Burningham v. Westgate Resorts, Ltd.
317 P.3d 445
Utah Ct. App.2013Background
- In 2006 Burningham paid an $89,900 (10%) deposit under a REPC to purchase a Park City condo from Westgate; closing did not occur and the parties disputed entitlement to the deposit.
- After negotiations, parties executed a new Agreement in September 2010 reducing the purchase price to $462,500 and identifying the $89,900 as the "Initial Deposit" (due date: "Already deposited").
- The Agreement was integrated, expressly superseded and abrogated the REPC, and included Paragraph 38.1 giving Buyer a unilateral seven‑day termination right; it stated that if Buyer timely terminated under the (mis‑numbered) section the "deposit(s) paid shall be returned to Buyer."
- Burningham timely exercised the seven‑day termination and demanded return of $89,900; Westgate refused, claiming the parties intended the $89,900 to be a nonrefundable credit/forfeited deposit under the prior REPC.
- Burningham sued for return; district court granted summary judgment for Burningham, finding the Agreement unambiguous and entitling him to the refund; Westgate appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Mutual mistake (refund term) | Burningham: Agreement language is clear; no mutual mistake | Westgate: Extrinsic evidence (sales agent decl.) shows both parties intended deposit nonrefundable, so mutual mistake exists | No mutual mistake; sales agent's declaration showed only Westgate's unilateral belief, not Burningham's intent; summary judgment proper |
| Scrivener's error ("this Section 39.1") | Burningham: Typo; paragraph plainly refers to itself and refunds deposit | Westgate: Reference shows drafting error — extrinsic evidence must be considered to correct intent | Not a material issue: no extrinsic evidence that parties intended reference to a different provision; court treated it as obvious typographical error |
| Meeting of the minds (meaning of "deposit(s) paid") | Burningham: Agreement clearly designates $89,900 as Initial Deposit refundable in listed circumstances | Westgate: Parties never agreed that $89,900 was a refundable "deposit paid" rather than an "already deposited" nonrefundable credit | Meeting of the minds found as a matter of law: Agreement unambiguous and controlled; Westgate's contrary belief contradicted written terms |
| Entitlement to summary judgment | Burningham: Unambiguous contract language entitles him to return of $89,900; no triable issues | Westgate: Extrinsic evidence raises triable factual issues on intent, mistake, scrivener's error | Summary judgment affirmed for Burningham; no genuine issue of material fact precluded judgment |
Key Cases Cited
- Wolf Mountain Resorts, LC v. ASC Utah, Inc., 268 P.3d 872 (Utah Ct. App.) (summary judgment improper if factual issue exists about parties' intent)
- West One Trust Co. v. Morrison, 861 P.2d 1058 (Utah Ct. App.) (mutual mistake may permit rescission or reformation of integrated agreements)
- The Cantamar, LLC v. Champagne, 142 P.3d 140 (Utah Ct. App.) (definition of mutual mistake)
- United States Fid. & Guar. Co. v. United States Sports Specialty Ass'n, 270 P.3d 464 (Utah) (meeting of the minds shown by written policy/contract)
- John Call Eng'g, Inc. v. Manti City Corp., 743 P.2d 1205 (Utah) (examining written contract to determine meeting of the minds)
- McCleve Props., LLC v. D. Ray Hult Family Ltd. P'ship, 307 P.3d 650 (Utah Ct. App.) (affidavit of party intent insufficient to create fact question against unambiguous writing)
- Daines v. Vincent, 190 P.3d 1269 (Utah) (interpretation must be reasonably supported by contract language)
- ASC Utah, Inc. v. Wolf Mountain Resorts, LC, 245 P.3d 184 (Utah) (sophisticated parties charged with knowledge of contract terms)
- Robertson's Marine, Inc. v. I4 Solutions, Inc., 223 P.3d 1141 (Utah Ct. App.) (prevailing party awarded appellate attorney fees when previously awarded fees below)
