Jenco v. Valderra Land Holdings
2025 UT 20
Utah2025Background
- Valderra Land Holdings owned property in Utah encumbered by a performance trust deed, with Jenco, LC and others as beneficiaries.
- After Valderra defaulted on its payment obligations, Jenco sought judicial foreclosure; Valderra counterclaimed, seeking determination of the payoff amount and an order to reconvey the property upon payment.
- The district court ordered Jenco to instruct the trustee to reconvey the property upon Valderra’s payment of the determined amount.
- Valderra tendered the required funds, but Jenco did not instruct reconveyance, instead appealing the judgment and moving for a stay of the reconveyance order under Utah Rule 62(b).
- The district court granted Jenco’s stay; Valderra appealed, arguing the district court erred in granting a stay under 62(b) since the order was injunctive, not a money judgment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Rule 62(b) allows a stay of an injunctive order | Reconveyance order is injunctive; rule 62(b) does not apply | Entitled to stay as of right under 62(b) | Rule 62(b) does not apply; reconveyance is injunctive |
| Whether a stay should have been considered under Rule 62(c) | Court must use discretion, consider fairness/harms | Sought stay as matter of right, no discretion required | Stay must be discretionary under 62(c) for injunctive orders |
| Whether Valderra's rights were prejudiced by use of 62(b) | Was not protected by discretionary balancing | Any error harmless, outcome same | District court's error prejudiced Valderra |
| Whether Valderra is entitled to appellate attorney fees | Fees should follow victory on appeal | Valderra not awarded fees below | Fees denied; Valderra not granted fees at trial below |
Key Cases Cited
- Simler v. Chilel, 379 P.3d 1195 (Utah 2016) (standard of review for interpretation of procedural rules)
- Utah Res. Int’l, Inc. v. Mark Techs. Corp., 342 P.3d 779 (Utah 2014) (court’s discretion in stay decisions)
- Armed Forces Ins. Exch. v. Harrison, 70 P.3d 35 (Utah 2003) (prejudice required for reversal based on error)
