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491 P.3d 970
Utah Ct. App.
2021
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Background

  • Ward and McGarry, parents of one child, have been litigating paternity/child-support issues since 2013; custody resolved but child support remained disputed.
  • McGarry is self-employed with ownership interests; parties disputed his monthly income and Ward alleged incomplete/disputed disclosures.
  • At a brief March 11, 2020 commissioner hearing, the commissioner (without taking evidence) imputed McGarry’s income at $30,000/month based on McGarry’s Rule 68 settlement offer and recommended a $56,000 lump-sum award for arrearages and attorney fees (an average of the parties’ Rule 68 figures).
  • The commissioner made only one factual finding (that prolonged litigation warranted resolution) and did not separate or explain calculations for imputation, arrears, or fees.
  • Ward objected, requested a hearing and detailed findings; the district court signed the commissioner’s recommendation and summarily denied Ward’s objection without independent findings or taking evidence.
  • The Court of Appeals reversed and remanded, concluding the court erred by approving the recommendation without the required independent findings and without affording a hearing when issues were contested.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether the district court complied with Utah R. Civ. P. 108 by making independent findings when adopting a commissioner’s recommendation. Ward: court failed to make independent findings of fact and conclusions of law as required when overruling a commissioner. McGarry: signing the commissioner’s recommendation amounted to adoption or was sufficient. Reversed — court failed to make independent findings; signing did not substitute for required review and findings.
Whether income may be imputed based solely on McGarry’s Rule 68 settlement offer (without a hearing or stipulated imputation). Ward: imputation in contested cases requires a hearing and judge-entered factual findings; a unilateral Rule 68 offer is insufficient. McGarry: his Rule 68 offer (or implicit stipulation) justified imputing $30,000/month. Rejected McGarry’s view — statute requires a hearing and factual findings in contested cases; imputation based solely on an unaccepted Rule 68 offer was improper.
Whether the commissioner’s lump-sum calculation of arrears and attorney fees (averaging parties’ offers) was an adequate basis for award. Ward: the award lacked evidentiary support and distinct findings for arrears vs fees. McGarry: (implicitly) the averaging resolved the dispute. Court held the averaging and lumping lacked evidentiary support and adequate findings; insufficient to sustain award.
Whether denying Ward a hearing deprived her of her right to a trial/day in court. Ward: denial of a hearing deprived her of opportunity to present evidence and testify. McGarry: efficiency and long-standing litigation justified summary resolution. Court held efficiency does not override the right to a hearing when issues are contested; remand for proceedings with evidence.

Key Cases Cited

  • State v. Holland, 921 P.2d 430 (Utah 1996) (standard of review for compliance with procedural requirements)
  • Brigham Young Univ. v. Tremco Consultants, Inc., 156 P.3d 782 (Utah 2007) (review of legal questions)
  • Jacobsen v. Jacobsen, 257 P.3d 478 (Utah Ct. App. 2011) (legal adequacy of findings reviewed for correctness)
  • Fish v. Fish, 379 P.3d 882 (Utah Ct. App. 2016) (findings must permit appellate review and show rational basis)
  • Day v. Barnes, 427 P.3d 1272 (Utah Ct. App. 2018) (rule 108 requires independent judicial review of commissioner recommendations)
  • Hills v. Hills, 638 P.2d 516 (Utah 1981) (parental obligation to support children is not bargained away)
  • Miller v. USAA Cas. Ins. Co., 44 P.3d 663 (Utah 2002) (parties entitled to their day in court)
  • Encon Utah, LLC v. Fluor Ames Kraemer, LLC, 210 P.3d 263 (Utah 2009) (prefer statutory interpretation that avoids absurd results)
  • Andrus v. Andrus, 169 P.3d 754 (Utah Ct. App. 2007) (parental support obligations cannot be extinguished by parental agreement)
Read the full case

Case Details

Case Name: Ward v. McGarry
Court Name: Court of Appeals of Utah
Date Published: May 6, 2021
Citations: 491 P.3d 970; 2021 UT App 51; 20200435-CA
Docket Number: 20200435-CA
Court Abbreviation: Utah Ct. App.
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    Ward v. McGarry, 491 P.3d 970