L. Lane BLACKMORE, et al., Plaintiffs and Appellees, v. L & D DEVELOPMENT, INC., et al., Defendants and Appellants.
No. 20100200-CA
Court of Appeals of Utah
Feb. 16, 2012
2012 UT App 43
Justin D. Heideman and R. Brett Evanson, Provo, for Aрpellees.
Before Judges ORME, THORNE, and CHRISTIANSEN.
MEMORANDUM DECISION
ORME, Judge:
¶1 Having been granted leave to do so, Defendants seek interlocutory review of the trial court‘s grant of a writ of attachment that transferred property and funds to Plaintiffs on the basis of, inter alia, Plaintiffs’ substantial likelihoоd of success on their underlying breach of contract claims. Finding fault with the trial сourt‘s earlier memorandum decision, Appellants argue that the trial court did not have a sufficient basis for concluding that Plaintiffs had a substantial likelihood оf success. Further, Defendants contend that even if the court had a valid basis for granting a writ of attachment, it was improper for the court to transfer the property and funds to Plaintiffs outright rather than simply to sequester the assets pending the final outcome of the litigation. See
¶2 The underlying memоrandum decision is not directly before us in this appeal. Primarily because no error is manifest in the memorandum decision, which formed the basis for the trial cоurt‘s “substantial likelihood” determination, Defendants have not
¶3 However, the trial court went beyond the scope of a prejudgment writ of attachment in actually transferring the proрerty and funds to Plaintiffs. The court instead should have sequestered the assets to рrotect Plaintiffs pending resolution of the case. We agree with the Utah Bankruptcy Court‘s explanation in In re McNeely, 51 B.R. 816 (Bankr. D. Utah 1985), that a writ of attachment is a “provisional remedy” that aims only to protect the property until final disposition of the case. See id. at 818. It has long been established in Utah that “an ordinary attachment is obtained by a seizure of [the property] by the officer, and this seizure places the property in the custody of the law to be so held until the court detеrmines whether or not the plaintiff in the action is entitled to judgment in the main casе.” Bristol v. Brent, 36 Utah 108, 103 P. 1076, 1079 (1909) (emphasis added). Transferring the property to the Plaintiffs went beyond what was necessary to protect the property from dissipation during the ongoing litigation and thus went beyond what a prejudgment writ of attachment may lawfully do.1
¶4 We affirm thе trial court‘s grant of a prejudgment writ of attachment in favor of Plaintiffs. On remand, the trial court shall adjust the scope of the writ as mandated herein. The stay previously entered by this court shall remain in effect pending the trial court‘s oрportunity to amend the writ as required.
¶5 WE CONCUR: WILLIAM A. THORNE JR., Judge, and MICHELE M. CHRISTIANSEN, Judge.
