Park Property v. G6 Hospitality

2022 UT App 75, 514 P.3d 148
CourtCourt of Appeals of Utah
DecidedJune 16, 2022
Docket20210013-CA
StatusPublished
Cited by3 cases

This text of 2022 UT App 75 (Park Property v. G6 Hospitality) 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
Park Property v. G6 Hospitality, 2022 UT App 75, 514 P.3d 148 (Utah Ct. App. 2022).

Opinion

2022 UT App 75

THE UTAH COURT OF APPEALS

PARK PROPERTY MANAGEMENT LLC, AND JOSEPH PARK, Appellants, v. G6 HOSPITALITY FRANCHISING LLC, JACKIE NELON, AND DON FINLEY, Appellees.

Opinion No. 20210013-CA Filed June 16, 2022

Fourth District Court, Provo Department The Honorable Derek P. Pullan No. 180401843

Steven R. Sumsion and Cameron Steven Christensen, Attorneys for Appellants Mark A. Nickel and Zachary A. Bloomer, Attorneys for Appellees

JUSTICE DIANA HAGEN authored this Opinion, in which JUDGES JILL M. POHLMAN and RYAN M. HARRIS concurred.1

HAGEN, Justice:

¶1 Park Property Management, LLC and Joseph Park (collectively, Park Property) appeal the district court’s enforcement of a settlement agreement and dismissal of all claims with prejudice. Park Property argues that the parties never agreed to the material terms of the settlement agreement and that the

1. Justice Diana Hagen began her work on this case as a judge of the Utah Court of Appeals. She became a member of the Utah Supreme Court thereafter and completed her work on the case sitting by special assignment as authorized by law. See generally Utah R. Jud. Admin. 3-108(4). Park Property v. G6 Hospitality

draft of the settlement agreement enforced by the district court included language that “expressly contravened the language of counsel’s settlement discussions.” We agree with the district court that the material terms of the contract were agreed upon by each party and therefore constituted an enforceable agreement that was later memorialized in writing. We affirm.

BACKGROUND

¶2 Park Property Management LLC filed a lawsuit against G6 Hospitality Franchising LLC, Jackie Nelon, and Don Finely (collectively, G6 Hospitality), alleging claims arising out of a terminated franchise agreement, including a claim that the franchise agreement was void and should be rescinded. G6 Hospitality filed a counterclaim against Park Property Management, LLC, as well as a separate claim against one of its principals, Joseph Park, alleging conduct that violated the franchise agreement.

¶3 On November 20, 2019, after the parties attempted to mediate their dispute, G6 Hospitality offered Park Property a “walk-away” settlement that would require the parties to release all claims and pay their own fees and costs. Counsel for Park Property orally agreed to the offer and memorialized the agreement in an email to G6 Hospitality’s counsel. That email stated:

This communication confirms our conversation today in which I conveyed my clients[’] acceptance of G6’s offer to settle by each party “walking- [a]way”. We have agreed to settle by each party agreeing to release the other for all claims that were or could have been asserted and each paying its own attorneys fees and costs. The parties shall stipulate to dismiss all claims under Rule 41 URCP with each party paying its own fees and costs. You have agreed to draft a proposed settlement agreement

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and motion to dismiss. Thank you for working with us to resolve these matters.

We will refer to the oral acceptance and the foregoing email collectively as the November 20 acceptance.

¶4 G6 Hospitality sent a confirmation email, stating: “This [email] will confirm that your client accepted my client’s walkaway offer. As we agreed, my firm will prepare a settlement agreement containing a broad general release, dismissal with prejudice with each party bearing their own fees and costs, and other standard and customary terms found in a settlement of this kind.”

¶5 G6 Hospitality prepared a draft of the settlement agreement for Park Property’s review. Paragraph four of the draft stated that the indemnification, insurance, post-termination, and confidentiality provisions of the franchise agreement “shall continue in full force and effect.” Counsel for Park Property objected to paragraph four, stating, “My clients will not be bound by any provisions of the franchise agreement, including without limitation, [the] indemnification provision.”

¶6 Counsel for G6 Hospitality responded that the parties’ agreement to dismiss all claims—including those challenging the validity or enforceability of the franchise agreement—necessarily left the franchise agreement intact; in other words, the parties were “back to where they were before the lawsuits were filed, i.e., the franchise agreement was terminated and [Park Property] still owes [G6 Hospitality] the obligations under the franchise agreement as a terminated franchisee.” The parties ultimately agreed that the ongoing validity of the franchise agreement was not affected by the settlement agreement because the mutual decision to walk away from all claims meant the franchise agreement remained in place. Nevertheless, “in the spirit of compromise,” counsel for G6 Hospitality offered to remove the

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references to the post-termination and confidentiality provisions if Park Property “confirm[ed] their indemnity obligations.”2

¶7 On December 9, Park Property’s counsel responded, “My client will sign the Settlement Agreement with the indemnification provision,” if G6 Hospitality removed the names of individuals who were not parties to the lawsuit, including Joseph Park’s father. Counsel continued, “Once I get the revised Agreement, I will have my clients sign and we can then file the joint Motion to Dismiss with Prejudice.”

¶8 On January 26, 2020, G6 Hospitality sent a final version of the settlement agreement (the January 26 document) to Park Property; the document included the indemnification, insurance, post-termination, and confidentiality provisions, even though G6 Hospitality had agreed on December 9 to remove the post- termination and confidentiality provisions. Park Property refused to sign the agreement and offered no explanation for its refusal. In April 2020, Park Property retained new counsel, who requested that the parties set aside the settlement and allow Park Property to file a motion for summary judgment. G6 Hospitality rejected that request and asked for assurance that the settlement would be honored. Rather than respond, Park Property filed a motion for partial summary judgment.

¶9 G6 Hospitality filed a motion to enforce the settlement and dismiss all claims with prejudice.3 G6 Hospitality argued that the

2. The compromise offered by G6 Hospitality made no mention of the insurance provision, and that provision was ultimately included in the written settlement agreement signed by the parties. On appeal, Park Property has not challenged the inclusion of the insurance provision.

3. G6 Hospitality also moved to stay Park Property’s motion for partial summary judgment on the basis that the court’s ruling on the motion to enforce could render Park Property’s motion moot. (continued…)

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parties had entered into a binding agreement on November 20, 2019, and that the January 26 document included the material terms of the agreement—namely, that the parties agreed to walk away from each of their respective claims and to pay their own attorney fees and costs.

¶10 Park Property opposed the motion, essentially arguing that the November 20 acceptance amounted to an agreement to enter into a “future settlement agreement” and therefore was not enforceable.

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2022 UT App 75, 514 P.3d 148, Counsel Stack Legal Research, https://law.counselstack.com/opinion/park-property-v-g6-hospitality-utahctapp-2022.