537 P.3d 258
Utah Ct. App.2023Background
- North Fork Meadows (12-lot subdivision): Michael & Cassie Dove bought a lot in 2018, sought CC&R guidance, and began building in July 2019 after informal communications with a board member but without formal architectural approval.
- The Association sued and sought a TRO on October 1, 2019, alleging the Doves’ house violated the Second Amended Declaration (garage placement, materials, height, etc.).
- After the suit was filed, construction began on two other nonconforming homes owned by a board member; the district court initially granted a TRO (Jan 2020) but dissolved it and denied a preliminary injunction (Mar 2020), finding the Association had effectively abandoned enforcement and thus was unlikely to prevail.
- The Doves moved for damages and attorney fees under Utah R. Civ. P. 65A(c)(2) (wrongfully enjoined) and under the Declaration’s prevailing-party attorney-fees clause; the district court denied fees and damages and dismissed the case with prejudice.
- On appeal the court affirmed denial of fees/damages under rule 65A (no abuse of discretion) but remanded for the district court to make an explicit prevailing-party determination under the Declaration.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Doves were entitled to damages and attorney fees under Utah R. Civ. P. 65A for being wrongfully restrained/enjoined | TRO was later dissolved, so issuance was wrongful and rule 65A authorizes fees/damages | TRO was not "wrongful" because the Doves’ construction violated CC&Rs when TRO issued; dissolution resulted from Association's later abandonment | Affirmed: district court did not abuse discretion in denying fees under rule 65A because award is discretionary and a reasonable judge could find the TRO not wrongful given Doves’ nonconformance |
| Whether the Doves were entitled to attorney fees under the Declaration’s prevailing‑party clause | Doves prevailed (TRO dissolved; case dismissed) and are therefore the prevailing party entitled to contractual fees | Association argued mixed results/no prevailing party; many rulings went against Doves and dissolution related to actions outside Doves’ control | Remanded: district court must make an explicit prevailing‑party determination applying the flexible, context‑sensitive factors; appellate court declines to decide it in the first instance |
Key Cases Cited
- IKON Office Sols., Inc. v. Crook, 6 P.3d 1143 (question whether fees recoverable under rule 65A is a legal question reviewed for correctness)
- Fuja v. Adams, 492 P.3d 793 (rule 65A permits recovery of costs and attorney fees when a party is wrongfully enjoined)
- Green River Canal Co. v. Thayn, 84 P.3d 1134 (attorney fees may include fees incurred in connection with a wrongfully issued TRO or injunction)
- Card v. Card, 391 P.3d 264 (use of "may" indicates discretionary authority)
- Mota v. Mota, 382 P.3d 1080 (discretionary statutes/ rules are permissive; appellate review is for abuse of discretion)
- State v. Maestas, 299 P.3d 892 (abuse of discretion standard: reversal only if no reasonable person would adopt trial court’s view)
- Airport Park Salt Lake City LP v. 42 Hotel SLC LLC, 378 P.3d 117 (trial court must determine who, if anyone, prevailed under a contractual fee provision)
- R.T. Nielson Co. v. Cook, 40 P.3d 1119 (prevailing‑party inquiry uses a flexible, case‑by‑case approach and common‑sense factors)
- Olsen v. Lund, 246 P.3d 521 (litigation "worthwhile" is not the standard for prevailing party; courts should apply a flexible reasoned approach)
- Wihongi v. Catania SFH LLC, 472 P.3d 308 (mixed results may lead to no prevailing party for fee purposes)
