Advanced Restoration, L.L.C. v. Priskos

2005 UT App 505, 126 P.3d 786, 539 Utah Adv. Rep. 66, 2005 Utah App. LEXIS 518, 2005 WL 3131489
CourtCourt of Appeals of Utah
DecidedNovember 25, 2005
Docket20040652-CA
StatusPublished
Cited by12 cases

This text of 2005 UT App 505 (Advanced Restoration, L.L.C. v. Priskos) 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
Advanced Restoration, L.L.C. v. Priskos, 2005 UT App 505, 126 P.3d 786, 539 Utah Adv. Rep. 66, 2005 Utah App. LEXIS 518, 2005 WL 3131489 (Utah Ct. App. 2005).

Opinion

OPINION

GREENWOOD, Judge:

¶ 1 This ease involves a dispute among Vasilios C. Priskos (Landlord), The Center for Behavioral Health (Tenant), and Advanced Restoration, L.L.C. (Advanced), regarding payment for repair work that Advanced performed on leased premises (the Premises). Landlord appeals the trial court’s grant of summary judgment against him and in favor of Advanced and Tenant. Specifically, Landlord argues that (1) Tenant was not acting as Landlord’s implied agent in contracting with Advanced to repair the damage, and (2) the Lease between Landlord and Tenant (the Lease) requires Tenant to indemnify Landlord against claims resulting from Tenant’s use of the Premises and to remove any liens on the Premises within thirty days. Advanced requests an award of attorney fees incurred on appeal. We affirm, but decline to award attorney fees.

BACKGROUND

¶ 2 Tenant began leasing the Premises 1 in April 1995 for use as a methadone clinic. The original term of the Lease was for three years, ending June 1, 1998; however, Tenant exercised an option to renew the lease for three additional years. In 2001, the parties continued the Lease on a month-to-month basis. At all relevant times, Tenant was the sole tenant of the Premises, leasing the entire building.

¶ 3 In late October 2001, a toilet supply tube burst, flooding a large portion of the Premises. The flooding caused extensive damage to both the main floor and the basement, including damage to walls, floors, carpet, and ceiling tile.

¶4 Tenant’s director personally initiated repairs of the Premises, completing approximately $1,800 worth of repairs to the floors. Tenant then contracted with Advanced to complete the repairs. Charges for the repair work performed by Advanced totaled $9,300.86.

¶ 5 Landlord did not become aware of the damage to the Premises until November 2001. However, he did know that Advanced was repairing the Premises before the work was completed. Additionally, Landlord never objected to the hiring of Advanced or to the work performed by Advanced.

¶ 6 Several weeks later — after Advanced had started work on the Premises — Tenant’s insurance company informed Tenant that it would not pay for the damage to the Premises because Tenant’s policy covered only personal property and belongings, not damage to the building.

¶ 7 Tenant then contacted Landlord and explained the situation. Landlord agreed to contact his insurance company, CNA Insurance (CNA), to see if it would cover the damage. CNA agreed to cover the cost of the damage to the Premises, and advised Landlord that there was a $1,000 deductible charge. CNA delivered a check to Landlord for $8,281.52 ($9,281.52 for the covered damage minus $1,000 for the deductible).

¶ 8 Advanced finished the repair work and requested payment from CNA, only to learn that- payment had been sent to Landlord several weeks before. Advanced left a mes *790 sage with Landlord regarding payment, and made several other attempts to collect from Landlord. Landlord, however, refused to transfer the insurance check to Advanced unless Advanced first executed a lien waiver. Advanced refused this request, and filed a mechanics’ lien on the Premises on March 7, 2002, apparently only against Landlord’s interest in the property.

¶ 9 On March 27, 2002, Tenant attempted to broker an agreement whereby Advanced would release its lien, discount its billing by $1,000 (the amount of Landlord’s deductible), and accept the insurance check as payment in full for its repair work on the Premises. In exchange, Landlord would deliver the insurance check to Advanced. However, the deal fell through because Advanced and Landlord were not able to reach an agreement regarding how to accomplish a simultaneous exchange of the insurance check and execution of the lien waiver.

¶ 10 Advanced filed a complaint against Landlord and Tenant for breach of contract, to foreclose on its lien, and other claims not relevant to this appeal. Landlord filed a cross-claim against Advanced for wrongful lien and a third-party complaint against Tenant for breach of contract. Landlord moved for summary judgment, arguing that he was not liable for the cost of repairs under Utah’s mechanics’ lien statute (the Act), see Utah Code Ann. §§ 38-1-1 to -37 (2001 & Supp. 2005), as interpreted in Interiors Contracting Inc. v. Navalco, 648 P.2d 1382 (Utah 1982). In response, Advanced filed a motion for summary judgment against Landlord and Tenant, arguing that Landlord was liable to Advanced under Navalco and that Tenant was contractually bound to pay for the repairs in any case.

¶ 11 The trial court denied Landlord’s motion for summary judgment against Advanced and granted summary judgment in favor of Advanced against Landlord, reasoning that (1) Tenant was acting as Landlord’s implied agent when it contracted with Advanced for the repair work, and (2) Landlord’s “failure to tender the insurance check to Advanced or pay the check into court is in direct contravention of the policies surrounding the ... Act.” Accordingly, the trial court ruled that Landlord was' liable for the entire amount, plus reasonable attorney fees and costs.

¶ 12 Considering Advanced’s motion for summary judgment against Tenant, the trial court ruled that “under the Work Authorization signed by Tenant, Tenant was obligated to pay Advanced for the work it did on the building.” However, because Tenant was acting as Landlord’s “implied agent when it executed the Work Authorization,” Tenant’s liability to Advanced “is contingent upon [Landlord’s] delivery of the insurance check to Advanced-”

¶ 13 Additionally, Landlord filed a third-party complaint against Tenant alleging that (1) paragraph 11 of the Lease makes Tenant responsible for the damage to the Premises; (2) Tenant breached paragraph 19 of the Lease by failing to procure proper insurance and by failing to indemnify Landlord; (3) Tenant breached paragraph 30 of the Lease by allowing Advanced’s lien to remain on the Premises for more than thirty days.

¶ 14 Landlord and Tenant filed cross-motions for summary judgment. The trial court granted summary judgment in favor of Tenant and against Landlord, concluding that (1) paragraph 11 of the Lease makes Landlord responsible for plumbing defects; (2) Tenant complied with paragraph 19 of the Lease by carrying liability insurance; (3) paragraph 19 of the Lease does not require Tenant to indemnify Landlord against his own negligence, and Landlord’s “own failure to reach an agreement [with Advanced] absolved [Tenant] of liability pursuant to paragraph nineteen”; and (4) Tenant complied with paragraph 30 of the Lease by facilitating communications between the parties in an attempt to have Advanced’s lien removed in less than thirty days, which Landlord thwarted by refusing to reach an accord and tender the insurance check. Additionally, the trial court awarded Tenant attorney fees and costs.

¶ 15 Landlord appeals the trial court’s rulings as tó both-Advanced and Tenant.

ISSUES AND STANDARD OF REVIEW

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Cite This Page — Counsel Stack

Bluebook (online)
2005 UT App 505, 126 P.3d 786, 539 Utah Adv. Rep. 66, 2005 Utah App. LEXIS 518, 2005 WL 3131489, Counsel Stack Legal Research, https://law.counselstack.com/opinion/advanced-restoration-llc-v-priskos-utahctapp-2005.