Meguerditchian v. Smith
2012 UT App 176
| Utah Ct. App. | 2012Background
- Meguerditchian obtained a summary judgment for $54,690.92 against Smith on a breach of contract claim.
- A writ of execution listed Smith’s personal property, real property, and water rights to satisfy the judgment.
- Writ directed sale of non-exempt personal property first; real property if insufficient personal property could be located.
- Sale notice listed four items: Smith’s real property, Oaker Hills Plat 4, Water Right #51-224, and other water rights; personal property could not be located, so sale proceeded with real property and water rights.
- Sale occurred July 10, 2009; Meguerditchian purchased all items at sheriff’s sale; later formed an LLC to hold/develop the property.
- Smith moved to set aside the sale; trial court valued real property at $505,000 and water rights at substantial value, finding the sale prices grossly inadequate and some descriptions inadequate; sale of real property affirmed, water rights set aside.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Was the sale properly denied relief without irregularities given price inadequacy? | Smith: inadequacy alone justifies relief; irregularities unnecessary. | Meguerditchian: price inadequacy must be coupled with irregularities or unfairness. | Court held no abuse of discretion; inadequacy alone did not justify relief absent irregularities. |
| Were there irregularities in the real-property sale that warranted setting it aside? | Smith: irregularities exist; conduct showed unfairness toward debtor. | Meguerditchian: no irregularities; sale conducted properly given lack of personal property. | Court held no irregularities in the real-property sale; sale of real property affirmed. |
| Was Water Right #51-224 adequately described in the notice such that it could be sold validly? | Smith: description inadequate due to severed rights and multiple components. | Meguerditchian: water-right description sufficient; all rights described at time of sale. | Court held Water Right #51-224 adequately described; sale not set aside on description grounds. |
Key Cases Cited
- Pyper v. Bond, 258 P.3d 575 (Utah 2011) (abuse of discretion standard for setting aside sheriff's sale; sliding scale with price inadequacy and irregularities)
- Pender v. Dowse, 265 P.2d 644 (Utah 1954) (notice, conduct, and fairness in sale; fraud considerations)
- Young v. Schroeder, 37 P. 252 (Utah 1894) (inadequacy of price considered with potential unfairness in sale)
- Graffam v. Burgess, 117 U.S. 180 (U.S. 1886) (irregularities in sale; value disparities)
- Byers v. Surget, 60 U.S. 303 (U.S. 1856) (regularity standards for judicial sales)