Osmond Lane Homeowners Ass'n v. Landrith , 726 Utah Adv. Rep. 20 ( 2013 )


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    2013 UT App 20
    _________________________________________________________
    THE UTAH COURT OF APPEALS
    OSMOND LANE HOMEOWNERS ASSOCIATION,
    Plaintiff and Appellee,
    v.
    GEORGE C. LANDRITH JR.,
    Defendant and Appellant.
    Opinion
    No. 20090157‐CA
    Filed January 25, 2013
    Fourth District, Provo Department
    The Honorable Lynn W. Davis
    No. 060400414
    Russell A. Cline, Attorney for Appellant
    Thomas W. Seiler and Aaron D. Lancaster, Attorneys for
    Appellee
    JUDGE GREGORY K. ORME authored this Opinion,
    in which JUDGES WILLIAM A. THORNE JR.
    and J. FREDERIC VOROS JR. concurred.
    ORME, Judge:
    ¶1      Among other issues, George C. Landrith Jr. appeals the trial
    court’s denial of his motion for summary judgment and its grant of
    partial summary judgment in favor of the Osmond Lane Home‐
    owners Association. Additionally, Landrith appeals the trial court’s
    grant of the Association’s motion for a directed verdict on several
    of his defenses. We affirm.
    Osmond Lane Homeowners v. Landrith
    BACKGROUND
    ¶2     In 1977, a Declaration of Protective Covenants (the Declara‐
    tion) was recorded against all lots in the George Osmond Estates
    Subdivision (the Subdivision) in Provo, Utah. The Declaration
    contemplated the organization at a future date of the “George
    Osmond Estates Council,” a nonprofit corporation that would be
    authorized pursuant to the Declaration “to provide certain facilities
    and services” to the Subdivision, its inhabitants, and its visitors.1
    1. Section 6.2 of the Declaration authorizes the Council to levy
    general maintenance assessments to promote “the health, safety,
    and welfare of the [Subdivision] residents” and to improve and
    maintain the common area. In particular, these assessments may be
    used to pay for taxes and insurance; for “general maintenance,
    repair, replacement, and additions” to the common area; and for
    “the cost of labor, equipment, materials, management, and
    supervision” related to maintenance of the common area, but no
    assessments may ever be used for capital improvements unless
    approved by a vote of two‐thirds of Council members.
    Section 6.4 of the Declaration reiterates that the Council may
    levy special assessments for capital improvements to the common
    area, in addition to the Council’s authority to collect general
    maintenance assessments under Section 6.2. Such special
    assessments are intended to “defray[], in whole or in part, the cost
    of any construction or reconstruction, unexpected repair or
    replacement of any capital improvements upon the Common Area,
    . . . provided that any [special] assessment shall have the assent of
    two‐thirds” of Council members. (Emphasis in original.)
    Section 6.11 of the Declaration empowers the Council to
    “provide exterior maintenance upon each Parcel which is subject
    to assessment,” including the authority to “paint, repair, replace
    and care for roofs, gutters, downspouts, exterior building surfaces,
    trees, shrubs, grass[,] walks, and other exterior improvements.”
    The Council’s authorization to provide exterior maintenance,
    (continued...)
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    Osmond Lane Homeowners v. Landrith
    No entity by the name of the “George Osmond Estates Council”
    was ever organized.
    ¶3     In 1979, an unincorporated nonprofit association called the
    “Osmond Lane Homeowners Association” (the Association)
    commenced acting as the governing body in the Subdivision,
    conducting neighborhood meetings, resolving community
    concerns, collecting dues and assessments,2 maintaining common
    areas, and paying common expenses. Although the Association’s
    governance was somewhat different from the contemplated
    “George Osmond Estates Council” (the Council), the Association
    conducts regular meetings and elects a president and a board of
    directors from among the Subdivision property owners. However,
    while the Declaration contemplated two semi‐annual payments
    from Subdivision property owners to the Council for “annual
    assessments,” the Association requires annual assessments to be
    paid in full once yearly. Moreover, the Association collects unpaid
    homeowner association fees by filing mechanics’ liens rather than
    the “continuing lien[s]” contemplated by the Declaration.
    1. (...continued)
    however, is tempered by Section 3.3 of the Declaration, which
    cautions that
    no . . . fence, wall, or other improvements that are not
    already located on such property shall be
    constructed, erected or maintained, nor shall any
    additions thereto, or alteration therein, be made until
    plans and specifications . . . shall have been
    submitted to and approved by the [George Osmond
    Estates Architectural and Planning Control] Board in
    writing.
    2. Indeed, in a September 2002 district court action, the Association
    was recognized as the appropriate entity to collect annual dues in
    the Subdivision.
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    Osmond Lane Homeowners v. Landrith
    ¶4      In 1992, Landrith purchased a home (the Property), which
    is located within the Subdivision. From the time of purchase until
    he sold the Property in 2007, Landrith paid annual dues to the
    Association to cover his share of the common expenses within the
    Subdivision.
    ¶5     At some point during Landrith’s first two years in the home,
    an irrigation pipe froze and broke, causing water to flood the
    backyard and ultimately erode a hole at the Property’s rear border,
    which runs along the top of a deep ravine. Over the next ten years,
    multiple sprinkler breaks and leaks permitted water to further
    erode the area, thus increasing the size of the hole. Beginning in
    1998, the Association repeatedly requested that Landrith address
    the erosion in the southeast corner of the Property by “filling the
    hole with dirt.” Landrith believed that the eroded area was merely
    an element of the ravine’s rough terrain and, therefore, he refused
    to comply with the Association’s request that he fill the hole.
    ¶6     In 2003, the Association sent Landrith a letter, expressing
    concern about the hole on the Property and reminding him of the
    Association’s repeated requests over the previous five years that he
    remedy the eroded area. During that same year, Landrith vacated
    the Property; moved to Bountiful, Utah; and, apparently, left the
    Property unattended. After moving, Landrith notified Nevan
    Anderson, then president of the Association, of his intention to sell
    the Property. Still in 2003, Landrith and Anderson engaged in
    discussions regarding the erosion and the hole, with Anderson
    stressing that the problem had to be fixed.
    ¶7     Finally, in June 2004, Anderson informed Landrith that the
    hole on the Property needed to be fixed within two months. A
    month later, when Anderson and Landrith met with an independ‐
    ent contractor to discuss potential solutions for the eroded area,
    Anderson told Landrith that Landrith’s belated plan of “filling [the
    hole] with dirt was no longer acceptable.” Days later, Landrith
    listed the Property for sale “as is” with a real estate agent. In
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    Osmond Lane Homeowners v. Landrith
    August 2004, Anderson advised Landrith that a permit and
    engineering services would be necessary to fix the eroded area, and
    in November 2004, Anderson contacted and contracted with
    Earthtec, an engineering firm, to remedy the erosion issues.
    ¶8     Over time, the Property’s soil beneath a set of concrete stairs
    and an existing railroad tie retaining wall at the rear of the Property
    had eroded to the point that the Association and neighbors became
    concerned with the safety of the area for children, the structural
    integrity of a neighbor’s adjacent retaining wall, and the value of
    surrounding properties. Based on these concerns and without
    Landrith’s knowledge or consent, the Association paid Earthtec in
    excess of $32,000 to construct two retaining walls along the
    southeast corner of the Property.
    ¶9      According to Earthtec’s studies, the soil conditions on the
    Property would be subject to continued erosion, and therefore,
    Earthtec submitted plans to the Association for the construction of
    an interlocking block retaining wall system and corresponding
    drainage system. The Association never actually approved, in
    writing, the plans provided by Earthtec. Nevertheless, Earthtec
    retained CKR Engineers to design plans for the retaining walls, and
    the Association retained Interlock Paving to construct the walls as
    called for in the Earthtec plans. The construction involved exten‐
    sive work on the Property, including the erecting of a ramp along
    the side of the Property to permit heavy construction equipment to
    access the rear portion of the Property. Following the construction
    of the interlocking block walls, the Association paid Earthtec, CKR
    Engineers, and Interlock Paving for their services, and then billed
    Landrith for reimbursement of the more than $32,000 cost.3
    Landrith did not pay the bill or even respond to the Association’s
    invoice.
    3. In addition to sending Landrith an invoice upon final completion
    of the retaining walls, the Association had previously sent Landrith
    an invoice for the partial completion of the retaining walls.
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    Osmond Lane Homeowners v. Landrith
    ¶10 Subsequently, in January 2006, the Association filed a Notice
    of Lien against the Property for expenses incurred in constructing
    the walls and claiming an intent to “hold and claim a lien pursuant
    to the Declaration.” The Association later filed a complaint in
    district court, seeking to foreclose on the Property. Landrith filed
    a motion for summary judgment, arguing that the Association was
    not authorized to act under the Declaration. The court denied
    Landrith’s motion, stating that Landrith had ratified the Associa‐
    tion’s authority to act in the stead of the Council.
    ¶11 Thereafter, the Association filed its own motion for sum‐
    mary judgment with respect to the issue of whether it was autho‐
    rized to act as the Council under the Declaration. The court granted
    the Association’s motion for partial summary judgment, again
    stating that Landrith ratified the Association’s authority to act with
    the authority initially envisioned for the Council.
    ¶12 The litigation ultimately culminated in a jury trial. At trial,
    Landrith tried to present evidence through the use of an expert
    witness to show the existence of much less expensive alternatives
    to an interlocking block retaining wall system. The Association,
    however, objected to the testimony of Landrith’s expert on grounds
    of relevance and qualification under rule 702 of the Utah Rules of
    Evidence. The court granted the Association’s objection on both
    grounds.
    ¶13 At the conclusion of trial, the Association moved for a
    directed verdict as to Landrith’s defenses that the Association
    failed to mitigate its damages, materially breached the Declaration,
    waived its right to recover the cost of the walls from Landrith, and
    breached the implied covenant of good faith and fair dealing. The
    trial court granted the Association’s motion as to all four of
    Landrith’s defenses. Subsequently, the jury returned a verdict in
    favor of the Association, awarding it more than $33,000 in dam‐
    ages. Additionally, the Association was awarded prejudgment
    interest and attorney fees. Landrith appeals.
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    Osmond Lane Homeowners v. Landrith
    ISSUES AND STANDARDS OF REVIEW
    ¶14 Landrith’s appeal focuses on two principal issues. He argues
    that the trial court erred in denying his motion for summary
    judgment and in granting the Association’s competing motion for
    summary judgment regarding whether the Association was
    authorized to act as the Council pursuant to the Declaration. “We
    review the district court’s decision to grant summary judgment for
    correctness, granting no deference to the [district] court.” Swan
    Creek Vill. Homeowners Ass’n v. Warne, 
    2006 UT 22
    , ¶ 16, 
    134 P.3d 1122
     (alteration in original) (citation and internal quotation marks
    omitted). “[S]ummary judgment is appropriate only when there is
    no genuine issue as to any material fact and the moving party is
    entitled to a judgment as a matter of law.” 
    Id.
     (citation and internal
    quotation marks omitted). See Utah R. Civ. P. 56(c).
    ¶15 Landrith also claims that the trial court erred by granting the
    Association’s motion for directed verdict as to Landrith’s various
    defenses. “We review a trial court’s grant of directed verdict for
    correctness. For a directed verdict to be appropriate, the evidence
    must be such that reasonable minds could not differ on the facts
    based on the evidence presented at trial.” Goebel v. Salt Lake City S.
    R.R. Co., 
    2004 UT 80
    , ¶ 10, 
    104 P.3d 1185
     (citations omitted).
    ANALYSIS
    I. Summary Judgment
    ¶16 We agree with the Association that the trial court did not err
    in denying Landrith’s motion for summary judgment and in
    granting the Association’s competing motion for partial summary
    judgment. On appeal, both parties addressed the Utah Supreme
    Court’s decision in Swan Creek Village Homeowners Ass’n v. Warne,
    
    2006 UT 22
    , 
    134 P.3d 1122
    . We are unpersuaded by Landrith’s
    attempts to distinguish Swan Creek from the case before us.
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    Osmond Lane Homeowners v. Landrith
    ¶17 In Swan Creek, after a development’s original homeowners
    association was dissolved for its failure to file an annual report and
    pay the corresponding filing fee, a new homeowners association
    was incorporated and began to act. See 
    id. ¶¶ 2
    –5. An individual
    who acquired property in the development subsequent to the
    formation of the new homeowners association refused to pay a
    special assessment levied by the new homeowners association,
    which, in turn, brought suit against the property owner to collect
    the assessment. See 
    id. ¶¶ 6
    –11. The Utah Supreme Court stated
    that “[w]here property owners have treated an association as one
    with authority to govern and impose assessments contemplated
    under the terms of a duly recorded governing declaration, they
    ratify its authority to act.” 
    Id. ¶ 32
    . In reaching its decision, the
    Supreme Court relied on the facts that the new homeowners
    association had acted as such for twenty years, in which time no
    competing association emerged; lot owners collectively accepted
    the new homeowners association’s management and paid dues to
    it; the new homeowners association’s authority to collect assess‐
    ments was upheld in a prior court action; and the new homeown‐
    ers association’s articles of incorporation and governing declaration
    were on file for years before the new owner acquired the property.
    See 
    id. ¶ 38
    . Based on those facts, the Court exercised its “equitable
    power to hold that the [new homeowners association] possesses the
    authority delegated to the homeowners association by the
    [d]eclaration.” 
    Id. ¶ 39
    .
    ¶18 Here, we see no error in the trial court’s analysis of, and
    application of the facts at hand to the rule set forth in, Swan Creek.
    First, it is undisputed that Subdivision property owners have
    regarded the Association as having “authority to govern and
    impose assessments contemplated under the terms of [the Declara‐
    tion].” See 
    id. ¶ 32
    . It is also undisputed that property owners in the
    Subdivision, including Landrith, have consistently paid dues to the
    Association. Landrith himself has repeatedly paid annual fees,
    special fees, and assessments for repairs and maintenance under‐
    taken by the Association. Moreover, the Association has been
    operating and has undertaken property management responsibili‐
    20090157‐CA                       8                  
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    Osmond Lane Homeowners v. Landrith
    ties pursuant to the terms of the Declaration for some thirty years.
    In that time, no competing association has emerged and the
    Association has been judicially recognized as authorized to levy
    assessments. Finally, the Declaration under which the Association
    purported to act was recorded many years prior to Landrith
    acquiring property in the Subdivision. We conclude that these
    facts, in particular the “pattern of acquiescence by the lot owners,”
    place this case squarely within the reasoning articulated in Swan
    Creek. See 
    id. ¶ 39
    . Thus, we see no error in the trial court’s decision,
    and we “exercise our equitable power to hold that the [Association]
    possesses the authority delegated to the [Council] by the Declara‐
    tion.” See 
    id.
     Therefore, as to the trial court’s decision granting the
    Association summary judgment with respect to whether it had
    authority to act as the Council pursuant to the Declaration, we
    affirm.
    II. Directed Verdict
    ¶19 Having determined that the Association could properly
    exercise the powers granted to the Council by the Declaration, we
    next turn to the Declaration itself. Specifically, we address
    Landrith’s argument that the Association materially breached the
    Declaration and, on that basis in particular, that the trial court erred
    in granting the Association’s motion for directed verdict. We begin
    by emphasizing that the Association is a creature of contract,
    empowered as a governing body of homeowners to serve the
    Subdivision through powers specifically enumerated in the
    Declaration. Such powers, however, are qualified and restricted by
    the Declaration’s provisions and limitations. Thus, the Declaration
    entitles the Association to freely make repairs and undertake
    exterior maintenance even to individually owned units, but
    restricts the authority to undertake capital improvements to the
    common area. It is undisputed that the retaining walls were
    constructed on Landrith’s property, not the common area. Thus,
    the provisions authorizing the Association to undertake capital
    20090157‐CA                        9                  
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    Osmond Lane Homeowners v. Landrith
    improvements are not applicable.4 Accordingly, we focus on the
    Association’s authority to undertake projects that qualify as repairs
    or maintenance.
    ¶20 The Association is authorized to conduct exterior
    maintenance on individual units and the common area, with the
    costs being recouped through the assessment process.5 Thus,
    Landrith is entirely correct that if construction of the retaining
    walls was not an act of repair or maintenance, the Association
    lacked the authority to have them built.
    ¶21 Consideration of the Declaration’s provisions, several of
    which are summarized in footnote 1 of this opinion, convinces us
    that the decision of whether to classify the Association’s
    construction of new retaining walls as a repair or maintenance is,
    as Landrith insists, a question that properly should have gone to
    the jury. Section 6.11 states that “[i]n addition to maintenance upon
    the Common Area, the Council may provide exterior maintenance
    upon each Parcel which is subject to assessment . . . as follows:
    paint, repair, replace and care for roofs, gutters, downspouts,
    exterior building surfaces, trees, shrubs, grass[,] walks, and other
    exterior improvements.” (Emphasis added.)
    ¶22 As noted, the Association may justify its actions in
    constructing retaining walls on Landrith’s property only if they
    4. It follows that there was no error in the trial court’s rejection of
    Landrith’s proposed jury instruction defining “capital
    improvement.”
    5. Section 6.11 of the Declaration states that “[i]n addition to
    maintenance upon the Common Area, the Council may provide
    exterior maintenance upon each Parcel[.]” Moreover, Section 6.12
    explains that “[t]he cost of such exterior maintenance shall be
    assessed against the Parcel upon which such maintenance is done
    and shall be added to and become a part of the annual
    assessment[.]”
    20090157‐CA                       10                 
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    Osmond Lane Homeowners v. Landrith
    constitute a “repair” or “other exterior improvements” under
    Section 6.11. Landrith argues that the installation of new
    interlocking block retaining walls goes beyond the definition of a
    “repair.” See Webster’s Third New Int’l Dictionary 1923 (1993)
    (defining “repair” as “to restore by replacing a part or putting
    together what is torn or broken”). But the question remains
    whether construction of the retaining walls falls under “other
    exterior improvements” as that term is used in Section 6.11. The
    term “other exterior improvements” in Section 6.11 is, seemingly,
    a catchall phrase for any other maintenance the Association may
    provide, in addition to “paint, repair, replace and care for roofs,
    gutters, downspouts, exterior building surfaces, trees, shrubs,
    grass[, and] walks.”6 As with statutory construction, words in a
    contract must “be interpreted according to their plain meaning
    unless the context justifies a different interpretation.” State v.
    Serpente, 
    768 P.2d 994
    , 997 (Utah. Ct. App. 1989). The words “other
    exterior maintenance” are
    not subject to a plain meaning, but rather must [be
    interpreted] from the context in which [they]
    appear[]. To this end, we resort to the doctrine of
    ejusdem generis. This doctrine provides that “where
    general words follow the enumeration of particular
    classes of things, the general words will be construed
    as applying only to things of the same general class
    as those enumerated.”
    
    Id.
     (quoting Black’s Law Dictionary 464 (5th ed. 1979)).
    ¶23 Landrith argues that the construction of retaining walls,
    which required the use of heavy equipment, multiple workers, and
    substantial expense, is not maintenance of the same caliber and
    quality as such things as painting or caring for trees and
    6. We see no error in the trial court’s refusal to instruct the jury on
    the meaning of “repair,” “improvement,” and “replace.” These are
    common terms well within the understanding of typical jurors.
    20090157‐CA                       11                 
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    Osmond Lane Homeowners v. Landrith
    shrubs—simple tasks that may typically be accomplished by one
    worker with hand tools. But Section 6.11 is not limited to such
    minor work. The references in Section 6.11 to roof repair and,
    indeed, roof replacement suggest that not all acts of repair or
    maintenance will be as minor as Landrith contends. Thus, a jury
    question was properly presented as to whether the Association’s
    actions qualified as exterior maintenance under Section 6.11.
    Landrith concedes as much, of course, in arguing that the directed
    verdict was not in order. We agree with Landrith that a question
    for the jury was presented, but we disagree that the jury’s
    consideration of his theory was foreclosed by the trial court’s
    directed verdict. Careful consideration of the record demonstrates
    that this issue was presented to and decided by the jury
    notwithstanding the partial directed verdict.
    ¶24 At the close of evidence, the trial court granted the
    Association’s motion for directed verdict on several issues. One
    aspect of the trial court’s ruling precluded Landrith from arguing
    that the Association’s replacement of an inadequate retaining wall
    on his property with two new retaining walls constituted a capital
    improvement in violation of the Declaration. As indicated
    previously, this ruling was proper because the walls were
    constructed on Landrith’s property, not on the common area,
    making the capital improvement provisions inapplicable. The
    directed verdict, however, did not preclude the jury from
    considering whether the retaining wall project constituted exterior
    maintenance authorized under Section 6.11. To the contrary, the
    trial court expressly allowed Landrith to argue that the
    Associationʹs actions did not constitute exterior maintenance:
    [LANDRITH’S COUNSEL]: Have you ruled that this
    is general maintenance, or can I argue that that’s
    not—this is not general maintenance?
    THE COURT: Well, you can argue that he didn’t
    breach, and you can argue, I guess, that this is not
    general maintenance.
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    Osmond Lane Homeowners v. Landrith
    [LANDRITH’S COUNSEL]: Thank you.
    [THE ASSOCIATION’S COUNSEL]: But it’s not
    capital improvements. He can’t argue that.
    THE COURT: It’s not capital improvements.
    ¶25 The parties then proceeded to make closing arguments,
    during which both Landrith’s and the Association’s counsel argued
    their respective positions on whether the Association’s actions were
    permissible as exterior maintenance under Section 6.11. The
    Association’s counsel referred the jury to Section 6.11 and argued
    that Section 6.11 “lists a bunch of things. The ones that truly apply
    in our case are repair and replace a whole bunch of things,
    including exterior improvements. You remember, there’s a number
    of pictures that show the old retaining wall. What are we doing but
    replacing retaining walls?”
    ¶26 In his closing argument, Landrith’s counsel specifically
    asked the jury to “circle [Section] 6.11, take a look at it, because
    that’s the deal that youʹll be looking at,” and then argued that the
    Association’s actions were not authorized as exterior maintenance
    under Section 6.11. Landrith’s counsel urged the jury to find that
    construction of the new retaining walls did not constitute exterior
    maintenance because of the size of the “two huge walls,” and
    distinguished the scope of the Association’s project from the other
    items listed in Section 6.11. At the conclusion of his closing
    argument, Landrith’s counsel again invoked Section 6.11 as
    controlling the juryʹs award of damages:
    [S]hould you have to pay that? Well, what was the
    agreement that you made? Go back and take a look
    at [Section] 6.11, and I ask you—I think itʹs the right
    thing to do. . . .
    Before you enter a single dollar in [the
    Association’s] favor, make sure you’ve read [Section]
    20090157‐CA                      13                 
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    Osmond Lane Homeowners v. Landrith
    6.11 and agree that what they did was part of the
    deal that was made between Mr. Landrith and the
    [Association]. It was not. It’s not even close. This
    kind of thing, you just can’t have somebody coming
    onto your property and building something like this
    without your permission and consent under the
    guise of maintenance, and turning around and billing
    you $32,800.
    ¶27 The case went to the jury with a Special Verdict form
    containing five questions. In answering the third and fourth
    questions,7 the jury found unanimously that “[the] Association was
    entitled to provide exterior maintenance upon the George Landrith,
    Jr. lot as follows: paint, repair, replace and care for roofs, gutters,
    down spouts, exterior building surfaces, trees, shrubs, grass[,]
    walks, and other exterior improvements” and that “[the]
    Association repaired the damage caused by erosion . . . by
    contracting with various entities to replace the railroad tie retaining
    wall with new retaining walls.” The fifth question asked the
    amount of damages to be awarded, which the jury answered in the
    exact amount claimed by the Association, $33,143.62. Thus, in a
    Special Verdict patterned nearly word for word on Section 6.11, the
    jury found that the Association “was entitled to provide exterior
    maintenance upon the [Landrith] lot,” including “repair[ing and]
    replac[ing] . . . exterior improvements”; that it had “repaired the
    damage caused by erosion . . . [by] replac[ing] the railroad tie
    retaining wall with new retaining walls”; and that it was therefore
    entitled to damages in the amount expended on the project.
    7. The first two Special Verdict questions asked whether property
    owners belonging to the Association had a duty to maintain their
    property in good repair and whether Landrith had breached the
    Declaration. The jury unanimously answered these two questions
    in the affirmative.
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    Osmond Lane Homeowners v. Landrith
    ¶28 In sum, Landrith was entitled to have this question
    presented to and resolved by the jury. And notwithstanding the
    partial directed verdict, it was—albeit in a manner adverse to his
    position.8
    III. Other Issues
    ¶29 Landrith raises a number of other issues in this appeal. First,
    he challenges the trial court’s exclusion of his proposed expert
    witness. This decision is reviewed deferentially, under an abuse of
    discretion standard. See, e.g., State v. Brink, 
    2007 UT App 353
    , ¶ 4,
    
    173 P.3d 183
    . We see no such abuse of discretion here. While
    Landrith’s intended witness was in the business of constructing
    stone walls, he was not an engineer and conceded that his company
    typically needed the help of an engineer to design the walls it
    builds. And he did not visit the property until after the new walls
    were in place and, thus, never saw the conditions that confronted
    the Association and its contractors. See Utah R. Evid. 702(b)(2)
    (requiring that expert opinions be “based upon sufficient facts or
    data”). Finally, he had no experience with interlocking block walls,
    as were at issue in this case. Accordingly, we discern no error in the
    trial court’s performance of its role as “gatekeeper” in excluding
    the proposed expert’s testimony. See generally Gunn Hill Dairy
    8. Other aspects of the trial court’s directed verdict are more easily
    resolved. The evidence was clear that, largely because he vacated
    the property, Landrith had not taken reasonable steps to mitigate
    his damages by prudently dealing with the erosion problem.
    Insofar as he contended that there were more economical ways for
    the Association to have dealt with the problem, his case rested on
    the testimony of his expert, which was excluded as hereafter
    explained. Further, any breaches by the Association of certain
    requirements concerning plan approval, notice to Landrith,
    approval of the assessment to fund construction of the walls, and
    the absence of an authorizing resolution for the construction were
    not so material as to excuse Landrith’s liability for his breaches.
    20090157‐CA                      15                 
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    Props., LLC v. Los Angeles Dep’t of Water & Power, 
    2012 UT App 20
    ,
    ¶ 16, 
    269 P.3d 980
     (“‘The trial court has wide discretion in
    determining the admissibility of expert testimony,’ and we will
    disturb a court’s exclusion of expert testimony only when it
    ‘exceeds the limits of reasonability.’”) (quoting Eskelson v. Davis
    Hosp., 
    2010 UT 59
    , ¶ 5, 
    242 P.3d 762
    ).
    ¶30 Second, Landrith complains about the trial court’s
    calculation of prejudgment interest. He has not persuaded us,
    however, that there was any significant error in this regard, and the
    position of the Association—that any error was actually in
    Landrith’s favor—seems entirely plausible given the terms of
    Section 6.8 of the Declaration, which establishes and defines a
    delinquency interest rate.
    ¶31 Third, Landrith questions the amount of costs awarded.
    Under the broad terms of rule 54(d), we are not persuaded that the
    court erred in assessing the costs it did. See Utah R. Civ. P. 54(d)(1)
    (providing that “costs shall be allowed as of course to the
    prevailing party unless the court otherwise directs”).
    ¶32 Fourth, Landrith challenges the amount of attorney fees
    awarded to the Association as the prevailing party.9 We see no
    error with the award of fees under the principles explained in Dixie
    State Bank v. Bracken, 
    764 P.2d 985
     (Utah 1988).
    IV. Fees on Appeal
    ¶33 The Association requests an award of its fees incurred on
    appeal, and it does so in a manner compliant with our rule 24. See
    Utah R. App. P. 24(a)(9) (“A party seeking to recover attorney’s
    fees incurred on appeal shall state the request explicitly and set
    9. Anticipating success on appeal, Landrith hoped to be
    characterized as the prevailing party and sought an award of his
    fees on this basis. Landrith did not prevail, below or on appeal, and
    thus is not entitled to an award of his attorney fees.
    20090157‐CA                       16                 
    2013 UT App 20
    Osmond Lane Homeowners v. Landrith
    forth the legal basis for such an award.”). A party who is awarded
    fees below and prevails on appeal is entitled to recover its attorney
    fees reasonably incurred on appeal. See Management Servs. Corp. v.
    Development Assocs., 
    617 P.2d 406
    , 409 (Utah 1980). That is the case
    here, and the Association is entitled to an award of the fees it
    reasonably incurred on appeal.
    CONCLUSION
    ¶34 The trial court committed no error in denying Landrith’s
    motion for summary judgment and granting the Association’s
    motion for summary judgment related to the Association’s
    authority to act in the stead of the Council pursuant to the
    Declaration. It was a question for the jury whether the
    Association’s actions in constructing a retaining wall system on
    Landrith’s property was a repair or other act of exterior
    maintenance under the Declaration. Contrary to Landrith’s
    argument, the jury’s consideration of this issue was not foreclosed
    by the directed verdict, and the jury, properly instructed, decided
    the issue in the Association’s favor.
    ¶35 We see no abuse of discretion in the trial court’s exclusion
    of Landrith’s proposed expert witness. We are not convinced there
    was error in the trial court’s award of prejudgment interest, taxable
    costs, or attorney fees. And the Association is entitled to an award
    of the fees it reasonably incurred on appeal.
    ¶36 The verdict and ensuing judgment are affirmed. We remand
    for determination of an appropriate award of the attorney fees
    incurred by the Association on appeal.
    20090157‐CA                      17                
    2013 UT App 20
                                

Document Info

Docket Number: 20090157-CA

Citation Numbers: 2013 UT App 20, 295 P.3d 704, 726 Utah Adv. Rep. 20, 2013 Utah App. LEXIS 23, 2013 WL 285757

Judges: Orme, Thorne, Voros

Filed Date: 1/25/2013

Precedential Status: Precedential

Modified Date: 10/19/2024