Justia Landlord - Tenant Opinion Summaries

Articles Posted in Utah Supreme Court
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Weston Bennion was injured when his apartment deck collapsed and subsequently sued his landlord, Dale Stolrow, for negligence. The parties settled, with Bennion agreeing to release Stolrow and his insurer from all claims in exchange for $150,000. The settlement was subject to related subrogation claims and healthcare liens, and Bennion promised to indemnify Stolrow from liability for any such claims and liens. Before making the payment, Stolrow informed Bennion that he intended to distribute the payment in two checks: one payable to Bennion and the other payable to a collection agency that had a healthcare lien on the settlement funds. Bennion objected and filed a motion to enforce the parties’ agreement, arguing that its terms did not allow Stolrow to issue a portion of the settlement funds to a third party.The district court disagreed with Bennion and suggested that Stolrow issue two checks: one jointly to Bennion and the third party for the amount of the lien, and another to Bennion for the remainder of the funds. The court of appeals affirmed the district court’s decision. Bennion then petitioned for certiorari.The Supreme Court of the State of Utah granted certiorari to address whether the court of appeals erred in concluding that the parties’ agreement permitted Stolrow to issue a portion of the settlement funds jointly to Bennion and the third-party collection agency. The court agreed with Bennion, stating that the plain language of the release provides for payment to Bennion in exchange for his release of claims against Stolrow and his assumption of responsibility for third-party liens. Therefore, the court reversed the decision of the lower courts. View "Bennion v. Stolrow" on Justia Law

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The Supreme Court affirmed the judgment of the court of appeals affirming the judgment of the district court finding Yvonne Martin in unlawful detainer and entering a judgment that included a substantial award, holding that the court of appeals did not err.Upon her divorce from Petter Kristensen, the divorce court awarded Yvonne temporary possession of the marital home - which was owned by Petter's father, Frank - during the pendency of the divorce proceedings. After Yvonne filed for divorce Frank served her with a notice to vacate. Yvonne refused to vacate, and Frank filed an unlawful detainer action against her. A jury concluded that Frank was the rightful owner of the property and that Yvonne was guilty of unlawful detainer starting five days after Frank filed the notice to vacate. On appeal, Yvonne argued that the temporary possession order precluded Frank from seeking the remedies available in an unlawful detainer action. The court of appeals affirmed. The Supreme Court affirmed, holding that the possession orders in the divorce proceeding functioned like a temporary possession order in an unlawful detainer proceeding in that they precluded Yvonne's eviction from the property but did not affect the availability of statutory remedies for unlawful detainer. View "Martin v. Kristensen" on Justia Law

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In 2010, the Utah Department of Transportation (UDOT) condemned an access point from Bangerter Highway to the West Point Shopping Center. At the time of the condemnation, the shopping center was owned by FPA West Point, LLC. FPA leased buildings in the shopping center to a number of businesses, including K MART Corporation (Kmart). Both FPA and Kmart entered the condemnation proceedings, asserting rights to just compensation. The first appeal (Utah Department of Transportation v. FPA West Point, LLC) addressed valuation methods in the context of a condemnation award determination. In that case, the Utah Supreme Court held that courts must use the aggregate-of-interests approach (which determines the value of properties with divided ownership interests by assessing the value of each property interest separately) in deciding the amount of a condemnation award. In this appeal the issue presented for the Supreme Court's review centered on whether the district court erred by granting a condemnation award to Kmart, a lessee, even though Kmart’s lease contained a clause terminating its leasehold interest in the event of a condemnation. The Court held that it did: because the termination clause extinguished all of Kmart’s compensable property interests, Kmart was not entitled to compensation. Accordingly, the district court’s grant of a condemnation award to Kmart was reversed. View "UDOT v. Kmart Corp." on Justia Law

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In 2003, a corporation was assigned a lease that permitted a restaurant to operate. Xiao-Yan Cao, the corporation’s president, personally guaranteed the corporation’s performance. In 2006, the lease was assigned to Hong Lin. As part of the assignment, the lease term was extended until 2013. Both Cao and Lin signed the lease extension as guarantors. In 2010, Lin stopped making timely rent payments. Lin and the property’s landlord agreed to a repayment schedule to permit Lin to catch up. In 2013, Lin defaulted on rent payments. The landlord sued both Lin and Cao for a sum representing the last month’s rent and a balance from the month prior. The district court concluded that the 2010 repayment materially modified the contract and discharged Cao’s guaranty. The court of appeals reversed, concluding that extending the period within which a tenant could pay its rent did not materially modify the contract. The Supreme Court affirmed, holding that the court of appeals correctly determined that the 2010 repayment agreement did not materially modify the contract and that Cao was not relieved of her responsibilities as guarantor. View "PC Riverview, LLC v. Cao" on Justia Law