Francis v. National DME , 786 Utah Adv. Rep. 6 ( 2015 )


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    2015 UT App 119
    THE UTAH COURT OF APPEALS
    DAVID A. FRANCIS,
    Plaintiff, Appellee, and Cross-appellant,
    v.
    NATIONAL DME, JOSEPH COTTIS, AND J. SCOTT COTTIS,
    Defendants, Appellants, and Cross-appellees.
    Opinion
    No. 20120605-CA
    Filed May 7, 2015
    Third District Court, Salt Lake Department
    The Honorable L.A. Dever
    No. 090912839
    Gary R. Guelker and Janet I. Jenson, Attorneys
    for Appellants
    April L. Hollingsworth and Elizabeth M. Peck,
    Attorneys for Appellee
    JUDGE STEPHEN L. ROTH authored this Opinion, in which
    JUDGE JAMES Z. DAVIS and SENIOR JUDGE RUSSELL W. BENCH
    concurred.1
    ROTH, Judge:
    ¶1     In this employment dispute, National DME, Joseph Cottis,
    and J. Scott Cottis (collectively, DME) seek appellate review of
    various rulings made by the trial court. Specifically, DME seeks
    reversal of the trial court’s decisions to deny its motion for a new
    trial or, alternatively, to reduce the judgment to $9,700; to
    exclude certain evidence as unduly prejudicial under rule 403 of
    1. The Honorable Russell W. Bench, Senior Judge, sat by special
    assignment as authorized by law. See generally Utah R. Jud.
    Admin. 11-201(6).
    Francis v. National DME
    the Utah Rules of Evidence; and to award attorney fees and
    prejudgment interest at the rate of 10% to the plaintiff, David A.
    Francis. Francis cross-appeals, arguing that the trial court erred
    by entering a directed verdict that dismissed his counterclaim
    for intentional interference with economic relations and by
    denying on hearsay grounds the admission of certain evidence
    relevant to that counterclaim.
    ¶2     With respect to the issues raised by DME, we reverse the
    trial court’s decision to deny DME’s motion to amend the
    judgment and we reduce the judgment to $9,700. This decision
    means that we must vacate the award of statutory attorney fees.
    We affirm, however, the trial court’s award of prejudgment
    interest and its decision to exclude evidence regarding the
    circumstances of DME’s termination of Francis. With respect to
    the issues raised by Francis on cross-appeal, we affirm the trial
    court’s ruling regarding the exclusion of certain evidence on
    hearsay grounds, but we reverse the trial court’s ruling as to his
    counterclaim for intentional interference with economic relations
    and remand for further proceedings.
    BACKGROUND
    I. Francis’s Employment at DME
    ¶3     DME is a Utah company that sells durable medical
    equipment such as canes, crutches, splints, wheelchairs, custom
    braces, sleep therapy oxygen devices, and other breathing
    equipment. DME sells its products in three ways: an inventory
    outsourcing program, direct sales to patients, and sales through
    a website. DME maintains two branches that are responsible for
    distributing its products, regardless of how they are sold: the
    Salt Lake branch and the St. George branch.
    ¶4     DME hired Francis as its national sales manager on April
    1, 2003. As part of the hiring process, DME provided Francis
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    with an employee handbook. Francis acknowledged receipt of
    the handbook by signing an ‚Acknowledgement Form.‛
    Although the Acknowledgement Form does not reference a
    noncompete agreement, DME’s president testified at trial that
    a noncompete agreement form was included as part of the
    handbook and that Francis agreed to be bound by the
    noncompete agreement by signing the Acknowledgement Form.
    Francis denied that he had ever seen, been presented with, or
    signed a noncompete agreement.
    ¶5     DME terminated Francis’s employment one year later
    after Francis failed to report to work for three consecutive days.
    Shortly thereafter, Francis began work at a similar company,
    BSN Medical, as an independent sales representative. After
    starting work at BSN, Francis filed a wage claim against DME
    with the Utah Labor Commission (the Commission) to recover
    unpaid commissions. The Commission notified DME of the
    wage claim on June 15, 2004.
    ¶6      In the meantime, DME learned that Francis had begun
    working for BSN. According to DME, it believed that Francis
    was bound by a noncompete agreement and therefore instructed
    its attorney to send Francis a letter alleging that his employment
    at BSN was ‚in direct violation‛ of that agreement. The letter
    threatened legal action if Francis did not ‚terminate *his]
    employment with BSN Medical immediately and provide
    evidence satisfactory to National DME‛ that he had ceased
    competing with it. The letter to Francis was dated June 17, 2004,
    and was copied to BSN.
    ¶7     After receiving DME’s letter, BSN contacted Francis about
    the alleged noncompete agreement. Francis denied ever signing
    or agreeing to a noncompete agreement and voiced his belief
    that the June 17 letter was written in retaliation for his wage
    claim. On July 14, 2004, BSN formally responded to DME’s June
    17 letter with a letter of its own to DME, indicating that it had
    tried unsuccessfully to contact DME’s attorney ‚to discuss
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    *DME’s+ concerns and the background and documents relating
    to‛ Francis’s alleged noncompete agreement. Over a month
    passed without a response from either DME or DME’s attorney.
    ¶8     The next communication Francis received regarding the
    noncompete issue was a voicemail left by Francis’s BSN
    supervisor on August 11, 2004. According to Francis, the
    supervisor informed him that ‚because we’re going to an
    employee/employer relationship,‛ as opposed to having the
    sales representatives work as independent contractors, ‚human
    resources feels like the noncompete agreement precludes my
    being able to keep you in your territory.‛ (Emphasis omitted.)
    The next day, BSN sent Francis a formal termination letter via
    email.
    ¶9     A week later, on August 19, 2004, DME sent a letter to
    Francis’s BSN supervisor stating that DME had ‚reached a
    ‘settlement’ agreement with Dave Francis regarding his
    employment with BSN‛ and that DME would not pursue
    enforcement of the noncompete agreement. By this time,
    however, BSN had already terminated Francis. Nevertheless, the
    BSN supervisor forwarded DME’s August 19 letter to another
    BSN representative, stating that ‚this should close the Dave
    Francis issue.‛
    II. Procedural History
    ¶10 After leaving BSN, Francis continued to pursue his wage
    claim against DME. On April 6, 2005, he sent a demand letter to
    DME setting forth a number of claims under federal and state
    law and offering to settle all of them for $150,000. He specifically
    addressed the wage claim, stating that DME ‚still owes Mr.
    Francis approximately $15,000 in commissions that were owed
    to him for sales he made while still employed with the
    company.‛ The parties were unable to settle the matter, and
    Francis filed suit against DME and certain individuals associated
    with DME in federal district court.
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    ¶11 In his complaint, Francis set out federal claims under the
    Americans with Disabilities Act of 1990, the Consolidated
    Omnibus Budget Reconciliation Act, the Employee Retirement
    Income Security Act, and the Family Medical Leave Act of 1993.
    Additionally, Francis alleged several state-law claims, including
    intentional interference with economic relations, equitable
    estoppel, and breach of contract. He also requested attorney fees.
    ¶12 DME moved for summary judgment on Francis’s claims,
    and the federal district court granted it in part, dismissing all of
    Francis’s federal claims and his equitable estoppel claim, leaving
    only his claims for intentional interference with economic
    relations and breach of contract and his request for attorney fees.
    The federal court declined to exercise supplemental jurisdiction
    over the remaining claims and instead dismissed them without
    prejudice, informing Francis that he was free to refile in state
    court.
    ¶13 Francis did so on August 5, 2009. Due to the extensive
    discovery that had already occurred in federal court, the parties
    agreed to proceed immediately to trial. Several motions in limine
    were filed ahead of trial, two of which are pertinent to this
    appeal. In the first, Francis moved to exclude any evidence
    regarding the circumstances of DME’s termination of his
    employment. The trial court granted the motion, reasoning that
    the evidence regarding his termination was not relevant and
    that, even if relevant, it would be substantially more prejudicial
    than probative under rule 403 of the Utah Rules of Evidence. In
    the second motion, DME moved to exclude evidence of the
    voicemail that BSN left for Francis, arguing that Francis’s
    testimony concerning the voicemail would be inadmissible
    hearsay. The trial court agreed and granted the motion.
    ¶14 At trial, the parties sharply contested the terms of
    Francis’s employment contract with DME. First, Francis testified
    that in addition to his salary of $60,000 per year plus benefits
    (which had been paid), DME promised him commissions equal
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    to 4% of the Salt Lake branch’s net profits (excluding any profits
    from oxygen sales). He further testified that DME’s president
    had expressly acknowledged that Francis had earned $15,000 in
    commissions for the first quarter of his employment. Francis
    admitted that DME had paid him $5,300 of that amount, $2,300
    to cover repairs he had incurred on his truck and another $3,000
    to fund Christmas bonuses to DME warehouse employees under
    Francis’s supervision.
    ¶15 DME responded with testimony that it had never agreed
    to pay Francis commissions in addition to salary and it had
    never acknowledged owing him $15,000 in commissions for the
    first quarter of his employment or otherwise. DME did admit,
    however, that during the final three months of Francis’s
    employment, it had paid him $2,3002 in addition to his salary
    and that the W-2 form it had issued to Francis reflected that fact.
    Francis then testified that the $2,300 represented a portion of the
    $15,000 he was owed for his commissions, namely the portion he
    was given in order to repair his truck.
    ¶16 Other than his own testimony regarding commissions
    owed for the first quarter of his employment, Francis did not
    offer any specific evidence about the amount of commissions he
    had earned during the time he was employed at DME. That is,
    he did not offer any specific evidence regarding the net profits of
    the Salt Lake branch between April 2003 and March 2004.
    Instead, he elicited testimony from DME’s executives that its net
    profits company-wide for 2003 and 2004 were $600,000 and that
    the company’s sales remained steady during that time period.
    2. There was a discrepancy about whether the amount was
    $2,300 or $2,500. At one point in the trial, Francis seemed to
    concede that DME had actually paid $2,500. Because DME has
    indicated its willingness to be bound by the $2,300 figure, we
    will use it throughout this decision.
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    ¶17 At the close of Francis’s case-in-chief, DME moved for a
    directed verdict on Francis’s claim for intentional interference
    with economic relations, arguing that he had failed to establish
    causation. The trial court agreed and dismissed the claim. At the
    same time, DME moved for a directed verdict on DME’s alleged
    breach of Francis’s employment contract, arguing that Francis
    had failed to establish damages. Specifically, DME argued that
    because there was no evidence of the net profits for the Salt Lake
    branch, Francis could not prove damages with reasonable
    certainty. Initially, the trial court agreed to limit the question of
    damages to the $9,700 that Francis claimed he was still owed for
    the first quarter of his employment. Prior to closing arguments
    and at the request of Francis’s counsel, however, the trial court
    revisited this ruling. It ultimately accepted Francis’s argument
    that because there was testimony about DME’s net profits
    during 2003 and 2004 (the years that encompassed Francis’s year
    of employment with DME) and there was also testimony that the
    company’s sales remained steady during that time, the jury
    could ‚extrapolate‛ from those facts that Francis’s commissions
    also would have remained steady. Based on this reasoning, the
    court reversed its prior ruling and allowed Francis to present
    this extrapolation argument to the jury during closing
    arguments.
    ¶18 The jury found for Francis on the breach of contract claim
    and awarded him $24,000 for unpaid commissions. The trial
    court subsequently awarded Francis $46,870.07 for attorney fees
    pursuant to Utah Code section 34-27-1 and prejudgment interest
    on the $24,000 from April 1, 2004, to June 25, 2010, at a statutory
    rate of 10% under Utah Code section 15-1-1. DME then moved
    for a new trial or, alternatively, to reduce the amount of the
    judgment, arguing that there was insufficient evidence to
    support the jury’s verdict. The court denied this motion,
    reasoning that the jury’s award was ‚well within the realm of a
    reasonable award.‛ Final judgment was entered, and both
    parties filed timely appeals.
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    ISSUES AND STANDARDS OF REVIEW
    ¶19 DME raises four issues in its appeal. First, it argues that
    there was insufficient evidence to support the jury’s verdict.
    When a party challenges a verdict based on insufficiency of the
    evidence, ‚[w]e reverse only if, viewing the evidence in the light
    most favorable to the prevailing party, we conclude that the
    evidence is insufficient to support the verdict.‛ Scudder v.
    Kennecott Copper Corp., 
    886 P.2d 48
    , 52 (Utah 1994) (citation and
    internal quotation marks omitted).
    ¶20 Second, DME argues that the trial court should have
    allowed it to present evidence regarding the circumstances
    surrounding Francis’s termination. ‚Trial court rulings on the
    admissibility of evidence generally entail a good deal of
    discretion, and we review those rulings for an abuse of that
    discretion.‛ State v. Havatone, 
    2008 UT App 133
    , ¶ 6, 
    183 P.3d 257
    (citation and internal quotation marks omitted).
    ¶21 The third and fourth issues raised by DME involve the
    trial court’s interpretation and application of two statutes.
    Specifically, DME argues that the trial court misinterpreted
    sections 34-27-1 and 15-1-1 of the Utah Code when it awarded
    Francis his attorney fees and prejudgment interest. ‚When our
    review requires us to examine statutory language, we look first
    to the plain meaning of the statute and then review [the] district
    court’s interpretation of a statute for correctness.‛ State v. Steed,
    
    2014 UT 16
    , ¶ 14, 
    325 P.3d 87
     (alteration in original) (citations
    and internal quotation marks omitted).
    ¶22 In his cross-appeal, Francis raises two issues. First, he
    argues that the trial court erred when it granted DME’s motion
    for a directed verdict with respect to his claim for intentional
    interference with economic relations and that it erred again
    when it refused to reconsider its ruling on that claim later in the
    trial. We review the trial court’s ‚grant or denial of a motion for
    directed verdict for correctness.‛ Proctor v. Costco Wholesale Corp.,
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    Francis v. National DME
    
    2013 UT App 226
    , ¶ 6, 
    311 P.3d 564
    . ‚Accordingly, we will
    sustain a directed verdict if[,] after examining all evidence in a
    light most favorable to the non-moving party, there is no
    competent evidence that would support a verdict in the non-
    moving party’s favor.‛ 
    Id.
     (alteration in original) (citation and
    internal quotation marks omitted).
    ¶23 Second, Francis argues that the trial court erroneously
    excluded his testimony about the voicemail left by BSN as
    inadmissible hearsay. ‚The determination of whether evidence
    constitutes hearsay is a question of law that we review for
    correctness.‛ Stepsaver, Inc., v. Department of Workforce Servs.,
    
    2013 UT App 207
    , ¶ 8, 
    309 P.3d 290
     (citation and internal
    quotation marks omitted). We review ‚the ultimate ruling on
    admissibility,‛ however, for ‚an abuse of discretion.‛ State v.
    Stewart, 
    2014 UT App 112
    , ¶ 7, 
    327 P.3d 595
     (citation and internal
    quotation marks omitted).
    ANALYSIS
    I. DME’s Appeal
    A.     The Trial Court Erred by Denying DME’s Motion for a
    Reduction in Judgment Because the Evidence Was
    Sufficient Only to Support a Verdict of $9,700.
    ¶24 DME argues that the trial court should have granted
    either its motion for a new trial or its motion to amend the
    judgment amount because there was insufficient evidence to
    support the jury’s $24,000 verdict, even under Francis’s
    extrapolation theory. See Utah R. Civ. P. 59(a), (b), (e) (explaining
    that a party may move for a new trial or seek to alter or amend a
    judgment when the evidence is insufficient to support the
    verdict). Specifically, DME argues that Francis presented no
    evidence regarding the net profits of the Salt Lake branch and,
    because those profits cannot be determined based solely on the
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    Francis v. National DME
    net profits of the company as a whole, there was no way for the
    jury to reliably decide how much, if anything, Francis was owed
    in commissions. Hence, DME urges us to conclude that the jury’s
    verdict was based upon speculation and was therefore
    unsupported by the evidence. We agree that there was
    insufficient evidence to support an award greater than $9,700.
    ¶25 DME relies on Price–Orem Investment Co. v. Rollins, Brown
    & Gunnell, Inc., 
    784 P.2d 475
     (Utah Ct. App. 1989), to support its
    contention that Francis had not sufficiently proven $24,000 in
    damages. Price–Orem states that a plaintiff must demonstrate the
    amount of damages suffered with ‚reasonable certainty.‛ 
    Id. at 478,
     overruled on other grounds by Smith v. Fairfax Realty, Inc., 
    2003 UT 41
    , 
    82 P.3d 1064
    . DME argues that Francis failed to meet this
    burden because he failed to ‚provide supporting evidence of
    overhead expenses and other costs of producing income from
    which a net income figure can be derived,‛ see 
    id. at 479,
     and that
    therefore the jury’s verdict was ‚necessarily . . . based on
    speculation.‛
    ¶26 Price–Orem establishes the standards for proving both the
    fact of damages and the amount of damages, recognizing that
    ‚the level of certainty required to establish the amount of loss is
    generally lower than that required to establish the fact of loss.‛
    
    Id.
     To prove the fact of damages, ‚*t+he evidence must do more
    than merely give rise to speculation that damages in fact
    occurred; it must give rise to a reasonable probability that the
    plaintiff suffered damage as result of a breach.‛ Atkin Wright &
    Miles v. Mountain States Tel. & Tel. Co., 
    709 P.2d 330
    , 336 (Utah
    1985). Proving the amount of damages does not require
    ‚absolute precision.‛ Price–Orem, 
    784 P.2d at 478
    . Instead, ‚*t+he
    certainty requirement is met as to the amount of lost profits if
    there is sufficient evidence to enable the trier of fact to make a
    reasonable approximation.‛ Cook Assocs., Inc. v. Warnick, 
    664 P.2d 1161
    , 1167 (Utah 1983). But ‚*w+hat constitutes such an
    approximation will vary with the circumstances. Greater
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    accuracy is required in cases where highly probative evidence is
    easy to obtain than in cases where such evidence is unavailable.‛
    
    Id. ¶27
     In this case, Francis provided sufficient evidence for a jury
    to reasonably conclude that DME failed to pay him commissions
    that were part of his compensation structure. For instance,
    though DME denied it, Francis testified that DME had agreed to
    pay him a commission of 4% of the Salt Lake branch’s net profits
    (excluding oxygen sales) and that the company then had refused
    to pay him all the commissions that he was owed. And Francis
    also provided a W-2 form showing that DME had made an
    additional payment beyond what Francis was owed in salary
    during that period. Although DME had no explanation for the
    discrepancy, Francis testified that the additional payment was a
    portion of the commissions he was owed and that it was paid to
    him in order to get his truck repaired. Thus, there was sufficient
    evidence before the jury for it to conclude that there was a
    ‚reasonable probability‛ that DME had breached its
    employment contract with Francis and that Francis had suffered
    damages as a result of that breach. See Atkin Wright & Miles, 709
    P.2d at 336.
    ¶28 We are not persuaded, however, that Francis put on
    evidence sufficient to sustain a damages award of $24,000.
    Though ‚*t+he amount of damages may be based upon
    approximations,‛ those approximations must be ‚based upon
    reasonable assumptions or projections.‛ Price–Orem, 
    784 P.2d at 479
     (alteration in original) (citation and internal quotation marks
    omitted). And a reasonable approximation in this case requires
    some ‚*g+reater accuracy‛ because ‚highly probative evidence
    *of the amount of damages+ is easy to obtain.‛ Cook Assocs., 664
    P.2d at 1167. This is because unlike cases such as Price–Orem,
    where the plaintiff claimed damages based on the loss of
    unrealized (and unrealizable) future events, Francis claimed loss
    of commissions owed for profits already made, a matter much
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    more susceptible to historic analysis. As a consequence,
    something more tangible in the way of ‚approximation‛ was
    both required and available in this case than what Francis
    presented. See Cook Assocs., 664 P.2d at 1167.
    ¶29 Francis failed to provide the evidence necessary to
    support the $24,000 award. Although he worked for DME for
    about one year, he provided specific testimony only about the
    first quarter of his employment at DME, stating that DME had
    acknowledged owing him $15,000 in commissions for that
    period. And despite his claim that DME’s agreement was to pay
    him commissions in the amount of 4% of the Salt Lake branch’s
    net profits less oxygen sales, he provided no direct evidence of
    those profits for the subsequent three quarters of the year that he
    managed that branch or the amount of commission he should
    have earned in that period. Francis offers no explanation for why
    specific information about the net profits earned by his branch
    would not have been available, either from his own personal
    knowledge as branch manager or from sources within DME
    itself.
    ¶30 Francis contends, however, that the $24,000 damages
    award is nevertheless supported by the evidence under the
    extrapolation theory the trial court allowed him to argue to the
    jury in closing. Francis urged the jury to infer the amount of
    commissions DME owed him by extrapolating his first quarter
    commissions ($15,000) over the entire year, based on DME
    testimony that profits and sales for the company as a whole had
    remained steady during the relevant time frame. According to
    Francis, using this method, the jury could reasonably have
    concluded that he would have earned $60,000 in commissions
    during the entire year. And because this theory supported a
    higher award, a $24,000 damages award was justified. Indeed,
    Francis contends, the $24,000 award is appropriate because
    $24,000 is exactly 4% of the company’s net sales of $600,000. But
    even viewing the evidence in the light most favorable to Francis,
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    the evidence simply does not support Francis’s claim that he
    could be imputed the $24,000 awarded, much less the $60,000 he
    argued could have been awarded. See Wilson Supply, Inc. v.
    Fradan Mfg. Corp., 
    2002 UT 94
    , ¶ 21, 
    54 P.3d 1177
     (explaining that
    when considering a claim that the evidence is insufficient,
    appellate courts must view the evidence in a light most favorable
    to the verdict).
    ¶31 Although the evidence favorable to Francis demonstrated
    that he had earned $15,000 in commissions for the first quarter
    and that DME’s sales had remained steady throughout the year,
    the jury could not reasonably have extrapolated from this that
    Francis would have earned the same amount in commissions for
    the remaining three quarters, or $60,000 for the year. Francis’s
    employment agreement entitled him to commissions equal to 4%
    of the Salt Lake branch’s net profits, excluding profits from sales
    of oxygen. Using the $600,000 net-profits figure presented at trial
    and even if that entire amount came from the Salt Lake branch
    (and none of it was from sales of oxygen), a $60,000 commission
    would be equivalent to 10% of those profits, a percentage well
    above the 4% maximum allowed by contract. As a result, the
    evidence does not support a straight-line extrapolation of his
    $15,000 first-quarter commission through the rest of the year.
    ¶32 As we noted, Francis argues that $24,000 is a particularly
    appropriate award because it is precisely 4% of DME’s entire
    profits. But for Francis to be entitled to receive $24,000 in
    commissions, he would have had to put on evidence to show
    that the Salt Lake branch generated all company profits and
    none of those profits came from oxygen sales. In the absence of
    evidence of this sort, the jury simply could not have assumed
    that DME’s entire annual profit was attributable to the sole
    source of revenue that benefitted Francis. See Price–Orem
    Investment Co. v. Rollins, Brown & Gunnell, Inc., 
    784 P.2d 475
    , 478
    (Utah Ct. App. 1989) (recognizing that the plaintiff bears the
    burden of proving damages). Consequently, Francis’s damages
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    Francis v. National DME
    must be limited to actual damages demonstrated at trial. In this
    regard, although Francis testified that his first quarter
    commissions amounted to $15,000, he conceded that DME had
    already paid him $5,300 and that the balance owed for the first
    quarter was therefore $9,700. Accordingly, we reduce the
    judgment to $9,700, the amount actually proved at trial.3
    B.    The Trial Court Did Not Abuse Its Discretion in Excluding
    Evidence Regarding the Circumstances of Francis’s
    Termination from DME.
    ¶33 DME next argues that the trial court erred when it
    excluded evidence of the circumstances surrounding DME’s
    termination of Francis’s employment. Specifically, DME argues
    that the evidence should have been admitted because without it,
    the jury would have been left to speculate about the reasons for
    Francis’s termination, which may have resulted in prejudice to
    DME if the jury assumed that Francis ‚was the victim of a
    greedy employer interested in maximizing its profits at the
    expense of its employees.‛ DME further argues that the evidence
    would have allowed it to argue that Francis had a motive to
    retaliate against DME and that it was also probative of Francis’s
    character for truthfulness. We disagree.
    3. DME also argues that it was prejudiced by the trial court’s
    decision to alter its ruling with respect to the damages issue.
    Specifically, DME argues that it relied on the trial court’s first
    ruling, which appeared to cap Francis’s damages at $9,700, and,
    as a consequence, withheld evidence during its case-in-chief that
    would have rebutted the extrapolation theory that the court
    subsequently allowed Francis to present to the jury during
    closing arguments. Because we have reduced the judgment to
    $9,700 on DME’s insufficient evidence argument, we need not
    reach DME’s prejudice argument.
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    ¶34 Rule 403 of the Utah Rules of Evidence provides that
    ‚*t+he court may exclude relevant evidence if its probative value
    is substantially outweighed by a danger of one or more of the
    following: unfair prejudice, confusing the issues, misleading the
    jury, undue delay, wasting time, or needlessly presenting
    cumulative evidence.‛4 In interpreting this rule, we have held
    that ‚the trial court is granted broad discretion when weighing
    the probative value of evidence against the reasons for exclusion
    enumerated in rule 403.‛ Glacier Land Co. v. Claudia Klawe &
    Assocs., LLC, 
    2006 UT App 516
    , ¶ 24, 
    154 P.3d 852
    . Such
    discretion is appropriate because ‚the trial court is in the best
    position to make evidentiary rulings as they arise because it can
    review, among other things, the claims and the evidence already
    admitted or proffered.‛ 
    Id. ¶35
     Here, the trial court determined that the evidence
    concerning the circumstances of Francis’s termination was both
    irrelevant and unfairly prejudicial. Such a determination is well
    within the court’s discretion. This is not a wrongful termination
    claim where the particular circumstances supporting termination
    might be pertinent to the outcome; rather, the issue is whether
    Francis was in fact entitled to commission payments for the
    work that he performed while he was actually employed.
    Furthermore, as the trial court noted, the circumstances of the
    termination have no bearing on Francis’s character for
    truthfulness. It is ‚too far of a stretch‛ to argue that Francis’s
    behavior equates to dishonesty. Finally, we are not persuaded
    that this evidence was necessary to prevent the jury from
    imputing evil motives to DME. Accordingly, we conclude that
    4. Because changes made to the Utah Rules of Evidence since the
    time this lawsuit was filed are stylistic only, we cite the current
    version of the rules throughout this opinion as a courtesy to the
    reader.
    20120605-CA                    15               
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    Francis v. National DME
    the trial court did not exceed its discretion when it excluded this
    evidence.
    C.    The Trial Court’s Interpretation of Section 34-27-1 of the
    Utah Code Was Correct, but Because Francis’s Judgment Is
    Less than His Demand, He Is Not Entitled to Attorney
    Fees.
    ¶36 DME’s next argument is that the trial court erred in
    awarding Francis the attorney fees he incurred in pursuing his
    claim for wages. Francis requested fees under section 34-27-1,
    which reads as follows:
    Whenever a mechanic, artisan, miner, laborer,
    servant, or other employee shall have cause to
    bring suit for wages earned and due according to
    the terms of his employment and shall establish by
    the decision of the court that the amount for which
    he has brought suit is justly due, and that a
    demand has been made in writing at least fifteen
    days before suit was brought for a sum not to
    exceed the amount so found due, then it shall be
    the duty of the court before which the case shall be
    tried to allow to the plaintiff a reasonable attorneys’
    fee in addition to the amount found due for wages,
    to be taxed as costs of suit.
    Utah Code Ann. § 34-27-1 (LexisNexis 2011).5 DME argues that
    Francis’s claim must fail because he failed to make a written
    demand for his wages at least fifteen days prior to filing suit. We
    need not resolve this specific claim because we conclude that
    Francis’s claim fails on a different ground.
    5. Because the current versions of the statutes cited in this
    opinion do not differ from the versions in effect at the time of
    trial, we cite the current versions as a courtesy to the reader.
    20120605-CA                    16                
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    Francis v. National DME
    ¶37 In order to recover attorney fees under section 34-27-1, an
    employee must make a demand for unpaid wages ‚in writing at
    least fifteen days before suit was brought for a sum not to exceed
    the amount‛ that is later established by the court to be ‚justly
    due.‛ 
    Id.
     (emphasis added). Neither party contends that this
    language is ambiguous. Thus, ‚we look to the plain meaning of
    [the] unambiguous statutory language.‛ Pickett v. Utah Dep’t of
    Commerce, 
    858 P.2d 187
    , 191 (Utah Ct. App. 1993). ‚And [w]hen
    discerning the plain meaning of the statute, terms that are used
    in common, daily, nontechnical speech, should, in the absence of
    evidence of a contrary intent, be given the meaning which they
    have for laymen in such daily usage.‛ Francis v. State, 
    2013 UT 65
    , ¶ 41, 
    321 P.3d 1089
     (alteration in original) (citation and
    internal quotation marks omitted). Using this plain meaning
    approach, we conclude that section 34-27-1 requires a demand
    for unpaid wages not to exceed the ultimate judgment. In other
    words, recovery of attorney fees is authorized only when the
    employee has obtained a judgment in an amount equivalent to
    or higher than the amount he or she sought to recover.
    ¶38 Francis sent DME a letter on April 6, 2005, claiming that
    DME owed him ‚approximately $15,000 in commissions . . . for
    sales he made while still employed with the company.‛ For
    purposes of appeal, we will assume without deciding that this
    letter constitutes a written demand for unpaid wages that
    complies with section 34-27-1. But because Francis’s ‚demand‛
    letter sought $15,000 and he has recovered just $9,700, he has
    failed to meet the statute’s requirement that his demand be in ‚a
    sum not to exceed the amount so found *to be+ due.‛ See Utah
    Code Ann. § 34-27-1. Thus, we vacate the award of attorney fees.
    D.    DME Has Not Shown the Trial Court Erred in Applying
    Section 15-1-1 of the Utah Code.
    ¶39 DME’s final argument is that the trial court erred in
    awarding Francis prejudgment interest at the rate set in Utah
    Code section 15-1-1. That statute provides that ‚*u+nless parties
    20120605-CA                    17              
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    Francis v. National DME
    to a lawful contract specify a different rate of interest, the legal
    rate of interest for the loan or forbearance of any money, goods,
    or chose in action shall be 10% per annum.‛ Utah Code Ann.
    § 15-1-1(2) (LexisNexis 2013).
    ¶40 The parties offer competing interpretations of this statute.
    DME argues that because this case does not concern a ‚loan or
    forbearance,‛ the statute does not apply. In other words, DME
    claims that the ‚money, goods, or chose in action‛ clause is
    simply a list of the types of loans or forbearances that fall under
    this statute. In support of this interpretation, DME points to a
    footnote in Consolidation Coal Co. v. Utah Division of State Lands &
    Forestry, 
    886 P.2d 514
     (Utah 1994), abrogated on other grounds by
    State ex rel. School & Inst. Trust Land Admin. v. Mathis, 
    2009 UT 85
    ,
    
    223 P.3d 1119
    , where Chief Justice Zimmerman expressed, in
    dicta and individually rather than as part of the panel, ‚serious
    reservations‛ about precedent that ‚purports to tie prejudgment
    interest rates in all contract cases to the section 15-1-1 rate in
    effect at the time the contract was signed.‛ 
    Id. at 524 n.13
    . Chief
    Justice Zimmerman stated that, in his view, the plain language
    of the statute ‚seems to indicate that the section was intended to
    apply only to a ‘loan or forbearance’ of ‘money, goods or chose
    in action’‛ and noted the subject of Consolidation Coal was ‚the
    sale of mineral rights, not a loan or forbearance.‛ 
    Id.
     (citation
    omitted); see also Wilcox v. Anchor Wate Co., 
    2007 UT 39
    , ¶ 45, 
    164 P.3d 353
     (acknowledging that Consolidation Coal implied in dicta
    that section 15-1-1 ‚does not necessarily even apply in all
    contract cases‛). DME argues that, as in Consolidation Coal, this
    case also does not include a ‚loan or forbearance‛ and so a rate
    of interest other than the 10% rate provided in section 15-1-1
    should apply. Specifically, it advocates for application of a 3.28%
    interest rate because that was ‚the post judgment rate of interest
    for 2004, which is the year that National DME failed to pay
    commissions to Mr. Francis.‛
    20120605-CA                     18               
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    Francis v. National DME
    ¶41 Francis, on the other hand, asserts that section 15-1-1
    applies generally to all choses in action and that the absence of a
    ‚loan or forbearance‛ does not matter. He points us to Sundial
    Inc. v. Villages at Wolf Hollow Condominium Homeowner’s Ass’n,
    Inc., 
    2013 UT App 223
    , 
    310 P.3d 1233
    . In that case, the court
    quoted section 15-1-1 with the following alterations: ‚‘*T]he legal
    rate of [prejudgment] interest for . . . any . . . chose in action shall
    be 10% per annum.’‛ 
    Id. ¶ 8
    . This recitation of the statute implies
    that choses of action qualify for the statutory rate regardless of
    whether a loan or forbearance is involved and that ‚loan or
    forbearance‛ applies only to the word ‚money.‛ See 
    id.
     Though
    the question before us now was not before those courts, section
    15-1-1 has been applied in other cases involving a chose in action
    instead of a loan or forbearance. See, e.g., Encon Utah, LLC v. Fluor
    Ames Kraemer, LLC, 
    2009 UT 7
    , ¶¶ 50–55 & n.20, 
    210 P.3d 263
    (affirming the trial court’s application of section 15-1-1 to a
    breach of contract claim); Mont Trucking, Inc. v. Entrada Indus.,
    Inc., 
    802 P.2d 779
    , 782 (Utah Ct. App. 1990) (same); Fitzgerald v.
    Critchfield, 
    744 P.2d 301
    , 304 (Utah Ct. App. 1987) (same).
    ¶42 A third possible interpretation of section 15-1-1 reveals
    itself in Judge Bench’s separate opinion on the prejudgment
    interest issue in Consolidation Coal. See 886 P.2d at 529 n.1 (Bench,
    J., concurring and dissenting). In response to Chief Justice
    Zimmerman’s concern that section 15-1-1 does not apply to all
    contract claims, Judge Bench reasoned that ‚*p+rejudgment
    interest is designed to compensate the nonbreaching party that
    finds itself, by virtue of the breach, in the position of loaning
    money or forbearing what is owed by the breaching party.‛ Id.
    (emphasis added). And ‚because of the underpayment of
    royalties by [one party], the [responding party] found itself in
    the position of loaning or forbearing money it was owed.‛ Id.
    Judge Bench’s interpretation of ‚loan or forbearance‛ to include
    the natural result of withholding by one party of funds it legally
    owes to another seems to find support in the general policy
    underlying the concept of prejudgment interest. See, e.g., Trail
    20120605-CA                       19                
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    Francis v. National DME
    Mountain Coal Co. v. Utah Div. of State Lands & Forestry, 
    921 P.2d 1365
    , 1370 (Utah 1996) (‚As a matter of public policy, an award
    of prejudgment interest simply serves to compensate a party for
    the depreciating value of the amount owed over time and, as a
    corollary, deters parties from intentionally withholding an
    amount that is liquidated and owing.‛); see also L & A Drywall,
    Inc. v. Whitmore Constr. Co., 
    608 P.2d 626
    , 629 (Utah 1980) (stating
    that prejudgment interest ‚represents an amount awarded as
    damages due‛ to a party’s failure or delay in paying the amount
    owed under a contract).
    ¶43 The question of whether an action must specifically be a
    ‚loan or forbearance‛ was not at issue in either Consolidation Coal
    or Sundial. See Consolidation Coal, 886 P.2d at 524 n.13; Sundial,
    
    2013 UT App 223
    , ¶¶ 7–10. Indeed, Chief Justice Zimmerman
    noted in Consolidation Coal that ‚because *the responding party+
    has failed to raise this issue and its resolution is not necessary for
    a disposition of this case, we decline to address it.‛ 886 P.2d at
    524 n.13. We have found no case that squarely addresses the
    correct interpretation of the phrase ‚loan or forbearance of any
    money, goods, or chose in action.‛ See Utah Code Ann.
    § 15-1-1(2).
    ¶44 Normally, ‚*w+hen interpreting statutory language, we
    first examine the statute’s plain language and resort to other
    methods of statutory interpretation only if the language is
    ambiguous.‛ State v. Masciantonio, 
    850 P.2d 492
    , 493 (Utah Ct.
    App. 1993). Here, the fact that varying interpretations exist in
    other cases suggests that interpreting this statute requires a more
    complex analysis on our part than DME’s sparse briefing seems
    to justify. DME references only two authorities in support of its
    position—Chief Justice Zimmerman’s individual footnote in
    Consolidation Coal, 886 P.2d at 524 n.13, and a case that merely
    recognizes the possibility that all contracts might not be
    governed by section 15-1-1, see Wilcox, 
    2007 UT 39
    , ¶ 45. DME
    fails to engage with the authority raised by Francis and does not
    20120605-CA                      20               
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    Francis v. National DME
    acknowledge any of the other ways in which this statute has
    been applied or interpreted. We conclude that DME’s analysis is
    simply not sufficient to convince us that the trial court erred
    when it applied section 15-1-1 in accordance with at least one of
    the interpretations of that statute available to it, and we have not
    been placed in a position to adequately address the issue of
    interpretation on the case before us. See Nebeker v. Summit
    County, 
    2014 UT App 244
    , ¶ 27, 
    338 P.3d 203
     (‚Even if a careful
    analysis of [pertinent case law] might convince us that the facts
    of this case mandate one result or the other, we will not conduct
    that analysis on a party’s behalf.‛ (citation and internal
    quotation marks omitted)). Accordingly, we affirm the trial
    court’s application of the 10% interest rate established in section
    15-1-1.
    II. Francis’s Cross-Appeal
    ¶45 We now turn to the two issues raised by Francis in his
    cross-appeal. First, he argues that the trial court erred in
    granting DME’s motion for a directed verdict with respect to his
    intentional interference with economic relations claim (the
    interference claim). Second, Francis argues that the court should
    have allowed him to testify to the contents of a voicemail
    message he says he received from his BSN supervisor about the
    reason BSN let him go.
    A.     The Trial Court Erred in Entering a Directed Verdict on
    Francis’s Interference Claim.
    ¶46 Francis asserts that he introduced enough evidence to
    support a verdict in his favor on the interference claim and that
    therefore it ought to have been submitted to the jury. We agree.
    ¶47 Our supreme court has explained that ‚*a+ trial court is
    justified in granting a directed verdict only if, examining all
    evidence in a light most favorable to the non-moving party,
    there is no competent evidence that would support a verdict in
    20120605-CA                     21               
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    Francis v. National DME
    the non-moving party’s favor.‛ Merino v. Albertsons, Inc., 
    1999 UT 14
    , ¶ 3, 
    975 P.2d 467
    . Thus, we will affirm the trial court’s
    grant of DME’s motion for a directed verdict on the interference
    claim only if there was ‚no competent evidence that would
    support a verdict‛ in Francis’s favor. See 
    id.
     Because we conclude
    that there was competent evidence that could have supported a
    verdict for Francis on the interference claim, we reverse.
    ¶48 In order to recover for intentional interference with
    economic relations, one of the elements the plaintiff must prove
    is that the defendant ‚caus[ed] injury to the plaintiff.‛ Eldridge v.
    Johndrow, 
    2015 UT 21
    , ¶ 13, 
    345 P.3d 553
     (citation and internal
    quotation marks omitted). The trial court granted DME’s motion
    because it concluded that Francis had failed to present sufficient
    evidence regarding causation. That is, it did not believe that
    Francis had presented evidence regarding the causal link
    between the communications between BSN and DME regarding
    the alleged noncompete agreement and Francis’s termination
    from BSN.
    ¶49 Our supreme court has indicated that an interference
    claim requires proof of ‚proximate cause.‛ Pratt v. Prodata, Inc.,
    
    885 P.2d 786
    , 789 (Utah 1994), overruled on other grounds by
    Eldridge, 
    2015 UT 21
    . Generally, ‚the question of proximate cause
    raises an issue of fact to be submitted to the jury for its
    determination.‛ Harline v. Barker, 
    912 P.2d 433
    , 439 (Utah 1996)
    (citation and internal quotation marks omitted). Proximate cause
    is defined as ‚that cause which, in natural and continuous
    sequence[] (unbroken by an efficient intervening cause),
    produces the injury and without which the result would not
    have occurred. It is the efficient cause—the one that necessarily
    sets in operation the factors that accomplish the injury.‛ 
    Id.
    (alteration in original) (citation and internal quotation marks
    omitted). And the court has held that proximate cause may be
    demonstrated by circumstantial evidence: ‚Jurors may not
    speculate as to possibilities; they may, however, make justifiable
    20120605-CA                     22               
    2015 UT App 119
    Francis v. National DME
    inferences from circumstantial evidence to find negligence or
    proximate cause.‛ Lindsay v. Gibbons & Reed, 
    497 P.2d 28
    , 31
    (Utah 1972).
    ¶50 In Harding v. Atlas Title Insurance Agency, Inc., 
    2012 UT App 236
    , 
    285 P.3d 1260
    , we discussed the issue of using
    circumstantial evidence (i.e., inferences) to show proximate
    cause. 
    Id. ¶¶ 7
    –8. In that case, we observed that
    [w]hile it is sometimes subtle, there is in fact a
    difference between drawing a reasonable inference
    and merely speculating about possibilities. [A]n
    inference is a deduction as to the existence of a fact
    which human experience teaches us can reasonably
    and logically be drawn from proof of other facts.
    On the other hand, speculation is defined as the act
    or practice of theorizing about matters over which
    there is no certain knowledge. The difference lies in
    the existence of underlying facts supporting the
    conclusion. In the case of a reasonable inference,
    there is at least a foundation in the evidence upon
    which the ultimate conclusion is based; in the case
    of speculation, there is no underlying evidence to
    support the conclusion. Thus, so long as there
    exists sufficient evidence upon which a reasonable
    inference regarding proximate cause may be drawn,
    summary judgment is inappropriate.
    
    Id. ¶ 7
     (second alteration in original) (emphasis added) (citations
    and internal quotation marks omitted).
    ¶51 In this case, when the evidence is viewed in a light most
    favorable to Francis, there was ‚at least a foundation in the
    evidence upon which the ultimate conclusion‛ of proximate
    cause could have been based. See 
    id.
     DME sent a letter to Francis
    on June 17, 2004, threatening to sue to enforce an alleged
    noncompete agreement if Francis did not leave his employment
    20120605-CA                    23               
    2015 UT App 119
    Francis v. National DME
    at BSN. DME also sent a copy of the letter to BSN. BSN was
    concerned enough to then question Francis about the alleged
    noncompete. But Francis’s assurances that he had never signed a
    noncompete agreement with DME were apparently insufficient
    to allay BSN’s concerns, as the company wrote directly to DME
    on July 14, 2004, in order to ‚coordinate . . . regarding Mr.
    Francis’[s] status and obligations.‛ DME never responded to this
    letter, and the next written communication Francis received from
    BSN was the termination email dated August 12, 2004.
    ¶52 Thus, BSN terminated Francis just two months after it
    received notice that DME was threatening legal action against
    Francis for violation of a noncompete agreement precipitated by
    BSN’s hiring him. In addition, BSN had also been concerned
    enough to approach both Francis and DME to discuss the
    noncompete agreement and its implications for the relationship
    between BSN and Francis. The discussion with Francis failed to
    resolve BSN’s concerns, and the lack of any response from DME
    could not have been reassuring. We believe that the jury
    reasonably could have inferred from this evidence that the
    alleged noncompete agreement was the proximate cause of
    BSN’s decision to terminate Francis. Although alternative
    explanations are possible, ‚*a+ directed verdict is only
    appropriate when the court is able to conclude, as a matter of
    law, that reasonable minds would not differ on the facts to be
    determined from the evidence presented.‛ Management Comm. of
    Graystone Pines Homeowners Ass'n v. Graystone Pines, Inc., 
    652 P.2d 896
    , 897–98 (Utah 1982). As we have discussed, that is not
    the case here: the inferences that could reasonably have been
    drawn from the evidence presented at trial were sufficient to
    raise an issue of fact as to whether DME’s actions caused BSN to
    terminate Francis. Accordingly, a directed verdict was
    inappropriate. Cf. Kerr v. City of Salt Lake, 
    2013 UT 75
    , ¶ 38, 
    322 P.3d 669
     (‚We uphold a trial court’s denial of a directed verdict
    if the evidence at trial raised a question of material fact which
    precluded judgment as a matter of law.‛ (citation and internal
    20120605-CA                    24               
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    Francis v. National DME
    quotation marks omitted)). We therefore reverse the trial court’s
    grant of a directed verdict on the interference claim and remand
    this case for further proceedings consistent with this decision. 6
    B.     The Trial Court Correctly Determined that Evidence
    Regarding the Voicemail Was Inadmissible Hearsay.
    ¶53 Francis sought to testify at trial about the contents of a
    voicemail message he received from his BSN supervisor
    concerning the circumstances of his termination. According to
    Francis, his supervisor told him in a voicemail that ‚because
    we’re going to an employee/employer relationship, human
    resources feels like the noncompete agreement precludes my
    being able to keep you on in your territory‛ and that ‚he had
    sent *Francis+ a letter of release.‛ (Emphasis omitted.) DME filed
    a motion in limine to exclude Francis’s testimony because it was
    hearsay. The trial court agreed. Francis argues that the trial court
    abused its discretion in ruling that his testimony regarding the
    voicemail’s content was inadmissible hearsay. He argues this
    error was prejudicial because the evidence was ‚material to the
    issue of causation‛ in that it tied his firing to DME’s actions with
    respect to the alleged noncompete agreement. In the alternative,
    Francis argues that even if his testimony was hearsay, it was
    admissible under the state of mind exception to the hearsay rule.
    See Utah R. Evid. 803(3). As this issue might arise again on
    remand, we address it in order to provide the trial court with
    some guidance.
    ¶54 The Utah Rules of Evidence define ‚hearsay‛ as ‚a
    statement that: (1) the declarant does not make while testifying
    at the current trial or hearing; and (2) a party offers in evidence
    6. Because we conclude that DME’s motion for a directed verdict
    was granted in error, we need not address Francis’s argument
    that the trial court also erred when it later refused to reconsider
    its decision to grant the motion.
    20120605-CA                     25               
    2015 UT App 119
    Francis v. National DME
    to prove the truth of the matter asserted in the statement.‛ Utah
    R. Evid. 801(c). Hearsay evidence is generally inadmissible
    unless an exception applies. 
    Id.
     R. 802; 
    id.
     R. 803 (identifying
    hearsay exceptions).
    ¶55 We agree with DME that the proffered statements
    constitute hearsay. Francis contends the statements are not
    hearsay because he was not offering the contents of the
    voicemail to prove that a non-compete agreement existed, but to
    provide a ‚context *for+ the termination,‛ i.e., ‚to show that BSN
    had knowledge of a non-compete agreement.‛ But his proposed
    use of the evidence goes beyond that; he argues that the
    statements aid in ‚understanding . . . the reason for his
    termination,‛ in particular that ‚BSN connected the noncompete
    to its [dis]continuation of Mr. Francis’s contract.‛ Thus, it is
    apparent that Francis offered the voicemail statements for their
    truth. Accordingly, we conclude the trial court did not err in
    concluding that the testimony, as presented, was ‚being offered
    to prove exactly what’s contained therein*,+ [t]hat [BSN]
    terminated him because [it was] told that he was subject to a
    noncompete clause.‛ In short, the court properly classified
    Francis’s proposed testimony as hearsay because, according to
    Francis himself, the voicemail statements would only be relevant
    if offered to prove the truth of the matter asserted in the
    statement—that Francis was fired by BSN because of DME’s
    assertions that Francis’s employment with BSN violated a
    noncompete agreement between DME and Francis.
    ¶56 Francis claims in the alternative that his testimony about
    the voicemail should have been admitted under the state of
    mind exception to the hearsay rule. The state of mind exception
    is described in rule 803 as a ‚statement of the declarant’s then-
    existing state of mind . . . or emotional, sensory, or physical
    condition . . . but not including a statement of memory or belief
    to prove the fact remembered or believed unless it relates to the
    validity or terms of the declarant’s will.‛ Utah R. Evid. 803(3). To
    20120605-CA                     26               
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    Francis v. National DME
    fall within the state of mind exception, a statement must be
    ‚expressly assertive of the present state of mind or bodily
    condition . . . of the declarant.‛ R. Collin Mangrum & Dee
    Benson, Mangrum & Benson on Utah Evidence 768 (2013–14). Such
    a statement is admissible if
    (i) the statement was made under circumstances
    that indicate its reliability and (ii) it is relevant to
    show intent, plan, motive, design, malice, or ill will
    when the defendant’s state of mind is an issue in
    the case or (iii) it is relevant to prove or explain acts
    or conduct of the defendant.
    
    Id. at 783
     (citation and internal quotation marks omitted); see also
    State v. Dibello, 
    780 P.2d 1221
    , 1225, 1228 (Utah 1989) (allowing
    testimony that an alleged murderer threatened to kill the victim
    if she ever left him because a jury could infer the defendant’s
    intent from his threats).
    ¶57 And if a statement is ‚offered to prove conduct, then the
    statement . . . must relate to the intent (rather than memory) of
    the declarant‛ to commit an act in the future rather than a past
    act. R. Collin Mangrum & Dee Benson, Mangrum & Benson on
    Utah Evidence 783–84, 788 (2013–14); see also Shepard v. United
    States, 
    290 U.S. 96
    , 98, 103, 106 (1933) (holding a victim’s
    statement inadmissible under this exception because the
    statement ‚faced backward and not forward‛ and ‚spoke to a
    past act‛); Mutual Life Ins. Co. v. Hillmon, 
    145 U.S. 285
    , 295–96
    (1892) (allowing hearsay evidence under the state of mind
    exception because the evidence showed the future intentions of a
    potential victim). In other words, hearsay statements
    demonstrating future intent are admissible under this exception
    but statements explaining past actions are not.
    ¶58 Francis argues that his statements about the voicemail fit
    into the state of mind exception because they show the
    ‚motivation and state of mind‛ behind BSN’s decision to
    20120605-CA                      27                
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    Francis v. National DME
    terminate his employment contract. However, the trial court
    correctly determined that the state of mind exception does not
    apply here because the voicemail stated the motivation for a past
    action rather than a present state of mind or an intended future
    act. Indeed, Francis’s proffer explicitly stated that the supervisor
    had already sent Francis the termination letter. Because the
    supervisor’s call came after BSN had sent the termination letter,
    the trial court could reasonably have concluded that BSN had
    already made the decision to terminate Francis’s employment
    before the voicemail and that the statements were therefore
    about BSN’s motivation for a past action rather than a present or
    future intention.
    ¶59 We conclude it was thus within the trial court’s discretion
    to decide that the contents of the voicemail related to conduct
    that had already occurred, as opposed to a ‚statement of the
    declarant’s then-existing state of mind,‛ and that, accordingly,
    the proffered statement did not fall within the state of mind
    exception to the hearsay rule. See Utah R. Evid. 803(3). As the
    circumstances under which this evidence might be offered might
    differ on remand, however, nothing in our analysis here is meant
    to restrict the trial court’s evaluation of the issue when faced
    with it anew.
    III. Attorney Fees on Appeal
    ¶60 The final matter before us is Francis’s request for attorney
    fees incurred in this appeal. ‚A party who is awarded fees below
    and prevails on appeal is entitled to recover its attorney fees
    reasonably incurred on appeal.‛ Osmond Lane Homeowners Ass'n
    v. Landrith, 
    2013 UT App 20
    , ¶ 33, 
    295 P.3d 704
    . Here, the trial
    court determined that Francis was entitled to attorney fees for
    his unpaid wage claim pursuant to section 34-27-1 of the Utah
    Code. However, because we have concluded that the trial court’s
    award of fees on Francis’s wage claim must be vacated, see supra
    ¶ 38, there is no longer a basis for an award of fees on appeal. See
    Osmond Lane, 
    2013 UT App 20
    , ¶ 33.
    20120605-CA                     28                
    2015 UT App 119
    Francis v. National DME
    CONCLUSION
    ¶61 The trial court acted within its discretion when it excluded
    evidence regarding the circumstances of DME’s termination of
    Francis’s employment. The trial court also acted within its
    discretion when it excluded as inadmissible hearsay Francis’s
    testimony regarding the contents of the voicemail he received
    from his BSN supervisor. And we affirm the trial court’s
    application of the interest rate set forth in section 15-1-1.
    ¶62 We conclude, however, that the trial court erred when it
    denied DME’s motion to reduce the $24,000 judgment for past
    commissions, and we order the amount of that judgment
    reduced to $9,700. The trial court also erred in its interpretation
    and application of section 34-27-1. We therefore vacate the
    award of attorney fees. We further conclude that the trial court
    erred when it granted DME’s motion for a directed verdict with
    respect to Francis’s interference claim. Accordingly, we reverse
    and remand for further appropriate proceedings on that claim
    for relief.
    20120605-CA                    29               
    2015 UT App 119
                                

Document Info

Docket Number: 20120605-CA

Citation Numbers: 2015 UT App 119, 350 P.3d 615, 786 Utah Adv. Rep. 6, 2015 Utah App. LEXIS 118, 2015 WL 2125287

Judges: Roth, Davis, Bench

Filed Date: 5/7/2015

Precedential Status: Precedential

Modified Date: 11/13/2024

Authorities (17)

STATE EX REL. SCHOOL & INST. TRUST LAND ADMN. v. Mathis , 223 P.3d 1119 ( 2009 )

Shepard v. United States , 54 S. Ct. 22 ( 1933 )

Mutual Life Insurance v. Hillmon , 12 S. Ct. 909 ( 1892 )

Fitzgerald v. Critchfield , 67 Utah Adv. Rep. 15 ( 1987 )

Francis v. State, Utah Division of Wildlife Resources , 321 P.3d 1089 ( 2013 )

Smith v. Fairfax Realty, Inc. , 483 Utah Adv. Rep. 15 ( 2003 )

Encon Utah, LLC v. Fluor Ames Kraemer, LLC , 622 Utah Adv. Rep. 23 ( 2009 )

Glacier Land Co. v. Claudia Klawe & Associates, L.L.C. , 2006 Utah App. LEXIS 566 ( 2006 )

State v. Steed , 2014 Utah LEXIS 70 ( 2014 )

Merino v. Albertsons, Inc. , 363 Utah Adv. Rep. 8 ( 1999 )

Price-Orem Investment Co. v. Rollins, Brown & Gunnell, Inc. , 123 Utah Adv. Rep. 37 ( 1989 )

Wilcox v. Anchor-Wate Co. , 577 Utah Adv. Rep. 19 ( 2007 )

Wilson Supply, Inc. v. Fradan Manufacturing Corp. , 455 Utah Adv. Rep. 64 ( 2002 )

Eldridge v. Johndrow , 2015 Utah LEXIS 67 ( 2015 )

State v. Masciantonio , 210 Utah Adv. Rep. 38 ( 1993 )

Pickett v. Utah Department of Commerce, Division of ... , 218 Utah Adv. Rep. 51 ( 1993 )

Mont Trucking, Inc. v. Entrada Industries, Inc. , 149 Utah Adv. Rep. 57 ( 1990 )

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