Camco Construction Inc. v. Utah Baseball Academy, Inc.

2010 UT 63, 243 P.3d 1269, 669 Utah Adv. Rep. 6, 2010 Utah LEXIS 185, 2010 WL 4608337
CourtUtah Supreme Court
DecidedNovember 16, 2010
Docket20090624
StatusPublished
Cited by6 cases

This text of 2010 UT 63 (Camco Construction Inc. v. Utah Baseball Academy, Inc.) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Camco Construction Inc. v. Utah Baseball Academy, Inc., 2010 UT 63, 243 P.3d 1269, 669 Utah Adv. Rep. 6, 2010 Utah LEXIS 185, 2010 WL 4608337 (Utah 2010).

Opinion

NEHRING, Justice:

INTRODUCTION

11 In this interlocutory appeal, Athletic Performance Institute, L.L.C., Utah Baseball Academy, Inc., and Robert Keyes (collectively, "API") ask us to overturn the district court's order, which denied API's motion to disqualify the district court judge, the Honorable Anthony Quinn, after he was exposed to confidential arbitration materials. Because we conclude that API's motion to disqualify Judge Quinn was untimely, we decline to consider the merits of the motion and accordingly, we affirm the decision of the district court.

BACKGROUND

°2 API+ 1 entered into a contract with Cameo Construction, Ine. to build an athletic facility with an indoor baseball field, an indoor basketball court, and other amenities. In order to finance the project, API obtained a construction loan from KeyBank.

18 Problems arose during construction of the facility. API began to complain that *1271 construction defects prevented the use of the indoor baseball field. Cameo was unhappy because it believed that it was entitled to additional payments under the construction contract. KeyBank refused to continue funding the project because it claimed that API failed to comply with the terms of the loan.

T 4 In 2005, Cameo sued API and KeyBank for API's failure to pay amounts due under the construction contract. It also sought to foreclose its mechanic's lien on the property. API answered, countercelaimed, and filed a third-party complaint. The counterclaims alleged that Cameo breached the construction contract because it failed to complete the project on time and because its construction was defective.

T5 KeyBank also answered and counterclaimed. - In addition, KeyBank - eross-claimed and brought a third-party complaint against API. KeyBank sought to foreclose on the building, wanted a receiver appointed, and requested a monetary judgment for any deficiency remaining after foreclosure. API counterclaimed against KeyBank. API accused the bank of breaching its contract with API, and of committing negligence, conversion, breach of fiduciary duty, and fraud. API claimed that KeyBank's refusal to fund the construction loan caused all of the disputes among the parties because had Key-Bank paid Cameo, the project would have been completed and the liens and litigation would have been unnecessary.

T6 Cameo's contract with API contained an arbitration clause and Cameo demanded that it be enforced. In June 2006, Judge Quinn, the trial judge, entered an order compelling arbitration of the API-Cameo claims. In April 2008, the arbitrator awarded Cameo approximately $608,000. - The arbitrator found that API failed to pay amounts due to Cameo under the contract and that API's breach excused Cameo's refusal to perform. The arbitrator did not consider KeyBank's alleged failure to fund the construction loan because KeyBank was not a party to the arbitration and did not have a contract with Cameo.

€°7 API paid the arbitration award, and Cameo and API stipulated to dismiss Cam-co's claims with prejudice. Judge Quinn ordered dismissal, with prejudice, of all claims between Cameo and APL

{8 Meanwhile, the litigation between API and KeyBank moved forward. KeyBank regularly attached as exhibits and used as evidence documents from the API-Cameo arbitration, including documents, deposition testimony from the proceedings, and the April 2008 arbitration award. API objected to KeyBank's use of the arbitration materials, claiming the information was both irrelevant and prejudicial to its position in the subsequent litigation.

{9 On June 22, 2009, API filed the first of three motions to disqualify Judge Quinn. APT's first motion was brought under Utah Rule of Civil Procedure 638. In this motion, API argued that KeyBank violated the confidentiality provisions of the Alternative Dispute Resolution Act ("ADR Act") by disclosing arbitration materials in subsequent litigation. The motion stated that Key-Bank's disclosure, when coupled with our decision in Reese v. Tingey Construction, 2 required Judge Quinn to immediately recuse himself from further proceedings in the case, because he had viewed confidential materials from the API-Cameo arbitration. Judge Quinn denied API's motion and, as required by rule 63, referred it to Associate Presiding Judge Maughan for his review. Judge Maughan also denied API's motion.

T10 On July 6, 2009, API filed a second motion seeking to amend the order denying the motion to recuse Judge Quinn under rules 59 and 60 of the Utah Rules of Civil Procedure. On July 9, Judge Maughan denied API's motion to amend because it was untimely and did not satisfy the requirements of rule 63(b). Although Judge Mau-ghan denied the motion, he permitted API to bring another motion using only Tingey Construction as its grounds for disqualification. On July 14, API filed a third motion to disqualify Judge Quinn, this time based sole *1272 ly on Tingey Construction. On July 17, Judge Quinn heard argument on API's third motion to disqualify and issued an order that denied it.

111 Judge Quinn stated four reasons for denying the motion. First, Judge Quinn determined that Tingey Construction does not establish a per se rule requiring recusal in every case where a judge has been exposed to ADR materials Second, Judge Quinn reasoned that Tingey Construction was a mediation case and its narrow holding did not extend to cases involving arbitration. Third, Judge Quinn determined that API waived any confidentiality arguments by producing arbitration materials in discovery. Finally, Judge Quinn determined that due to the hundreds of hours already spent on the case, Judicial economy weighed in favor of denying APT's motion. On July 22, Judge Quinn stayed the proceedings below to allow API to bring this interlocutory appeal. We have jurisdiction under Utah Code section 78A-3-102(8)() (Supp.2010).

STANDARD OF REVIEW

112 Whether a trial judge erred by failing to recuse himself is a question of law that we review for correctness 3

ANALYSIS

1183 On appeal, API continues to argue that Judge Quinn erred when he declined to recuse himself after he viewed confidential information arising out of the API-Cameo arbitration proceedings. In support of this claim, API makes two primary arguments: First, API argues that Utah's ADR Act requires that arbitration materials remain confidential and prohibits disclosure of these materials in subsequent litigation. Second, API asserts that our decision in Reese v. Tingey Construction 4 interprets Utah's ADR Act to require a judge's recusal where information from an ADR proceeding is disclosed in subsequent litigation.

T 14 In response, KeyBank urges us not to reach the merits of API's disqualification motion because it was untimely filed under Utah Rule of Civil Procedure 63(b). KeyBank argues that API waited over fourteen months after KeyBank began to use arbitration materials in the litigation and almost seventeen months after Tingey Construction was decided to file its disqualification motion-a length of time long past rule 63's prescribed deadline.

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2010 UT 63, 243 P.3d 1269, 669 Utah Adv. Rep. 6, 2010 Utah LEXIS 185, 2010 WL 4608337, Counsel Stack Legal Research, https://law.counselstack.com/opinion/camco-construction-inc-v-utah-baseball-academy-inc-utah-2010.