Ld III, LLC v. Bbrd, Lc
303 P.3d 1017
Utah Ct. App.2013Background
- LD III, LLC appeals a district court judgment awarding Davis over $1 million for contempt damages, plus fees and costs.
- The contempt arose from LD III’s failure to close a real estate sale to Davis by September 30, 2008 as required by a September 23, 2008 ruling enforcing a settlement.
- LD III challenged the district court’s jurisdiction to hear contempt while an appeal was pending and argued the October 9, 2008 order changed the deadline and deferred merits.
- The district court found LD III in contempt, awarded damages based on lost sale opportunities and a sixth lot, and later awarded attorney fees through July 31, 2011, with additional fees following.
- The Utah Court of Appeals ultimately affirmed the contempt finding did not comport with due process and required explicit findings on the three elements of contempt, prompting reversal and remand.
- On remand, the court directs a hearing to address LD III’s knowledge, ability, and intent to comply, with proper written findings supporting contempt if pursued.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Was the contempt order properly issued with findings? | Davis contends contempt was valid and supported by the record. | LD III argues lack of adequate written findings and due process violations. | Remand for proper findings and due process required; contempt ruling reversed. |
| Did the district court have jurisdiction to adjudicate contempt during an appeal? | Court retained jurisdiction to enforce its order notwithstanding the appeal. | LD III challenged jurisdiction due to pending appeal. | Jurisdictional question to be resolved on remand with due process protections. |
| Were the three elements of contempt (knowledge, ability, intent) proven by clear and convincing evidence? | Evidence established LD III knew what was required but failed or refused to comply. | No explicit findings or adequate opportunity to challenge these elements. | Elements require explicit factual findings; remand to develop proper findings. |
| Did the court correctly classify the contempt as civil or criminal and tailor relief accordingly? | Damages served as a remedial civil sanction for noncompliance. | Classification and procedural handling were flawed due to process issues. | Civil contempt is proper but requires proper procedure and findings; remand. |
Key Cases Cited
- Von Hake v. Thomas, 759 P.2d 1162 (Utah 1988) (three elements of contempt must be proven; due process protections apply)
- Coleman v. Coleman, 664 P.2d 1155 (Utah 1983) ( Coleman about burden on defendant to present evidence on three elements)
- Chen v. Stewart, 123 P.3d 416 (Utah 2005) (acknowledges statutory and inherent power to sanction; due process considerations)
- Burke v. Lewis, 122 P.3d 533 (Utah 2005) (contempt power and procedural safeguards in Utah cases)
- Baggett v. Wilson, 263 P.3d 411 (Utah App. 2011) (threshold jurisdiction and due process themes in appellate contempt context)
