Grewal v. Junction Market Fairview ( 2024 )


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  •              That This opinion is subject to revision before final
    publication in the Pacific Reporter
    
    2024 UT 20
    IN THE
    SUPREME COURT OF THE STATE OF UTAH
    MANMOHAN GREWAL and LIPPA GREWAL,
    Appellants,
    v.
    JUNCTION MARKET FAIRVIEW, L.C. and BLUE CAP INVESTMENT
    GROUP, L.C.,
    Appellees.
    No. 20220822
    Heard October 20, 2023
    Filed July 11, 2024
    On Direct Appeal
    Sixth District Court, Sanpete County
    The Honorable Wallace A. Lee
    No. 200600066
    Attorneys:
    Jared L. Anderson, Provo, for appellants
    Alan L. Smith, Salt Lake City, for appellees
    CHIEF JUSTICE DURRANT authored the opinion of the Court, in
    which ASSOCIATE CHIEF JUSTICE PEARCE, JUSTICE PETERSEN,
    JUSTICE HAGEN, and JUSTICE POHLMAN joined.
    CHIEF JUSTICE DURRANT, opinion of the Court:
    INTRODUCTION
    ¶1 Lippa and Manmohan Grewal sold a gas station to
    Theodore Hansen, who later sold it to Junction Market Fairview,
    L.C. (JMF). The sale contract between the Grewals and Hansen
    required Hansen to make regular installment payments and
    specified that the final balance would become due after
    approximately three years. Hansen failed to make many of these
    GREWAL v. JUNCTION MARKET
    Opinion of the Court
    installment payments, and he likewise failed to pay the full balance
    when the contract’s call date arrived.
    ¶2 But the Grewals did not initiate the foreclosure proceeding
    at the heart of this case until just over six years after Hansen’s first
    missed payment. As the parties agree that the applicable statute of
    limitations for a breach of contract action is six years, this poses an
    interesting question: when a contract calls for payment in
    installments, does the statute of limitations for the enforcement of
    that contract begin to run as soon as a payment is missed, or only
    once the final call date of the contract arrives?
    ¶3 That question deserves a firm answer. But, alas, we cannot
    provide one. Because the real property involved in this case was
    sold to a third-party bona fide purchaser shortly before this appeal
    arrived at our doorstep, our precedent dictates we dismiss the
    majority of this case as moot.
    ¶4 The only issue that is not moot concerns the district court’s
    award of attorney fees. The Grewals contend that the court abused
    its discretion by granting JMF attorney fees under both the Public
    Waters Access Act and the reciprocal attorney fees statute. While
    the district court’s decision is not perfect, the Grewals fail to show
    that its flaws amount to an abuse of discretion. Accordingly, we
    affirm the attorney fees award. And because the Grewals do not
    oppose JMF’s request to recover the attorney fees it reasonably
    incurred in defending against this appeal, we remand to the district
    court for a determination of that amount.
    BACKGROUND 1
    ¶5 This case centers around the repeated transfers of a gas
    station (Station) in Fairview, Utah. The first relevant transaction
    occurred in May 2014, when the Grewals sold the Station to a
    corporate entity owned by Hansen. Title was transferred to this
    corporate entity via a deed of trust (Deed), which secured the
    $400,000 purchase price laid out by the real estate purchase contract
    (Contract). The Deed also contained an attorney fees provision.
    __________________________________________________________
    1 “In reviewing a grant of summary judgment, we view the facts
    and all reasonable inferences drawn therefrom in the light most
    favorable to the nonmoving party. We state the facts of this case
    accordingly.” In re Discipline of Sonnenreich, 
    2004 UT 3
    , ¶ 3, 
    86 P.3d 712
     (cleaned up).
    2
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    Opinion of the Court
    ¶6 Hansen quickly fell into arrears on the Contract, which
    required payment in monthly installments. For reasons disputed
    by the parties, the Grewals did not seek to punish this nonpayment
    by foreclosing on the Station. 2 In 2016, Hansen sold the Station to
    JMF. The sale documents acknowledge that the Station was still
    subject to the Grewals’ Deed, and JMF was given a credit against
    the Station’s purchase price apparently to account for this
    encumbrance.
    ¶7 In August 2020, with substantial sums still owed on the
    Contract, the Grewals finally moved to foreclose. After initial
    negotiations to resolve the matter fell through, JMF filed suit in
    December 2020 to prevent foreclosure. JMF sought, among other
    things, a judgment that the Grewals’ Contract and Deed were
    unenforceable because the applicable six-year statute of limitations
    had run, and an order quieting title in JMF alone.
    ¶8 The Grewals filed an answer to JMF’s complaint but did
    not assert any counterclaims. JMF moved for partial summary
    judgment on the statute of limitations and quiet title issues, and the
    district court granted that motion. The court concluded that the
    statute of limitations on the Contract and Deed had begun running
    when Hansen missed the first installment payment in early 2014. In
    the district court’s eyes, this meant that the Grewals’ December
    2020 foreclosure action was a few months too late.
    ¶9 The district court awarded sole control of the Station to
    JMF and ordered the Grewals to release the Station’s title. When the
    Grewals failed to do so, JMF filed the court’s judgment with the
    county recorder and seized the Station in early August 2021. A few
    days later, JMF sold the Station to another purchaser.
    ¶10 Around this time, JMF also moved to recover its attorney
    fees. Specifically, JMF argued it was entitled to recover its fees
    under two statutes: the reciprocal attorney fees statute contained in
    Utah Code section 78B-5-826, and the quiet title section of the
    Public Waters Access Act (PWAA) found in Utah Code
    section 73-29-204. Somewhat surprisingly, the Grewals’ response
    did not contest that either statute applied. It noted instead that both
    statutes provided for the permissive, but not mandatory, award of
    __________________________________________________________
    2 Based on the record available, it appears that the Grewals and
    Hansen were involved in other business transactions that may have
    contributed to the decision to delay foreclosure proceedings.
    3
    GREWAL v. JUNCTION MARKET
    Opinion of the Court
    fees and argued that JMF didn’t deserve its fees under either. The
    district court received motions from both sides, held a hearing, and
    concluded that JMF was entitled to recover under both statutes.
    ¶11 Having exhausted their options before the district court,
    the Grewals sought appellate review. We retained the case to hear
    it directly.
    STANDARDS OF REVIEW
    ¶12 JMF raised the issue of mootness before us in a pre-briefing
    motion to dismiss. 3 “Because this issue arises for the first time here
    on review, our decision is not governed by any standard of review,
    and we decide the matter as a question of law in the first instance.” 4
    ¶13 The Grewals challenge the district court’s award of
    attorney fees under both the reciprocal attorney fees statute and the
    PWAA. Generally speaking, “[w]hether attorney fees are
    recoverable in an action is a question of law, which we review for
    correctness.” 5 But to the extent that the governing statute grants the
    district court discretion to award fees, “we review [the district
    court’s] decision for an abuse of that discretion.” 6
    ANALYSIS
    ¶14 The Grewals bring eight claims on appeal. The first seven
    claims argue that the district court erred by granting partial
    summary judgment on the issues of wrongful foreclosure and quiet
    title. Before we can reach the merits of those arguments, however,
    we must address JMF’s claim that the transfer of the Station to a
    third party renders the Grewals’ assertions of error moot under
    Richards v. Baum. 7
    __________________________________________________________
    3 JMF also raised the issue of mootness below in response to one
    of the Grewals’ post-judgment motions. The parties have not
    appealed the district court’s denial of that motion.
    4 JLPR LLC v. Procurement Pol’y Bd., 
    2021 UT App 52
    , ¶ 14, 
    492 P.3d 784
    .
    5 Fericks v. Lucy Ann Soffe Tr., 
    2004 UT 85
    , ¶ 22, 
    100 P.3d 1200
    (cleaned up).
    6 Federated Cap. Corp. v. Haner, 
    2015 UT App 132
    , ¶ 10, 
    351 P.3d 816
    .
    7 
    914 P.2d 719
     (Utah 1996).
    4
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    Opinion of the Court
    ¶15 We accept JMF’s argument that Richards governs this case
    and hold that the doctrine of mootness prevents us from reaching
    the merits of these seven issues. But this mootness argument does
    not apply to the Grewals’ final argument of error, which challenges
    the district court’s award of attorney fees to JMF.
    ¶16 The district court found that an award of attorney fees to
    JMF was appropriate under two different statutes: the reciprocal
    attorney fees statute 8 and the PWAA. 9 The Grewals challenge both
    awards on different grounds. Because the district court’s ruling
    was phrased in the alternative, the Grewals must show that neither
    statute supports it.
    ¶17 The Grewals fail to make that showing. We have our
    doubts as to whether either statute applies to this case. But the
    Grewals do not challenge the applicability of those statutes. And as
    to the reciprocal fees statute in particular, the record does not
    support the Grewals’ argument that the award of fees constituted
    an unjust windfall for JMF, as prohibited by Bilanzich v. Lonetti. 10
    ¶18 The result is that we dismiss the majority of the Grewals’
    appeal as moot. On the surviving attorney fees issue, we hold that
    the district court did not abuse its discretion by awarding fees
    under the reciprocal attorney fees statute. Accordingly, we affirm.
    I. THE MAJORITY OF THE GREWALS’ APPEAL IS MOOT
    ¶19 An issue is moot “if the relief requested is rendered
    impossible or of no legal effect.” 11 Our prior cases hold that “we
    lack the power to address the underlying merits” of a moot issue. 12
    __________________________________________________________
    8 UTAH CODE § 78B-5-826.
    9  Id. § 73-29-204(9). Both the parties and the district court
    mistakenly refer to Utah Code section 73-29-204 as the “Quiet Title
    Act.” Title 73, chapter 29 of the Utah Code actually contains the
    PWAA. The statutes governing quiet title actions are found in title
    78B, chapter 6, part 13 of the Utah Code.
    10 
    2007 UT 26
    , 
    160 P.3d 1041
    .
    11 Transp. All. Bank v. Int’l Confections Co., 
    2017 UT 55
    , ¶ 15, 
    423 P.3d 1171
     (cleaned up).
    12 Utah Transit Auth. v. Loc. 382 of Amalgamated Transit Union,
    
    2012 UT 75
    , ¶ 12, 
    289 P.3d 582
    .
    5
    GREWAL v. JUNCTION MARKET
    Opinion of the Court
    ¶20 Applying the mootness doctrine in controversies
    involving the sale of real property is a thorny issue that this court
    has addressed on multiple occasions. JMF argues that one such
    case, Richards v. Baum, 13 governs the present appeal. As the facts of
    that case are similar to those before us—and are broadly similar to
    most mootness disputes involving real property—they are worth
    exploring.
    ¶21 Richards arose out of a dispute over the sale of real
    property from the Baums to the Richardses. 14 After the parties had
    signed a contract, the Baums backed out, leading the Richardses to
    file suit “seeking a decree quieting title and an order requiring [the
    Baums] to specifically perform” the sales contract.15 After a bench
    trial, the court quieted title in favor of the Baums, and the
    Richardses appealed. 16
    ¶22 Crucially, the Richardses did not seek a stay of the trial
    court’s judgment during the pendency of their appeal. 17 Rule 62 of
    the Utah Rules of Civil Procedure allows parties to “obtain a stay
    of the enforcement of a judgment” while an appeal takes place. 18 In
    the absence of such a stay, “the adverse order and any resulting
    judgments remain valid and enforceable during the pendency of
    [the] appeal.” 19 In context, this means that a rule 62 stay prevents
    the prevailing party from transferring or selling the disputed
    property to anyone else. Without that stay, the prevailing party can
    dispose of the property as it sees fit.
    ¶23 Obtaining a rule 62 stay is not without cost. Rule 62
    requires the party seeking the stay to “provid[e] a bond or other
    __________________________________________________________
    13 
    914 P.2d 719
     (Utah 1996).
    14 Id. at 720.
    15 Id.
    16 Id.
    17 Id.
    18 UTAH R. CIV. P. 62(b).
    19 2DP Blanding, LLC v. Palmer, 
    2017 UT 62
    , ¶ 13, 
    423 P.3d 1247
    (cleaned up).
    6
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    Opinion of the Court
    security,” 20 commonly referred to as a supersedeas bond. 21 The
    district court determines the bond amount and must ensure the
    amount “adequately protects the adverse party against loss or
    damage occasioned by the stay and assures payment after the stay
    ends.” 22 Given the large sums of money involved in property
    disputes, supersedeas bonds may quickly run to the tens, or even
    hundreds, of thousands of dollars. 23 Finding liquid assets sufficient
    to post a supersedeas bond may be a significant challenge to many
    litigants. 24
    ¶24 The decision not to seek a stay proved to be fatal to the
    Richardses’ case. During the pendency of the appeal, the Baums
    sold the property at issue to a third party. 25 That sale triggered a
    longstanding legal rule that protects bona fide purchasers by
    preventing courts from undoing legitimate sales of property. 26 The
    consequences of this rule can be dramatic; when disputed property
    is sold during an appeal, the appealing party has “no recourse
    against third parties who lawfully acquire the property.” 27 Even if
    __________________________________________________________
    20 UTAH R. CIV. P. 62(b).
    21 See 2DP Blanding, 
    2017 UT 62
    , ¶ 13.
    22 UTAH R. CIV. P. 62(h)(1); see also 5 AM. JUR. 2D Appellate Review
    § 374 (2024) (“[T]he amount of a supersedeas bond typically takes
    into account the amount needed to satisfy the judgment appealed
    from, as well as costs, interest, and any damages which might be
    caused by the stay pending appeal.”).
    23 See, e.g., Rothwell v. Rothwell, 
    2023 UT App 51
    , ¶ 2, 
    530 P.3d 955
     (affirming a $3.8 million supersedeas bond to stay judgment on
    a $14.2 million award of cash and assorted property).
    24 See Kimberly M. Robinson & Joshua S. Roseman, Obstacles to
    Obtaining Alternate Security and Meaningful Appellate Review of the
    Trial Court’s Decision Regarding the Same, APP. ADVOC., Summer
    2001, at 18 (“Every appellate practitioner, at some point, will be
    faced with a client who wants to appeal from an adverse money
    judgment but cannot afford a supersedeas bond to prevent the
    enforcement of the judgment pending the appeal.”).
    25 Richards, 914 P.2d at 720.
    26 See 2DP Blanding, 
    2017 UT 62
    , ¶¶ 24–27; RESTATEMENT (FIRST)
    OF RESTITUTION § 74 (AM. L. INST. 1937).
    27 2DP Blanding, 
    2017 UT 62
    , ¶ 27.
    7
    GREWAL v. JUNCTION MARKET
    Opinion of the Court
    a court were to reverse the underlying judgment, title to the
    property cannot be returned.
    ¶25 When this rule is applied to the facts of Richards, the
    mootness issue becomes evident. A case is moot when “the relief
    requested is rendered impossible or of no legal effect.” 28 The only
    remedy the Richardses requested at trial was specific performance
    of a real estate contract and title to the contested property.29 The
    sale of the property to a bona fide purchaser 30 meant that we could
    not render a decision on appeal that would grant that relief.
    Because there was “[n]o action which we could . . . take [that]
    would affect the litigants’ rights to the property,” we held that the
    case was moot. 31
    ¶26 Two justices dissented, contending that this result could
    be avoided by relying on two rules in the Utah Rules of Civil
    Procedure. 32 Rule 15 allows parties to seek leave to amend their
    pleadings to include new claims for relief. 33 Rule 54(c) allows
    district courts to “grant the relief to which each party is entitled,
    even if the party has not demanded that relief in its pleadings.” 34
    ¶27 The dissent reasoned that these rules meant that the door
    to relief was not completely closed, as each created the possibility
    of recovering monetary damages. 35 Under rule 15, the dissent
    asserted, the district court could allow the Richardses to amend
    their pleadings to include a prayer for monetary damages.
    36 Or, __________________________________________________________
    28 Int’l Confections Co., 
    2017 UT 55
    , ¶ 15 (cleaned up).
    29 Richards, 914 P.2d at 722.
    30   “A bona fide purchaser is one who pays valuable
    consideration for a conveyance, acts in good faith, and takes
    without notice of an adverse claim or others’ outstanding rights to
    the seller’s title.” Baldwin v. Burton, 
    850 P.2d 1188
    , 1197 (Utah 1993).
    31 Richards, 914 P.2d at 722.
    32 Id. at 723–24 (Stewart, A.C.J., and Durham, J., dissenting).
    33 UTAH R. CIV. P. 15.
    34 Id. R. 54(c).
    35 Richards, 914 P.2d at 723–24 (Stewart, A.C.J., and Durham, J.,
    dissenting).
    36 Id. at 723.
    8
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    Opinion of the Court
    under rule 54(c), the district court could simply use its equitable
    power to grant the Richardses monetary damages. 37
    ¶28 Ultimately, this view did not prevail. The majority opinion
    noted that rules 15 and 54(c) applied only “to a trial court’s authority
    prior to its final judgment.” 38 Neither rule affects “an appellate
    court’s authority to look beyond the case as it stands on appeal.”39
    On appeal “we examine the action before us in its present form,”
    with no consideration given to “the possibility of future
    amendments that a trial court may in its discretion allow or
    disallow.” 40 The Richardses’ only requests for relief were specific
    performance of a real estate contract and title to the disputed
    property. Because that relief was impossible to grant, and we could
    not consider other relief, their case was moot.
    ¶29 The facts of Richards are sufficiently analogous to the
    present case to control the mootness question here. Like the
    Richardses, the Grewals lost a quiet title dispute in district court.
    Like the Richardses, the Grewals failed to post a supersedeas bond
    and obtain a stay. Like the Baums, JMF sold the contested property
    to a third-party bona fide purchaser. And like the Richardses, the
    Grewals did not assert a claim for monetary damages that would
    allow us to reach the merits of their arguments on appeal. Because
    our ruling could not affect the rights of the litigants regarding the
    title to the Station, the Grewals’ challenges to that part of the district
    court’s judgment are moot. Accordingly, we dismiss the Grewals’
    appeal in part.
    __________________________________________________________
    37 
    Id.
    38 Id. at 722.
    39 Id.
    40 Id. at 721–22. It is also doubtful whether the trial court would,
    or even could, have invoked these rules. See, e.g., UTAH R. CIV. P. 15
    (limiting when and how pleadings may be amended); Combe v.
    Warren’s Fam. Drive-Inns, Inc., 
    680 P.2d 733
    , 735 (Utah 1984)
    (“Although Rule [54(c)] permits relief on grounds not pleaded, that
    rule does not go so far as to authorize the granting of relief on issues
    neither raised nor tried.”).
    9
    GREWAL v. JUNCTION MARKET
    Opinion of the Court
    II. THE DISTRICT COURT DID NOT ABUSE ITS DISCRETION BY
    AWARDING ATTORNEY FEES
    ¶30 In its motion for attorney fees, JMF argued that it was
    entitled to recover fees under both the reciprocal attorney fees
    statute 41 and the PWAA. 42 The Grewals did not contest the
    applicability of the two statutes but instead argued that JMF hadn’t
    satisfied the criteria to justify the discretionary award of fees under
    either of them. The district court agreed with JMF and cited both
    the reciprocal fees statute and the PWAA as independent bases for
    its award of fees.
    ¶31 Unlike their challenges to the district court’s grant of
    summary judgment, the Grewals’ challenge to the district court’s
    award of attorney fees is not moot. An issue on appeal is moot
    when “there remains no meaningful relief that this court could
    offer.” 43 While the dispute about the title to the Station was moot
    for the reasons listed above, 44 the relief that the Grewals request in
    regard to the attorney fees award—vacating the award of fees to
    JMF and awarding fees instead to the Grewals—could still be
    granted.
    ¶32 The Grewals’ arguments on appeal mirror those that they
    raised before the district court: conceding that the statutes apply
    but contending that the district court erred by awarding fees under
    them. We have our doubts about whether either statute applies to
    this case. 45 But because the Grewals concede the issue, we consider
    __________________________________________________________
    41 UTAH CODE § 78B-5-826.
    42 Id. § 73-29-204(9).
    43 Utah Transit Auth. v. Loc. 382 of Amalgamated Transit Union,
    
    2012 UT 75
    , ¶ 15, 
    289 P.3d 582
    .
    44 See supra ¶ 29.
    45 JMF was not a party to the Deed, and it is the attorney fees
    provision contained within that document that would trigger the
    reciprocal fees statute. Prior cases on the reciprocal fees statute,
    such as Hooban v. Unicity International, Inc., seem to leave open the
    question of whether the statute would have applied in this precise
    factual scenario. See 
    2012 UT 40
    , ¶ 12, 
    285 P.3d 766
    .
    It is also unclear whether the PWAA applies, as that statute
    provides for attorney fees only in relation to a quiet title action
    (continued . . .)
    10
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    Opinion of the Court
    only whether the district court’s award of fees under either statute
    was an abuse of discretion.
    ¶33 We begin with the reciprocal fees statute. The Grewals’
    argument on this point rests on language from one of our previous
    cases on the matter: Bilanzich v. Lonetti. 46
    ¶34 In Bilanzich, we held that the reciprocal fees statute “was
    designed to create a level playing field for parties to a contractual
    dispute.” 47 The statute does so by “allowing both parties to recover
    fees where only one party may assert such a right under contract,
    remedying the unequal allocation of litigation risks built into many
    contracts of adhesion.” 48 As a result, district courts “should award
    fees liberally” under the statute “where pursuing or defending an
    action results in an unequal exposure to the risk of contractual
    liability for attorney fees.” 49 But we also noted in Bilanzich that
    lower courts could “inform their decisions with other equitable
    principles” and “should avoid using this statute to expose one
    party to a disproportionate risk of paying attorney fees that would
    result in a windfall to the other party.” 50
    ¶35 We note at the outset that the proper meaning of Bilanzich’s
    windfall language is not immediately clear. That case instructs
    courts to avoid awarding fees if doing so would create a
    disproportionate risk of a windfall. 51 But an attorney fees award is
    usually the final ordered monetary transfer in a case, coming after
    a lower court has determined which party has prevailed and what
    damages are owed. 52 In that posture, an award of attorney fees
    cannot create a risk of a windfall; it either is a windfall or it isn’t.
    __________________________________________________________
    regarding “the existence of a right to public recreational access” to
    a body of water. See UTAH CODE § 73-29-204(1)(a).
    46 
    2007 UT 26
    , 
    160 P.3d 1041
    .
    47 Id. ¶ 18 (cleaned up).
    48 Id.
    49 Id. ¶ 19.
    50 Id. ¶ 20.
    51 Id.
    52 See UTAH CODE § 78B-5-826 (allowing an award of fees to the
    “party that prevails in a civil action”).
    11
    GREWAL v. JUNCTION MARKET
    Opinion of the Court
    ¶36 That brings up another question: what is a windfall in this
    context? The Grewals suggest that a windfall occurs when the
    result of a lawsuit is inherently inequitable, such that requiring the
    losing party to also pay the prevailing party’s attorney fees “adds
    insult to injury.” But as JMF correctly points out, this interpretation
    quickly runs aground. The prevailing party in a case is inevitably
    the “winner” in some sense. Limiting that party’s recovery because
    they have already “won” enough is contrary to the purpose behind
    contractual attorney fees. 53
    ¶37 The better interpretation is to read Bilanzich as warning
    courts against awarding an unreasonable amount of attorney fees.
    Avoiding this sort of windfall has been a central concern of many
    of our earlier cases on the topic. 54 Indeed, the only other time we
    have cautioned against awarding “a windfall profit” in the form of
    attorney fees was in that context. 55 And this interpretation also fits
    well with the surrounding passage in Bilanzich itself. That case’s
    admonition to avoid a windfall was made “in the spirit of leveling
    the playing field.” 56 Such a leveling naturally precludes allowing
    the prevailing party to recover an unreasonable amount of attorney
    fees.
    ¶38 Given that interpretation of Bilanzich, the Grewals’ claim
    that a windfall occurred falls short. Their position is essentially that
    the district court, by awarding title of the Station to JMF based on
    a statute of limitations defense, allowed JMF to receive ownership
    __________________________________________________________
    53 See Softsolutions, Inc. v. Brigham Young Univ., 
    2000 UT 46
    , ¶ 51,
    
    1 P.3d 1095
     (noting that “the basic purpose of attorney fees is to
    indemnify the prevailing party”).
    54 See, e.g., Jones, Waldo, Holbrook & McDonough v. Dawson, 
    923 P.2d 1366
    , 1375 (Utah 1996) (declining to award attorney fees to a
    pro se litigant because it would “give[] rise to the danger of creating
    a cottage industry for claimants as a way to generate fees rather
    than to vindicate personal claims” (cleaned up)); Strohm v. ClearOne
    Commc’ns, Inc., 
    2013 UT 21
    , ¶¶ 51–63, 
    308 P.3d 424
     (discussing the
    reasonableness of a fees award in terms of the hourly rate,
    additional fees, and number of hours billed).
    55 See Softsolutions, 
    2000 UT 46
    , ¶ 51 (holding that attorney fees
    should not “punish the losing party by allowing the winner a
    windfall profit”).
    56 Bilanzich, 
    2007 UT 26
    , ¶ 20.
    12
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    Opinion of the Court
    of the Station without actually paying for it. Awarding JMF its
    attorney fees in addition would “add insult to injury.”
    ¶39 This argument rests on the assumption that there is
    something inherently inequitable about prevailing on a statute of
    limitations defense. That assumption is questionable. The “core
    purpose” of a statute of limitations is not to reward defendants, but
    rather “to compel exercise of a right within a reasonable time to
    avoid stale claims, loss of evidence, and faded memories.” 57 Given
    that context, “for purposes of awarding attorney fees under a
    contract, it is doubtful that equity requires treating a victory based
    on a statute of limitations differently from a victory based on an
    adjudication of the merits of the underlying claim.” 58
    ¶40 In short, the Grewals have not shown that awarding
    attorney fees to JMF created the sort of windfall that Bilanzich
    cautions against. Accordingly, we hold that the district court’s
    decision on that matter was not an abuse of discretion, 59 and we do
    not need to reach the issue of whether fees would also have been
    available under the PWAA.
    ¶41 JMF also requests its attorney fees incurred in defending
    against the Grewals’ appeal. “[C]onsistent with our settled view
    that a party who received an award of attorney fees below is
    entitled to their fees on appeal,” 60 we hold that JMF is entitled to
    recover its reasonable fees incurred on appeal.
    __________________________________________________________
    57 Jensen v. IHC Hosps., Inc., 
    944 P.2d 327
    , 332 (Utah 1997).
    58 Federated Cap. Corp. v. Haner, 
    2015 UT App 132
    , ¶ 18, 
    351 P.3d 816
    .
    59 We pause here to acknowledge that the transcript and audio
    recording of the hearing in which the district court orally awarded
    fees to JMF are incomplete. Frustratingly, the apparent break in
    audio comes just as the court begins to explain why fees were
    appropriate. But where “crucial matters are not included in the
    record, the missing portions are presumed to support the action of
    the [district] court.” State v. Pritchett, 
    2003 UT 24
    , ¶ 13, 
    69 P.3d 1278
    (cleaned up).
    60 Glew v. Ohio Sav. Bank, 
    2007 UT 56
    , 
    181 P.3d 791
    , 798 (order
    granting attorney fees on appeal); see also Mmgt. Servs. Corp. v. Dev.
    Assocs., 
    617 P.2d 406
    , 409 (Utah 1980).
    13
    GREWAL v. JUNCTION MARKET
    Opinion of the Court
    CONCLUSION
    ¶42 The Grewals raise two issues. The first issue concerns the
    validity of the district court’s judgment quieting title to the Station
    in JMF. Because JMF has since sold the Station to a third party, and
    because the Grewals did not counterclaim for monetary damages,
    our decision in Richards v. Baum mandates a holding that this issue
    is moot. As the Grewals did not argue that any exception to the
    mootness doctrine applies, we grant JMF’s motion to dismiss the
    appeal of this issue.
    ¶43 The Grewals’ second issue concerns the district court’s
    judgment awarding attorney fees to JMF under the PWAA and the
    reciprocal attorney fees statute. We have doubts about the
    applicability of either statute to this case. But assuming, as we must,
    that they apply, the district court did not abuse its discretion by
    awarding fees under the latter. Accordingly, we affirm the grant of
    attorney fees. JMF is also entitled to recover its reasonable fees
    incurred defending against this appeal, and we remand to the
    district court for a determination of that amount.
    14
    

Document Info

Docket Number: Case No. 20220822

Filed Date: 7/11/2024

Precedential Status: Precedential

Modified Date: 7/11/2024