Kurth v. Wiarda

1999 UT App 335, 991 P.2d 1113, 382 Utah Adv. Rep. 11, 1999 Utah App. LEXIS 135, 1999 WL 1024012
Court of Appeals of Utah·Decided November 12, 1999·No. 981582-CA·Published·Cited by 3 cases

Opinion

OPINION

WILKINS, Presiding Judge:

¶ 1 This is an appeal from a final judgment of the trial court entered June 17, 1998 holding Daniel R. Wiarda (Wiarda) individually liable for $35,821.96 in attorney fees and costs resulting from the construction of a log home for appellees, Robert and Laura Kurth (the Kurths). We affirm.

BACKGROUND

¶ 2 The Kurths are the owners of real property and a log home located in Iron County, Utah. Wiarda is the president of Lonetree Services, Inc. (Lonetree), a Utah Corporation, which constructs log homes.

¶ 3 In November 1994, the Kurths contracted with Lonetree to construct a log home on their property. Before completion of the project, the Kurths became dissatisfied with the workmanship and quality of materials provided by Lonetree. Consequently, the Kurths refused to make the final payment of $14,676.00, fired Lonetree and Wiarda (defendants), and hired another contractor to complete the home. When defendants’ demands for payment failed, Wiar-da filed a mechanics’ lien against the property on October 23, 1995. The lien was signed by Wiarda “doing business as Lonetree Log Homes.” In October 1995, defendants initiated suit for breach of contract, quantum meruit, damages for unjust enrichment, and foreclosure of the mechanics’ lien. The Kurths answered, and shortly thereafter initiated suit against defendants, alleging twenty-two causes of action arising from the *1115 home construction contract, among them: breach of contract, negligence, wrongful lien, fraud, misrepresentation and punitive damages. The court consolidated the cases. The Kurths then filed a motion to release the mechanics’ lien which the court granted on July 22, 1996. However, the court further ordered the Kurths to post bond of $14,676, the amount of final payment defendants claimed was due under the contract, to be held until resolution of the ease.

¶ 4 On March 5, 1997, the court dismissed sixteen of the Kurths’ claims and awarded defendants $2,130 in attorney fees for defending against frivolous claims asserted by the Kurths. The case went to trial on the remaining claims. On February 5, 1998, the jury returned a verdict against Lonetree. On March 24,1998, the court entered a Judgment on the Verdict. This judgment indicated that the Kurths prevailed and were awarded $545,000 in damages on them claims of breach of contract, negligence, negligence per se, fraud and misrepresentation, and punitive damages. The court dismissed the Kurths’ wrongful lien claim as well as Wiar-da’s and Lonetrees’s unjust enrichment, breach of contract and mechanics’ lien claims. The court reserved the issue of attorney fees.

¶ 5 On April 7, 1998, the court entered its memorandum decision, ruling that because the Kurths prevailed against Lonetree at trial, the Kurths were entitled to $30,233.76 in attorney fees and costs. In this decision, the court ruled that in dismissing the mechanics’ lien claim against the Kurths, the Kurths were the successful party and therefore were entitled to an award of reasonable attorney fees pursuant to the mechanics’ lien statute, specifically section 38-1-18 of the Utah Code. On April 24, 1998, the court entered its order consistent with the memorandum decision and assessed fees and costs against Lonetree. On June 17, 1998, the trial court entered an order altering the April 24th order. This later order increased the award of costs and attorney fees to $35,-821.96 and designated that Wiarda was liable in place of Lonetree. The court indicated that it substituted Wiarda for Lonetree because on its face the mechanics’ hen purports to be filed by Wiarda individually. This appeal followed.

¶ 6 On appeal, Wiarda argues that the trial court erred in granting the Kurths attorney fees and costs against him. Specifically, he argues that: (1) he is the “successful party” under Utah’s mechanics’ lien statute since the claim of wrongful lien brought by the Kurths was dismissed, and the original mechanics’ lien was not an issue at trial; (2) the court erred in entering fees and costs against him individually; (3) the court improperly awarded attorney fees to the Kurths on non-compensable claims; (4) the court’s award of attorney fees and costs was unreasonable; and (5) the attorney fee award results in double recovery.

ATTORNEY FEES AND COSTS UNDER THE UTAH MECHANICS’ LIEN STATUTE

¶ 7 Wiarda argues the trial court erred in granting the Kurths attorney fees and costs as the prevailing party under Utah Code Ann. § 38-1-18 (1997). “Whether attorney fees are recoverable in an action is a question of law, which we review for correctness.” A.K. & R. Whipple Plumbing v. Aspen Constr., 977 P.2d 518, 522 (Utah Ct.App.), cert. denied, 1999 Utah Lexis 134 (Utah 1999); see also First Southwestern Fin. Serv. v. Sessions, 875 P.2d 553, 554 & n. 5 (Utah 1994) (holding court’s determination of “prevailing party” status under Utah statute is a conclusion of law).

¶ 8 In Utah, attorney fees are generally recoverable only if provided for by statute or contract. See Mountain States Broad. Co. v. Neale, 783 P.2d 551, 555 (Utah Ct.App.1989). In this case, attorney fees were awarded solely under the Utah mechanics’ lien statute, which provides that, “in any action brought to enforce any lien under this chapter the successful party shall be entitled to recover a reasonable attorneys’ fee, to be fixed by the court, which shall be taxed as costs in the action.” Utah Code Ann. § 38-1-18 (1997) (emphasis added). In this case, both parties claim to be the successful party. Wiarda maintains he is the successful party because the issue of foreclosure of the mechanics lien was not an issue at trial and *1116 because he prevailed on the Kurths’ claim of wrongful lien as a result of its dismissal. The Kurths, on the other hand, argue that attorney fees were properly awarded because they successfully defended against defendants’ mechanics’ lien claim; it having been dismissed with no recovery against Kurths on the bond they were required to post as a condition to the earlier release of the lien.

¶ 9 A successful party includes one who successfully enforces or defends against a lien action. See Reeves v. Steinfeldt, 915 P.2d 1073, 1079 (Utah Ct.App.1996); Palombi v. D &C Builders, 22 Utah 2d 297, 300-01, 452 P.2d 325, 327-28 (1969). Here, the trial court concluded that the Kurths were the successful parties and entitled to an award of attorney fees under section 38-1-18 because the court dismissed the defendants’ mechanics’ lien claim. Essentially, the court reasoned that in dismissing the mechanics’ lien action, the Kurths successfully defended against the mechanics’ lien. We agree.

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

Kurth v. Wiarda, 1999 UT App 335, 991 P.2d 1113, 382 Utah Adv. Rep. 11, 1999 Utah App. LEXIS 135, 1999 WL 1024012 (Utah Ct. App. 1999).

1999 UT App 335 (Kurth v. Wiarda) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

I-D Electric Inc. v. Gillman
2017 UT App 144 (Court of Appeals of Utah, 2017)
Uhrhahn Construction & Design, Inc. v. Hopkins
2008 UT App 41 (Court of Appeals of Utah, 2008)
A.K. & R. Whipple Plumbing & Heating v. Guy
2004 UT 47 (Utah Supreme Court, 2004)