SA Grp. Props. Inc. v. Highland Marketplace LC
2017 UT App 160
| Utah Ct. App. | 2017Background
- SA Group foreclosed on Highland’s development property after Highland defaulted on a $28 million loan secured by the Property.
- Foreclosure sale yielded $8,565,000, less than the loan balance, triggering a deficiency action by SA Group.
- Trial court held a three-day bench trial to determine the Property’s fair market value as of the foreclosure date.
- Three experts testified; the court adopted Jorgensen’s valuation of $10,568,000 and rejected Cook’s appraisal as unreliable.
- Highland sought to amend its answer to raise new counterclaims based on unfunded draw requests; the motion was denied as untimely and unjustified.
- Judgment against Highland for approximately $4,747,891 plus attorney fees and costs, with the court noting multiple credibility issues in Cook’s appraisal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the trial court abused its discretion denying the amendment to answer | Highland contends the amendment was timely and justified by new facts. | SA Group argues the amendment was untimely and prejudicial given discovery stage. | No abuse; denial affirmed. |
| Whether the fair market value finding was clearly erroneous given expert credibility | Highland argues Cook’s appraisal should have been credited and value higher. | SA Group contends Jorgensen’s credibility supports the value of $10.568M. | Value supported by the trial court’s credibility determinations; not clearly erroneous. |
Key Cases Cited
- AmericanWest Bank v. Kellin, 364 P.3d 1055 (Utah Court of Appeals 2015) (appellate deference to trial court credibility determinations)
- State v. Nielsen, 326 P.3d 645 (Utah Supreme Court 2014) (focus on a party’s burden to marshal supportive evidence in appellate review)
- Lohman v. Headley, 293 P.3d 380 (Utah Court of Appeals 2012) (trial court has discretion to weigh competing evidence)
- Tschaggeny v. Milbank Ins. Co., 163 P.3d 615 (Utah Supreme Court 2007) (abuse-of-discretion standard for leave to amend)
- Kelly v. Hard Money Funding, Inc., 87 P.3d 734 (Utah Court of Appeals 2004) (bright-line rule for timing of amendments rejected; factors considered)
- Barrani v. Barrani, 334 P.3d 994 (Utah Court of Appeals 2014) (deference to trial court credibility determinations)