Pioneer Builders Co. of Nevada v. K D A Corp.
2012 UT 74
| Utah | 2012Background
- Pioneer financed the purchase of Sunrise Village RV Park, which included four parcels with both recorded and unrecorded leases.
- Pioneer recorded its Original Deeds for Parcels 36, 37, and 38 on November 17, 2000; Parcel 25 was not included.
- Modification Deeds in August 2001 attempted to convey Parcel 25 to Pioneer, but Pine Ridge lacked title to Parcel 25 at that time (wild deed).
- Nalder Affidavit (September 2002) attempted to retroactively include Parcel 25 in the conveyance; Parcel 25 was later quitclaimed to Pine Ridge (March 9, 2005).
- Appraisal Report (December 29, 2000) described 28 leases and included a Site Map; there is dispute whether Pioneer received the full report.
- District court granted partial summary judgment to Pioneer but held Defendants superior on remaining issues; court later remanded for factual determinations.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Constructive notice standard | Pioneer contends district court misapplied notice standard by mixing recorded with unrecorded leases. | Defendants contend Pioneer had constructive notice of unrecorded leases through observed use and documents. | Reversed; district court erred and remanded for proper standard. |
| Parcel 25 title and notice | Modification Deeds and Nalder Affidavit should cure title and give Pioneer priority. | Modification Deeds were wild and did not impart notice; after-acquired title retroactively validates but cannot defeat prior recordation. | Parcel 25 interests depend on timing of recordings; remanded for determinations. |
| After-acquired title effect on priority | After-acquired title retroactively validates Pioneer’s interest to prevail. | Retroactive validation should not defeat third-party record interests that occurred before validation. | Retroactive validation does not trump pre-existing recorded interests; remanded. |
| Executory contracts (Payment Defendants) | Payment Defendants' incomplete payments affect their ownership interest and priority. | Executory contract status does not defeat already acquired rights or priority. | Contract status does not affect priority; Defendants’ interests valid. |
| Insurance reference prejudice | Insurance references influenced district court’s reasoning and prejudiced Pioneer. | Insurance discussion was immaterial and not prejudicial. | No reversal for insurance references; no demonstrated prejudice. |
Key Cases Cited
- Arnold Indus., Inc. v. Love, 63 P.3d 721 (Utah 2002) (two-step inquiry notice analysis; open-easement scenario)
- First Am. Title Ins. Co. v. J.B. Ranch, Inc., 966 P.2d 834 (Utah 1998) (good-faith purchaser required; record notice principles)
- Stumph v. Church, 740 P.2d 820 (Utah Ct. App. 1987) (observation of tenants and lack of duty to inquire discussed)
- Haik v. Sandy City, 254 P.3d 171 (Utah 2011) (to be in good faith, purchaser must have no notice of prior unrecorded interest)
- FDIC v. Taylor, 267 P.3d 949 (Utah Ct. App. 2011) (after-acquired title doctrine analyzed in race-notice context)
