American Rural Cellular, Inc. v. System Communication Corp.

939 P.2d 185, 318 Utah Adv. Rep. 3, 1997 Utah App. LEXIS 60, 1997 WL 282936
CourtCourt of Appeals of Utah
DecidedMay 30, 1997
Docket960335-CA
StatusPublished
Cited by21 cases

This text of 939 P.2d 185 (American Rural Cellular, Inc. v. System Communication Corp.) 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
American Rural Cellular, Inc. v. System Communication Corp., 939 P.2d 185, 318 Utah Adv. Rep. 3, 1997 Utah App. LEXIS 60, 1997 WL 282936 (Utah Ct. App. 1997).

Opinion

OPINION

JACKSON, Judge:

American Rural Cellular, Inc. (Celleom) appeals the trial court’s judgment, on remand, in favor of Systems Communication Corporation (Syscom). We affirm in part, reverse in part, and remand for further proceedings on the issue of attorney fees.

FACTS

In 1989, Celleom, a Delaware corporation, was awarded Federal Communications Commission permits to build and operate cellular telephone systems in eastern Utah and central Pennsylvania. After obtaining the permits, Celleom entered into an agreement with Syscom, a Utah corporation, for the construction and management of a cellular telephone system in eastern Utah. 1 As the first phase of construction on the cellular system neared completion, a dispute arose between the parties. Celleom questioned Syscom’s compliance with certain terms of the parties’ contract; Syscom responded by filing mechanics’ liens on the three Celleom properties that Syscom had improved. Cell-corn then took the cellular system over from Syscom and filed this action seeking to terminate the contract and void the mechanics’ liens. Syscom counterclaimed, seeking foreclosure of its mechanics’ liens and damages for breach of contract. In its response to Syscom’s counterclaim, Celleom argued that Syscom was barred from bringing its counterclaim by Utah Code Ann. § 58-55-604 (1996), 2 which prohibits unlicensed contractors from suing on their contracts. Celleom asserted that because Syscom acted as a contractor and failed to comply with the licensing requirements of the Utah Construction Trades Licensing Act (the Act), Utah Code Ann. tit. 58, ch. 55, Syscom could not recover for materials and services provided under the contract.

After a two-day bench trial in October 1992, the trial court held that Celleom had validly terminated the contract, but that Cell-corn had breached the contract by not paying Syscom the amount it spent to build the cellular system. The trial court further held that Syscom was not barred by section 58-55-604 from maintaining its action, and that the mechanics’ hens were valid. The court awarded Syscom its attorney fees and a judgment for $116,040.96.

Celleom appealed the trial court’s ruling to this court. In our 1995 opinion, see American Rural Cellular, Inc. v. Systems Communication Corp., 890 P.2d 1035 (Utah.Ct.App.1995), we concluded that the trial court failed to make adequate findings to support its *189 decision that Syscom was not barred from maintaining its action by section 58-55-604. We noted that the trial court failed to make any express findings concerning the “crucial threshold issue of whether Syscom [was] a contractor under the Act.” Id. at 1036. We therefore remanded for detailed findings as to whether Syscom acted as a contractor within the statutory definition. See id. at 1039. We also discussed the statutory and common law exceptions to the licensing requirement, holding that, should the trial court determine that Syscom was engaged as a contractor but that it met one or more of these statutory or common law exceptions, the trial court must make detailed factual findings supporting its conclusion. See id. at 1039-41.

On remand, the trial court again ruled for Syscom, once again finding that Syscom was not barred by the Act from recovering under the contract. The trial court specifically found that Syscom was not engaged as a contractor under the licensing statute, or, alternatively, that Syscom was exempt from the Act based on both statutory and common law exceptions. The trial court also awarded Syscom $15,000 in attorney fees incurred at trial in foreclosing its mechanics’ liens, and $22,744.76 in attorney fees and costs incurred on appeal and post-appeal. Cellcom now appeals from this second judgment.

ISSUES

Cellcom argues that the trial court erred, on remand, in: (1) holding that Syscom was not a contractor under the Act, and was therefore not barred from suing for materials and services under the contract; (2) failing to find that Syscom breached various material obligations under the parties’ contract, excusing Cellcom of its duty to pay or reimburse Syscom under the contract; (3) refusing to order a new trial or reopen the case based on newly discovered evidence of Syscom’s breaches and Cellcom’s damages; (4) awarding Syscom its attorney fees incurred in the prior appeal; and (5) failing to disqualify itself where there was the appearance of partiality.

ANALYSIS

I. Trial Court’s Determination that Syscom Was Not a Contractor Under the Utah Construction Trades Licensing Act

Cellcom first argues the trial court erred in determining that Syscom was not a contractor under the Act. Cellcom asserts that there is insufficient evidence to support the trial court’s determination.

In our prior opinion in this case, we found that the trial court failed to make adequate factual findings supporting its determination that Syscom was not barred by the Act from recovering for services and materials provided under the contract. See American Rural Cellular, Inc. v. Systems Communication Corp., 890 P.2d 1035, 1039 (Utah.Ct.App. 1995). In that opinion, we noted that “the evidence with respect to whether Syscom was engaged as a contractor within the statutory definition, or was simply an agent or participant with Cellcom, is conflicting,” id., and that “the record is replete with evidence supportive of both parties’ positions,” id. at 1037. Recognizing that the determination of whether Syscom was acting as a contractor within the meaning of the Act is a highly fact-dependent determination, we then ordered the trial court to make “detailed findings on whether Syscom was engaged as a contractor within the statutory definition.” Id. at 1039. We further stated that “[t]he trial court’s findings should resolve this issue unequivocally, stating the specific subsidiary facts supporting its ultimate factual determinations.” Id.

Therefore, in challenging the trial court’s ultimate determination that Syscom was not acting as a contractor under the Act, Cellcom must show that the trial court’s factual findings underlying its determination are clearly erroneous. See Cal Wadsworth Constr. v. City of St. George, 898 P.2d 1372, 1378 (Utah 1995). To properly challenge the trial court’s factual findings, Cellcom must “‘“marshal the evidence in support of the findings and then demonstrate that despite this evidence, the trial court’s findings are so lacking in support as to be against the clear weight of the evidence.” ’ ” Interwest *190 Constr. v. Palmer, 923 P.2d 1350

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Bluebook (online)
939 P.2d 185, 318 Utah Adv. Rep. 3, 1997 Utah App. LEXIS 60, 1997 WL 282936, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-rural-cellular-inc-v-system-communication-corp-utahctapp-1997.