Bonnie & Hyde, Inc. v. Lynch

2013 UT App 153, 305 P.3d 196, 737 Utah Adv. Rep. 5, 2013 WL 3080927, 2013 Utah App. LEXIS 148
CourtCourt of Appeals of Utah
DecidedJune 20, 2013
Docket20120367-CA
StatusPublished
Cited by17 cases

This text of 2013 UT App 153 (Bonnie & Hyde, Inc. v. Lynch) 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
Bonnie & Hyde, Inc. v. Lynch, 2013 UT App 153, 305 P.3d 196, 737 Utah Adv. Rep. 5, 2013 WL 3080927, 2013 Utah App. LEXIS 148 (Utah Ct. App. 2013).

Opinion

Opinion

McHUGH, Judge:

1 1 Tom Lynch (Tenant) appeals from the trial court's determination that he abandoned property that he had leased from Bonnie & Hyde, Inc. (BHI). Tenant also challenges the trial court's conclusions that BHI did not wrongfully convert or attach his personal property. We affirm, in part, and reverse and remand, in part.

BACKGROUND 1

12 BHI, a company operated by Jeff Hyde, owns a building and real property in Huntsville, Utah. BHI leased the premises to a restaurant owner until 2005, when Tenant bought the prior owner's restaurant and assumed the lease. Tenant upgraded the restaurant by supplying his own personal property including new equipment and silverware. Thereafter, Tenant fell behind on his lease payments to BHI. In June 2007, BHI and Tenant executed a new lease agreement that lowered the amount of rent due on the first day of each month. If the rent was not paid by the fifth day of the month, the new lease imposed a late fee. Tenant was also responsible for paying the property taxes. In addition, Tenant agreed to keep the restaurant *199 open every day from 10:00 a.m. to 8:00 p.m., except for certain holidays. Subsequently, the restaurant was rarely closed during these business hours. When Tenant was late on his rental payment, he typically contacted Hyde and they worked out a solution together.

13 In November 2007, Hyde sent Tenant an invoice for the 2007 property taxes, but Tenant did not pay the bill. Hyde called Tenant several times to discuss the matter, but Tenant did not return his calls. This behavior was unusual based on the prior conduct of the parties. Tenant also failed to pay the January 2008 rent by the first of the month. On January 6, 2008, BHI sent another 2007 property tax invoice to Tenant, and the following day, BHI sent a Three Day Notice to Pay or Vacate to the address specified in the lease as well as to the restaurant's address. Tenant denied receiving this notice. On January 9, 2008, Hyde called Tenant and left a message about the delinquent amounts. Tenant returned this call and indicated that the check was in the mail. 2 Three days later, Hyde left a message for Tenant stating that he had not received the check.

T4 Tenant was last on the premises on January 18, 2008, and two of Tenant's employees operated the restaurant the following day. Although the employees believed that they also tried to open the restaurant on January 15 or 16, 2008, their time sheets for another employer indicate that they were both working elsewhere at those times.

15 In the mid-afternoon of January 15, 2008, the power company disconnected the power to the restaurant for nonpayment. That afternoon, Hyde tried to reach Tenant on his mobile number and at the restaurant, but no one answered. That evening, Hyde went to the premises and discovered that the restaurant was closed and locked and that the parking lot and walks were covered with snow. When Hyde tried to enter the restaurant through the front door, he discovered that the locks had been changed. He found one door that still had a lock that could be opened with his key, but his access to that door was impeded by uncleared snow. Hyde entered the restaurant and became concerned that the lack of electricity might cause the water heater to freeze and burst. He found food that had not been properly stored, causing the restaurant to reek, and he noticed that equipment had been left in the "on" position, which he believed created a fire hazard in the event the power came on while no one was present. Upon inquiry, Hyde learned that the power could not be restored until the following day. He called Tenant twice that evening and left messages regarding the power outage, but Tenant did not respond.

T6 Based on Tenant's failure to communicate with Hyde and the condition of the restaurant, Hyde believed that Tenant had abandoned the premises. Hyde then brought propane heaters to the restaurant to prevent the pipes from bursting and made arrangements to have the locks to the building changed so that he could enter through the front door-access he needed to bring in the items required to mitigate the damage to the restaurant. Except for a few early morning hours, Hyde stayed at the premises until around four in the afternoon on January 16, 2008 without encountering Tenant or any of the restaurant's employees. When Hyde left, he posted a sign on the building that advised visitors to call BHI.

T7 Tenant returned to the premises later that evening and discovered that he had been locked out of the restaurant. Nevertheless, Tenant did not contact BHI. Hyde returned the following day, and again no one came to open the restaurant. On January 18, 2008, Tenant left two messages for Hyde indicating that he was having a cash flow problem but that he hoped to obtain capital contributions from investors. When Tenant eventually spoke to Hyde that evening, he did not ask for a key or request to take possession of the premises or his personal property.

{ 8 Three days later, Hyde and Tenant met at the restaurant. During this meeting, Tenant stated that he was "done with the business" and that he was struggling financially. According to Hyde, Tenant offered to sell the personal property to BHI and when Hyde declined, Tenant offered to leave his personal *200 property in place to make the restaurant more appealing to a potential tenant. Tenant also indicated that he did not have the financial ability to move and store his larger items of personal property. Although Hyde helped Tenant move some of his smaller items of personal property at that time, Tenant did not request the rest of his personal property for over a year.

T9 On January 22, 2008, Hyde posted a sign on the premises advertising that it was available for lease. Tenant assisted with cleaning the premises and with the search for a new tenant. As a result of Tenant and Hyde's efforts, a potential tenant inspected the restaurant the following month.

{10 In mid-March 2008, Tenant removed three patio sets, a grill, and several propane tanks from the restaurant. Believing these items to be BHI's property, Hyde alerted the police, who warned Tenant to stay away from the premises. Despite this admonishment, Tenant later saw people in the building and went inside to take pictures. He was subsequently prosecuted for trespassing.

1 11 In late March 2008, BHI filed a complaint for. breach of contract and sought a lessor's lien and a writ of attachment on the personal property. Tenant counterclaimed for forcible detainer, forcible entry, willful exclusion, wrongful eviction, wrongful attachment, economic interference, conversion, deprivation of due process, and breach of contract. Subsequently, Tenant's counsel sent a letter to BHI's counsel requesting the release of personal property, claiming that there were defects in the attachment proceedings. -In 2010, Tenant and his wife filed for bankruptcy and BHI's affirmative claims became part of that proceeding. As a result, when this matter was tried to the bench, only Tenant's counterclaims were at issue.

{12 After trial, the court ruled in favor of BHI on all of the counterclaims. First, the trial court concluded that several of Tenant's claims failed because he had abandoned the property.

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Cite This Page — Counsel Stack

Bluebook (online)
2013 UT App 153, 305 P.3d 196, 737 Utah Adv. Rep. 5, 2013 WL 3080927, 2013 Utah App. LEXIS 148, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bonnie-hyde-inc-v-lynch-utahctapp-2013.