Prinsburg State Bank v. Abundo
2012 UT 94
Utah2012Background
- Prinsburg State Bank held Alpine Vision's loans secured by collateral; Guarantors provided personal guarantees involving costs and attorneys' fees in enforcement.
- Knighton Optical acquired Alpine Vision's remaining interest and defaulted; Prinsburg, successor lender, sued Guarantors to recover balance; collateral sale occurred.
- District court ruled UCC governs sale and found violations (notice, commercial reasonableness, application of proceeds) but left one issue unresolved.
- Stipulations were entered: they resolved the case in favor of the Guarantors on all issues except the amount of fees; they stated the sale violated UCC and was not commercially reasonable.
- Judgment denied Prinsburg's claims; Guarantors were deemed prevailing party and awarded fees; the court of appeals held stipulations precluded review.
- Prinsburg sought certiorari; Supreme Court granted on preservation issue and addressed estoppel and fee-recovery issues
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Prinsburg is estopped from challenging district court resolution | Prinsburg argues stipulations did not preclude review | Guarantors contend stipulations settled the issues | Estoppel; stipulations precluded merits review |
| Whether Guarantors may recover attorney fees incurred on appeal | Prinsburg argues on appeal only merits; fees on appeal not recoverable | Guarantors entitled to fees as prevailing party on appeal | Guarantors may recover fees incurred responding to petition for certiorari; remand for amount |
Key Cases Cited
- Rivera ex rel. Rivera v. State Farm Mut. Auto. Ins. Co., 1 P.3d 539 (Utah 2000) (motion to strike stipulations and related issues guided by abuse of discretion standards)
- Yeargin, Inc. v. Auditing Div. of Utah State Tax Comm'n, 20 P.3d 287 (Utah 2001) (stipulations may not be set aside absent justifiable cause)
- First of Denver Mortg. Investors v. C.N. Zundel & Assocs., 600 P.2d 521 (Utah 1979) (parties bound by stipulations unless set aside for inadvertence or justifiable cause)
- Redev. Agency v. Mitsui Inv., Inc., 522 P.2d 1370 (Utah 1974) (stipulations preclude future determination of contained issues)
- Amoss v. Bennion, 517 P.2d 1008 (Utah 1973) (parties' stipulations have binding effect absent inadvertence or justifiable cause)
- Dove v. Cude, 710 P.2d 170 (Utah 1985) (recognizes binding effect of stipulations)