RM LIFESTYLES, LLC v. Ellison
2011 UT App 290
Utah Ct. App.2011Background
- Ellisons defaulted on an $800,000 deed of trust secured by the Holladay property; National City Bank directed foreclosure, eTitle recorded a Notice of Default, and substitution of trustee substituted eTitle for U.S. Title.
- Notice of Trustee's Sale was posted December 16, 2009; Ellisons transferred the property to Commonwealth by quitclaim on December 21, 2009; lis pendens was filed in federal court December 31, 2009.
- Trustee's sale was conducted January 13, 2010 by eTitle’s agent Tom Cook; RM Lifestyles bid and obtained the trustee's deed.
- RM Lifestyles filed an unlawful detainer after recording the trustee’s deed and posting an eviction notice demanding occupancy termination within five days.
- Ellisons challenged service, argued irregularities about the notice of default, and asserted lack of jurisdiction; trial court held the sale valid and occupancy unlawful, awarding treble damages and fees.
- Ellisons appealed, preserving claims on the sale’s validity, service, and Cook’s testimony.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Validity of the trustee's sale after irregularities | Ellison challenge relies on notice/ratification defects in the sale. | Sale should be voided due to irregularities in notice and substitution. | Sale valid; irregularities did not affect rights; Ellisons unlawfully detained. |
| Personal jurisdiction and service properness | Service by mail satisfied due process and notice; Ellisons appeared and defended. | Service by mail was improper and jurisdiction lacking due to notice flaws. | Personal jurisdiction proper; service adequate; Ellisons waived lack of notice by appearing. |
| admissibility of Tom Cook's testimony | Cook’s testimony supported the validity of the sale. | Cook’s testimony should be excluded under evidentiary/professional conduct rules. | Issues not preserved for appeal; no ruling on admissibility. |
Key Cases Cited
- Concepts, Inc. v. First Sec. Realty Servs., Inc., 743 P.2d 1158 (Utah 1987) (set-aside relief for trustee sale only in extreme cases; no right to set aside for minor irregularities)
- Thomas v. Johnson, 801 P.2d 186 (Utah Ct. App. 1990) (trustee sale remedy rare; look for chilling effect on bidding)
- Timm v. Dewsnup, 86 P.3d 699 (Utah 2003) (burden on debtor after sale; irregularities require chilling effect or inability to protect interests)
- Occidental/Nebraska Fed. Sav. Bank v. Mehr, 791 P.2d 217 (Utah Ct. App. 1990) (evidence of irregularities must show effect on ability to protect rights)
- McCarthy v. Lewis, 615 P.2d 1256 (Utah 1980) (actual notice suffices where purchaser-aware; cure not shown)
- Blodgett v. Martsch, 590 P.2d 298 (Utah 1978) (trustee's sale presumed regular; irregularities require adverse effect on bid/injurious outcome)
- Chen v. Stewart, 100 P.3d 1177 (Utah 2004) (due process requires adequate notice and opportunity to be heard)
- Franklin Covey Client Sales, Inc. v. Melvin, 2 P.3d 451 (Utah 2000) (due-process considerations in service and notice)
- 438 Main St. v. Easy Heat, Inc., 99 P.3d 801 (Utah 2004) (preservation of issues on appeal governs reviewing court’s scope)