Davis v. Sperry

2012 UT App 278, 288 P.3d 26, 718 Utah Adv. Rep. 31, 2012 WL 4677568, 2012 Utah App. LEXIS 286
CourtCourt of Appeals of Utah
DecidedOctober 4, 2012
Docket20110643-CA
StatusPublished
Cited by5 cases

This text of 2012 UT App 278 (Davis v. Sperry) 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
Davis v. Sperry, 2012 UT App 278, 288 P.3d 26, 718 Utah Adv. Rep. 31, 2012 WL 4677568, 2012 Utah App. LEXIS 286 (Utah Ct. App. 2012).

Opinion

*29 OPINION

DAVIS, Judge:

1 Beverly Jean Black Davis appeals on behalf of the Estate of Richard Davis 1 from the trial court's grant of summary judgment in favor of Greg Sperry; Red Slab, LLC; and Provo City Corporation (collectively, Defendants). We reverse and remand.

BACKGROUND

12 "[Wle note that in reviewing a grant of summary judgment, we view the facts and all reasonable inferences drawn therefrom in the light most favorable to the nonmoving party." Higgins v. Salt Lake Cnty. 855 P.2d 231, 233 (Utah 1993). We recite the facts accordingly.

T3 In accordance with a verbal partnership agreement between Davis and Sperry, the two men purchased property together in Rock Canyon in Utah County (the Property) on April 20, 1998. The sale price of $150,000 was divided into two payments of $75,000, with the first payment due at closing and the rest due on April 10, 1999. Davis and Sperry each contributed $37,500 for the first payment and took title to an undivided 50% interest in the Property in their own names but "on behalf of the partnership." In May 1998, Davis and Sperry formed Rock Canyon, LLC with the intent of transferring to it "the partnership assets and liabilities," including title to the Property. Title to the Property, however, was never transferred to Rock Canyon. In April 1999, before the final payment of $75,000 for the Property was due, Davis discussed with Sperry the prospect of buying out Sperry's partnership interest. Davis paid the entire $75,000 final payment, believing that doing so constituted a buyout of Sperry's interest in accordance with their earlier discussion.

T 4 However, just days after the purported buyout, Sperry conveyed half of his undivided 50% interest in the Property to Stephen Kapelow by special warranty deed and timely tendered payment of his $37,500 share of the final $75,000 due to the sellers of the Property. The sellers refused Sperry's payment because Davis had already paid the entire $75,000 balance. Davis likewise refused to accept $37,500 as reimbursement.

T5 Davis subsequently dissolved the partnership in light of Sperry's conveyance to Kapelow, which Davis considered a violation of a term of their verbal partnership agreement because he understood the agreement as prohibiting one partner from unilaterally conveying partnership property. In November 2000, Davis filed a complaint against Sperry and Kapelow, alleging wrongful conveyance of the partnership property and wrongful dissolution of the partnership by way of Sperry's wrongful conveyance. 2

T6 In April 2004, Kapelow conveyed his interest to Design West, LLC, in which he and his wife, Loren Kapelow, were principal owners and agents. On June 25, 2004, Sperry and Design West entered into an option agreement with Provo City "by which they granted Provo City an option to buy their respective interests in [the Property]" by August 4, 2004. Prior thereto, however, on or about June 17, 2004, the parties' attorneys-Richard Hill for Sperry and Design West and Camille Williams for Provo City-"verbally agreed to extend the August 4 deadline[] for exercise of the option[] to August 16[, 2004]." On August 5, 2004, Provo City assigned its interest in the option to Red Slab, LLC, and Red Slab exercised the option the same day. 3 Sperry accordingly conveyed his record interest to Red Slab, but Design West rejected Red Slab's attempt to exercise the option as untimely.

*30 T7 Fifteen months later, on November 28, 2005, Davis filed an amended complaint adding Loren Kapelow, Design West, Red Slab, John L. Valentine (manager of Red Slab), and Provo City as defendants, and raised several additional causes of action against the added parties. All claims against Valentine in his individual capacity were ultimately dismissed without prejudice by stipulation of the parties. Design West and the Kapelows settled with Davis, conveying "to Davis all of their right, title and interest in and to the Option Agreement, and all claims and defenses they may have in the Red Slab Lawsuit{ 4 ]," and all of Design West's "right, title and interest in and to" the Property in exchange for the dismissal with prejudice of Davis's claims against them.

T8 The remaining defendants-Sperry, Red Slab, and Provo City-filed motions for summary judgment. In its Memorandum Decision addressing those motions, the trial court assumed the existence of a valid verbal partnership agreement between Davis and Sperry but noted that the partnership "relationship and those obligations remain{ed] incapable of determination by summary judgment." The trial court nonetheless upheld Sperry's conveyances to Kapelow and Red Slab, ruling that without a written restriction to the contrary, Sperry's acquisition of a written grant of fee title from the original sellers of the Property "included the ability to convey the property." The trial court further determined that "Davis gained no additional right to the [PJroperty by paying the promissory notes early" and presumed that Davis's actions were taken "to protect the [PJroperty ... for the benefit of all other cotenants, creating only a right to contribution," despite Davis's contrary statements regarding the buyout agreement with Sperry. Last, the trial court determined that the option agreement was ambiguous and that extrinsic evidence was necessary to clarify the ambiguity. Hill and Williams testified that they had verbally agreed on June 17, 2004, that the August 4 deadline "in paragraph 2 lof the option agreement] was a scrivener's error from earlier drafts" and that the parties intended to establish the deadline in conjunction with the parties' intent expressed in paragraph 7 of the agreement to establish a "60-day option period" that would begin running "on June 16, 2004, when the second seller signed the option agreement. 5 The trial court determined that their testimony was uncontradieted and concluded that Red Slab properly and timely exercised the option on August 5. _

T9 Davis appeals the trial court's ruling, arguing that summary judgment was improper in light of several disputed issues of material fact. Davis also challenges the trial court's legal conclusion that the option agreement was ambiguous, that extrinsic evidence was necessary to resolve the ambiguity, and that Provo City and Red Slab were bona fide purchasers.

ISSUES AND STANDARDS OF REVIEW

110 We start our analysis by addressing Defendants' assertion that the trial court incorrectly determined that Davis had standing to pursue his claims. "Determinations of the legal requirements for standing are reviewed for correctness," but "we give deference to the [trial] court on factual determinations that bear upon the question of standing." Jones v. Barlow, 2007 UT 20, 10, 154 P.3d 808.

111 Next, we address Davis's challenges to the trial court's grant of summary judgment in favor of Defendants.

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

Related

Lavender v. FCOI Preserve
2025 UT App 47 (Court of Appeals of Utah, 2025)
Pioneer HOA v. Taxhawk
2025 UT App 5 (Court of Appeals of Utah, 2025)
In re Evan O. Koller
2018 UT App 27 (Court of Appeals of Utah, 2018)
Packer v. Utah Attorney General's Office
2013 UT App 194 (Court of Appeals of Utah, 2013)
Utah Community Credit Union v. Robertson
2013 UT App 66 (Court of Appeals of Utah, 2013)

Cite This Page — Counsel Stack

Bluebook (online)
2012 UT App 278, 288 P.3d 26, 718 Utah Adv. Rep. 31, 2012 WL 4677568, 2012 Utah App. LEXIS 286, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davis-v-sperry-utahctapp-2012.