Deseret First Federal Credit Union v. Parkin
339 P.3d 471
Utah Ct. App.2014Background
- Deseret First Federal Credit Union sued the Wilma G. Parkin Family Protection Trust to quiet title to land; Parkin successor trustee represented by Fadel under contingent fee; Settlement mediation Oct 20, 2011 led to Trust agreeing to sell parcel to Deseret First.
- Fadel attended part of mediation; Trust later replaced him with new counsel Shaffer; stipulation to dismiss with prejudice filed Nov 15, 2011.
- Fadel filed in limine and objections on Trust’s behalf after replacement; Deseret First moved for sanctions against Fadel under rule 11.
- District court dismissed the quiet title suit on Dec 2, 2011; First Ruling noted Fadel was not authorized to file post-replacement pleadings.
- Second Ruling (Aug 1, 2012) sanctioned Fadel under rule 11 and inherent powers, ordering fee-shares to Deseret First and the Trust; Fadel sought to intervene in 2012.
- District court (Nov 5, 2012) denied Fadel’s motions to intervene as untimely and struck his complaint in intervention; sanctions were upheld on appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Fadel could intervene as of right. | Fadel timely, has interest and impairment risk. | Intervention untimely after final judgment. | Interventions denied; untimely. |
| Whether the complaint in intervention was properly struck. | Intervention complaint valid; remedies available. | Striking appropriate due to untimeliness and authority issues. | Complaint in intervention struck. |
| Whether sanctions against Fadel were proper. | Sanctions warranted for improper purposeful conduct. | Sanctions insufficient or improper. | Sanctions affirmed under rule 11 and inherent powers. |
Key Cases Cited
- Fisher v. Fisher, 2003 UT App 91 (Utah App. 2003) (attorney conflict when personal fee interest conflicts with client interests)
- Ostler v. Buhler, 1999 UT 99 (Utah 1999) (intervention limitations when judgment entered and appeal remains moot)
- Supernova Media, Inc. v. Pia Anderson Dorius Reynard & Moss, LLC, 2013 UT 7 (Utah 2013) (timeliness of intervention before final settlement; general rule applicability)