N.A.R., Inc. v. Vermillion
2012 UT App 191
| Utah Ct. App. | 2012Background
- Baird, a dentist, provided services to Vermillion; Vermillion disputed payment claiming defective care.
- Baird assigned Vermillion’s debt to N.A.R., Inc. via an assignment-of-debt agreement; N.A.R. sued Vermillion to collect the debt.
- Baird was not a party to the collection action.
- Vermillion counterclaimed under the Utah Consumer Sales Practices Act; Vermillion subpoenaed Baird for deposition and documents, causing substantial fees for Baird to quash and limit scope.
- On the day of trial, Vermillion and N.A.R. settled; N.A.R. released all claims including those against Baird; the parties bore their own fees; Baird attended without counsel and did not object to settlement; Baird later sought attorney fees, which the trial court denied as the settlement bound him.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Baird is in privity with N.A.R. to bar fee claims | Baird argues no privity; he was an assignment party and only a witness. | N.A.R. contends Baird’s 50% interest and assignment created privity. | Yes; Baird is in privity and bound by settlement. |
| Whether the settlement precluded Baird’s fee claim | Settlement released claims; Baird seeks fees arising from that action. | Settlement extends to Baird due to privity; fees barred. | Yes; settlement precluded Baird’s fee claim. |
| Whether the assignment-of-debt created privity for fee claims | Assignment alone does not imply privity. | Assignment coupled with 50% interest creates privity for purposes of fee claim. | Yes; assignment and interest support privity. |
Key Cases Cited
- Searle Brothers v. Searle, 588 P.2d 689 (Utah 1978) (defines privity for purposes of preclusion and rights in property)
- Brigham Young Univ. v. Tremco Consultants, Inc., 110 P.3d 678 (Utah 2005) (outlines collateral estoppel/privity analysis)
- RB&G Eng’g, Inc. v. RB&G Eng’g, Inc., 230 P.3d 1000 (Utah 2010) (explains assignment/rights continuation and privity considerations)
- Murray v. State, 737 P.2d 1000 (Utah 1987) (contracts enforceability without a statute of frauds)
