Christensen & Jensen, P.C. v. Barrett & Daines

2008 UT 64, 194 P.3d 931, 613 Utah Adv. Rep. 3, 2008 Utah LEXIS 151, 2008 WL 4204352
CourtUtah Supreme Court
DecidedSeptember 16, 2008
Docket20061044
StatusPublished
Cited by38 cases

This text of 2008 UT 64 (Christensen & Jensen, P.C. v. Barrett & Daines) 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
Christensen & Jensen, P.C. v. Barrett & Daines, 2008 UT 64, 194 P.3d 931, 613 Utah Adv. Rep. 3, 2008 Utah LEXIS 151, 2008 WL 4204352 (Utah 2008).

Opinion

DURHAM, Chief Justice:

INTRODUCTION

T1 Appellants Seott Barrett and Robert Slusher, a client of Barrett's and former client of Appellees, appeal the trial court's rulings in favor of Christensen & Jensen, P.C. (formerly Christensen, Jensen and Powell, P.C.) and its attorney, L. Rich Humpher-ys (collectively, Appellees) on claims arising from the Campbell v. State Farm case. 1

BACKGROUND

T2 In 1981, Curtis Campbell, Robert Slusher, and Todd Ospital were involved in an automobile accident that claimed the life of Todd Ospital and left Slusher permanently paralyzed. Curtis was insured by State Farm Mutual Automobile Insurance Company (State Farm) with policy limits of $25,000 per claim. As a result of the accident, Slush-er sued Curtis and Todd Ospital's estate for personal injuries, and the estate-represented by Todd's parents, John and Winnifred Ospital (the Ospitals), cross-claimed against Curtis for wrongful death (1981 Trial). During that litigation, the Ospitals were represented by Appellees, Slusher was represented by Barrett, and Curtis was represented by an attorney retained by State Farm, Wendell E. Bennett. State Farm and its representatives misrepresented to Curtis the pertinent facts and issues concerning the litigation and failed to settle or attempt to settle with Slusher or the Ospitals despite having the opportunity to do so. Ultimately, in 1983, Barrett obtained a $133,098.25 judgment against Curtis on behalf of Slusher, and Humpherys obtained a $51,845.68 verdict *934 against Curtis (1983 Judgment) on behalf of the Ospitals.

'I 3 Because of State Farm's representation during the 1981 Trial, Curtis and his wife Inez (the Campbells) brought a bad faith claim against State Farm (1983 Trial). 2 Barrett and Appellees undertook Curtis' representation on that claim. Subsequently, pursuant to a retainer agreement signed by Inez on January 25, 1994, Appellees solely represented Inez on that claim.

THE CLIENT AGREEMENTS

4 In 1984, after obtaining their respective judgments against Curtis, Slusher and the Ospitals agreed to abstain from executing against Curtis' personal assets, and in return, Curtis agreed to share with them any recovery from his bad faith claim against State Farm. In keeping with that agreement, Slusher, the Ospitals, and Curtis executed a joint-representation agreement (1984 Agreement).

15 The 1984 Agreement stipulated, amongst other things, that Slusher and the Ospitals "are willing to covenant not to execute against [Curtis'] personal assets in turn for [Curtis'] agreement herein to share with them the recovery against State Farm." The agreement also stipulated that Curtis would retain "Christensen, Jensen and Powell" and "Barrett and Brady" as his attorneys in the litigation against State Farm, and required Curtis' cooperation and assistance in litigating against State Farm. Furthermore, the agreement provided that any recovery left after expenses and the payment of the 1983 judgments would be shared amongst the parties, with 45% of the recovery going to Slush-er and the Ospitals respectively, and the remaining 10% going to Curtis. Slusher and the Ospitals were to be kept fully advised of the progress and status of the claim, and their approval was required for any settlement of the claims against State Farm. All parties to the 1984 Agreement agreed to be represented by Barrett and Humpherys, though each party retained his initial attorney separately in regards to his personal rights and obligations under the 1984 Agreement.

T 6 In 1995, the 1984 Agreement was modified through an oral agreement (1995 Agreement) to include Inez as a party to the agreement and to divide any net recovery equally amongst the parties, with one-third going to the Campbells, the Ospitals, and Slusher, each. All other terms regarding the agreement remained the same.

T7 In 2001, after the receipt from State Farm of a settlement letter (Settlement Letter), 3 the 1995 Agreement was memorialized in a December 7, 2001 agreement (2001 Agreement) 4 By then, State Farm had paid the 1983 Judgment plus interest and costs to Slusher and the Ospitals, and this was referenced in the 2001 Agreement. In addition, the 2001 Agreement memorialized the, disbursement schedule as agreed to in 1995 by the parties. Though the 2001 Agreement did not stipulate as to the representation of the parties, it was assumed by all parties to the 2001 Agreement that the representations as stipulated in 1984 were still in effect. As for Inez, she was solely represented by Appel-lees. Thus the 2001 Agreement was signed by Slusher, Curtis, the Ospitals, and Inez {collectively, the Clients), with Slusher, Curtis, and the Ospitals being represented by both Appellees and Barrett, while Inez was solely represented by Appellees.

T8 Also in 2001, Humpherys mailed two letters to the Clients and to Barrett. The first letter was sent out in January (January Letter) and the second letter was sent out eleven months later, in December (December Letter). In the January Letter, Humpherys referenced the 1995 Agreement that acceptance of any settlement offers required their unanimous consent. -In addition, the January Letter explained to the Clients that they could settle their claims individually by approaching State Farm to seek a prorated *935 settlement or by seeking an arrangement with a litigation financing company. Hum-pherys also requested that the Clients inform him if they wanted to pursue any of these alternative means of settlement. The December Letter specifically requested that the Clients communicate their decisions and proposals regarding settlement to Humpherys in writing.

THE SETTLEMENT LETTER

T9 The bad faith claims against State Farm resulted in a bifurcated trial with jury verdicts of $2,600,000 in compensatory damages and $145,000,000 in punitive damages against State Farm. The trial court reduced the compensatory damages to $1,000,000 and the punitive damages to $25,000,000. State Farm appealed and the Campbells eross-ap-pealed. On October 19, 2001, the Utah Supreme Court reversed and reinstated the original jury verdiet (October Opinion).

1 10 Sometime in October of 2001, prior to the Utah Supreme Court's issuance of its opinion, State Farm made a settlement offer of $10,000,000, which was unanimously rejected by the Clients. After the October Opinion, but prior to the receipt of the Settlement Letter, Humpherys had several conversations with State Farm attorney, Michael Zimmerman, regarding the possibility of the Campbells requesting a vacatur of the October Opinion from the Utah Supreme Court in exchange for a substantial payment from State Farm. Humpherys informed Zimmerman that such a request was unlikely. On November 16, 2001, Humpherys received the Settlement Letter dated November 14, 2001 from State Farm. In the letter, State Farm proposed to escrow the sum of $150,000,000 to be paid immediately to the Campbells upon the Utah Supreme Court's vacatur of its October Opinion. The relevant part of the letter reads:

State Farm proposes to settle on the following terms:

Free access — add to your briefcase to read the full text and ask questions with AI

Related

GeoMetWatch v. Durham Jones Pinegar
Court of Appeals of Utah, 2026
Untitled Case
D. Utah, 2026
Mackey v. Krause
2025 UT 37 (Utah Supreme Court, 2025)
Nielsen v. Lebaron
2023 UT App 29 (Court of Appeals of Utah, 2023)
Airstar v. Keystone Aviation
2022 UT App 73 (Court of Appeals of Utah, 2022)
Bear v. Lifemap Assurance
2021 UT App 129 (Court of Appeals of Utah, 2021)
In re Estate of D.A. Osguthorpe
2021 UT 23 (Utah Supreme Court, 2021)
Phillips v. Skabelund
2021 UT App 2 (Court of Appeals of Utah, 2021)
Hofmann v. Hall
D. Utah, 2020
Moshier v. Fisher
2019 UT 46 (Utah Supreme Court, 2019)
Paxman v. King
2019 UT 37 (Utah Supreme Court, 2019)
Thomas v. Hillyard
2019 UT 29 (Utah Supreme Court, 2019)
KB Squared LLC v. Mem'l Bldg. LLC
2019 UT App 61 (Court of Appeals of Utah, 2019)

Cite This Page — Counsel Stack

Bluebook (online)
2008 UT 64, 194 P.3d 931, 613 Utah Adv. Rep. 3, 2008 Utah LEXIS 151, 2008 WL 4204352, Counsel Stack Legal Research, https://law.counselstack.com/opinion/christensen-jensen-pc-v-barrett-daines-utah-2008.