Hi-Country Estates Homeowners Ass'n v. Bagley & Co.

2011 UT App 252, 262 P.3d 1188, 687 Utah Adv. Rep. 74, 2011 Utah App. LEXIS 253, 2011 WL 3209937
CourtCourt of Appeals of Utah
DecidedJuly 29, 2011
Docket20090433-CA
StatusPublished
Cited by3 cases

This text of 2011 UT App 252 (Hi-Country Estates Homeowners Ass'n v. Bagley & Co.) 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
Hi-Country Estates Homeowners Ass'n v. Bagley & Co., 2011 UT App 252, 262 P.3d 1188, 687 Utah Adv. Rep. 74, 2011 Utah App. LEXIS 253, 2011 WL 3209937 (Utah Ct. App. 2011).

Opinions

AMENDED MEMORANDUM DECISION 1

VOROS, Judge:

T1 This appeal represents the latest episode in a course of litigation spanning a [1189]*1189quarter of a century. We last ruled in this case in Hi-Country Estates Homeowners Ass'n v. Bagley & Co., 2008 UT App 105, 182 P.3d 417, cert. denied, 199 P.8d 970 (2008). That appeal arose from a counterclaim filed by Foothills Water Company, J. Rodney Dansie, the Dansie Family Trust, Richard P. Dansie, Boyd W. Dansie, Joyee M. Taylor, and Bonnie R. Parkin (collectively, the Dan-sies) against the Hi-Country Estates Homeowners Association (the Association). See id. 1. The Dansies sought damages for breach of a 1977 well lease agreement (the Well Lease). See id. 12.

12 The trial court entered an omnibus order somewhat optimistically titled Final Judgment. See id. T6. First, the court ruled that the Well Lease was an enforceable contract, neither void as against public policy nor unconscionable. See id. Second, the trial court denied the Dansies' breach of contract claims. See id. In the context of these claims, the trial court ruled that, pursuant to a 1986 order of the Public Service Commission (PSC), the Dansies were entitled to receive water under the Well Lease only upon payment of their pro rata share of fees and costs and not, as stated in the Well Lease itself, "at no cost." See id. Because the Dansies had refused to pay these fees, the trial court ruled that the Association had not breached its obligation under the Well Lease. See id. In addition, the trial court found no evidentiary basis for the Dansies' claim of damages in the form of an orchard withering, loss of landscaping, and loss of property value. See id. 117. Third, the trial court awarded the Dansgies judgment in the sum of $16,834.99 as reimbursement for improvements to the water system. See id. 16. Finally, the trial court denied the Dansies' claim for attorney fees. See id.

13 The Dansies appealed. We affirmed the trial court's order that the Well Lease was not void as against public policy. See id. 113. In doing so, we stated in a footnote that, because the PSC no longer exercised jurisdiction over the Association, "we now interpret the Dansies' rights and obligations under the Well Lease according to its plain language." Id. 112 n. 2. We also affirmed the trial court's order that the Well Lease was not unconscionable. See id. T15. And we affirmed the trial court's denial of the Dansies' breach of contract claims relating to the severing of the water systems. See id. 16. We did so under the rules of appellate procedure, holding that in challenging on appeal the trial court's factual findings on damages, the Dansies had failed to marshal the evidence as required by rule 24(a)(9) of the Utah Rules of Appellate Procedure. See id. 20; see also Utah R.App. P. 24(a)(9). We also affirmed the trial court's judgment in favor of the Dansies in the sum of $16,834.99. See Hi-Country Estates, 2008 UT App 105, ¶ 21, 182 P.3d 417. Finally, we affirmed the trial court's denial of attorney fees. See id. 122. Our opinion concluded, "We therefore affirm the trial court on all issues." Id. ¶ 24. The Utah Supreme Court denied cross-petitions for certiorari.

T4 After remittitur, the Dansies filed a motion with the trial court to modify the Final Judgment to conform to footnote 2 of our opinion as they understood it. The Association resisted the motion, and the trial court denied it. The Dansies appeal. We conclude that our 2008 opinion appropriately resolved the issues before us under relevant principles of appellate review. Furthermore, the trial court properly read our opinion as a complete affirmance.

15 "The mandate rule dictates that pronouncements of an appellate court on legal issues in a case become the law of the case and must be followed in subsequent proceedings of that case. The mandate rule . binds both the district court and the parties to honor the mandate of the appellate court." Utah Dep't of Transp. v. Ivers, 2009 UT 56, ¶ 12, 218 P.3d 588 (omission in original) (citation and internal quotation marks omitted). "The lower court must implement both the letter and the spirit of the mandate, taking into account the appellate court's opinion and the cireumstances it embraces." Id. (internal quotation marks omitted).

T6 For reasons we explain below, we do not believe the language in footnote two of our opinion conflicts with our ultimate [1190]*1190order. Nevertheless, to the extent a real or apparent conflict exists in a judicial opinion, the opinion's "directions" control. See Amax Magnesium - Corp. v. Utah State Tax Comm'n, 848 P.2d 715, 718 (Utah Ct.App.1998) ("Where the language used in the body of an appellate opinion conflicts with directions on remand, the latter controls."), rev'd on other grounds, 874 P.2d 840 (Utah 1994). And the only directions in our 2008 opinion indicate that we are affirming the trial court on all issues. The opening paragraph of that opinion states, "Counterclaim Plaintiffs appeal several of the trial court's determinations. Counterclaim Defendant ... filed a cross-appeal challenging other determinations. We affirm." Hi-Country Estates Homeowners Ass'n v. Bagley & Co., 2008 UT App 105, ¶ 1, 182 P.3d 417. The final sentence of the opinion states, "We therefore affirm the trial court on all issues." Id. 124. Nowhere in the opinion do we use the words "reverse," "vacate," "modify," or (except in reciting the history of the litigation) "remand." We therefore agree with the trial court that, "in the face of the unequivocal affirmance by the Court of Appeals, [the trial court] lacks authority to modify the final judgment." The trial court thus properly refused to interpret an opinion that states, "We therefore affirm the trial court on all issues" as having actually affirmed on some issues and reversed on others. A contrary approach would risk eroding the clarity of the mandate rule and the authority of the appellate courts of this state.

T7 Mandate rule aside, we do not read our 2008 opinion as a partial reversal. Footnote two appears in section I of the opinion. We there rejected the Association's claim that the Well Lease's "provisions for free water and water connections" are void as against public policy. We explained in footnote two that, because the 1986 order of the PSC was no longer in effect, we would interpret the Well Lease "according to its plain language." Id. 112 n. 2. We thus clarified that the precise question we were treating was whether the Well Lease as writien-not as superseded by PSC directives-was contrary to public policy. We concluded that it was not. See id. TT12-18. A contrary ruling-that the Well Lease as written was unenforceable because it was unconscionable or against public policy-would have barred all the Dansies' past and future breach of contract claims. Our determination that the Well Lease did not offend public policy left unresolved the question of breach of contract.

T8 We resolved the breach of contract claim in section III. See id. 116. We noted there that the trial court had addressed both breach and damages.2 We first summarized the trial court's ruling with respect to breach; in so doing, we noted that "iln dismissing the claims, the trial court relied on the 1986 PSC order." Id.

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Related

Jesse H. Dansie Family Trust v. Public Service Commission
2016 UT App 116 (Court of Appeals of Utah, 2016)
Hi-Country Estates Homeowners Ass'n v. Jesse Rodney Dansie Living Trust
2015 UT App 218 (Court of Appeals of Utah, 2015)
Hi-Country Estates Homeowners Ass'n v. Bagley & Co.
2011 UT App 252 (Court of Appeals of Utah, 2011)

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Bluebook (online)
2011 UT App 252, 262 P.3d 1188, 687 Utah Adv. Rep. 74, 2011 Utah App. LEXIS 253, 2011 WL 3209937, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hi-country-estates-homeowners-assn-v-bagley-co-utahctapp-2011.