GDE Construction, Inc v. Leavitt
294 P.3d 567
Utah Ct. App.2012Background
- GDE filed three mechanics’ liens on Leavitts’ home; first lien in March 2008 for $140,000, later released in a Release of Lien after a promissory note secured by another property.
- Two months after the Release, GDE recorded a second lien for $150,000 and a third amended lien for $563,690.45, including amounts allegedly owed to subcontractors and others.
- GDE sued Leavitts and Bank seeking to foreclose the amended lien and asserted related claims; Leavitts counterclaimed, including wrongful lien, and discovery ensued.
- Bank moved for summary judgment; Leavitts moved for partial summary judgment; court held liens void and awarded fees to Bank and Leavitts in separate orders, finalized by judgments on January 10, 2011.
- GDE appealed on multiple issues, including mutual mistake, release/accrued accord and satisfaction, and validity of guaranties; Bank challenged timeliness of appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Timeliness of appeal and finality | Final judgment occurred January 10, 2011; timely appeal within 30 days. | Finality rested on December 9, 2010 order; no final appealable judgment then. | Appeal timely; final judgment dated January 10, 2011. |
| Waiver of mutual mistake defense | Catchall defense and discovery could develop mutual mistake. | Mutual mistake not properly pleaded; waiver under Rule 8(c) and Rule 12(h). | Mutual mistake defense waived; trial court did not abuse discretion in striking. |
| Release of Lien and accord and satisfaction | Release of Lien released the claim and negated further lien rights; promissory note reflects payment. | Dispute over whether payment satisfied the entire claim; reliance on promissory note and release. | Release of Lien assumed valid; promissory note supported accord and satisfaction that resolved remaining claims. |
| Attorney fees on appeal | Bank prevailed below and on appeal; entitled to reasonable appellate fees. | Fees should be questioned or limited; Leavitts did not seek fees on appeal. | Bank awarded attorney fees on appeal; remanded to determine amount. |
Key Cases Cited
- Loffredo v. Holt, 2001 UT 97 (Utah Supreme Court (2001)) (final judgment timing and appealability principles)
- Promax Dev. Corp. v. Raile, 2000 UT 4 (Utah Supreme Court (2000)) (finality and attorney-fee timing on appeal)
- Orvis v. Johnson, 2008 UT 2 (Utah Supreme Court (2008)) (standards for reviewing summary judgment and inferences)
- Mabey v. Kay Peterson Constr. Co., 682 P.2d 287 (Utah (1984)) (affirmative defenses must be pleaded; waiver if not)
- Smith v. Grand Canyon Expeditions Co., 2003 UT 57 (Utah Supreme Court (2003)) (accord and satisfaction elements and payment implication)