Neff v. Neff
2011 UT 6
| Utah | 2011Background
- Branson and Marvin Neff are brothers who were once business partners and co-owners of the brothers' construction enterprises and farm property.
- The dissolution agreement included transfer and unification of jointly owned farm property and related quitclaim/deed implications, which Branson alleged affected his title and sought remedies for potential misrepresentation and breach of contract.
- During the litigation, Branson and Marvin amended claims to include assaults, battery, and malicious prosecution arising from a January 2005 altercation and related protective orders.
- Branson pleaded guilty to violating a protective order pursuant to a plea in abeyance; the aggravated assault charge was either dismissed or pending referral depending on evidence, but the plea affected Branson’s malicious prosecution claim.
- Marvin also pursued fiduciary and trust-related claims, alleging Branson mismanaged family trust assets and breached fiduciary duties, including misappropriation of funds and improper handling of Manila ranch proceeds.
- The trial court granted summary judgment to Marvin on Branson’s malicious-prosecution claim, conducted jury trials on business-dissolution issues, and later rendered a bench trial on trust-related issues with overlapping damages and fee-disposition considerations.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Malicious-prosecution termination standard | Branson contends probable cause and malice were disputed; termination favorable to Branson was shown by the plea. | Marvin argues the plea in abeyance does not terminate the proceedings in Branson's favor, so the claim fails. | Termination not in Branson's favor; summary judgment affirmed on alternative basis. |
| Attorney-fees ruling on prevailing-party status | Branson challenges the denial of attorney fees and argues overall litigation success favored Marvin in parts. | Marvin contends the court properly declined fees given mixed outcomes and little net recovery for both sides. | Court did not abuse discretion; neither party prevailed overall. |
| Slander of title damages and fee recovery | Branson asserts attorney fees may form the damages in slander-of-title claims and that the jury’s damages, including fees, should be upheld. | Marvin argues attorney fees cannot be damages for slander of title and that the verdict is internally inconsistent. | Reversed in part: attorney-fees may form damages in slander of title; remanded to determine fee amount. |
| Breach of fiduciary duty damages | Branson claims damages could include attorney fees associated with fiduciary-duty litigation. | Marvin asserts attorney fees cannot be the damages basis for breach of fiduciary duty. | JNOV affirmed as to breach of fiduciary duty; attorney fees cannot be the basis for damages. |
Key Cases Cited
- Kossler v. Crisanti, 564 F.3d 181 (3d Cir. 2009) (termination of proceedings must indicate innocence; full proceedings considered)
- Bass v. Planned Mgmt. Servs., 761 P.2d 566 (Utah 1988) (attorney fees may be recoverable as special damages to remove a cloud on title)
- Valley Colour, Inc. v. Beuchert Builders, Inc., 944 P.2d 361 (Utah 1997) (proof of special damages requires realized loss or costs to remedy title clouds)
- Dowse v. Doris Trust Co., 208 P.2d 956 (Utah 1949) (recognizes removal of clouds on title as basis for damages)
- First Sec. Bank of Utah N.A. v. Banberry Crossing, 780 P.2d 1253 (Utah 1989) (attorney fees as damages in tort cases; requires analysis of recoverable damages)
- Campbell v. State FarmMutual Auto. Ins. Co., 65 P.3d 1134 (Utah 2001) (exceptional treatment of attorney fees in certain bad-faith contexts; distinguishable from fiduciary-duty context)
- Willey v. Willey, 951 P.2d 226 (Utah 1997) (review of fee decisions requires meaningful appellate review)
- R.T. Nielsen Co. v. Cook, 2002 UT 11 (Utah 2002) (flexible, reasoned approach to determining prevailing party in fee awards)
- Bennion v. LeGrand Johnson Constr. Co., 701 P.2d 1078 (Utah 1985) (considers internal consistency and reconciliation of jury verdicts)
