Ortega v. Ridgewood Estates LLC

2016 UT App 131, 379 P.3d 18, 815 Utah Adv. Rep. 20, 2016 Utah App. LEXIS 137, 2016 WL 3545983
CourtCourt of Appeals of Utah
DecidedJune 23, 2016
Docket20140876-CA
StatusPublished
Cited by28 cases

This text of 2016 UT App 131 (Ortega v. Ridgewood Estates LLC) 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
Ortega v. Ridgewood Estates LLC, 2016 UT App 131, 379 P.3d 18, 815 Utah Adv. Rep. 20, 2016 Utah App. LEXIS 137, 2016 WL 3545983 (Utah Ct. App. 2016).

Opinion

Opinion

VOROS, Judge:

T1 Ridgewood Estates LLC, Housing Financial Services Inc., and Franz Fischer (collectively, Defendants) appeal from the dig-trict court's judgment awarding Jose Luis Ortega title to two mobile homes, attorney fees, and punitive damages. Ortega cross-appeals, seeking damages for conversion of his mobile homes and increased punitive damages. We affirm the district court in all respects.

BACKGROUND

12 This dispute arose from Ortega's purchase of two mobile homes located in Ridge-wood Estates Mobile Home Park. 2

T3 Ortega is in the business of buying and selling mobile homes. In September 2011, he purchased a mobile home located at space 62 inside the Park (Home 62). He also obtained a certificate of title for the mobile home, Ortega notified Ridgewood of his purchase and, in accordance with Ridgewood policy, submitted a résidency application with Ridgewood. Ridgewood denied Ortega's resi-deney application. Although the parties had not signed a lease or other agreement, Ortega paid, and Ridgewood accepted, rental payments for the space occupied by Home 62 until February 2012. But Ortega paid no late fees or security deposit.

4 In December 2011, Ortega purchased a second mobile home, this one located at space 47 inside the Park (Home 47). Ortega informed Ridgewood of the purchase. As before, although Ortega and. Ridgewood had not signed a lease or other agreement, Ortega paid, and Ridgewood accepted, rental payments on the space occupied by Home 47 until February 2012. And again Ortega paid no late fees or security deposit. He did, however, pay property taxes on both Home 47 and Home 62 in February 2012. Both homes have remained unoccupied at the Park since Ortega's purchases.

5 On January 4, 2012, Ridgewood served Ortega with a Landlord's Notice of Trespass and. a Five-Day Notice to Terminate Tenan-ey at Will for both mobile homes. Ridgewood served the notice in accordance with Utah's Unlawful Detainer statute. See Utah Code Ann, § 78B-6-802 (LexisNexis 2012). The following month, Ridgewood's property man *22 ager, Staci Williams, and Ridgewood's owner, Franz Fischer, notified Ortega that he would not be permitted to remove the mobile homes from the Park until he paid all outstanding late fees and service charges, including those accrued by the homes' prior owners. Layton Police also served Ortega with a trespass warning stating that he would not be allowed on the property. Despite Ridgewood's prohibition, Ortega attempted to remove the homes a few days later, At Fischer's direction, Ortega was prevented from moving the homes, A Layton police officer and Williams told Ortega to leave the property due to the trespass warning. Ridgewood posted a Five-Day Notice to Terminate Tenancy at Will on each mobile home at the direction of Fischer, Ortega did not respond.

16 Ridgewood then mailed Ortega a letter claiming title to both mobile homes. Four days later, Williams applied with the Utah Division of Motor Vehicles for titles to both mobile homes, She applied on behalf of Ridgewood's parent corporation, Housing. Financial Services (HFS), which Fischer owned and operated. On both applications, Williams asserted that the homes had been sold contrary to applicable Ridgewood policies, that the homes were abandoned, and that unpaid rent was due. The Utah Division of Motor Vehicles issued HFS a Certificate of Title for Home 47 but took no action on Home 62.

T7 Ortega sued Defendants and the Utah Division of Motor Vehicles for quiet title to both homes and requested damages under slander of title and other theories. 3 Ridge-wood counterclaimed for unlawful detainer and unjust enrichment. On eross-motions for summary judgment, the district court dismissed Ridgewood's unlawful detainer claim. The district court reasoned that because Ortega had paid rent for the homes, he was entitled to receive a 15-day notice to quit under Utah's Mobile Home Park Residency Act (Mobile Home Act), see Utah Code Annu. § 57-16-1 (LexisNexis 2010), rather than the 5-day notice under Utah's Unlawful Detainer statute that he actually received, see Utah Code Ann. § 78B-6-802 (LexisNexis 2012).

18 The district court denied the parties' remaining motions and bifurcated the case to try liability and damages separately. Following the lability phase, the court ruled that Ortega owned the mobile homes, that Ridge-wood had converted the mobile homes, and that Ridgewood had prevented Ortega from removing the mobile homes. The court found some or all of the Defendants liable for conversion and slander of title.

T9 After the damages phase, the district court ruled both that attorney fees were recoverable as special damages in a slander of title case and that Ortega's attorney fees were reasonable. But it also ruled that lost profits, not lost rental income, represented the proper measure of damages for Ridge-wood's conversion, No evidence of lost profits had been presented at trial. Furthermore, even if lost rental income were used, the district court ruled, the record lacked credible testimony establishing the amount of lost rents.

1 10 After both phases of trial, the district court quieted title to both mobile homes in Ortega, directed the Utah Division of Motor Vehicles to issue Ortega title to Home 47, and ordered Ortega to remove 'both homes from the Park. The court also awarded Ortega $30,875 in attorney fees as special damages for slander of title and $1,000 in punitive damages against HFS and Fischer. And the court awarded Ortega, as the "prevailing party," attorney fees in the amount of $11,100 against Ridgewood under the Mobile Home Act and the Unlawful Detainer statute. Both parties appeal. O2

ANALYSIS

I. Defendants' Appeal

{11 Defendants present six issues on appeal. We consider them in turn, stating the applicable standard of review for each claim that has been "properly preserved, framed and briefed." See Salt Lake County v. Butler, Crockett & Walsh Dev. Corp., 2013 UT App 30, 1 32, 297 P.3d 38.

*23 A. Mobile Home Act

112 Defendants first contend that the district court erred in applying the Mobile Home Act instead of the Unlawful Detainer statute. The latter applies, Defendants argue, because Ortega did not qualify as a "resident" under the Mobile Home Act. He did not qualify, they reason, because he (1) never resided at Ridgewood and (2) did not have a rental or lease agreement with Ridgewood. The distinction matters because Defendants served Ortega with a 5-day notice to quit, which complied with the Unlawful Detainer statute but not with the Mobile Home Act.

113 On summary judgment the district court ruled that despite having no lease or rental agreement with Ridgewood, Ortega qualified as a resident under the Mobile Home Act. The court based this conclusion on the plain language of the Mobile Home Act and on the fact that after purchasing the mobile homes, Ortega tendered, and Ridge-wood accepted, rental payments for both homes' spaces. We review both the grant of summary judgment and the interpretation of a statute for correctness. Blackner v. Department of Tronsp., 2002 UT 44, 18, 48 P.3d 949.

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Cite This Page — Counsel Stack

Bluebook (online)
2016 UT App 131, 379 P.3d 18, 815 Utah Adv. Rep. 20, 2016 Utah App. LEXIS 137, 2016 WL 3545983, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ortega-v-ridgewood-estates-llc-utahctapp-2016.