Mountain States Telephone & Telegraph v. Sohm

755 P.2d 155, 82 Utah Adv. Rep. 3, 1988 Utah LEXIS 41, 1988 WL 47186
CourtUtah Supreme Court
DecidedMay 13, 1988
DocketNo. 19605
StatusPublished
Cited by1 cases

This text of 755 P.2d 155 (Mountain States Telephone & Telegraph v. Sohm) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mountain States Telephone & Telegraph v. Sohm, 755 P.2d 155, 82 Utah Adv. Rep. 3, 1988 Utah LEXIS 41, 1988 WL 47186 (Utah 1988).

Opinions

HOWE, Associate Chief Justice:

Defendants Dallan L. Sohm and Keith E. Sohm appeal from a judgment of the district court holding them liable on their personal guarantees for telephone services furnished by plaintiff Mountain States Telephone and Telegraph to a corporation with which they were associated.

In February 1979, Career Concepts, Inc., entered into a “Tela Lease” for PBX switching equipment with plaintiff. The lease provided that it could be terminated before the end of its term by the lessee upon sixty days’ written notice and the payment of an early termination charge, the amount of which would depend on the actual termination date. The corporation encountered financial difficulties, and the president who had signed the lease resigned, leaving defendants Dallan Sohm and Bryan Terry White to continue the corporate operations. Acting as legal counsel for the corporation, defendant Keith Sohm (father of Dalian) notified plaintiff by letter on October 12,1979, that Career Concepts was terminating its lease, requested removal of the equipment, and advised plaintiff that no payments would be made under the lease after November 1, 1979. Plaintiff responded, informing Career Concepts that the lease would terminate on December 15, 1979, sixty days after its receipt of the letter, that an early termination charge of $16,127.77 would be imposed, and that all telephone service would be disconnected on November 9, 1979, if $30,000 of past due amounts were not paid.

On November 9, Dallan Sohm, Keith Sohm, and Bryan Terry White met with representatives of plaintiff to discuss arrangements for payment of the arrearage and for continuation of the telephone service necessary for the operation of the corporation. Plaintiff’s representatives requested personal guarantees of payment of charges for future services as a condition for continuation of telephone service. Guarantees were also sought for past due charges, but the three men stated that they were reluctant to guarantee those charges. They left the meeting with several printed guarantee forms which the plaintiff furnished. The forms were to be filled out, signed by defendants and their wives, and then returned to plaintiff.

According to Keith Sohm, he advised Dallan and White to write on the guarantee forms the words “For future amounts only” before signing because he thought the printed form was not entirely clear. Becky Sohm (wife of Dallan Sohm) signed one of the guarantee forms as it was printed without any addition. Keith Sohm and White signed their forms, dated them December 14,1979, and made the handwritten notation thereon, “This Guarantee is for future bills only.” Dallan Sohm delivered these three signed forms to plaintiff and signed his form in the presence of Linda Tsoufakis, plaintiff’s business office manager. It was dated December 7, 1979, and he made a handwritten notation on the form that “The guarantee is for past amounts only.” .Plaintiff thereafter continued telephone service to Career Concepts, Inc. It discontinued a portion of the service in January of 1980 and discontinued the balance of its service in May of 1980. A charge for early termination of the lease was imposed. Plaintiff brought this suit against the four guarantors on their guarantees. However, it sought to recover only from Dalian charges accruing before the date of his guarantee.

Dallan Sohm answered plaintiff's complaint, interposing the defense of mutual mistake and contending that he meant to write on his guarantee form “for future amounts only,” in accordance with the ad[157]*157vice given him by his lawyer, but he became confused and instead wrote “for past amounts only.” However, the trial court found that he had not proved mutual mistake by clear and convincing evidence and held him liable for $31,632.95 which accrued prior to December 7, 1979, the date of his guarantee. The court found Keith Sohm liable for $1,673.90 which had accrued after December 14, 1979, the date of his guarantee. Becky Sohm and Bryan Terry White were dismissed from the lawsuit and are not parties to this appeal.

Defendants Dallan Sohm and Keith Sohm appeal, contending that (1) the judgment of the lower court is unenforceable in that plaintiffs counsel did not comply with rule 2.9(a) and (b) of the District and Circuit Courts’ Rules of Practice, (2) the personal guarantee signed by defendant Dalian Sohm for “past amounts only” is unenforceable as a mutual mistake and the resulting contract is ambiguous, and (3) the personal guarantee signed by defendant Keith Sohm for “future amounts only” did not make him liable for early termination charges under the lease.

I.

Rule 2.9 of the Rules of Practice in the District and Circuit Courts requires counsel for the party obtaining a court ruling to file within fifteen days a proposed order or judgment in conformity with the ruling. Copies are to be served on opposing counsel before the original is presented to the court for signature. Five days are allowed for objections by opposing counsel. In the present case, plaintiffs counsel submitted copies of proposed findings of fact, conclusions of law, and judgment to defendants’ counsel within fifteen days. The latter communicated ex parte with the judge requesting revisions in conformance with the decision of the court as announced at the conclusion of the trial. The court instructed plaintiff’s counsel to revise the documents. However, counsel did not do so but instead filed them with the court unchanged, with the request that the judge make any desired revisions by interline-ation. The originals were held by the judge for more than five days to allow further objections and were then signed with interlined changes.

Defendants contend that a second or revised draft should have been submitted to them for approval. A second or final draft of the documents was not prepared; however, defendants had notice through copies of correspondence that the judge agreed that revisions should be made in conformance with their objections. The court simply interlined the revisions in the originals of the copies which had been timely mailed to defendants; there was no violation of rule 2.9 by plaintiff’s counsel.

Defendants additionally complain that rule 4.5(a) of the Rules of Practice in the District and Circuit Courts, requiring notice of entry of the signed judgment to be served on the opposing party, was not timely complied with by plaintiff. While it appears that the rule was not followed, defendants were not prejudiced thereby. They took full advantage of their opportunity to file post-judgment motions in an effort to persuade the trial judge to change his decision. They also were able to timely file this appeal. Therefore, the error by plaintiff’s counsel was harmless. Utah R.Civ.P. 61.

II.

Defendants’ second contention is that all parties who were present at the November 9, 1979 meeting orally agreed that defendants would personally guarantee payment of future services only and that when Dalian Sohm made the handwritten notation on his guarantee form that it was for past amounts only, a mutual mistake occurred for which reformation should be allowed. We have recognized in a number of cases that where an instrument contains a mistake rendering it at variance with the prior understanding and agreement of the parties to the instrument and the other party learns of this mistake and later seeks to take advantage of it, equity will reform the instrument so as to make it conform to the prior understanding. Mabey v. Kay Peter-[158]*158sow Constr.,

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Related

MOUNTAIN STATES TEL. AND TEL. v. Sohm
755 P.2d 155 (Utah Supreme Court, 1988)

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Bluebook (online)
755 P.2d 155, 82 Utah Adv. Rep. 3, 1988 Utah LEXIS 41, 1988 WL 47186, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mountain-states-telephone-telegraph-v-sohm-utah-1988.