CA
StatusPublished

This text of 2024 UT App 73 (440 North SF v. Vista Heights Investments) is published on Counsel Stack Legal Research, covering Court of Appeals of Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
440 North SF v. Vista Heights Investments, 2024 UT App 73, 550 P.3d 1019 (Utah Ct. App. 2024).

Opinion

2024 UT App 73

THE UTAH COURT OF APPEALS

440 NORTH SF, LLC, Appellant, v. VISTA HEIGHTS INVESTMENTS, LLC AND SII MEGADIAMOND, INC., Appellees.

Opinion No. 20220785-CA Filed May 16, 2024

Fourth District Court, Provo Department The Honorable Robert A. Lund No. 210400480

Spencer Macdonald, Attorney for Appellant James K. Tracy, Joshua L. Lee, and Steve L. Lundwall, Attorneys for Appellees

JUDGE DAVID N. MORTENSEN authored this Opinion, in which JUDGES RYAN M. HARRIS and AMY J. OLIVER concurred.

MORTENSEN, Judge:

¶1 Appellant 440 North SF, LLC (440 North) purchased a residentially zoned lot (Residential Parcel) in Provo, Utah. A road runs between that lot and the neighboring property—a commercially zoned lot (Commercial Parcel) owned by Appellee Vista Heights Investments, LLC (Vista Heights) and upon which Appellee SII MegaDiamond, Inc. (MegaDiamond) runs a diamond manufacturing business. 440 North later realized that the road the diamond business uses to access part of the manufacturing facility lies on the Residential Parcel and sued for trespass and to quiet title, in addition to other claims. Appellees counterclaimed for a declaratory judgment establishing an easement. On a motion for summary judgment, the district court 440 North SF v. Vista Heights Investments

ruled that the undisputed facts entitled Appellees to judgment as a matter of law and certified its judgment as final. 440 North raises two grounds for reversal. We reject them each and affirm.

BACKGROUND 1

¶2 This dispute involves two parcels of adjacent real property in Provo, Utah—the Residential Parcel to the east and the Commercial Parcel to the west. Ownership of the properties has changed hands several times over the last decade—including two intervals where they were owned by the same entity. From 2012 to 2015, Novatek, Inc. (Novatek), a company owned by David Hall, owned both the Commercial Parcel and the Residential Parcel. In 2015, Novatek conveyed both properties to another company owned by Hall, New Vistas Property Holdings, LLC (New Vistas). In 2018, New Vistas conveyed the Commercial Parcel to Vista Heights and the Residential Parcel to DRH Holdings, LLC (DRH), which was also owned by Hall. Then, in 2020, 440 North purchased the Residential Parcel from DRH.

¶3 This lawsuit centers around an asphalt road (Road) that follows the east side of the Commercial Parcel and sits mostly on the western edge of the Residential Parcel. The Road is

1. We both recite the facts and draw all reasonable inferences in a light most favorable to 440 North as the nonmoving party on summary judgment. See USA Power, LLC v. PacifiCorp, 2010 UT 31, ¶ 33, 235 P.3d 749. “Of course, to be reasonable, [an] inference must present something more than pure speculation,” meaning there must be “underlying evidence to support the conclusion.” Medina v. Jeff Dumas Concrete Constr. LLC, 2020 UT App 166, ¶ 21, 479 P.3d 1116 (cleaned up). Therefore, in our recitation of the facts and analysis, we draw only reasonable inferences in 440 North’s favor and accept as true any of the district court’s conclusions that 440 North left unchallenged.

20220785-CA 2 2024 UT App 73 440 North SF v. Vista Heights Investments

“approximately 38 feet wide and 210 feet long.” The location of the Road corresponds with the approximate location of an easement (RR Easement) that Union Pacific Railroad recorded as early as 1978. Union Pacific laid railroad tracks across the entirety of the RR Easement, and those tracks are now covered by the Road. In 2012, Novatek, the owner of both properties at the time, renovated a large building (Building) on the Commercial Parcel in order to run its diamond manufacturing business. In 2015, MegaDiamond purchased the diamond business from Novatek, and it has since leased the Commercial Parcel from Novatek and later New Vistas, followed by Vista Heights. MegaDiamond continues to run the business out of the Building in the same manner that Novatek did.

¶4 The back of the Building is “only a few feet” from the Road and the property line of the Residential Parcel. The back of the Building includes a research and development space (R&D Space) with “large overhead doors.” MegaDiamond uses heavy equipment on the Road (as did Novatek previously) “including semi-trucks and industrial capacity fork lifts to move multi-ton granite boulders” through the doors of the R&D Space. Access to the R&D Space, aside from foot traffic, is possible only through the overhead doors that face the Residential Parcel.

¶5 In 2021, 440 North filed the present lawsuit against Appellees seeking (1) declaratory judgment regarding each party’s rights to the Road, (2) to quiet title, and (3) damages for trespass. Appellees brought a counterclaim for declaratory judgment to establish an easement by implication for the Road on the Residential Parcel to benefit the Commercial Parcel. Later, Appellees filed a motion for summary judgment on both the complaint and the counterclaim. The district court granted the

20220785-CA 3 2024 UT App 73 440 North SF v. Vista Heights Investments

motion, holding that Appellees “established by undisputed facts all of the elements of an implied easement.” 2

¶6 440 North then filed a rule 60(b) motion to set aside the judgment, see Utah R. Civ. P. 60(b), raising for the first time the argument that any commercial use of the Road was unlawful because the Residential Parcel was zoned for only residential use. The district court denied the motion, concluding that the zoning information was public record and therefore available before the lawsuit commenced. 440 North appeals.

ISSUES AND STANDARDS OF REVIEW

¶7 440 North raises two issues on appeal. First, 440 North argues that the district court erred in granting Appellees’ summary judgment motion. 3 “We review the district court’s ultimate grant or denial of summary judgment for correctness,” giving no deference to the district court’s legal conclusions. Far West Bank v. Robertson, 2017 UT App 213, ¶ 15, 406 P.3d 1134 (cleaned up).

¶8 Second, 440 North argues that the district court erred by denying its rule 60(b) motion. “A district court has broad discretion to rule on a motion to set aside a judgment under rule 60(b).” Weber v. Mikarose, LLC, 2015 UT App 130, ¶ 11, 351 P.3d

2. The district court amended the initial ruling to correct a “one- word typographical error.”

3. While 440 North has articulated this as seven separate issues, it actually consists of a single challenge to the court’s grant of summary judgment in favor of Appellees. We address 440 North’s various concerns in our analysis.

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121 (cleaned up). Therefore, we review a district court’s denial of such a motion under an abuse of discretion standard. See id.

ANALYSIS

I. Summary Judgment Motion

¶9 We turn first to 440 North’s contention that summary judgment was inappropriate. In challenging the court’s summary judgment order, 440 North raises three subsidiary arguments. First, it claims that genuine issues of material fact precluded summary judgment. Second, it asserts that the district court applied the wrong standard of proof. And finally, it asserts that the elements of an implied easement are not present here, at least not as a matter of law. We address these arguments in turn.

A. Genuine Issues of Material Fact

¶10 440 North argues that the district court erred in granting Appellees’ summary judgment motion because ten genuine issues of material fact precluded entry of summary judgment.

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Bluebook (online)
2024 UT App 73, 550 P.3d 1019, Counsel Stack Legal Research, https://law.counselstack.com/opinion/440-north-sf-v-vista-heights-investments-utahctapp-2024.