Ron Case Roofing & Asphalt Paving, L.L.C. v. Sturzenegger

2007 UT App 100, 158 P.3d 556, 574 Utah Adv. Rep. 23, 2007 Utah App. LEXIS 100, 2007 WL 851361
CourtCourt of Appeals of Utah
DecidedMarch 22, 2007
Docket20060080-CA
StatusPublished
Cited by3 cases

This text of 2007 UT App 100 (Ron Case Roofing & Asphalt Paving, L.L.C. v. Sturzenegger) 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
Ron Case Roofing & Asphalt Paving, L.L.C. v. Sturzenegger, 2007 UT App 100, 158 P.3d 556, 574 Utah Adv. Rep. 23, 2007 Utah App. LEXIS 100, 2007 WL 851361 (Utah Ct. App. 2007).

Opinion

OPINION

DAVIS, Judge:

{1 Plaintiff Ron Case Roofing & Asphalt Paving, LLC. (Case) appeals the judgment entered below, arguing that the trial court erred in several respects, including failing to award contractual interest, forbidding foreclosure as a means to satisfy its judgment secured by a mechanics' lien, and awarding offsets and a price reduction that were not based on the evidence. Case also requests additional attorney fees below as well as attorney fees on appeal. We reverse and remand.

BACKGROUND

T2 On April 14, 2008, Peggy Ann Sturzen-egger entered into a contract with Case for roofing work on a house she and her husband owned. About one week later, Case began work on the house, and shortly thereafter Sturzenegger left town, leaving behind no contact information. After tearing off the old roofing, Case employees discovered that there was more than one roofing system that needed to be removed prior to installation of the new roof. They also discovered that the roof deck was in poor condition and would require new sheeting prior to installation of the new roof. Pursuant to a contract clause specifically addressing how work is to progress when the customer is unable to be contacted, Case continued the project in Stur-zenegger's absence, removing the additional roofing systems and installing the new sheeting.

13 During the roof installation, Case discovered that the master bedroom had an exposed vaulted tongue-and-groove ceiling. This discovery was not, however, made early enough to avoid damaging the ceiling. The nails used to install the new sheeting pierced *559 the ceiling and were visible from within the house. After Sturzenegger returned, Case expressed its willingness to repair the ceiling and estimated that its cost for this repair would be $1500. Sturzenegger did not allow Case to complete the repair or the associated clean-up work, but instead hired another company, to which she paid $3000 to do the work.

{4 The billing statement Case gave to Sturzenegger reflected a balance of $16,578, which included the $12,450 for the foreseen work, several thousand dollars more for the required extra work, and a deduction for a $6000 down payment. After nearly two months of non-payment, Case filed a mechan-ies' lien against the property.

5 Case subsequently brought suit against the Sturzeneggers. At the conclusion of the bench trial, the trial court entered a judgment of $20,751.65 against the Sturzeneg-gers. The award included offsets of $2400 for damage to the master bedroom ceiling, and of $1500 for "certain deficiencies with the roof system." Additionally, in calculating the amount due Case, the court required the Sturzeneggers to pay $1.25 per square foot for sheeting, instead of the $1.59 per square foot that the contract provided, the court reasoning that the amount "need[ed] to be moderated because of what I've said, in terms of the, what I think was the lack of reasonable approach by the contractor under these cireumstances." A portion of Case's attorney fees were also included in the award because the court determined that Case was the prevailing party "on the basic claim." The court ordered that the award would acerue postjudgment interest at the statutory rate of 4.82% per annum, as opposed to the higher contractual interest rate of 3% per month. Further, although awarding Case a judgment lien against the Sturzenegger property, the trial court ordered that Case "shall not be allowed to execute on its Judgment lien against the Property unless and until such time as the Property is sold or otherwise transferred."

T6 The Sturzeneggers thereafter deposited the full judgment amount with the clerk of the court and conditioned payment to Case upon Case entering a satisfaction of judgment and waiving its right to appeal. Case rejected such a proposal and now appeals several aspects of the trial court's determination below. We address each of these issues in turn.

ISSUES AND STANDARD OF REVIEW

T7 Case argues that the trial court erred in awarding interest at a rate other than the contractual interest rate, and in limiting Case's foreclosure of its mechanies' lien. Case also contests the offsets and price reduction determined by the trial court, arguing that there was not adequate evidence to support them. Each of these issues arises from legal determinations and conclusions of the trial court, and we review such under a correctness standard, granting no deference to the trial court's decision. See State v. Pena, 869 P.2d 932, 936 (Utah 1994).

ANALYSIS

I. Contractual Interest

18 The contract between the parties provides: "In the event payments are not timely made, a finance charge of 38% per month will be charged on the unpaid balance from the date of completion to the date of payment before and after judgment." The trial court below refused to award any interest other than postjudgment interest at the statutorily prescribed rate of 4.82% per annum, see Utah Code Ann. § 15-1-4@8)(a) (2005). The court reasoned that "it would not be appropriate to assess an interest component in this situation" because the Sturzen-eggers should not be required "to pay interest and particularly interest at a fairly high rate for a contract which, the performance of which there may, there may very well be some deficiencies."

T9 The Utah Code provides that "parties to a lawful contract may agree upon any rate of interest," id. § 15-1-1(1) (2005), and that "a judgment rendered on a lawful contract shall conform to the contract and shall bear the interest agreed upon by the parties," id. § 15-1-4(2)(a). There is nothing in the trial court's decision that would suggest that the legality of the contract was ever *560 at issue, and thus, the contractual rate of interest agreed upon by the parties is applicable to the judgment awarded here. 1 As to the deficiencies alluded to by the trial court, these may be remedied by an appropriate offset award, which will indirectly affect the amount of interest, but the court may not seek to redress such wrongs by altering the parties' contractually agreed upon interest terms. Cf Orlob v. Wasatch Med. Mgmt., 2005 UT App 430, ¶ 37, 124 P.3d 269 ("[W]hen a party has a potential right to offsetting damages based on its counterclaim for breach of contract, [that claim] does not preclude an award of prejudgment interest." (alteration in original) (quotations and citation omitted)). We reverse and remand to the trial court to calculate and award the interest previously agreed upon by the parties in accordance with the contract.

110 The Sturzeneggers argue that because they paid the judgment in full to the court on the very date the judgment was entered, "issues surrounding the denial of postjudgment interest [are] thus moot." But in order for Case to have obtained the money on deposit with the trial court, the Sturzen-eggers required Case to relinquish its right to appeal and to enter a satisfaction of judgment. Thus, the Sturzeneggers' payment of the judgment amount to the clerk of the court did not effect payment of the judgment, and no postjudgment interest has been avoided thereby.

II.

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

Related

Knight Adjustment Bureau v. Lewis
2010 UT App 40 (Court of Appeals of Utah, 2010)
SFR, INC. v. Comtrol, Inc.
2008 UT App 31 (Court of Appeals of Utah, 2008)

Cite This Page — Counsel Stack

Bluebook (online)
2007 UT App 100, 158 P.3d 556, 574 Utah Adv. Rep. 23, 2007 Utah App. LEXIS 100, 2007 WL 851361, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ron-case-roofing-asphalt-paving-llc-v-sturzenegger-utahctapp-2007.