Ortega v. Ridgewood Estates LLC
2016 UT App 131
Utah Ct. App.2016Background
- Ortega bought two mobile homes in Ridgewood Estates Mobile Home Park, paid for and obtained title to the homes, and tendered (and Ridgewood accepted) rent payments for the spaces; no lease was signed and Ortega paid no late fees or security deposit.
- Ridgewood served 5-day unlawful detainer notices and trespass warnings, then prevented Ortega from removing the homes; Ridgewood/HFS later claimed the homes were abandoned and applied for titles with the DMV.
- Ortega sued for quiet title, slander of title, and conversion; Ridgewood counterclaimed for unlawful detainer and unjust enrichment. The district court dismissed Ridgewood’s unlawful detainer claim and bifurcated liability and damages.
- The district court found Ortega owned the homes, that Defendants converted the homes, and that HFS/Fischer slandered title; it quieted title in Ortega and ordered removal of the homes from the park.
- Damages: court awarded Ortega $30,375 in attorney fees as special damages for slander of title, $1,000 punitive damages against HFS and Fischer, and $11,100 in statutory attorney fees against Ridgewood under the Mobile Home Act and Unlawful Detainer statute; no compensatory conversion damages were awarded (court required lost profits or credible rental evidence).
- Both sides appealed; this opinion affirms the district court in all respects and remands only to determine Ortega’s reasonable appellate attorney fees for the eviction claim.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Mobile Home Act or Unlawful Detainer statute governed eviction notice | Ortega: qualifies as a "resident" under Mobile Home Act because he paid rent and thus was entitled to Mobile Home Act notice provisions | Ridgewood: Ortega was not a "resident" (never lived there, no lease), so Unlawful Detainer (5-day) applied | Mobile Home Act applies; Ortega qualified as a resident because he paid rent and Ridgewood accepted it |
| Ridgewood’s right to refuse purchaser who did not preregister | Ortega: statutory preregistration does not negate his resident status once rent was paid/accepted | Ridgewood: statute allows unconditional refusal to approve purchaser who did not register pre-purchase; thus Ridgewood could remove homes | Claim unpreserved on appeal; court did not reach merits |
| Slander of title / special damages (attorney fees) | Ortega: HFS/Fischer falsely claimed abandonment; Ortega is entitled to attorney fees as special damages | Ridgewood: slander findings lacked specificity; attorney fees not recoverable or not properly allocated | Court’s findings adequate; under Neff attorney fees may be special damages for slander of title; award affirmed |
| Measure of conversion damages | Ortega: lost rental income (testimony $300–$600/month per unit) is appropriate | Ridgewood: Ortega’s business is buying/selling homes, so lost profits (not rental) or fair market value apply; no credible lost rental evidence | Court did not err in requiring lost profits or credible rental evidence; no compensatory damages awarded due to lack of proper evidence |
Key Cases Cited
- Brookside Mobile Home Park, Ltd. v. Peebles, 48 P.3d 968 (Utah 2002) (Mobile Home Act notice provisions govern owner-resident evictions regardless of lease existence)
- Neff v. Neff, 247 P.3d 380 (Utah 2011) (attorney fees may be recovered as special damages in slander of title if reasonably necessary)
- Mahana v. Onyx Acceptance Corp., 96 P.3d 893 (Utah 2004) (conversion damages may be measured by loss of use or reasonable rental value when property is returned)
- Crookston v. Fire Ins. Exch., 817 P.2d 789 (Utah 1991) (factors for assessing punitive damages under Utah common law)
- State v. Menzies, 889 P.2d 393 (Utah 1994) (lower courts should follow judicial dicta of higher courts)
- Valcarce v. Fitzgerald, 961 P.2d 305 (Utah 1998) (attorney fee statutes interpreted broadly to permit appellate fee awards)