Harman v. 105 PartnersHarman v. 105 Partners
J. Spencer Ball, Attorney for Appellant
D. David Lambert and Richard A. Roberts, Attorneys for Appellees Anthony M. Thurber, Brekke R. Felt, and Lorraine Thurber
Richard D. Flint and Angelica M. Juarez, Attorneys for Appellee 105 Partners, LLC
JUDGE RYAN D. TENNEY authored this Opinion, in which JUDGES MICHELE M. CHRISTIANSEN FORSTER and RYAN M. HARRIS concurred.
TENNEY, Judge:
¶1 The dispute before us involves two competing real estate developers (David Harman and 105 Partners, LLC, respectively) each of
¶2 Harman now appeals both the dismissal of his suit and the award of attorney fees. For the reasons set forth below, we first reject the assertions of 105 Partners and the Trust Defendants that Harman‘s claims have become moot by recent events. Turning to the merits, we affirm the district court‘s dismissal of some, but not all, of the claims. We accordingly reverse in part, vacate the award of fees, and remand for further proceedings consistent with this opinion.
BACKGROUND
105 Partners and Harman Both Sign Contracts to Purchase the Property3
¶3 The Property is comprised of two adjacent parcels of land in downtown Provo, Utah. In 2014, 105 Partners sought to obtain the Property so that 105 Partners could develop it. In August of that year, the Trust Defendants and 105 Partners signed an agreement that was titled “Contribution Agreement.” Under its terms, the Trust Defendants and 105 Partners created a partnership under which the Trust Defendants would convey the Property to 105 Partners in exchange for some shares of interest in 105 Partners. The Contribution Agreement specified that title to the Property would be conveyed to 105 Partners after 105 Partners received approval from Provo City for a project plan and after 105 Partners acquired another nearby property. These conditions were not immediately fulfilled, however, so title to the Property was not conveyed at that time.
¶4 In 2015, the Trust Defendants and 105 Partners amended the Contribution Agreement, adding provisions under which the Trust Defendants would convey title to the Property to 105 Partners within 30 days. The parties made further amendments in 2017 that memorialized, among other things, an additional capital contribution from Cobble Way Holdings, LLC (Cobble Way), which was a “substantial partner” in the development plans for the Property. Despite the terms of the 2015 amendment, the Trust Defendants did not convey title to the Property to 105 Partners in 2015, nor did they do so in 2017. And 105 Partners “never took any ancillary steps to obtain the conveyance of [the Property], including filing for record with the Utah County Recorder any instrument identifying the [Contribution Agreement], paying any of the taxes or expenses of [the Property], or taking any other action in furtherance of instigating the conveyance.”
¶5 In January 2020, Cobble Way communicated with 105 Partners about potentially dissolving the project because it had “not progressed, leaving the various contributed land parcels encumbered for over five years,” and Cobble Way and its owner also expressed the view that the “existing additional equity contribution requirement expired in
¶6 In August 2020, Harman entered the picture and offered to purchase the Property from the Trust Defendants for $500,000. The Trust Defendants accepted Harman‘s offer, and Harman and the Trust Defendants each signed a Real Estate Purchase Contract (the REPC). Under a heading labeled “Offer to Purchase,” the REPC listed “Property (General Description): small commercial buildings located on” the address for the Property, which it then listed in a separate line. An attached Notice of Interest and Exhibit identified the underlying plats of land as well. Under the REPC, Harman was required to pay the purchase price of $500,000 by August 10, 2021.
¶7 After learning about the REPC, 105 Partners sued the Trust Defendants, seeking enforcement of the Contribution Agreement (including its subsequent amendments). Harman filed a motion to intervene in that lawsuit. On May 14, 2021, however, and before the court could rule on Harman‘s motion to intervene, thе Trust Defendants and 105 Partners reached a settlement, and 105 Partners’ suit was voluntarily dismissed with prejudice. Under the settlement terms, the Trust Defendants agreed to convey title to the Property to 105 Partners in exchange for $375,000, and the parties soon executed that agreement.4
This Lawsuit
¶8 Because Harman knew about the settlement agreement between the Trust Defendants and 105 Partners, Harman never tendered the $500,000 purchase price required by the REPC. Instead, on May 21, 2021, Harman filed the suit that‘s at issue in this appeal. In this suit, Harman named both 105 Partners and the Trust Defendants as defendants.5 And in conjunction with this suit, Harman filed a lis pendens against the Property.
¶9 In the Complaint, Harman alleged seven causes of action. For analytical reasons, we‘ll discuss them in two groups.
¶10 In what we‘ll call the Partnership Claims (comprised of Claims I through IV), Harman sought to invalidate the partnership that had been created between 105 Partners and the Trust Defendants, and he likewise sought to invalidate the agreement for the Trust Defendants to transfer the Property to 105 Partners. In brief, Harman asserted that the partnership was “void” and that “all agreеments of the same [were] not binding” because the partnership‘s purposes had been frustrated (Claim I); that the doctrine of laches barred enforcement of the property-transfer agreement (Claim II); that 105 Partners had “repudiated” “all prior agreements in the former partnership” (Claim III); and that 105 Partners had committed fraud against the Trust Defendants (Claim IV).
¶11 In what we‘ll call the Ownership Claims (comprised of Claims V through VII), Harman sought to obtain ownership of the Property himself. In Claim V, Harman requested an order quieting title to the Property. In Claim VI, Harman sought specific performance of the REPC against the Trust Defendants based on Utah‘s Recording Act. And in Claim VII, Harman sought specific performance under the REPC, asserting that the Trust Defendants should be obligated to provide a “clear marketable title to Harman at closing of the specific performance of the sales contract.”
¶12 In both the claims themselves and again at the close of the Complaint, Harman set forth his requests for relief. With respect
The District Court Dismisses the Suit and Awards Attorney Fees to 105 Partners and the Trust Defendants
¶13 The Trust Defendants and 105 Partners both filed motions to dismiss the suit under
¶14 On December 14, 2021, the district court issued a ruling dismissing all of Harman‘s claims with prejudice, and as a result, it released the lis pendens against the Property as well. Of note for this appeal, the court dismissed all of the Partnership Claims based on its conclusion that Harman lacked standing to “enforce and/or void any of the agreements between 105 Partners and the Trust Defendants.” The court then dismissed the Ownership Claims for a variety of reasons.
- The court dismissed Claim V (which asked the court to quiet title in Harman‘s favor) because Harman “did not allege” that he had “title to the Property” but was instead only seeking a declaration that he should obtain title.
- The court dismissed Claim VI (specific performance based on Utah‘s Recording Act) because of the court‘s conclusion that Harman did “not allege[] that he signed the real estate purchase contract without notice of the interest of 105 Partners.”
- The court dismissed Claim VII (specific performance based on the terms of the REPC) for two reasons. First, the court concluded that because Harman failed to tender the purchase price required by the REPC, he was not entitled to specific performance. And second, the court concluded that under a combination of provisions from the REPC, the court could not order the Trust Defendants to “provide a clear, marketable title.”
¶15 On the same day that the district court dismissed the suit, Harman filed a notice of appeal. A fеw weeks after Harman filed his notice of appeal, the Trust Defendants and 105 Partners filed separate motions requesting attorney fees. On March 3, 2022, the district court issued a ruling granting these motions and awarding the Trust Defendants $10,000 and 105 Partners $15,000 in attorney fees, recognizing that both the Trust Defendants and 105 Partners “prevailed on the claims associated with” the REPC and the Contribution Agreement.
The Injunction Proceedings
¶16 On June 22, 2022, Harman filed a “Rule 62(c) Motion for Injunction” with the district court. In conjunction with this
¶17 In the Declaration, Harman informed the court that he had learned that 105 Partners was “planning to prepare the Property and its adjacent properties in order to proceed with the development” that it had “planned.” Harman also said that as part of this project, 105 Partners intended “to destroy the single family dwelling which [he] plan[s] to purchase, by bulldozing the same.”
¶18 Harman then said that he had “a serious need to purchase the Property by reason” of his plans “to use it in connection with [his] apartment complex, which [he] own[s] and which is adjacent to the Property on the east.” Harman declared that if “105 Partners destroys the single family dwelling which [he] plan[s] to purchase, it will cause immediate total irreparable harm, because [he] will not be able to then purchase the
¶19 Without waiting for a response from 105 Partners, the district court denied the request for an injunction. The court gave two reasons for doing so: first, it believed that “the pending appeal” had “divest[ed]” it of jurisdiction to issue an injunction; and second, the court believed that
¶20 On July 11, 2022, Harman filed a motion asking this court to issue an injunction pursuant to
ISSUES AND STANDARD OF REVIEW
¶21 On appeal, Harman raises various challenges to the court‘s decision to dismiss his claims. We “review the grant of a motion to dismiss for correctness, granting no deference to the decision of the district court.” Gregory v. Shurtleff, 2013 UT 18, ¶ 8, 299 P.3d 1098 (quotation simplified).
ANALYSIS
I. Mootness
¶22 Harman challenges the district court‘s dismissal of his suit. Before considering the merits of his various arguments, however, we must first determine whether we have jurisdiction to consider them at all.
¶23 In their briefs, the Trust Defendants and 105 Partners both argue that because the buildings that were on the Property have been demolished, this case is now moot. If they‘re correct, we lack jurisdiction to consider Harman‘s claims. See First Nat‘l Bank of Layton v. Palmer, 2018 UT 43, ¶ 10, 427 P.3d 1169 (recognizing that a court lacks “jurisdiction over issues that have become moot“); Bywater v. Brigham City Corp., 2024 UT App 53, ¶ 21, 548 P.3d 531 (explaining that mootness is jurisdictional), petition for cert. filed, June 12, 2024 (No. 20240627). We have an “obligation to ensure that we have jurisdiction over all matters before us, and we do not take lightly our responsibility to ensure we have proper jurisdiction before deciding a case.” 11500 Space Center LLC v. Private Capital Group Inc., 2022 UT App 92, ¶ 34, 516 P.3d 750 (quotation simplified). We accordingly start here.
¶24 As indicated, Harman raised two groups of claims—the Partnership Claims and the Ownership Claims. For analytical reasons, we‘ll start with the Ownership Claims, turning from there to the Partnership Claims.
A. Ownership Claims
¶25 “A case may be mooted on appeal if the relief requested is rendered impossible or of no legal effect.” Transportation All. Bank v. Int‘l Confections Co., 2017 UT 55, ¶ 15, 423 P.3d 1171 (quotation simplified). Where “the issues that were before the trial court no longer exist, the appellate court will not review the case.” Richards v. Baum, 914 P.2d 719, 720 (Utah 1996).
¶26 Because the mootness doctrine largely turns on the continuing availability of the “relief requested,” Transportation All. Bank, 2017 UT 55, ¶ 15 (quotation simplified), Utah‘s mootness cases have commonly looked to the precise terms of the plaintiff‘s pleadings (whether it be the complaint or some other filing) to determine the nature of the requested relief. See, e.g., Franklin Fin. v. New Empire Dev. Co., 659 P.2d 1040, 1043 (Utah 1983) (holding that an appeal was not moot where the “appellants [sought] not to prevent the sale, but to establish their right to a share of the sale proceeds,” and where that “relief could be granted even though the sale [was] already completed and the time for redemption [had] elapsed“); Wasatch County v. Utility Facility Review Board, 2018 UT App 191, ¶ 20, 437 P.3d 406 (holding that “under the circumstances of [that] case, the specific remedy Wasatch County [sought]—revocation of the conditional use permit—[was] simply unavailable“). And this focus makes sense. After all, “our law of civil procedure has long deferred to the plaintiff as the master of the complaint. . . . We judges are neutral arbiters—not advocates. To police that distinction we keep ourselves out of the business of second-guessing the pleading decisions of the parties.” Hunter v. Finau, 2024 UT App 17, ¶ 29, 545 P.3d 294 (quotation simplified), cert. denied, 550 P.3d 993 (Utah 2024).
¶27 The Trust Defendants and 105 Partners both assert that Harman cannot obtain his requested relief without the continued existence of the buildings. After all, in the Complaint, Harman sought to enforce his right to purchase the Property under the terms set forth in the REPC. And as indicated, the REPC initially identified the property that was being purchased as “small commercial buildings located on” the identified address. In addition, the Trust Defendants and 105 Partners also point to various statements and arguments that Harman made while seeking to prevent the destruction of the buildings. In the mоtion for an injunction that Harman filed with the district court, Harman claimed that “his agreement” was “to purchase the Property which includes the dwelling on the Property,” and he further argued that “[i]f the Property [was] destroyed“—which seems to be a reference to the buildings, not the land—he would “not then be able to obtain the fruits of his agreement in this suit for specific performance.” In the motion for a
¶28 We thus understand the mootness arguments from 105 Partners and the Trust Defendants to essentially turn on two sequential propositions: first, that the “relief [Harman] requested” was inextricably linked to the buildings, and second, that regardless of whether the requested relief was exclusively or even partially predicated on the buildings, Harman cannot obtain that relief now because the buildings have been demolished. We disagree on both fronts.
¶29 First, in the Complaint, Harman claimed that he was “entitled to specific performance” of the REPC. The agreement itself specifically referenced the buildings, but through both its broad language and the attached Notice of Interest and Exhibits, this agreement also contemplated that Harman was purchasing the underlying plots of land. Moreover, in the “General Allegations” section of the Complaint, Harman identified the Property that “is the subject matter of [his] action” by referencing the parcel numbers and the geographical descriptions of the Property. Thus, the Complaint and the underlying REPC made it clear that Harman was seeking specific performance of the right to purchase both the buildings and the land.
¶31 From all this, we think it‘s clear that the “relief requested” in this lawsuit was a request for specific performance of an agreement to purchase both the buildings and the land.
¶32 The second question, then, is this: since the buildings were part of this contract and part of the requested relief, and since those buildings have now been destroyed, can Harman obtain specific performance for just part of the contract? The answer to that question is yes. Our supreme court has held that when the nature of a property changes in between the formation of the contract and the completion of the transfer, the purchaser may seek partial specific performance (often with an abatement of the purchase price). See, e.g., Kelley v. Leucadia Fin. Corp., 846 P.2d 1238, 1242 (Utah 1992) (holding that “[s]pecific performance with an abatement in the purchase price” was available as “an appropriate remedy” when the parties learned, after the formation of the contract, that the sellers might not have owned all of the property in question); Castagno v. Church, 552 P.2d 1282, 1283–84 (Utah 1976) (holding that the district court was justified in awarding specific performance “with an abatement in the purchase price equal to the value of the deficiency or defect” where, after the parties had agreed to a contract for the sale of land and water rights, an administrative decision prevented the purchasers from actually obtaining the water rights).7
¶33 Indeed, after the Trust Defendants and 105 Partners made their mootness arguments in their appellate briefs, Harman cited to both Kelley and Castagno in his reply brief. In express reliance on thesе decisions, Harman argued that this case is not moot precisely because he could still obtain specific performance plus abatement of the purchase price as a means of accounting for the destruction of the buildings.
¶34 In response to this assertion, 105 Partners and the Trust Defendants suggest that it‘s too late for Harman to request this type of remedy. In their view, a party must ordinarily set forth any request for damages in its pleadings at the trial court level, which is problematic because Harman did not ask for specific performance plus abatement in his pleadings below. But this argument asks us to turn a blind eye to the sequencing of this case. After all, Harman had no reason to request specific performance plus abatement from the district court, given that the buildings weren‘t demolished until after the district court had dismissed his suit and after he
for specific performance plus abatement. Cf. Richards, 914 P.2d at 721-22 (noting that “the amendment of pleadings is sometimes permitted on remand“).8
¶35 To be clear, for purposes of our mootness analysis, we‘re not holding that Harman actually is entitled to relief. Rather, the sole question at this stage is whether the requested relief is “rendered impossible or of no legal effect.” Transportation All. Bank, 2017 UT 55, ¶ 15 (quotation simplified). Because Harman has always sought specific performance of a contract that included the sale of land, and because our supreme court has recognized that a party can, under some circumstances, obtain specific performance of a portion of a contract accompanied by abatement of the purchase price, it would still be possible for Harman to obtain the relief that he has always sought. For these reasons, we conclude that his claims are not moot.9
B. Partnership Claims
¶36 We also conclude that Harman‘s challenges to the dismissal of the Partnership Claims are not moot.
¶37 In each of these claims (i.e., Claims I through IV), Harman argued that the partnership agreement between the Trust Defendants and 105 Partners should be voided. In isolation, the nature of this requested relief alone suggests that these claims should survive a mootness challenge because, in theory, the partnership could be voided irrespective of whether the buildings survived. And separate from that, we also note that Harman linked each of these claims to his request for specific performance of the REPC:
- At the outset of Claim I, Harman asserted that “105 Partners should not be allowed to interfere or stop Harman from purchasing [the Property] because the partnership between it and the [Trust Defendants] is void.”
- At the outset of Claim II, Harman asserted that “105 Partners [has] no power to interfere with Harman‘s Purchase Agreement because all of its
agreements with the [Trust Defendants] are void on grounds of laches.” - At the outset of Claim III, Harman asserted that there “is no agreement now existing where 105 Partners can interfere or stop the [Trust Defendants] from selling the Property to Harman.”
- And at the outset of Claim IV, Harman asserted that “105 Partners should not be allowed to stop or interfere with Harman‘s purchase contract with the [Trust Defendants] because of fraud on the part of 105 Partners.”
Harman also included similar language with respect to each claim in the portion of the Complaint in which he detailed the relief requested. And at oral argument in this appeal, Harman‘s counsel again affirmed that each of these claims was linked to his request for specific performance of the REPC. Because we concluded above that the Ownership Claims survive this mootness challenge because of Harman‘s request for specific performance, it thus follows that the Partnership Claims survive too.
¶38 In short, we conclude that Harman‘s claims are not moot. As a result, we have jurisdiction to consider the merits of Harman‘s challenges to the dismissal of his suit.
II. Dismissal of the Partnership Claims
¶39 As discussed above, Harman raised seven claims in his brief, and we‘ve referred to Claims I through IV as the Partnership Claims. In these claims, Harman sought to invalidate thе partnership between 105 Partners and the Trust Defendants on various grounds, including laches, repudiation, and fraud, as well as an assertion that the partnership was “void” and “all agreements of the same [were] not binding” because the partnership‘s purposes had been “frustrated.”10 As explained, he sought to do so to facilitate his own claims to the Property. The district court dismissed the Partnership Claims, however, concluding that Harman lacked standing to try to invalidate agreements between 105 Partners and the Trust Defendants. Harman now challenges that conclusion on appeal, but we agree with the district court.
¶40 “To properly bring an issue before the court for adjudication, a party must have standing.” Provo City Corp. v. Thompson, 2004 UT 14, ¶ 9, 86 P.3d 735. The “traditional standing test requires plaintiffs to allege that they have suffered or will suffer some distinct and palpable injury that gives them a personal stake in the outcome of the legal dispute.” Southern Utah Wilderness All. v. Kane County Comm‘n, 2021 UT 7, ¶ 16, 484 P.3d 1146 (quotation simplified). This test also “require[s] a plaintiff to show that he or she suffered an invasion of a legally protected interest that is concrete and particularized.” Id. ¶ 17 (quotation simplified); see also Jenkins v. Swan, 675 P.2d 1145, 1148 (Utah 1983) (explaining that under “thе traditional test for standing,” a plaintiff “must have a legally protectible interest in the controversy” (quotation simplified)); In re John Edward Phillips Family Living Trust, 2022 UT App 12, ¶ 24, 505 P.3d 1127 (same). In this sense, “a party may generally assert only his or her own rights and cannot raise the claims of third parties who are not before the court.” Thompson, 2004 UT 14, ¶ 9; accord Lehi City v. Rickabaugh, 2021 UT App 36, ¶ 16 n.7, 487 P.3d 453.
¶41 We applied these principles in D.U. Co. v. Jenkins, 2009 UT App 195, 216 P.3d 360, a case that has some similarity to what‘s at issue here. In that case, Elaine and Sam Jenkins lived in a home that was owned by the D.U. Company (DUC).11 See id. ¶ 2. DUC sold the home to Alan Jenkins (Sam‘s brother). See id. After Elaine divorced Sam, she
¶42 Of some note, DUC had also asserted a second cause of action in the alternative in which it tried to undo its own earlier sale of the property to Alan. See id. ¶ 4. In DUC‘s view, prevailing on this cause of action would provide a basis for quieting title to the property in its own right. See id. We affirmed the dismissal of that cause of action on res judicata grounds. See id. ¶¶ 13–17. But in doing so, we held that even though DUC was now asserting, through its second cause of action, that it had a “legally protectable interest in the validity of the warranty deed it earlier issued to Alan Jenkins,” and even though that same warranty deed was also at issue in the claims that DUC sought to assert on Alan‘s behalf against Elaine, this still did not give DUC standing to assert claims for Alan against Elaine in the first cause of action. See id. ¶ 12. This was so because, again, DUC had not shown that it had a legally protectible interest in asserting claims for Alan against Elaine. See id.
¶43 These principles have clear application to this case. In its ruling dismissing Harman‘s claims, the district court concluded that Harman was not “an assigneе or third-party beneficiary of any of the agreements between 105 Partners and the Trust Defendants” and that Harman therefore had no “authority to act on behalf of the Trust Defendants” to raise these claims. Harman has not meaningfully challenged these conclusions on appeal, much less carried his burden of persuading us that any of them were incorrect. Because Harman has not established that he had a “legally protectable interest in asserting” claims for the Trust Defendants against 105 Partners, he lacks standing to do so. Id. In other words, he “cannot raise the claims of third parties,” Thompson, 2004 UT 14, ¶ 9, but, instead, can only assert his own rights. And under D.U. Co., this remains true even though Harman claims to have his own “legally protectable interest” in the Property through the REPC. 2009 UT App 195, ¶ 12.
¶44 In light of all this, we thus conclude that the district court correctly dismissed the Partnership Claims for lack of standing.12
III. Dismissal of the Ownership Claims
¶45 Harman next challenges the dismissal of Claims V through VII, which we have referred to as the Ownership Claims. As explained below, we (A) reverse the district court‘s dismissal of Claim VII, which sought specific performance under the REPC; (B) affirm the district court‘s dismissal of Claim VI, which sought specific performance under Utah‘s Recording Act; and (C) reverse the district court‘s dismissal of Claim V, which sought to quiet title.
A. Specific Performance of the REPC
¶46 The district court dismissed the specific performance claim for two independent reasons. Neither ground supports dismissal, at least not at this procedural stage.
¶48 Although Harman raised the futility defense below, the district court did not discuss this defense in its ruling, let alone explain how this fact-bound defense failed as a matter of law in the context of a motion to dismiss. Futility “is an equitable defense that, in the first instance, is best addressed to the sense of justice and good conscience of the trial court, to which we accord considerable latitude of discretion.” Richardson v. Hart, 2009 UT App 387, ¶ 21, 223 P.3d 484; see also Jenkins v. Equipment Center, Inc., 869 P.2d 1000, 1003 (Utah Ct. App. 1994) (“The question of whether a tender would have been fruitless is fact-intensive. Thus, we defer to the trial court‘s findings.” (quotation simplified)). Given that Harman preserved his futility argument, and given that his lack of tender would be excused if Harman prevails on that argument, we conclude that the district court‘s dismissal for a lack of tender was improper, at least at this procedural stage, because the court failed to address the potentially dispositive issue that was before it. We thus reverse that ruling and remand with directions for the court to consider and rule on Harman‘s futility defense.
¶49 Failure of obligations. The district court separately concluded that, even if Harman was “not required to make a full tender,” he still was not entitled to specific performance. The court‘s explanation for this ruling was a touch unclear, and the parties’ briefs have failed to offer much additional clarity. As we understand it, the court‘s ruling was grounded in various provisions in the REPC under which Harman agreed to purchase the Property subject to a “Commitment for Title Insurance” that was to be provided by the Trust Defendants. The court noted that, under the REPC, Harman was entitled to either rescind or pursue other remedies if the Commitment for Title Insurance revealed potential problems with the title. The district court also noted that it was undisputed that Harman was “aware of the existing prior interest of 105 Partners and its agreements with the Trust Defendants” when he agreed to the REPC. From all this, the court dismissed Harman‘s specific performance claim because, in its view, the Trust Defendants could not—and were not required to—“provide a clear, marketable title to [Harman] that was not subject to the contents of the Commitment for Title.”
¶50 On the briefing presented to us on appeal, we conclude that this dismissal was in error. Our supreme court has held that a “seller is not entitled to take advantage of a provision intended to benefit the buyer alone.” Kelley, 846 P.2d at 1242. In other words, if a seller violates its “contractual obligations under a provision” that is “clearly for the benefit of the buyer,” the buyer may still seek specific performance. Id.; see also SMS Fin., LLC v. CBC Fin. Corp., 2017 UT 90, ¶ 23, 417 P.3d 70 (recognizing that “contractual conditions can be waived by the benefitted party and do not prevent specific performance“).
¶51 In his brief, Harman argued that these particular provisions from the REPC (obligating the Trust Defendants to obtain a Commitment for Title Insurance and allowing
B. Utah‘s Recording Act
¶52 Harman next challenges the district court‘s decision to dismiss his claim under what has sometimes been referred to as Utah‘s Recording Act. See Haik v. Sandy City, 2011 UT 26, ¶ 13, 254 P.3d 171. The district court dismissed this claim based on its conclusion that Harman was not a “bona fide purchaser[],” and it based this on its conclusion that, under the allegations set forth in the Complaint, Harman had purchased the Property with knowledge of the “existing prior interest of 105 Partners and its agreements with the Trust Defendants.” In the court‘s view, Harman had “notice of a prior, unrecorded interest” and therefore could not have acted in “good faith” as required to be a bona fide purchaser. See Pioneer Builders Co. of Nevada v. KDA Corp., 2012 UT 74, ¶ 23, 292 P.3d 672.
¶53 Harman challenges this ruling on appeal, asserting that although he knew about the Contributiоn Agreement, he also had reason to believe that the terms of the Contribution Agreement had not been fully accomplished and, thus, that 105 Partners had no valid interest in the Property. In their briefs, the two sides dispute whether Harman‘s presumptions about the status of the Contribution Agreement relieved him of being on notice of a prior interest. But we need not resolve this dispute. This is so because, separate from this potential issue, 105 Partners and the Trust Defendants also ask us to affirm on the alternate ground that Harman did not qualify as a subsequent purchaser for purposes of Utah‘s Recording Act. We agree with this contention and affirm the dismissal on this basis alone. See Cochegrus v. Herriman City, 2020 UT 14, ¶ 36, 462 P.3d 357 (“It is within our discretion to affirm a judgment on an alternative ground if it is apparent in the record.” (quotation simplified)).14
¶54 Utah‘s Recording Act applies when more than one purchaser claims a right to a single property. Under its terms,
[e]ach document not recorded as provided in this title is void as against any subsequent purchaser of the same real property, or any portion of it, if: (1) the subsequent purchaser purchased the proрerty in good faith and for a valuable consideration; and (2) the subsequent purchaser‘s document is first duly recorded.
¶55 In Young Resources Limited Partnership v. Promontory Landfill LLC, 2018 UT App 99, ¶ 23, 427 P.3d 457, we reiterated and applied the rule that a subsequent purchaser is one who has actually received title to the property in question. There, an entity called PPLR was formed for the purpose of developing a lаndfill. Id. ¶ 2. One of its founding members, Young Resources Limited Partnership (Young Resources), conveyed property to PPLR. See id. ¶¶ 4–5. In 2004, the manager of PPLR transferred that property to another entity (referred to as “Promontory Landfill“) without the approval of PPLR‘s members and without attaching certain conditions that were arguably required by PPLR‘s operating agreement. See id. ¶ 5. In 2016, Young Resources filed a lawsuit claiming that the transfer from PPLR to Promontory Landfill was invalid. See id. ¶ 6. One of its claims asserted that, under
¶56 In doing so, we first considered the question of when the cause of action under
¶57 Consistent with the language cited above and our application of it in Young Resources, other Utah cases that have interpreted Utah‘s Recording Act have commonly involved competing parties who had each received a deed or title to the property in question. See, e.g., Insight Assets, Inc. v. Farias, 2013 UT 47, ¶¶ 1, 15–16, 321 P.3d 1021 (assessing the priority of two executed mortgages); Salt Lake County v. Metro West Ready Mix, Inc., 2004 UT 23, ¶¶ 2–3, 12–19, 89 P.3d 155 (interpreting the recording statute where one party had an unrecorded deed and the other a quitclaim deed); Ault v. Holden, 2002 UT 33, ¶¶ 2, 32, 44 P.3d 781 (considering a claim under the recording statute between two parties who each had a deed to the property); Morris, 2018 UT App 7, ¶¶ 2–3, 28–38 (determining priority between two entities with competing trust deed assignments); Sterling Fiduciaries LLC v. JPMorgan Chase Bank, 2016 UT App 107, ¶¶ 2–6, 20, 372 P.3d 741 (assessing the competing interests of the property owner and the owner of a note attached to the property).
C. Quiet Title
¶59 Finally, the district court dismissed Harman‘s separate claim to quiet title.
¶60 “A quiet title claim . . . is one to quiet an existing title against an adverse or hostile claim of another. It is not an action brought to establish title. Consequently, a quiet title claim fails if the plaintiff cannot establish valid title or some other valid and existing property right.” WDIS, LLC v. Hi-Country Estates Homeowners Ass‘n, 2019 UT 45, ¶ 42, 449 P.3d 171 (quotation simplified). “Generally, to succeed in an аction to quiet title to real estate, a plaintiff must prevail on the strength” of the plaintiff‘s “own claim to title and not on the weakness of a defendant‘s title or even its total lack of title.” Thatcher v. Lang, 2020 UT App 38, ¶ 26, 462 P.3d 397 (quotation simplified).
¶61 Above, we reversed the district court‘s dismissal of Harman‘s specific performance claim. Depending on the outcome of that claim, Harman may be entitled to quiet title as well. As a result, we also reverse the dismissal of Harman‘s quiet title claim.16
CONCLUSION
¶62 Because Harman could still obtain specific performance of his contract to purchase the Property, his claims were not mooted by the demolition of the buildings during the pendency of this appeal. Turning to the merits, we affirm the district court‘s dismissal of the Partnership Claims based on Harman‘s lack of standing. On the Ownership Claims, we affirm the dismissal of Harman‘s claim under Utah‘s Recording Act, given that the claim is not yet ripe. But we reverse the district court‘s dismissal of Harman‘s request for specific performance based on the REPC, and we likewise reverse its dismissal of the quiet title action. Finally, because we have reversed the dismissal of the specifiс performance and quiet title claims, we vacate the district court‘s award of attorney fees. We accordingly remand for further proceedings consistent with this opinion.17
Notes
But we also note that the briefing on this entire issue has been less than robust. Because the parties “made no real effort” to present the competing arguments on it, “we‘re in no position to do this work ourselves.” Keisel v. Westbrook, 2023 UT App 163, ¶ 52 n.9, 542 P.3d 536. As a result, “we leave open the possibility that, if some future case arises in which” this issue is “better presented, we may consider [it] anew.” Id. Thus, for purposes of this appeal, we simply hold that, based on the ruling and the briefing before us, we see no sustainable support for the court‘s dismissal of Harman‘s REPC-based specific performance claim under rule 12(b)(6) based on the conclusion that specific performance was unavailable.
Attorneys have a duty to “act with reasonable diligence” in representing a client,
The language used by Harman‘s counsel in his briefs repeatedly crossed the line from stridency to incivility. Harman‘s counsel characterized arguments that had been made by his opponents as “nonsense,” “silly and outrageous,” “totally, totally, totally absurd,” and “ludicrous,” and he also claimed that opposing counsel had “breathtakingly [and] completely ignore[d]” controlling precedent. Harman‘s counsel directed similar hostility at the district court. At one point, he stated that “with full due respect for all courts of this state, still, for the n‘teenth time, the lower court has gone again directly against the plain language of appellаte case law.” At another, he claimed that it was “absolutely unbelievable and incredible that a lower court could ever, ever, ever make” a ruling such as the one he was challenging.
We don‘t intend to become the word police for the bar. But even so, we stress that language such as the above has no place in litigation. Harman‘s counsel could have zealously challenged each of the district court‘s rulings without being unprofessional. Indeed, from a pure advocacy standpoint, he would have been better served had he done so. As recognized by our supreme court, intemperate advocacy “is usually highly counterproductive” and can “distract[] the decision-maker from the merits of the case.” Peters v. Pine Meadow Ranch Home Ass‘n, 2007 UT 2, ¶ 21, 151 P.3d 962. Such advocacy is the rhetorical equivalent of turning on a cell phone in a crowded movie theater, with the effect in this context being to pull the judge‘s mind away from the merits of counsel‘s arguments and put it instead on counsel‘s professionalism and overheated word choices. If an attorney‘s goal is truly to persuade the court (as opposed to simply scoring rhetorical points), advocacy of this sort should be avoided.