Haskell v. Wakefield and Associates

2024 UT App 123, 557 P.3d 245
CourtCourt of Appeals of Utah
DecidedSeptember 6, 2024
Docket20230243-CA
StatusPublished
Cited by2 cases

This text of 2024 UT App 123 (Haskell v. Wakefield and Associates) 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
Haskell v. Wakefield and Associates, 2024 UT App 123, 557 P.3d 245 (Utah Ct. App. 2024).

Opinion

2024 UT App 123

THE UTAH COURT OF APPEALS

KOURTNI HASKELL, Appellant, v. WAKEFIELD & ASSOCIATES, INC., AND MATTHEW FRAWLEY, Appellees.

Opinion No. 20230243-CA Filed September 6, 2024

Third District Court, Salt Lake Department The Honorable Andrew Stone No. 190905612

Daniel Baczynski, Attorney for Appellant Mark A. Nickel, Attorney for Appellees

JUDGE RYAN D. TENNEY authored this Opinion, in which JUDGES GREGORY K. ORME and AMY J. OLIVER concurred.

TENNEY, Judge:

¶1 Several years ago, Kourtni Haskell sued a debt collection agency, alleging that it had violated various Utah statutes when it tried collecting a debt from her. The district court dismissed the case without prejudice. Haskell later sued that same agency again in a separate case (which is the case at issue in this appeal), asserting that the agency had violated the same Utah statutes that were at issue in her first case. But the district court held that the issue preclusion doctrine prevented Haskell from relitigating certain issues that had been resolved by the district court in the first case. Because the precluded issues were dispositive to Haskell’s claims, the court dismissed her case.

¶2 Haskell now appeals, arguing that issue preclusion does not apply because the first case was dismissed without prejudice. Haskell v. Wakefield & Assocs.

For the reasons set forth below, we disagree. We therefore affirm the district court’s ruling and its dismissal of Haskell’s case.

BACKGROUND 1

Haskell’s First Case Is Dismissed Without Prejudice

¶3 In 2016, Wakefield & Associates, Inc. (Wakefield), a debt collection agency, obtained a default judgment against Kourtni Haskell. Two years later, Haskell sued Wakefield in Tooele County, alleging that Wakefield was not a properly licensed debt collector under the Utah Collection Agency Act (UCAA) (hereinafter the Tooele Case). In Haskell’s view, this UCAA violation amounted to a “deceptive [or] unconscionable act” that rendered the default judgment void under the Utah Consumer Sales Practices Act (UCSPA). Wakefield later filed a motion for judgment on the pleadings. See Utah R. Civ. P. 12(c).

¶4 While the Tooele Case was still pending, Haskell reached out to Wakefield’s president, Matthew Frawley, to negotiate a settlement. According to Haskell’s subsequent account, Frawley initially accepted her proposal. But a few days later, he added a confidentiality term, which she rejected. Haskell believed the parties had “agreed to settle the case” and accordingly moved for leave to amend her complaint to add claims against Frawley for violation of the purported settlement agreement. In response, Wakefield argued that the email correspondence Haskell sought

1. “When reviewing a decision granting a motion to dismiss, we view the facts pled in the complaint and all reasonable inferences from them in the light most favorable to the plaintiff.” Legal Tender Servs. PLLC v. Bank of Am. Fork, 2022 UT App 26, n.1, 506 P.3d 1211 (quotation simplified).

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to introduce to support her new claims was inadmissible and, in any event, did not establish “a meeting of the minds.”

¶5 At the hearing on the motion for judgment on the pleadings, Haskell raised something of a new claim—that Wakefield’s misrepresentation about its business registration status had “deceived or misled” her. The court, however, ruled that this new allegation failed to comply with rule 9(c), which requires that fraud claims be pleaded “with particularity.” See id. R. 9(c).

¶6 The district court then granted Wakefield’s motion for judgment on the pleadings on Haskell’s other claims. It ruled that the registration claims failed as a matter of law for several independent reasons: first, the UCAA does not authorize a private right of action; second, a failure to obtain a license under the UCAA does not deprive a business of legal standing to file or maintain a debt collection action in court; and third, the act of collecting a debt without being properly licensed under the UCAA is not a violation of the UCSPA. 2 The court additionally

2. We’ve since rejected claims similar to Haskell’s in several cases. See Fell v. Alco Cap. Group LLC, 2023 UT App 127, ¶¶ 23, 37, 538 P.3d 1249 (noting that “the UCAA does not authorize a private right of action” and holding that “without some showing of an affirmative misrepresentation, [a] violation of the UCAA [does] not constitute a violation of the UCSPA”), cert. denied, 544 P.3d 457 (Utah 2024); Meneses v. Salander Enters. LLC, 2023 UT App 117, ¶¶ 14, 21, 537 P.3d 643 (same), cert. denied, 544 P.3d 456 (Utah 2024); see also LeBaron v. Doctors & Merchs. Credit, Inc., 2024 UT App 42, ¶ 2, 547 P.3d 855 (stating that Fell and Meneses “conclusively resolve[d]” these issues). We also note that “[w]ith the exception of its final section—authorizing creditors to recover collection fees in addition to other amounts owed by a debtor— the UCAA was recently repealed by the Utah Legislature.” Meneses, 2023 UT App 117, ¶ 3 n.1.

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denied Haskell’s motion for leave to amend, ruling that the parties had not reached an enforceable agreement and that the proposed amendment would therefore be futile.

¶7 Of some note for this appeal, the district court said in its oral ruling that the dismissal “should be a dismissal without prejudice with respect to the [rule] 9(c) issue.” It told Haskell’s counsel,

[I]f you can put together a complaint that alleges that Ms. Haskell, in fact, . . . relied on some statement from [Wakefield] that they were a licensed collection agency and that that somehow created some deception or fraud, then I think it would be appropriate to reassert that. I’m not going to bar you from reasserting that.

However, the court emphasized that there was “no claim” for the UCAA and UCSPA arguments standing alone, and the court opined that its ruling on that would be “law of the case or res judicata at this point.” In the court’s subsequent written ruling, the court stated that “each of the claims” was “dismissed without prejudice.”

Haskell’s Second Case and the Initial Appeal

¶8 After the dismissal of the Tooele Case, Haskell filed a new case against Wakefield and Frawley (from here on, collectively, Wakefield), this time in Salt Lake County. As indicated, this is the case at issue in this appeal.

¶9 Haskell filed an initial complaint and then a slightly amended version later. In substance, both were virtually identical to the proposed amended complaint that the district court in the Tooele Case had ruled would be “futile.” Notably, the complaint

20230243-CA 4 2024 UT App 123 Haskell v. Wakefield & Assocs.

added no new facts to substantiate Haskell’s allegation that Wakefield deceived her.

¶10 Wakefield filed a motion to dismiss. Wakefield’s motion argued that issue preclusion applied, and though a touch unclear, its briefing arguably asserted that claim preclusion applied as well.

¶11 The district court granted the motion to dismiss on claim preclusion grounds. Under controlling precedent, the applicability of claim preclusion turns on a three-part test:

First, both cases must involve the same parties or their privies. Second, the claim that is alleged to be barred must have been presented in the first suit or be one that could and should have been raised in the first action. Third, the first suit must have resulted in a final judgment on the merits.

Mack v. Utah State Dep’t of Com., 2009 UT 47, ¶ 29, 221 P.3d 194 (quotation simplified). Applying that test, the district court ruled that claim preclusion barred the suit, and it accordingly dismissed the complaint with prejudice.

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2024 UT App 123, 557 P.3d 245, Counsel Stack Legal Research, https://law.counselstack.com/opinion/haskell-v-wakefield-and-associates-utahctapp-2024.