387 P.3d 605
Utah Ct. App.2016Background
- Still Standing Stable LLC (Sellers) purchased a Weber County parcel that lacked insurable public-road access; SITLA warned there was likely no access.
- Sellers engaged Aspenwood/Elite Legacy agents (including Tim Shea) under a For Sale By Owner Commission and Agency Disclosure Agreement (FSBO) to market the property; a separate Real Estate Purchase Contract (REPC) required Sellers to convey by general warranty deed and imposed diligence and closing deadlines.
- Buyers deposited $25,000 earnest money and proceeded through the due-diligence period but grew concerned about lack of insurable access; they did not object during the 60-day diligence window.
- Shortly before closing Sellers announced they would convey by special warranty deed rather than the required general warranty deed; Buyers said they would accept that only if a title policy guaranteeing access were available, but no title insurer would insure access; Buyers failed to appear at closing.
- Still Standing sued (and counterclaimed) raising fiduciary-duty, negligence, misrepresentation, and standing/jurisdiction theories against Shea and related parties; the trial court granted summary judgment dismissing Still Standing’s counterclaims on causation grounds (Sellers’ own refusal to convey as required caused the loss).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Shea breached fiduciary duty by failing to disclose Buyers’ concerns and other material facts | Shea had fiduciary duties to disclose material buyer communications; nondisclosure caused Sellers’ damages | Even if Shea breached duties, Sellers cannot show causation because the transaction failed due to Sellers’ refusal to convey by general warranty deed and lack of insurable access | Affirmed: summary judgment proper because Sellers’ own conduct (failure to provide required deed/insurable access) caused the loss |
| Whether Shea’s negligence and misrepresentations caused Sellers’ damages | Shea’s misrepresentations led Sellers to believe they had a cash buyer and caused damages when deal failed | The causation element fails—deal collapsed from lack of insurable access and Sellers’ refusal to convey as required, not from Shea’s communications | Affirmed: negligence/misrepresentation claims fail for lack of causation |
| Whether newly discovered evidence of plaintiffs’ misrepresentations defeats plaintiffs’ standing and deprives the court of subject-matter jurisdiction | Post-judgment evidence shows plaintiffs lacked standing to sue for the commission, so judgments should be reversed | The argument is inadequately briefed and legally identical to issues rejected in related appeals; rule 60(b) and standing issues were previously addressed | Rejected: inadequately briefed and meritless here; prior related rulings control |
| Whether trial court erred procedurally by disposing of counterclaims on summary judgment without resolving all factual disputes | Sellers contended factual disputes existed about communications, access, and duties | Trial court concluded there was no genuine issue on causation: objective evidence showed no insurable access and Sellers’ failure to meet REPC obligations | Affirmed: court properly decided as a matter of law that causation was lacking |
Key Cases Cited
- Poteet v. White, 147 P.3d 439 (reciting summary-judgment fact-viewing standard)
- Gilbert Dev. Corp. v. Wardley Corp., 246 P.3d 131 (elements for fiduciary-duty nondisclosure claim)
- Jones & Trevor Mktg., Inc. v. Lowry, 284 P.3d 630 (standard of review for summary judgment)
- Golden Meadows Props. LC v. Strand, 241 P.3d 375 (failure to address district court’s basis warrants rejection on appeal)
- Mason v. Loveless, 24 P.3d 997 (difference between special and general warranty deeds)
- Still Standing Stable, LLC v. Allen, 122 P.3d 556 (prior finding concerning lack of access)
- State v. Sloan, 72 P.3d 138 (requirement that appellate briefs contain reasoned analysis)
- Yknot Global Ltd. v. Stellia Ltd., 379 P.3d 36 (illustrating complexities of post-trial rule 60(b) motions)
