High Desert Estates LLC v. Arnett

2015 UT App 196, 357 P.3d 7, 792 Utah Adv. Rep. 31, 2015 Utah App. LEXIS 207, 2015 WL 4651666
CourtCourt of Appeals of Utah
DecidedAugust 6, 2015
Docket20140146-CA
StatusPublished
Cited by4 cases

This text of 2015 UT App 196 (High Desert Estates LLC v. Arnett) 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
High Desert Estates LLC v. Arnett, 2015 UT App 196, 357 P.3d 7, 792 Utah Adv. Rep. 31, 2015 Utah App. LEXIS 207, 2015 WL 4651666 (Utah Ct. App. 2015).

Opinion

Opinion

CHRISTIANSEN, Judge:

{1 High Desert Estates LLC and Brett Folkman appeal from the trial court's ruling that they had failed to demonstrate mutual mistake in the formation of a real estate purchase contract. Because the record evidence supports the trial court's ruling, we affirm.

BACKGROUND

12 This case concerns a parcel of land in Veyo, Utah, that Catherine Arnett sold to Brett Folkman (the Property). Folkman is a managing member of High Desert Estates LLC. High Desert owns a large tract of land adjacent to the Property, which it sought to develop. To facilitate development, High Desert sought an easement from adjacent landowners, including Patricia and Catherine Arnett, 1 to build a road connecting High Desert's property to the nearby public highway. When none of the landowners were willing to grant an easement to High Desert, High Desert approached the Arnetts to purchase the Property. Folkman executed a real estate purchase contract for the Property (the REPC) in June 2007, and he recorded an casement in favor of High Desert across the Property in October 2007. 2

13 In early 2009, Folkman contacted the county ordinances. county regarding the Property's suitability for building houses. He discovered that a previous owner had subdivided the Property from a larger parcel without recording a subdivision plat amendment, in violation of This improper subdivision prevented Folkman from building houses on the Property. High Desert and Folk-man (collectively, the Developers) filed a complaint seeking rescission of the REPC, arguing that there was a mutual mistake between the parties regarding whether a house could be built on the Property "as is"-without further zoning modifications or plat amendments. 3 The REPC contains no warranties -or representations regarding the suitability of the Property for building houses.

T4 The case proceeded to a bench trial, and the trial court ruled that the Developers had failed to prove a mutual mistake that would justify rescission of the REPC. First, the court determined that because the parties were sophisticated buyers and sellers of real estate, they could be properly charged with constructive knowledge of both the recorded documents-the plat map describing the Property as recorded-and the relevant zoning ordinances. The court therefore found that the parties had constructive knowledge that absent a replatting or rezoning of the Property, "the zoning laws and designations in effect at the time of purchase proscribed building homes on [the Property]." Second, the court found that even if the parties were mistaken about whether a house could be built on the Property, the Developers had not proven that the Property's suitability for building a house "as is" was a "basic assumption or vital fact upon *10 which the parties based their bargain or that the mistake related to a material feature of the parties' agreement." The Developers appeal from the trial court's ruling.

ISSUES AND STANDARDS OF REVIEW

15 First, the Developers argue that this court lacks jurisdiction to hear the appeal because the trial court's order is nonfi-nal. "The question of whether an order is final and appealable is a question of law." Powell v. Cannon, 2008 UT 19, ¶9, 179 P.3d 799 (citation omitted). We therefore decide as a matter of law whether the trial court's order is a final judgment and whether we have jurisdiction over thls appeal

16 The Developers nextlargue that the trial court erred in finding that the Developers had not proven a mutual mistake justifying rescission of the REPC. A trial court's findings of fact will be set aside only if clearly erroneous. Vandermeide v. Young, 2013 UT App 31, ¶14, 296 P.3d 787. We will therefore affirm the trial court's findings unless they are "'against the clear weight of the evidence'" or we reach "'a definite and firm conviction that a mistake has been made."" Id. (quoting State v. Walker, 743 P.2d 191, 193 (Utah 1987)).

ANALYSIS

~ I. The Trial Court's Order Is Final and Appealable.

17 As a threshold issue, we address the Developers' argument that we lack jurisdiction over this appeal because the trial court's order is not final and appealable. Generally, a party may appeal only " 'final orders and judgments from. a district or juvenile court, except as otherwise provided by law." Powell v. Cannon, 2008 UT 19, ¶11, 179 P.3d 799 (quoting Utah R.App. P. 3(a)). "The final judgment requirement is jurisdictional," and if the order appealed from fails to satisfy this requirement, "we lack jurisdiction over the. appeal and must disrmss it. Id. ¶12.

18 After tnal the Arnetts submitted a proposed order. Seven days later, the Developers filed an objection to the proposed order. Two days after that, the trial court signed the proposed order and entered the final judgment. The Developers argue that because the trial court never explicitly ruled on the Developers' objection, that objection "is still pending and remains unresolved," and the trial court's order is therefore nonfi-nal.

T 9 This court rejected that very argument in Western States Development, Inc. v. Prestige Cleaners Inc., 2011 UT App 174, 254 P.3d 773 (per curiam). There, Prestige Cleaners, the appellant, contended that "there [was] no final, appealable order because the district court never resolved its objection to the proposed order." Id. ¶13. We explained that this court "treats such objections as having been implicitly overruled by the entry of the proposed order." Id. Thus, we held that "the entry of the order by the district court implicitly overruled Prestige Cleaners's objections to that order." Id.

¶10 Here, the Developers filed an objection to the proposed order. The trial court signed and entered the proposed order two days later. As in Western States, the trial court's signing and entry of the proposed order - implicitly overruled the Developers' objection. See id. The trial court's order is therefore final, and we conclude that we have jurisdiction to consider the merits of the Developers' appeal.

II. The Record Evidence Supports the Trial Court's Findings.

111 The Developers next argue that the trial court erred in finding that they had not proven the elements of mutual mistake. "A party may rescind a contract when, at the time the contract is made, the parties make a mutual mistake about a material fact, the existence of which is a basic assumption of the contract." GeoNan Props., LLC v. Park-Ro-She, Inc., 2011 UT App 309, ¶12, 263 P.3d 1169 (citation and internal quotation marks omitted). The proponent of a mutual-mistake claim must prove the elements by clear and convincing evidence. Vandermeide v. Young, 2013 UT App 31, ¶12, 296 P.3d 787. The trial court here found that the Developers had failed to prove by- clear and *11 convincing evidence either that the parties made a mutual mistake in the formation of the REPC or that any such mistake was material to their agreement.

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Cite This Page — Counsel Stack

Bluebook (online)
2015 UT App 196, 357 P.3d 7, 792 Utah Adv. Rep. 31, 2015 Utah App. LEXIS 207, 2015 WL 4651666, Counsel Stack Legal Research, https://law.counselstack.com/opinion/high-desert-estates-llc-v-arnett-utahctapp-2015.