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UDAK Properties v. Canyon Creek

Citation: 2021 UT App 16Docket: 20190065-CA

Court: Court of Appeals of Utah; February 10, 2021; Utah; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

In this appellate case, Canyon Creek Commercial Center LLC challenged the district court's decision affirming UDAK Properties LLC's status as a 'Responsible Owner' under a restrictive covenant related to a shopping center. The covenant required ownership of parcels with a combined building area of at least 40,000 square feet. Despite Canyon Creek's argument that UDAK's parcels only had a floor area of 35,808 square feet, the appellate court found the covenant unambiguous and upheld UDAK's entitlement based on a proper interpretation of the contract. Additionally, the district court had awarded attorney fees to UDAK, which Canyon Creek contested, claiming errors in the award process and the sufficiency of its tender of judgment. The court upheld the attorney fees awarded, finding Canyon Creek's tender invalid as it did not meet the required legal standards. The appellate court confirmed the district court's rulings, including the award of additional fees, and remanded the case solely to determine reasonable attorney fees for the appeal. The case underscores the importance of clear contract language and adherence to statutory requirements for tendering judgments in contract disputes.

Legal Issues Addressed

Attorney Fees Award under Contractual Provisions

Application: The district court's award of attorney fees to UDAK was upheld, as the fees were awarded pursuant to Article 10.04 of the Declaration, which entitles the prevailing party to recover fees incurred in litigation over the Declaration.

Reasoning: UDAK is recognized as the prevailing party entitled to fees under the Declaration... the court affirms the district court's award of supplemental attorney fees.

Interpretation of Restrictive Covenants

Application: The appellate court determined that the Responsible Owner provision in the Declaration is unambiguous, affirming UDAK's status as such based on the clear language of the contract.

Reasoning: The appellate court agrees, stating there is a singular reasonable interpretation that confirms UDAK's status as a Responsible Owner, independent of the district court’s view.

Validity of Tender under Utah Law

Application: Canyon Creek's tender was deemed invalid as it failed to include actual payment or its equivalent, a requirement under Utah Code section 78B-5-802.

Reasoning: The district court determined that Canyon Creek did not produce or deliver the attorney fees or their equivalent and found no evidence that UDAK would reject a valid tender.