Hatfield v. Cottages on 78th Community

CourtCourt of Appeals for the Tenth Circuit
DecidedJuly 6, 2022
Docket21-4035
StatusUnpublished

This text of Hatfield v. Cottages on 78th Community (Hatfield v. Cottages on 78th Community) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hatfield v. Cottages on 78th Community, (10th Cir. 2022).

Opinion

Appellate Case: 21-4035 Document: 010110706258 Date Filed: 07/06/2022 Page: 1 FILED United States Court of Appeals UNITED STATES COURT OF APPEALS Tenth Circuit

FOR THE TENTH CIRCUIT July 6, 2022 _________________________________ Christopher M. Wolpert Clerk of Court WENDI HATFIELD, an individual,

Plaintiff Counterclaim Defendant - Appellant/Cross-Appellee,

v. Nos. 21-4035; 21-4042; 21-4045 (D.C. No. 2:19-CV-00964-TS) THE COTTAGES ON 78TH (D. Utah) COMMUNITY ASSOCIATION, a Utah nonprofit corporation; DREW KEDDINGTON, an individual; MICHELLE POHLMAN, f/k/a Michelle Ainge, an individual; PMI OF UTAH, a Utah limited liability company,

Defendants Counterclaimants - Appellees/Cross-Appellants,

MATTHEW MEDFORD, an individual,

Defendant - Appellee,

MILLER HARRISON, LLC, a Utah limited liability company; DOUGLAS SHUMWAY, an individual,

Defendants - Appellees/Cross- Appellants,

and

DAVE RUPRECHT, an individual,

Defendant - Appellee. _________________________________ Appellate Case: 21-4035 Document: 010110706258 Date Filed: 07/06/2022 Page: 2

ORDER AND JUDGMENT* _________________________________

Before HOLMES, PHILLIPS, and CARSON, Circuit Judges. _________________________________

This case stems from a dispute between a homeowner and her homeowners’

association. The parties appeal and cross-appeal the dismissal of several claims and

one counterclaim; they also challenge an order in which the district court partially

granted motions to strike part of Appellant Wendi Hatfield’s complaint as containing

privileged information. Exercising jurisdiction under 28 U.S.C. § 1291, we affirm.

BACKGROUND

I. Factual Background

Hatfield owns a townhome in The Cottages on 78th, a planned unit

development in Midvale, Utah. The development is governed by The Cottages on

78th Community Association (“HOA”), of which Matthew Medford was a member.

The HOA acts through a five-member Management Committee (“Board”), on which

Drew Keddington and Dave Ruprecht served. PMI of Utah (“PMI”) was the HOA’s

property manager, and Michelle Pohlman was the PMI employee who helped manage

the HOA. The HOA, Keddington, PMI, and Pohlman are collectively referred to as

the “HOA Defendants.” Douglas Shumway and Miller Harrison, LLC—collectively,

the “Attorney Defendants”—served as legal counsel to the HOA Defendants.

* This order and judgment is not binding precedent, except under the doctrines of law of the case, res judicata, and collateral estoppel. It may be cited, however, for its persuasive value consistent with Fed. R. App. P. 32.1 and 10th Cir. R. 32.1. 2 Appellate Case: 21-4035 Document: 010110706258 Date Filed: 07/06/2022 Page: 3

Beginning in August 2016, Hatfield exhibited behavior issues in The Cottages.

Among other things, she allegedly surveilled homeowners, drove recklessly through

The Cottages, and harassed homeowners to conform to her interpretation of the

HOA’s rules. So in December 2018, the Board and Pohlman discussed how to deal

with Hatfield, including whether to send her a cease-and-desist letter. Those

discussions continued into March 2019. And in April 2019, the Board sent Hatfield a

letter that described her problematic behavior, stated that she was violating the

HOA’s “no-nuisance” rule, and warned her that failing to stop her behavior could

lead to fines (“Cease-and-Desist Letter”).

Two days later, Hatfield responded to the Cease-and-Desist Letter through her

attorney. She denied the various allegations and demanded that the Board withdraw

its warning. She also requested several broad categories of HOA records on the basis

that she was concerned about the HOA’s governance and operations.

In response, Shumway and a law clerk spent about twenty hours collecting

documents responsive to Hatfield’s requests. They spent three to five more hours

reviewing those documents for potentially privileged material. And on May 13, 2019,

Shumway provided Hatfield copies of the documents on the HOA’s behalf.

On May 23, 2019, Hatfield’s lawyer informed Shumway that the document

production contained potentially privileged emails. Shumway and his law clerk then

searched the document production but found no privileged material. On May 30,

2019, Shumway asked Hatfield’s lawyer to more specifically identify the potentially

privileged documents. But Hatfield’s lawyer never responded.

3 Appellate Case: 21-4035 Document: 010110706258 Date Filed: 07/06/2022 Page: 4

By August 8, 2019, Hatfield hadn’t ceased the conduct that the Board

identified in the Cease-and-Desist Letter. So in a follow-up letter to Hatfield, the

Board fined and assessed her $2,231.25 for continued violations of the HOA’s rules

and the legal costs that were incurred to bring her behavior into compliance.

On August 13, 2019, Hatfield filed a complaint with the Utah

Antidiscrimination and Labor Division (“UALD”). She alleged that the HOA,

Keddington, and PMI violated the Utah Fair Housing Act by engaging in religious

discrimination and retaliation. Among other allegations, Hatfield claimed that

Keddington, whom she described as a Mormon, treated other Mormons more

favorably than her, a non-Mormon.1 She alleged that the fines levied against her were

retaliation for a letter that she sent the Board in June 2019. In that letter, Hatfield

warned the Board that her attorney had advised her that she had grounds to file a

housing-discrimination claim and other claims against the HOA, PMI, and

Keddington.

Two days later, Hatfield filed a small-claims complaint against the HOA. She

alleged that the HOA had “commenced and prosecuted a groundless and improper

enforcement action, including demanding over $2,000 for their attorney fees and

causing [her] to incur attorney fees.” R. Vol. 1 at 67.

1 In accordance with the usage of the parties, we use the informal designation of “Mormon” for members of the Church of Jesus Christ of Latter-day Saints or the Church of Jesus Christ. 4 Appellate Case: 21-4035 Document: 010110706258 Date Filed: 07/06/2022 Page: 5

At the time, Hatfield was an insurance professional at Cincinnati Insurance

Company (“Cincinnati”). Between August 27–28, 2019, she used her Cincinnati

email address to tender her UALD and small-claims actions to the HOA’s insurance

agent. She did so without the HOA’s knowledge or permission. That led the HOA’s

insurance broker to think that both claims were Cincinnati-related matters. So on

September 6, 2019, Shumway sent a letter to a Cincinnati employee to clarify

whether the company was somehow involved with Hatfield’s UALD and small-

claims complaints (“September 6th Letter”). Shumway stated that if Cincinnati was

involved, he wanted to discuss the company’s standing to bring the complaints. He

also said that if Cincinnati wasn’t involved, then “Ms. Hatfield’s use of her work

email and credentials to tender her own claims [was] entirely unprofessional.” Id. at

57. Shumway attached Hatfield’s UALD and small-claims complaints, the Cease-

and-Desist Letter, the letter fining her $2,231.25, and her emails tendering her

complaints to the HOA’s insurer.

On September 10, 2019, the Board sent HOA members a letter about an

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