Stevens-Henager College v. Eagle Gate

2011 UT App 37, 248 P.3d 1025, 675 Utah Adv. Rep. 12, 2011 Utah App. LEXIS 37, 2011 WL 325086
CourtCourt of Appeals of Utah
DecidedFebruary 3, 2011
Docket20090815-CA
StatusPublished
Cited by7 cases

This text of 2011 UT App 37 (Stevens-Henager College v. Eagle Gate) 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
Stevens-Henager College v. Eagle Gate, 2011 UT App 37, 248 P.3d 1025, 675 Utah Adv. Rep. 12, 2011 Utah App. LEXIS 37, 2011 WL 325086 (Utah Ct. App. 2011).

Opinion

248 P.3d 1025 (2011)
2011 UT App 37

STEVENS-HENAGER COLLEGE, Plaintiff and Appellant,
v.
EAGLE GATE COLLEGE, PROVO COLLEGE, JANA MILLER, et al., Defendants and Appellees.

No. 20090815-CA.

Court of Appeals of Utah.

February 3, 2011.

*1026 Troy L. Booher and Robert E. Mansfield, Salt Lake City, for Appellant.

Thomas R. Karrenberg, Jennifer R. Eshelman, and Nathan B. Wilcox, Salt Lake City, for Appellees.

Before Judges McHUGH, THORNE, and VOROS.

OPINION

McHUGH, Associate Presiding Judge:

¶ 1 Stevens-Henager College (Stevens-Henager) appeals the trial court's order granting summary judgment in favor of Eagle Gate College, Provo College, and Jana Miller (collectively, Eagle Gate) based upon a failure of proof on damages. Stevens-Henager also appeals several of the trial court's subsequent orders on the ground that they were based, at least in part, on the summary judgment ruling. We affirm.

BACKGROUND

¶ 2 Eagle Gate and Stevens-Henager operate competing private colleges. In 2003, Eagle Gate began hiring Stevens-Henager's *1027 employees, including Jana Miller, an admissions consultant. After Miller began her employment, she recruited additional Stevens-Henager employees who also moved to Eagle Gate. Some of these employees had access to a confidential database of potential students (leads) that had been compiled through the advertising and recruitment efforts of Stevens-Henager. Shortly after moving to Eagle Gate, these employees downloaded the list of leads from the Stevens-Henager database and altered the information on the Stevens-Henager computer system to impede Stevens-Henager's ability to contact the potential students.[1]

¶ 3 When Stevens-Henager discovered what its former employees had done, it sued Eagle Gate, alleging various causes of action and requesting both damages and injunctive relief. In its complaint, Stevens-Henager alleged that it had suffered damages of at least $10,250,000. Thereafter, Stevens-Henager filed initial disclosures, stating that it "ha[d] not yet computed the damages it ha[d] suffered" and that "[m]uch of the damage. . . is irreparable in nature and may be difficult or impossible to quantify." Stevens-Henager then promised, "To the extent any of these categories of damages can reasonably be quantified, Stevens-Henager will supplement these disclosures when sufficient information is available by which to make such calculations."

¶ 4 During discovery, Stevens-Henager indicated that its experts would provide support for its damages claim. For example, in response to written discovery requests from Eagle Gate, Stevens-Henager routinely stated, "Plaintiff's experts will provide information and analysis concerning the damages suffered. . . ." In a further attempt to obtain information about damages, Eagle Gate questioned three Stevens-Henager executives—Carol Gastiger, Vicki Dewsnup, and Carl Barney (collectively, the Executives)— on that subject during their depositions.

¶ 5 When asked what facts she was aware of that would support the allegation that Eagle Gate had caused damage to Stevens-Henager, Gastiger stated, "I think the loss of the Tongan population.[[2]] I think the money we extended on it. I mean in very real dollars. And in very non-real dollars, in time and in effort [t]hat are not in specific dollars." Next, Gastiger opined that Stevens-Henager had been damaged by Eagle Gate's recruitment of its admissions director, stating that she "believe[d] that when you lose a very competent Admissions Consultant you lose production for a period of time." Gastiger explained her theory of lost productivity, as follows:

[L]et's say that I replace [an admissions consultant] and the other person starts[[3]] five [students] a month. [The previous admissions consultant] is averaging eight. That's a total of nine people in a given three-month period of time, if this other person ever gets as good as [the previous admissions consultant]. You multiply that times tuition. That's money—real money, in my opinion that's been lost. Those are real dollars, I think.

¶ 6 Eagle Gate also inquired about Dewsnup's understanding of the basis for Stevens-Henager's damages claim. In particular, Eagle Gate focused on Dewsnup's statement in her affidavit filed in support of Stevens-Henager's Motion for Temporary Restraining Order and Preliminary Injunction that "[t]he actions of the defendants in (a) targeting and taking Stevens-Henager's key employees, (b) targeting and taking Stevens-Henager's students, and (c) taking and using Stevens-Henager's lead lists have caused and continue to cause Stevens-Henager tremendous damage that cannot adequately be calculated or measured." When asked to describe the "tremendous damage" caused to Stevens-Henager, Dewsnup identified the "extensive costs incurred in advertising and marketing," explaining,

*1028 We continue to use any leads that come into the college from time to time, and with the loss of adequate phone numbers . . . it became difficult, if not impossible, to use our own leads. . . . I currently have not been able to compare the lists of leads between Stevens-Henager and Eagle Gate or Provo College. . . . There was economic damage, certainly, and also damage to morale at the campuses affected. . . . There was loss of employees.

¶ 7 In response to Eagle Gate's questions about damages, Barney expressed his opinion that Stevens-Henager had suffered "many millions of dollars" in damages as a result of Eagle Gate's conduct and that the amount "could be" more than $10 million. Upon further questioning, Barney indicated that his opinion was based on (1) the decline in the number of starts at Stevens-Henager's Provo and Ogden campuses, (2) "[t]he cost of hiring and training new people," and (3) "[t]he efforts to rebuild the admissions department."

¶ 8 None of the Executives provided any economic analysis or even factual support for their opinions concerning the damage to Stevens-Henager. Rather, Stevens-Henager continued to assert that the support for its claim of damages would be provided by its experts. Notwithstanding that representation, Stevens-Henager obtained numerous extensions to the deadline for providing Eagle Gate with an expert report computing the alleged damages. Between December 2005 and May 2007, the trial court entered four separate scheduling orders, the last of which established the discovery cutoff as June 18, 2007, and the deadline for expert disclosures as June 28, 2007. On June 26, 2007, Stevens-Henager filed a motion to postpone the deadlines for an additional sixty days. The trial court did not rule on the fifth motion for an extension of the discovery schedule at that time.

¶ 9 When Stevens-Henager still had not made its expert disclosures by October 9, 2007, Eagle Gate filed a motion for summary judgment on all claims, alleging that Stevens-Henager had failed to provide any support for its claim that it had been damaged. In its opposition memorandum, Stevens-Henager admitted that it was "[u]ndisputed that Plaintiff could only provide a good faith estimate of the damages incurred as a result of Defendants' actions based on the knowledge of Plaintiff's decline in enrollment, costs of hiring and training new employees, and costs of rebuilding Plaintiff's Admissions Department" and that "a damage[s] calculation in this matter requires expert analysis and would be provided by Plaintiff's experts."[4]

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Bluebook (online)
2011 UT App 37, 248 P.3d 1025, 675 Utah Adv. Rep. 12, 2011 Utah App. LEXIS 37, 2011 WL 325086, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stevens-henager-college-v-eagle-gate-utahctapp-2011.