Matthews v. Olympus Construction, LC

2007 UT App 361, 173 P.3d 192, 590 Utah Adv. Rep. 24, 2007 Utah App. LEXIS 370, 2007 WL 3287106
CourtCourt of Appeals of Utah
DecidedNovember 8, 2007
DocketCase No. 20060739-CA
StatusPublished

This text of 2007 UT App 361 (Matthews v. Olympus Construction, LC) 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
Matthews v. Olympus Construction, LC, 2007 UT App 361, 173 P.3d 192, 590 Utah Adv. Rep. 24, 2007 Utah App. LEXIS 370, 2007 WL 3287106 (Utah Ct. App. 2007).

Opinion

OPINION

BILLINGS, Judge:

T1 David C. Matthews appeals from the trial court's grant of Olympus Construction, LC's (Olympus) motion for summary judgment dismissing Matthews's claim for an unpaid real estate commission and the trial court's award of attorney fees to Olympus. We affirm and remand for the award of attorney fees that Olympus incurred on appeal.

BACKGROUND

T2 In June 1998, Matthews worked as a licensed real estate agent for Re/Max Brokers, LC (Re/Max). In August 1998, Olympus retained Matthews's real estate services to help it purchase property in Summit County, Utah. The parties entered into a real estate purchase contract that provided a $200 commission to Matthews. Matthews contends that an agent of Olympus orally promised to pay him an additional $100,000 commission when the property was sold.

T 8 In 1999, Matthews's wife, who had been an associate broker for Re/Max, became licensed as a principal broker. Matthews and his wife ended their business relationship with Re/Max and began their own brokerage firm called Re/Max Town and Country.

I 4 In January 2002, Olympus filed a Petition for Judicial Dissolution. The trial court appointed a receiver in 2002, and a successor receiver (Receiver) in 2003. 1 Pursuant to a motion filed by the Receiver, the court entered an order (the Bar Date Order) establishing June 30, 2004 as "the bar date for all claims to be filed against [Olympus's] receivership estate."

T5 On June 30, 2004, the bar date, Matthews filed a Notice of Claim against Olympus for the $100,000 commission. In this notice, Matthew identified himself as the *195 "Creditor," which the claim form defined as the "person or other entity to whom Olympus owes money or property." On October 6, 2004, the Receiver sent a letter to Matthews's counsel requesting that Matthews withdraw his claim and indicating that if he did not, the Receiver intended to "proceed with litigation." In November 2004, the Receiver requested that the trial court set a new date as the deadline for rejecting claims. Matthews opposed this motion, asserting that his claim was considered approved under Utah Code section 48-2c-1805(4) because Olympus had not rejected the claim within ninety days as required by that section. See Utah Code Ann. § 48-2e-1805(4) (2002). In March 2005, the trial court granted Olympus's request for a new rejection date and denied Matthews's motion asking the court to require the Receiver to pay his claim. The Receiver rejected Matthews's claim in April 2005 and warned Matthews that she would pursue a judgment for attorney fees if Matthews continued to pursue his claim.

T6 The trial court granted Olympus's motion for summary judgment on the basis that Matthews's claim was barred by both the statute of frauds, see id. § 25-5-4(1)(e) (Supp.2007), and Utah's real estate statutes concerning the collection of broker's fees, see id. §§ 61-2-10, 18 (2006). The trial court also awarded Olympus $25,112.50 in attorney fees after concluding that Matthews had acted in bad faith and that his claim was without merit. This amount included compensation for seventeen hours the Receiver spent in her capacity as an attorney. Matthews appeals both the trial court's entry of summary judgment and its award of attorney fees to Olympus.

ISSUES AND STANDARDS OF REVIEW

T7 Matthews first contends the trial court erred in granting summary judgment to Olympus based on the statute of frauds and Utah's broker licensing statutes. Summary judgment is permissible when "there is no genuine issue as to any material fact and ... the moving party is entitled to a judgment as a matter of law." Utah R. Civ. P. 56(c). In determining whether the trial court's grant of summary judgment was appropriate, "we review the trial court's legal conclusions for correctness, affording those legal conclusions no deference," and "view the facts and all reasonable inferences drawn therefrom in the light most favorable to the nonmoving party." - Ault v. Holden, 2002 UT 33, ¶ 15, 44 P.3d 781 (internal quotation marks omitted).

¢8 Matthews next argues that the trial court incorrectly extended the date by which the Receiver was required to reject claims. Matthews contends that the Receiver was bound by Utah Code section 48-2c-1305(4), which mandates that claims must be rejected within ninety days or they will be "considered approved." Utah Code Ann. § 48-2c-1305(4). We review the trial court's interpretation of the statute for correctness without deference to the trial court. See Jeffs v. Stubbs, 970 P.2d 1234, 1240 (Utah 1998).

T9 Additionally, Matthews argues that the trial court incorrectly awarded attorney fees to Olympus after finding that Matthews's claim was without merit and was pursued in bad faith. The court's determination that Matthews's claim was without merit is a question of law that we review for correctness. See Jeschke v. Willis, 811 P.2d 202, 203 (Utah Ct.App.1991). The trial court's determination that Matthews's claim was filed in bad faith is a question of fact that we review under a "clearly erroneous" standard. See id.

110 Finally, we review the trial court's award of attorney fees for time the Receiver spent in her capacity as an attorney. The "trial court has 'broad discretion in determining what constitutes a reasonable fee, and we will consider that determination against an abuse-of-discretion standard. " Valcarce v. Fitzgerald, 961 P.2d 305, 315 (Utah 1998) (quoting Dixie State Bank w. Bracken, 764 P.2d 985, 991 (Utah 1988)).

ANALYSIS

I. Statute of Frauds

T11 Matthews contends that the trial court erred in granting summary judgment to Olympus on the basis of the statute of frauds. Under our statute of frauds, *196 "[Elvery agreement authorizing or employing an agent or broker to purchase or sell real estate for compensation" is void "unless the agreement, or some note or memorandum of the agreement, is in writing, signed by the party to be charged with the agreement." Utah Code Ann. § 25-5-4(1)(e) (Supp.2007). Matthews is correct that the original agreement, which contained the $200 commission, satisfies the statute of frauds. However, "if an original agreement is within the statute of frauds, a subsequent agreement which modifies the original written agreement must also satisfy the requirements of the statute of frauds to be enforce able." Golden Key Realty, Inc. v. Mantas, 699 P.2d 730, 732 (Utah 1985). Matthews admits that the $100,000 commission was promised to him orally and that no written documentation of it exists.

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

Related

Jeschke v. Willis
811 P.2d 202 (Court of Appeals of Utah, 1991)
Morris v. John Price Associates, Inc.
590 P.2d 315 (Utah Supreme Court, 1979)
Valcarce v. Fitzgerald
961 P.2d 305 (Utah Supreme Court, 1998)
Dixie State Bank v. Bracken
764 P.2d 985 (Utah Supreme Court, 1988)
Young v. Buchanan
259 P.2d 976 (Utah Supreme Court, 1953)
Golden Key Realty, Inc. v. Mantas
699 P.2d 730 (Utah Supreme Court, 1985)
Wardley Corp. Better Homes and Gardens v. Burgess
810 P.2d 476 (Court of Appeals of Utah, 1991)
Jeffs v. Stubbs
970 P.2d 1234 (Utah Supreme Court, 1998)
Bentley v. Potter
694 P.2d 617 (Utah Supreme Court, 1984)
Jones, Waldo, Holbrook & McDonough v. Dawson
923 P.2d 1366 (Utah Supreme Court, 1996)
Ault v. Holden
2002 UT 33 (Utah Supreme Court, 2002)
Cady v. Johnson
671 P.2d 149 (Utah Supreme Court, 1983)

Cite This Page — Counsel Stack

Bluebook (online)
2007 UT App 361, 173 P.3d 192, 590 Utah Adv. Rep. 24, 2007 Utah App. LEXIS 370, 2007 WL 3287106, Counsel Stack Legal Research, https://law.counselstack.com/opinion/matthews-v-olympus-construction-lc-utahctapp-2007.