Glauser Storage, L.L.C. v. Smedley

2001 UT App 141, 27 P.3d 565, 420 Utah Adv. Rep. 10, 2001 Utah App. LEXIS 36, 2001 WL 460303
CourtCourt of Appeals of Utah
DecidedMay 3, 2001
Docket990544-CA
StatusPublished
Cited by13 cases

This text of 2001 UT App 141 (Glauser Storage, L.L.C. v. Smedley) 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
Glauser Storage, L.L.C. v. Smedley, 2001 UT App 141, 27 P.3d 565, 420 Utah Adv. Rep. 10, 2001 Utah App. LEXIS 36, 2001 WL 460303 (Utah Ct. App. 2001).

Opinion

OPINION

ORME, Judge:

T 1 Defendant Dale T. Smedley appeals the trial court's judgment in favor of plaintiffs on breach of contract and quiet title claims. With limited exceptions, we affirm.

BACKGROUND

T2 On January 29, 1979, after a few months of negotiations, Melvin Glauser, father of the individual plaintiffs, and defendant Smedley entered into a transaction to exchange certain properties. The parties finalized the 1979 deal by executing a written agreement providing that both parties "will convey all rights, title and interest" in their respective properties. The parties then exchanged warranty deeds to the respective properties, all of which were located in Davis County. Glauser and his wife deeded Smed-ley and his wife 32 acres of building lots known as Melanie Acres. In return, Smed-ley and his wife deeded Glauser Construction Co., Inc. real property containing 86 storage sheds. This property exchange was only one of many transactions between Hauser and Smedley over a period of many years.

T3 The 1979 agreement imposed several obligations on Smedley. It required Smed-ley to manage the storage sheds for the *568 Glausers' benefit for the remainder of their lives and made him responsible for all management related expenses, including payment of all repairs, taxes, and insurance premiums.

T4 Smedley also agreed to pay the Glau-sers the following: (1) $2,000 per month from the rents collected on the storage sheds for the remainder of the CHlausers' lives and (2) $6,000 per year, for at least thirteen years, as a vacation fund. To secure payment of these monetary obligations, Smedley agreed to set up an escrow account in the amount of $300,000.

T5 Over the next few months, Smedley failed to fund the escrow account, so on December 4, 1979, the parties amended the 1979 agreement, and Smedley gave the Glau-sers a mortgage on 274 acres of land in Salmon, Idaho, as substitute security. 1 As part of this amended agreement, Smedley agreed to continue to pay the taxes on the Salmon property. The Glausers later discovered that the Salmon property was encumbered by an agricultural lease held by Bill Isley, which ran through the year 2007. In June 1993, in exchange for Isley releasing his rights in the agricultural lease, the Clausers conveyed 24 acres of the Salmon property to Isley.

T6 Over the years, Smedley breached many of his obligations under the 1979 agreement: (1) He failed to pay property taxes owed on the storage sheds in the amount of $20,703.18; (2) he failed to pay for necessary maintenance and repair costs on the storage sheds, in amounts totaling $18,037; (3) he neglected to pay property taxes on the Salmon property in the amount of $8,960.86; and (4) beginning in 1984 and continuing for four years, he failed to pay the $6,000 owed annually to the Hlauser vacation fund.

T7 In the summer of 1994, both Glauser and his wife passed away. Following his parents' deaths, plaintiff Steve GHlauser sent Smedley notice that the Glauser children intended to take control and management of the storage sheds from Smedley, consistent with their understanding of the 1979 agreement. Smedley responded by demanding that the CGlauser children release the Salmon Property in exchange for his release of the storage shed property.

T8 In the fall of 1994, the Glauser children assumed control and management of the storage shed property, but they refused to release the Salmon property. In response, Smedley recorded notices of interest against both the storage shed property and the Salmon property.

T9 In June 1996, the Glauser children brought this action to quiet title to both the storage shed property and the Salmon property and to recover monetary damages against Smedley for breach of the 1979 agreement. Smedley responded by filing a counterclaim seeking reconveyance of both the storage sheds and the Salmon property and alleging that he had cured his breach of the 1979 agreement through substitute performance, accepted by Melvin Glauser in 1988, in the form of work done on other properties owned by the and by means of the transfer of three undeveloped lots to the Glausers.

T10 Pursuant to a pre-trial motion in li-mine, the trial court prevented Smedley from presenting any parol testimony controverting the 1979 agreement and contemporaneous warranty deed conveying the storage shed property to the Glausers. The court also ruled that the CGlauser children could present evidence concerning Smedley's general reputation in the community for truthfulness.

11 At the conclusion of the bench trial, the court held that the 1979 agreement and contemporaneous warranty deed to the storage shed property were clear and unambiguous as to the parties' intent and that a transfer of absolute title by Smedley to the CHlausers was contemplated. Therefore, the Glauser children were entitled to a decree quieting title to the storage shed property in their favor.

T 12 The trial court also held that Smedley had breached his obligations under the 1979 *569 agreement and that he owed the Glauser children $71,701.24, plus $41,154.67 in prejudgment interest. In addition, the trial court held that the evidence Smedley presented concerning his claimed substitute performance in satisfaction of his defaults was insufficient and unreliable, and that he had therefore failed to prove his counterclaim.

{13 As to the Salmon property, the trial court concluded that even though Smedley gave the Glausers a deed to the property, the parties had not intended a transfer of absolute title but only for Smedley to give the CGlausers a security interest in place of the $300,000 escrow account. Nonetheless, the trial court denied Smedley's claim to an offset for the unauthorized conveyance of 24 acres of that property to Isley. The court held that the consideration paid by Isley for these 24 acres-the release of his agricultural lease encumbering the entire Salmon property-runs with the land and benefits Smedley. Smedley appeals.

ISSUES AND STANDARDS OF REVIEW

{14 Smedley raises four issues on appeal. Initially, Smedley challenges the trial court's exclusion of his parol evidence concerning the parties' 1979 agreement and the warranty deed to the storage shed property Smedley contemporaneously delivered to CGlauser Construction Co. "The issue of 'Iwlhether evidence is admissible is a question of law, which we review for correctness, incorporating a "clearly erroneous" standard of review for subsidiary factual determinations'" Cal Wadsworth Constr. v. City of St. George, 898 P.2d 1372, 1378 (Utah 1995) (citation omitted).

{ 15 Smedley next argues that in finding that he had breached the 1979 agreement, the trial court improperly disregarded the uncontroverted evidence he presented concerning his claimed substitute performance. "Findings of fact will not be set aside unless they are against the clear weight of the evidence and clearly erroneous[,] with due consideration given to the trial court to judge the credibility of witnesses." Coalville City v. Lundgren, 930 P.2d 1206, 1209-10 (Utah Ct.App.), cert. denied, 939 P.2d 683 (Utah 1997).

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Bluebook (online)
2001 UT App 141, 27 P.3d 565, 420 Utah Adv. Rep. 10, 2001 Utah App. LEXIS 36, 2001 WL 460303, Counsel Stack Legal Research, https://law.counselstack.com/opinion/glauser-storage-llc-v-smedley-utahctapp-2001.