American United v. Murray

2022 UT App 105, 517 P.3d 1069
CourtCourt of Appeals of Utah
DecidedAugust 25, 2022
Docket20200903-CA
StatusPublished

This text of 2022 UT App 105 (American United v. Murray) 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 United v. Murray, 2022 UT App 105, 517 P.3d 1069 (Utah Ct. App. 2022).

Opinion

2022 UT App 105

THE UTAH COURT OF APPEALS

AMERICAN UNITED FAMILY OF CREDIT UNIONS, Appellee, v. JASON MURRAY, Appellant.

Opinion No. 20200903-CA Filed August 25, 2022

Third District Court, Salt Lake Department The Honorable Richard D. McKelvie No. 160905326

D. Scott Crook, Attorney for Appellant Joseph A. Skinner, Attorney for Appellee

JUDGE RYAN D. TENNEY authored this Opinion, in which JUSTICE JILL M. POHLMAN and JUDGE RYAN M. HARRIS concurred.1

TENNEY, Judge:

¶1 After Jason Murray defaulted on over $60,000 in loans from American United Family of Credit Unions (American United), American United sued Murray to collect. Murray and American United soon agreed to a stipulated settlement that contained, among other things, a payment schedule, an attorney fee provision, and a Confession of Judgment under which American

1. Justice Jill M. Pohlman began her work on this case as a member of the Utah Court of Appeals. She became a member of the Utah Supreme Court thereafter and completed her work on the case sitting by special assignment as authorized by law. See generally Utah R. Jud. Admin. 3-108(4). American United v. Murray

United could later obtain an ex parte judgment against Murray if he didn’t comply with the payment schedule.

¶2 Murray defaulted on the payment schedule within a month of the settlement, so American United obtained a judgment against Murray pursuant to the Confession of Judgment. But despite its efforts, American United had considerable difficulty collecting. After four years of effort, American United filed a motion to augment the judgment to account for the attorney fees that it had incurred in its collection efforts. At that point, Murray filed a motion asking the court to set aside the judgment. The district court denied Murray’s motion, and it also augmented the attorney fees award to include the fees that American United had incurred over the previous two years.

¶3 Murray now challenges both rulings. For the reasons set forth below, we affirm.

BACKGROUND

Stipulation and Confession of Judgment

¶4 Jason Murray began borrowing money from American United in 2013. Through what the parties have referred to as Note I, Murray borrowed $55,091.83, and he used a Mercedes Benz to secure that note. Through what the parties have referred to as Note II, Murray borrowed $8,800. Murray also opened two credit cards with American United, and those cards are referred to in the record as Visa Card I and Visa Card II.

¶5 Murray failed to timely repay American United for the notes or his credit card debts. In August 2016, American United filed a complaint against Murray for, among other things, breach of the contracts underlying Note I, Note II, Visa Card I, and Visa Card II. Through an attorney, Murray answered American United’s complaint.

20200903-CA 2 2022 UT App 105 American United v. Murray

¶6 In October 2016, the parties agreed to a “Stipulated and Conditional Confession of Judgment” (the Stipulation). There, the parties agreed that the Stipulation was an effort “to avoid the time, expense, and potential uncertainty of progressing” with American United’s lawsuit against Murray. The parties further agreed that the Stipulation was intended “to resolve their differences upon the terms and conditions stated” in the Stipulation.

¶7 The Stipulation outlined the outstanding amounts that Murray owed under Note I, Note II, Visa Card I, and Visa Card II, as well as the amount of attorney fees that American United had incurred “in connection with this matter.” Then, in a separate section titled “Confession of Judgment,” the Stipulation stated, “Murray agrees to pay American United the sum of $74,871.91 (which sum includes the total amount due under Note I, Note II, Visa Card I and Visa Card II, plus attorney fees and costs incurred).”

¶8 The Confession of Judgment also set forth a payment schedule, and it further stated that if Murray didn’t follow the schedule, Murray “stipulate[d] to entry of judgment in favor of American United in the amount of $74,871.91, less any amounts actually paid by Murray . . . together with interest accruing on the Judgment Amount at the rates corresponding to” the two notes and the two Visa credit cards. Note I and Note II were attached to the Stipulation, and the corresponding interest rate for each was listed in the notes themselves. The contracts underlying the two Visa credit cards were also attached to the Stipulation. The interest rates for the cards were not identified in those respective contracts; instead, those contracts stated that Murray would be subject to rates that had previously been provided in a “Credit Card Account Opening Disclosure.”

¶9 The Confession of Judgment also included a provision that we’ll refer to as the Waiver of Notice provision. This provision

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provided that if Murray failed to keep up with the payment schedule, American United would “be entitled to immediately file this Confession of Judgment with the Court via an ex-parte motion and affidavit identifying the specific default and the appropriate Judgment Amount, without any further notice to Murray, and to the entry of a judgment against Murray for the total Judgment Amount.”

¶10 In a final section of the Stipulation that was titled “Additional Provisions,” Murray “represent[ed] and warrant[ed] that he has had sufficient opportunity to review this Confession of Judgment, either individually or through counsel of his choosing, and that he has voluntarily entered into this Confession of Judgment for its stated purpose.” The Stipulation then contained electronic signatures from both American United’s CEO and Murray, with an additional notation indicating that Murray’s original signature was on file.2

Murray’s Default and the Parties’ Subsequent Motions

¶11 Murray defaulted less than a month after he agreed to the Stipulation. Shortly after his default, American United filed an ex parte motion and affidavit with the district court seeking a judgment against Murray according to the terms of the

2. It is somewhat unclear from the record whether Murray’s counsel actively participated in the negotiation of the Stipulation and its accompanying Confession of Judgment. The Stipulation makes no mention of counsel having done so. But on the other hand, Murray’s counsel signed it as a notary, and Murray also specifically represented that he’d had the opportunity to review the document “either individually or through counsel of his choosing.” In any event, what ultimately matters for our resolution is that Murray has never argued that he did not have the opportunity to review the document with his counsel or that the electronic signature at its end was not his.

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Stipulation and the Confession of Judgment. In November 2016, the district court entered a judgment (the Judgment) against Murray “for the confessed amount of $74,871.91, plus attorney’s fees of $1,032.00 and costs of $2.00, for a total judgment of $75,905.91, together with interest accruing at the contract rates corresponding to Note I, Note II, Visa Card I and Visa Card II.” A couple of weeks after the Judgment was entered, the district court entered an Abstract of Judgment, which outlined the principal amount and attorney fees for the Judgment and stated the corresponding interest rates for Note I, Note II, Visa Card I, and Visa Card II. The court’s docket notes that the judge signed the abstract on December 5, 2016.

¶12 Over the next four years, American United tried to enforce the Judgment against Murray. Its efforts included a writ of replevin to repossess the Mercedes Benz, several writs of garnishment, and various other litigation tools.

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Bluebook (online)
2022 UT App 105, 517 P.3d 1069, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-united-v-murray-utahctapp-2022.