Bonnie & Hyde, Inc. v. Lynch
305 P.3d 196
Utah Ct. App.2013Background
- Tenant (Lynch) leased a restaurant from BHI and supplied substantial personal property; he fell behind on rent and property-tax obligations.
- In January 2008 Tenant failed to pay rent, power was shut off for nonpayment, the restaurant was closed with uncleared snow and spoiled food, and Hyde (BHI) changed locks after believing Tenant had abandoned the premises.
- Tenant later told Hyde he was "done with the business," helped search for a new tenant, and did not request return of most personal property for over a year; he removed a few items in March 2008 and was later criminally charged for trespass when entering the premises.
- BHI obtained a prejudgment writ of attachment in April 2008; the writ expired by its own terms ten days after issuance because it was not extended or noticed.
- Tenant filed counterclaims for forcible detainer, wrongful attachment, conversion, and related torts; at trial the court found Tenant abandoned the premises, ruled against Tenant on forcible entry/detainer/eviction claims, but (erroneously) denied conversion/attachment relief.
- On appeal the court affirmed the abandonment finding and the dismissal of forcible entry/detainer/eviction claims, but reversed on conversion/attachment because BHI retained Tenant’s property after the writ expired and remanded for judgment to Tenant for the appraised value (~$1,520), subject to bankruptcy offset.
Issues
| Issue | Plaintiff's Argument (BHI) | Defendant's Argument (Lynch) | Held |
|---|---|---|---|
| Whether Tenant abandoned the premises | Tenant’s conduct (nonpayment, silence, closed business, changed locks) satisfied statutory presumption of abandonment | Tenant had not intended to abandon; prior dealings and attempts to find investors show occupancy intent | Court: statutory presumption applies; factual findings not clearly erroneous — abandonment affirmed |
| Whether BHI committed forcible entry/ wrongful eviction | BHI acted permissibly after abandonment to re-enter and relet | Tenant contends BHI unlawfully changed locks and excluded him | Court: abandonment negates forcible entry/detainer claims — ruled for BHI |
| Whether attachment/writ procedures were defective and created wrongful attachment | Attachment was obtained and property was thus properly in BHI’s possession | Writ was issued without notice and expired after 10 days; Tenant withdrew consent and demanded return; BHI wrongfully retained property | Court: writ expired by its terms; BHI wrongfully retained property after expiry — remand for judgment to Tenant |
| Whether BHI wrongfully converted Tenant’s personal property | Tenant left property by agreement and BHI later attached it, so no conversion | BHI converted property by refusing return after writ expiration and by holding property beyond statutory lien period | Court: conversion/attachment claim meritorious because BHI retained property after expired writ and exceeded lessor’s-lien window — remanded for damages (~$1,520), stayed pending bankruptcy |
Key Cases Cited
- Fibro Trust, Inc. v. Brahman Fin., Inc., 974 P.2d 288 (Utah 1999) (definition and elements of conversion)
- Frisco Joes, Inc. v. Peay, 558 P.2d 1327 (Utah 1977) (landlord–tenant possession and conversion principles)
- Bank of Ephraim v. Davis, 581 P.2d 1001 (Utah 1978) (attachment procedure defects can render attachment void)
- Freeway Park Bldg., Inc. v. Western States Wholesale Supply, 451 P.2d 778 (Utah 1969) (statutory noncompliance with attachment procedure invalidates attachment)
- Citizens Bank v. Elks Bldg., NV, 663 P.2d 56 (Utah 1983) (lessor's statutory lien terminates after statutorily prescribed period)