Osguthorpe v. Wolf Mountain Resorts, L.C.

2010 UT 29, 232 P.3d 999, 655 Utah Adv. Rep. 69, 2010 Utah LEXIS 60, 2010 WL 1816000
CourtUtah Supreme Court
DecidedMay 7, 2010
Docket20080770, 20090042, 20090043
StatusPublished
Cited by36 cases

This text of 2010 UT 29 (Osguthorpe v. Wolf Mountain Resorts, L.C.) 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
Osguthorpe v. Wolf Mountain Resorts, L.C., 2010 UT 29, 232 P.3d 999, 655 Utah Adv. Rep. 69, 2010 Utah LEXIS 60, 2010 WL 1816000 (Utah 2010).

Opinion

PARRISH, Justice:

INTRODUCTION

¶ 1 This case presents questions regarding the purpose and applicability of Utah’s unlawful detainer statute. Appellants D.A. Os-guthorpe and the D.A. Osguthorpe Family Partnership (collectively the “Osguthorpes”) appeal the district court’s dismissal of their unlawful detainer claims against American Skiing Company (“American Skiing”) and Wolf Mountain Resorts (“Wolf Mountain”). Wolf Mountain cross-appeals the district court’s dismissal of its cross-claims against American Skiing for indemnification, breach of contract, and breach of implied covenant of good faith. The district court dismissed the unlawful detainer claims and cross-claims. In so doing, it found that there was a dispute as to whether American Skiing and Wolf Mountain were tenants in possession of the *1002 Osguthorpes’ land in Summit County, Utah (the “Property”) and concluded that this uncertainty precluded an unlawful detainer action. We affirm the district court’s dismissal of the unlawful detainer action and cross-claims because we hold as a matter of law that American Skiing and Wolf Mountain were not tenants in possession of the Property as required by Utah’s unlawful detainer statute.

BACKGROUND

¶2 The controversies between these parties stem from a series of agreements dictating each party’s right to use the Property. The Osguthorpes are the fee owners of the Property, where they operate a sheep and cattle ranching operation in the summer months. On August 14, 1996, the Osgu-thorpes entered into an agreement (the “Lease Agreement”) with Wolf Mountain allowing it to utilize the Property for its ski operation in the winter months. The Lease Agreement allowed “the installation, maintenance and operation of two ski lifts, snow making and clearing of ski trails and other related facilities, structures and roads as may be required.” The Osguthorpes retained the right “to improve and use the Property provided that such improvement or use not interfere with ski lifts and similar structures and runs.” The Lease Agreement refers to the Osguthorpes as “lessors” and Wolf Mountain as “lessees.”

¶ 3 In 1997, Wolf Mountain and American Skiing entered into a Ground Lease Guaranty (the “Guaranty”) that transferred Wolf Mountain’s rights in the Property to American Skiing. 1 In 2001, American Skiing renegotiated the terms of the 1996 Lease Agreement with the Osguthorpes. The results of the renegotiation are reflected in a “Restatement of Agreement” between American Skiing and the Osguthorpes. This Restatement of Agreement indicates that it supersedes and restates the original Lease Agreement. It describes American Skiing’s interest in the Property as an “Easement” 2 rather than a “Lease” and gives both parties rights to use the Property, but limits interference with the other’s uses. The Restatement of Agreement provides:

[American Skiing] acknowledges that under the documents Osguthorpe and Partnership have retained the right to use all of the Property as part of their ranch operation, including, without limitation, grazing and other activities in connection with their sheep and cattle operation, and to otherwise use and improve the Property, so long as such ranch operations and other use and improvements do not damage the towers or other facilities lawfully *1003 constructed on the Property by [American Skiing] ... and does not unreasonably interfere with the use of the Property by [American Skiing] in the winter as part of [American Skiing’s] winter skiing operation. [American Skiing] agrees that the use of the Property during the spring, summer and fall months will not interfere with the ranch operations of Osguthorpe and Partnership.

It is this Restatement of Agreement that the Osguthorpes attached to their- initial unlawful detainer complaint as evidence of a lease.

¶4 The Osguthorpes’ complaint contained three separate causes of action seeking: (1) eviction of Wolf Mountain, allegedly in unlawful detainer, (2) eviction of American Skiing, allegedly in unlawful detainer, and (3) eviction of a defendant class. In support of their eviction action against American Skiing, the Osguthorpes asserted that American Skiing committed waste by destroying crops on the Property meant to feed the Osguthorpes’ sheep and by leaving snowmaking equipment on the Property that allegedly killed at least seven sheep. American Skiing countered with a motion to dismiss pursuant to Utah Rule of Civil Procedure 12(b)(6), claiming that eviction under the unlawful detainer statute was not available because it was not a tenant in possession of the Property.

¶ 6 The district court entered an order on September 2, 2008, dismissing counts two and three of the Osguthorpes’ complaint stating, “[t]he court does not believe that an action for unlawful detainer is appropriate where the parties dispute whether the tenant is in fact a tenant of real property and the nature of their agreement under which the premises are held.” The Osguthorpes moved for permission to seek an interlocutory appeal of that order, which the court granted.

¶ 6 Meanwhile, Wolf Mountain answered count one of the Osguthorpes’ complaint, admitting it was a tenant in unlawful detainer, and asserting cross-claims against American Skiing for indemnification, breach of contract, and breach of the covenant of good faith and fair dealing. American Skiing, troubled by the implications of Wolf Mountain’s admission that Wolf Mountain was in unlawful detainer of the Property, filed a motion to dismiss both the eviction action against Wolf Mountain and Wolf Mountain’s cross-claims. In December 2008, the district court dismissed count one of the Osgu-thorpes’ complaint, as well as all of Wolf Mountain’s cross-claims. The Osguthorpes and Wolf Mountain appeal this final order. Their appeal has been consolidated with the Osguthorpes’ previously filed interlocutory appeal.

¶ 7 The Osguthorpes argue that the district court erred in dismissing their claims. Specifically, they argue that the district court erred in concluding that unlawful detainer actions could not lie when the parties disputed whether the interest at issue was a lease interest or an easement. The Osguthorpes also argue that the district court erred when it considered American Skiing’s motion to dismiss the unlawful detainer action against Wolf Mountain because American Skiing, having been dismissed from the action, lacked standing to file the motion. Wolf Mountain argues that the district court erred in dismissing its cross-claims against American Skiing because it sufficiently pled facts on which relief could be granted and the district court’s ruling “eviscerates” its original Lease Agreement with the Osguthorpes.

¶ 8 American Skiing counters that the dismissal of the unlawful detainer action was proper because neither Wolf Mountain nor American Skiing is a tenant in possession of the Property. It further argues that the district court was not bound by any prior judicial determination that the Restatement of Agreement constituted a lease and American Skiing could properly move to dismiss the Osguthorpes’ eviction action against Wolf Mountain because an eviction of Wolf Mountain would constitute an eviction of American Skiing.

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Cite This Page — Counsel Stack

Bluebook (online)
2010 UT 29, 232 P.3d 999, 655 Utah Adv. Rep. 69, 2010 Utah LEXIS 60, 2010 WL 1816000, Counsel Stack Legal Research, https://law.counselstack.com/opinion/osguthorpe-v-wolf-mountain-resorts-lc-utah-2010.