462 P.3d 343
Utah2020Background
- SUU contracted Big‑D Construction; Big‑D obtained a Fidelity payment bond and subcontracted ironwork to Idaho Iron, which employed eight workers.
- Idaho Iron failed to make employer contributions required by a collective‑bargaining trust agreement to multiple trust funds (pension, welfare, vacation, tax‑deferral, apprenticeship, etc.).
- Trustees sued Fidelity on the public payment bond seeking unpaid contributions plus prejudgment interest, liquidated damages, audit and attorney fees, and costs; the district court granted summary judgment for the trusts and entered a $314,339.72 judgment.
- Fidelity appealed, arguing the Utah public payment bond statute’s right of action extends only to amounts directly "due to" an employee, not amounts due to trusts on employees’ behalf.
- The Supreme Court held the statute allows recovery of amounts "due him" that are specifically traceable to an individual employee (not all amounts due for or on behalf of an employee), reversed the trusts’ summary judgment, and remanded for determination which items are traceable; the court also remanded the question of attorney fees.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| 1. Do trustees have standing to sue on the bond by "standing in the shoes" of employees? | Trustees: Forsberg permits trustees to enforce employee rights and sue on their behalf. | Fidelity: Agrees trustees can sue generally but questions whether claimed amounts are "due" employees under the bond statute. | Court: Agrees trustees may stand in employees' shoes but standing alone does not resolve whether amounts fit the statute. |
| 2. Scope of "any unpaid amount due him" in Utah Code §63G‑6‑505(4) | Trustees: Broad reading — includes any amounts due for or on behalf of an employee. | Fidelity: Narrow reading — limited to amounts directly due to an employee. | Court: Middle ground — includes amounts specifically traceable to and ultimately for the individual employee. |
| 3. Are the specific unpaid contributions and extras recoverable on the bond? | Trustees: All delinquent contributions and contract‑specified damages/fees are recoverable. | Fidelity: None are recoverable because employees waived fringe benefits or received no direct benefit. | Court: Reversed trusts' summary judgment; on remand court must determine which contributions/amounts are traceable to individual employees (some, like pension/service credits, likely not). |
| 4. Who is entitled to attorney fees under the Procurement Code? | Trustees: Prevailing party entitlement to fees. | Fidelity: Also may be prevailing party; disputes fees entitlement. | Court: Left determination of prevailing party and fees to remand. |
Key Cases Cited
- Forsberg v. Bovis Lend Lease, Inc., 184 P.3d 610 (Utah Ct. App.) (trustees may "stand in the shoes" of employees to enforce payment claims)
- United States v. Carter, 353 U.S. 210 (1957) (discussing trustee standing to enforce beneficiaries' rights)
- Nevares v. M.L.S., 345 P.3d 719 (Utah 2015) (court will not read into a statute limitations not expressed)
- Olsen v. Eagle Mtn. City, 248 P.3d 465 (Utah 2011) (declining to add unexpressed statutory conditions)