Crestwood Cove Apartments Business Trust v. Turner

2007 UT 48, 164 P.3d 1247, 581 Utah Adv. Rep. 3, 2007 Utah LEXIS 137, 2007 WL 1791236
CourtUtah Supreme Court
DecidedJune 22, 2007
Docket20050896
StatusPublished
Cited by30 cases

This text of 2007 UT 48 (Crestwood Cove Apartments Business Trust v. Turner) 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
Crestwood Cove Apartments Business Trust v. Turner, 2007 UT 48, 164 P.3d 1247, 581 Utah Adv. Rep. 3, 2007 Utah LEXIS 137, 2007 WL 1791236 (Utah 2007).

Opinion

PARRISH, Justice:

T1 This appeal arises from a claim that Shawn Turner and his law firm, Larsen, Kirkham & Turner (collectively, "Turner"), committed malpractice when representing Shangri-La, U.B.0., in a redemption lawsuit. Shangri-La and its successor, Crest-wood Cove Apartments Business Trust (collectively, "Shangri-La"), allege that Turner committed malpractice by failing to timely contest the application of Utah's unlawful detainer statute 1 and its treble damage provisions 2 and by failing to raise Utah Rule of Civil Procedure 69(J) 3 as the appropriate measure of damages. The district court granted Turner's motion for summary judgment, reasoning that Turner did not commit malpractice and that, in any event, Shangri-La had forfeited its right to pursue Turner for malpractice when it settled the underlying redemption lawsuit before it could be decided on appeal. Shangri-La appeals the district court's decision. We affirm the dismissal entered by the district court on different grounds.

FACTUAL AND PROCEDURAL BACKGROUND

T 2 In March 1995, Shangri-La, the owner of an apartment complex (the "apartments" or the "property"), sued its former apartment managers for fraud. The court dismissed Shangri-La's claim and awarded the former managers court costs and attorney fees in the amount of $4,767. Shangri-La failed to pay the judgment. As a result, the former managers caused the property to be sold at a sheriff's sale to Kasey Enterprises ("Kasey") in August of 1996 for the purpose of satisfying their judgment. Kasey purchased the property, valued at $4,000,000, for a mere $8,000. Kasey subsequently sold it to UAW Properties ("UAW") and DLM Investments ("DLM") for $11,197.

13 Although Shangri-La made no attempt to redeem the property within the six-month statutory redemption period, it remained in possession and continued to collect and receive rent from its tenants. On April 16, 1997, UAW and DLM served Shangri-La with notice to quit the property. Two days later, Shangri-La filed an action to quiet title to the property, asking the court to invalidate the sheriff's sale or, in the alternative, to extend the time to redeem the property from that sale. UAW and DLM counterclaimed for unlawful detainer and conversion. Several months later, Shangri-La retained Turner to represent it in connection with the lawsuit.

T4 In May 1998, the trial court issued a memorandum decision in which it ruled that the sheriff's sale was valid. Nevertheless, it equitably extended the redemption period after finding that Kasey's purchase of a $4,000,000 property for a mere $8,000 shocked the conscience. The trial court also determined that UAW and DLM were entitled to the return of their purchase price, attorney fees, and taxes paid on the property, as well as $304,833 for rents that Shan-gri-La had collected after the sheriff's sale.

11 5 The trial court asked for supplementary briefing on the issue of whether UAW and DLM were entitled to treble damages for the rents under Utah Code section 78-86-10, the statutory provision specifying damages for unlawful detainer. Turner filed a supplementary brief in which he argued that the treble damages provision of the unlawful de-tainer statute was not applicable. Nevertheless, the trial court ruled that the treble damages provision applied, trebling the amount in rent due UAW and DLM to $912,999. That amount, plus UAW and *1250 DLM's purchase price, attorney fees, and property taxes brought Shangri-La's total redemption price to nearly $1,000,000.

1 6 Turner filed a motion for a new trial or an amended judgment in which he again argued that the unlawful detainer statute did not apply to UAW and DLM's claims against Shangri-La. In his reply to UAW and DLM's memorandum in opposition to the motion, Turner also noted that Utah Rule of Civil Procedure 69(J)(8) "governs the amount that must be paid in order to redeem a property" and that Utah Rule of Civil Procedure 69(J)(7) governs "the treatment of rents during the period of redemption." Despite these assertions, the district court denied the motion, indicating that "the arguments made by [Shangri-La] in this case are in substance the same arguments that have previously been made."

T7 In November 1998, Shangri-La hired new legal counsel and appealed the trial court's ruling. By the end of March 2000, the appeal and cross-appeal were fully briefed. During this time, UAW and DLM took possession of the property and allegedly began to mismanage it, resulting in the property's devaluation and a decrease in rental income. In order to stop the diminution of the property value and retake possession, Shangri-La decided to enter into a settlement agreement with UAW and DLM. Under the terms of this settlement agreement, Shangri-La agreed to the dismissal of its appeal with prejudice.

T8 Shangri-La subsequently filed this malpractice action against Turner, contending that Turner had "failed to interpose such legal defenses and theories on behalf of [Shangri-La] as would adequately protect [Shangri-La's] interest in" the apartment complex. Turner moved for summary judgment. The district court granted his motion, reasoning that Turner had not committed malpractice because the judge in the underlying case had Turner's supplemental brief before him when he issued his final decision. The district court also ruled that Shangri-La had "forfeited [its] right to pursue any malpractice action against" Turner by settling the underlying action instead of pursuing the appeal.

T 9 Shangri-La appeals the district court's grant of summary judgment in favor of Turner. We have jurisdiction pursuant to Utah Code section 78-2-2(3)(j) (2002).

STANDARD OF REVIEW

110 We review the district court's decision to grant summary judgment for correctness, affording the trial court no deference. 4 In reviewing the grant of summary judgment, "we recognize that summary judgment is appropriate only when there is no genuine issue as to any material fact and the moving party is entitled to judgment as a matter of law." 5

ANALYSIS

{11 We begin by reviewing the district court's conclusion that Shangri-La abandoned its malpractice claim against Turner when it settled the redemption lawsuit, thereby preventing the court of appeals from correcting what both parties now concede to be judicial error by the trial judge in that lawsuit. Although we hold that the settlement did not constitute abandonment of Shangri-La's malpractice claim, we nevertheless affirm the summary judgment entered by the district court on alternative grounds. Specifically, we hold that judicial error, rather than Turner's alleged malpractice, proximately caused Shangri-La's injury.

I. SHANGRI-LA DID NOT ABANDON ITS CLAIM THROUGH SETTLEMENT

112 Shangri-La challenges the district court's holding that it abandoned its malpractice action against Turner when it settled the underlying redemption lawsuit (the "abandonment doctrine"). Shangri-La's challenge to the abandonment doctrine presents an issue of first impression in Utah.

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

Related

Reath v. Brian Head
2024 UT App 194 (Court of Appeals of Utah, 2024)
Karen Coffield v. Elgine H. McArdle
West Virginia Supreme Court, 2022
Stanfield v. Neubaum
494 S.W.3d 90 (Texas Supreme Court, 2016)
Nelson v. Liberty Acquisitions Servicing LLC
2016 UT App 92 (Court of Appeals of Utah, 2016)
Neubaum v. Stanfield
465 S.W.3d 266 (Court of Appeals of Texas, 2015)
M.C. v. State
2015 UT App 70 (Court of Appeals of Utah, 2015)
In re B.O. (M.C. & C.C v. State & D.O)
2015 UT App 70 (Court of Appeals of Utah, 2015)
John W. Grace v. Michael R. Law
21 N.E.3d 995 (New York Court of Appeals, 2014)
Huang v. Brenson
2014 IL App (1st) 123231 (Appellate Court of Illinois, 2014)
Torrie v. Weber County
2013 UT 48 (Utah Supreme Court, 2013)
GRACE, JOHN W. v. LAW, MICHAEL R.
108 A.D.3d 1173 (Appellate Division of the Supreme Court of New York, 2013)
Harris v. ShopKo
2013 UT 34 (Utah Supreme Court, 2013)
Harris v. Shopko Stores, Inc.
2013 UT 34 (Utah Supreme Court, 2013)
Donnelly v. Donnelly
2013 UT App 84 (Court of Appeals of Utah, 2013)
Breton v. Clyde, Snow & Sessions
2013 UT App 65 (Court of Appeals of Utah, 2013)
Central Utah Water Conservancy District v. King
2013 UT 13 (Utah Supreme Court, 2013)

Cite This Page — Counsel Stack

Bluebook (online)
2007 UT 48, 164 P.3d 1247, 581 Utah Adv. Rep. 3, 2007 Utah LEXIS 137, 2007 WL 1791236, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crestwood-cove-apartments-business-trust-v-turner-utah-2007.