Grewal v. Junction Market Fairview

2024 UT 20, 554 P.3d 863
CourtUtah Supreme Court
DecidedJuly 11, 2024
DocketCase No. 20220822
StatusPublished
Cited by5 cases

This text of 2024 UT 20 (Grewal v. Junction Market Fairview) 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
Grewal v. Junction Market Fairview, 2024 UT 20, 554 P.3d 863 (Utah 2024).

Opinion

That This opinion is subject to revision before final publication in the Pacific Reporter 2024 UT 20

IN THE

SUPREME COURT OF THE STATE OF UTAH

MANMOHAN GREWAL and LIPPA GREWAL, Appellants, v. JUNCTION MARKET FAIRVIEW, L.C. and BLUE CAP INVESTMENT GROUP, L.C., Appellees.

No. 20220822 Heard October 20, 2023 Filed July 11, 2024

On Direct Appeal

Sixth District Court, Sanpete County The Honorable Wallace A. Lee No. 200600066

Attorneys: Jared L. Anderson, Provo, for appellants Alan L. Smith, Salt Lake City, for appellees

CHIEF JUSTICE DURRANT authored the opinion of the Court, in which ASSOCIATE CHIEF JUSTICE PEARCE, JUSTICE PETERSEN, JUSTICE HAGEN, and JUSTICE POHLMAN joined.

CHIEF JUSTICE DURRANT, opinion of the Court: INTRODUCTION ¶1 Lippa and Manmohan Grewal sold a gas station to Theodore Hansen, who later sold it to Junction Market Fairview, L.C. (JMF). The sale contract between the Grewals and Hansen required Hansen to make regular installment payments and specified that the final balance would become due after approximately three years. Hansen failed to make many of these GREWAL v. JUNCTION MARKET Opinion of the Court

installment payments, and he likewise failed to pay the full balance when the contract’s call date arrived. ¶2 But the Grewals did not initiate the foreclosure proceeding at the heart of this case until just over six years after Hansen’s first missed payment. As the parties agree that the applicable statute of limitations for a breach of contract action is six years, this poses an interesting question: when a contract calls for payment in installments, does the statute of limitations for the enforcement of that contract begin to run as soon as a payment is missed, or only once the final call date of the contract arrives? ¶3 That question deserves a firm answer. But, alas, we cannot provide one. Because the real property involved in this case was sold to a third-party bona fide purchaser shortly before this appeal arrived at our doorstep, our precedent dictates we dismiss the majority of this case as moot. ¶4 The only issue that is not moot concerns the district court’s award of attorney fees. The Grewals contend that the court abused its discretion by granting JMF attorney fees under both the Public Waters Access Act and the reciprocal attorney fees statute. While the district court’s decision is not perfect, the Grewals fail to show that its flaws amount to an abuse of discretion. Accordingly, we affirm the attorney fees award. And because the Grewals do not oppose JMF’s request to recover the attorney fees it reasonably incurred in defending against this appeal, we remand to the district court for a determination of that amount. BACKGROUND 1 ¶5 This case centers around the repeated transfers of a gas station (Station) in Fairview, Utah. The first relevant transaction occurred in May 2014, when the Grewals sold the Station to a corporate entity owned by Hansen. Title was transferred to this corporate entity via a deed of trust (Deed), which secured the $400,000 purchase price laid out by the real estate purchase contract (Contract). The Deed also contained an attorney fees provision.

__________________________________________________________ 1 “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. We state the facts of this case accordingly.” In re Discipline of Sonnenreich, 2004 UT 3, ¶ 3, 86 P.3d 712 (cleaned up).

2 Cite as: 2024 UT 20 Opinion of the Court

¶6 Hansen quickly fell into arrears on the Contract, which required payment in monthly installments. For reasons disputed by the parties, the Grewals did not seek to punish this nonpayment by foreclosing on the Station. 2 In 2016, Hansen sold the Station to JMF. The sale documents acknowledge that the Station was still subject to the Grewals’ Deed, and JMF was given a credit against the Station’s purchase price apparently to account for this encumbrance. ¶7 In August 2020, with substantial sums still owed on the Contract, the Grewals finally moved to foreclose. After initial negotiations to resolve the matter fell through, JMF filed suit in December 2020 to prevent foreclosure. JMF sought, among other things, a judgment that the Grewals’ Contract and Deed were unenforceable because the applicable six-year statute of limitations had run, and an order quieting title in JMF alone. ¶8 The Grewals filed an answer to JMF’s complaint but did not assert any counterclaims. JMF moved for partial summary judgment on the statute of limitations and quiet title issues, and the district court granted that motion. The court concluded that the statute of limitations on the Contract and Deed had begun running when Hansen missed the first installment payment in early 2014. In the district court’s eyes, this meant that the Grewals’ December 2020 foreclosure action was a few months too late. ¶9 The district court awarded sole control of the Station to JMF and ordered the Grewals to release the Station’s title. When the Grewals failed to do so, JMF filed the court’s judgment with the county recorder and seized the Station in early August 2021. A few days later, JMF sold the Station to another purchaser. ¶10 Around this time, JMF also moved to recover its attorney fees. Specifically, JMF argued it was entitled to recover its fees under two statutes: the reciprocal attorney fees statute contained in Utah Code section 78B-5-826, and the quiet title section of the Public Waters Access Act (PWAA) found in Utah Code section 73-29-204. Somewhat surprisingly, the Grewals’ response did not contest that either statute applied. It noted instead that both statutes provided for the permissive, but not mandatory, award of

__________________________________________________________ 2 Based on the record available, it appears that the Grewals and

Hansen were involved in other business transactions that may have contributed to the decision to delay foreclosure proceedings.

3 GREWAL v. JUNCTION MARKET Opinion of the Court

fees and argued that JMF didn’t deserve its fees under either. The district court received motions from both sides, held a hearing, and concluded that JMF was entitled to recover under both statutes. ¶11 Having exhausted their options before the district court, the Grewals sought appellate review. We retained the case to hear it directly. STANDARDS OF REVIEW ¶12 JMF raised the issue of mootness before us in a pre-briefing motion to dismiss. 3 “Because this issue arises for the first time here on review, our decision is not governed by any standard of review, and we decide the matter as a question of law in the first instance.” 4 ¶13 The Grewals challenge the district court’s award of attorney fees under both the reciprocal attorney fees statute and the PWAA. Generally speaking, “[w]hether attorney fees are recoverable in an action is a question of law, which we review for correctness.” 5 But to the extent that the governing statute grants the district court discretion to award fees, “we review [the district court’s] decision for an abuse of that discretion.” 6 ANALYSIS ¶14 The Grewals bring eight claims on appeal. The first seven claims argue that the district court erred by granting partial summary judgment on the issues of wrongful foreclosure and quiet title. Before we can reach the merits of those arguments, however, we must address JMF’s claim that the transfer of the Station to a third party renders the Grewals’ assertions of error moot under Richards v. Baum. 7

__________________________________________________________ 3 JMF also raised the issue of mootness below in response to one

of the Grewals’ post-judgment motions. The parties have not appealed the district court’s denial of that motion. 4 JLPR LLC v.

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

Related

Nielsen v. Cronquist
2025 UT App 199 (Court of Appeals of Utah, 2025)
Farm Bureau v. Weston
2025 UT 42 (Utah Supreme Court, 2025)
Roussel v. State
2025 UT 5 (Utah Supreme Court, 2025)
State v. Groce
2024 UT App 166 (Court of Appeals of Utah, 2024)
Harman v. 105 Partners
2024 UT App 109 (Court of Appeals of Utah, 2024)

Cite This Page — Counsel Stack

Bluebook (online)
2024 UT 20, 554 P.3d 863, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grewal-v-junction-market-fairview-utah-2024.