Bower v. Stein Eriksen Lodge Owners Ass'n, Inc.

201 F. Supp. 2d 1134, 2002 U.S. Dist. LEXIS 8130, 2002 WL 851774
CourtDistrict Court, D. Utah
DecidedMay 3, 2002
Docket2:99-cv-00155
StatusPublished
Cited by2 cases

This text of 201 F. Supp. 2d 1134 (Bower v. Stein Eriksen Lodge Owners Ass'n, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bower v. Stein Eriksen Lodge Owners Ass'n, Inc., 201 F. Supp. 2d 1134, 2002 U.S. Dist. LEXIS 8130, 2002 WL 851774 (D. Utah 2002).

Opinion

ORDER

CAMPBELL, District Judge.

This matter is before the court on several motions: (1) Christopher J. Bower’s and *1137 Mary Lynne Perry’s (“the Bowers”) motion for partial summary judgement regarding Stein Eriksen Lodge’s (“SEL’s”) claim of tortious interference with economic relations; (2) the Bowers’ motion to strike the declaration of Dennis A. Sus-Mnd, the February 5, 1999 letter, and sections of SEL’s memorandum in opposition that refer to the declaration; (3) SEL’s motion for summary judgement as to liability on SEL’s breach of contract claim; (4) the Bowers’ motion for partial summary judgment regarding SEL’s breach of contract claim; (5) SEL’s motion for summary judgment on the Bowers’ claims of fraud, negligent misrepresentation, tor-tious interference with economic relations, promissory estoppel, and breach of fiduciary duty and good faith and fair dealing.

I. Background

The factual background of this case is set forth in the pleadings of the parties and will not be repeated here except as necessary. However, a summary of the court’s September 8, 1999 Order (given orally), is necessary. In that order, the court granted SEL’s motion for partial summary judgment and denied the Bowers’ motion for partial summary judgment. At issue were the various contract claims brought by the parties. With this order, the court reached the following conclusions. First, the Bowers cannot challenge Park City’s decision regarding the Phase III construction. The Bowers failed to exhaust their administrative remedies and are therefore precluded from seeking review in this lawsuit of Park City’s decision. Second, SEL did not breach any contractual obligations owed to the Bowers when it constructed the Phase III residential units and the conference center. On or about September 24,1996, the unit owners approved, by approximately 79 %, the conversion of the convertible land to Phase III residential units. On or about November 14, 1997, the unit owners approved, by approximately 82%, the development plans for Phase III. These votes authorized the Phase III construction pursuant to the Condominium Declaration for Stein Erik-sen Lodge (“the Declaration”) (SEL’s Mem. Supp. P. Summ. J. (June 22, 1999), at Ex. A) and the Condominium Ownership Act, Utah Code Ann. § 57-8-1 et seq. (“the Act”). Finally, the financing arrangements, assessments, and expenditures made in connection with the Phase III construction were authorized by the Declaration and the Articles of Incorporation.

II. Analysis:

A. Standard of Review

Summary judgment is proper “if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.” Fed. R.Civ.P. 56(c). The party seeking summary judgment bears the initial burden of demonstrating that there is an absence of evidence to support the non-moving party’s case. Celotex Corp. v. Catrett, 477 U.S. 317, 324, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). In applying this standard, the court must construe all facts and reasonable inferences therefrom in the light most favorable to the nonmoving party. Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986); Pueblo of Santa Ana v. Kelly, 104 F.3d 1546, 1552 (10th Cir.1997).

Once the moving party has carried its burden, Rule 56(e) “requires the nonmov-ing party to go beyond the pleadings and by ... affidavits, or by the ‘depositions, answers to interrogatories, and admissions on file,’ designate ‘specific facts showing that there is a genuine issue for trial.’ ” Celotex, 477 U.S. at 324, 106 S.Ct. 2548 *1138 (quoting Fed.R.Civ.P. 56(e)); see also Gonzales v. Millers Cas. Ins. Co., 923 F.2d 1417, 1419 (10th Cir.1991). The non-moving party must set forth specific facts showing a genuine issue for trial; mere allegations and references to the pleadings will not suffice. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986).

B. The Bowers’ Motion for Partial Summary Judgment to Dismiss SEL’s Claim of Tortious Interference with Economic Relations.

The Bowers seek partial summary judgment on SEL’s claim of tortious interference with economic relations claiming that the lis pendens that they filed and the settlement demand letter are privileged and therefore cannot be the subject of a claim of tortious interference with economic relations. At issue is whether (1) a copy of a settlement demand letter distributed to the condominium owners and (2) the lis pendens notice against SEL’s properties fall within the scope of the judicial proceeding privilege.

The judicial proceeding privilege recognizes that statements of attorneys, parties, judges, witnesses, and other participants in the judicial process enjoy an absolute privilege against liability for torts if the statements are made during or preliminary to a judicial proceeding. Three elements must be satisfied for the privilege to apply: (1) “the statement must have been made during or in the course of a judicial proceeding; (2) the statement must have some reference to the subject matter of the proceeding; and (3) the statement must have been made by someone acting in the capacity of judge, juror, witness, litigant or counsel.” Price v. Armour, 949 P.2d 1251, 1256 (Utah 1997).

The settlement demand letter meets the three elements of the judicial proceeding privilege. Although the letter was written before the actual proceeding, that is, this lawsuit, preliminary communication falls within the broad language of “during judicial proceeding.” Price, 949 P.2d at 1256-57. Similarly, “referencing the subject matter” is read expansively and includes any reference to the judicial proceeding, regardless of whether the reference is material. Allen v. Ortez, 802 P.2d 1307, 1312 (Utah 1990). Because the letter was written by the Bowers’ attorney, it also meets the third element. Price, 949 P.2d at 1256. Furthermore, the Bowers did not lose the privilege when they published the letter to other condominium owners who were not parties to the suit. Theiss v.

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201 F. Supp. 2d 1134, 2002 U.S. Dist. LEXIS 8130, 2002 WL 851774, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bower-v-stein-eriksen-lodge-owners-assn-inc-utd-2002.