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Fadel v. Deseret First Credit Union

Citations: 2017 UT App 165; 405 P.3d 807; 846 Utah Adv. Rep. 11; 2017 WL 3821676; 2017 Utah App. LEXIS 167Docket: 20160070-CA

Court: Court of Appeals of Utah; August 31, 2017; Utah; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

The case involves an appeal by an attorney, Fadel, against Deseret First Credit Union, seeking to enforce an attorney's lien following a quiet title action. The Trust, represented by Fadel, had settled a property dispute by conveying the property to Deseret First for $30,000. Fadel filed an attorney's lien after the property transfer, claiming an interest in the property and its rents. The district court found Fadel's lien unenforceable, as it was filed post-transfer and did not attach to the property. The court also imposed sanctions on Fadel for pursuing claims barred by res judicata, following a prior settlement agreement. Fadel's motion to intervene was deemed untimely, and his complaint was dismissed for failing to present a valid legal basis. On appeal, Fadel argued against the treatment of Deseret First's motion as a summary judgment and contested the award of attorney fees, claiming the district court erred in its factual determinations. The appellate court upheld the lower court's rulings, affirming the dismissal of Fadel's complaint and the imposition of sanctions, citing procedural compliance and the lack of enforceable claims. Deseret First was awarded attorney fees for defending the appeal, and the case was remanded for fee calculation.

Legal Issues Addressed

Application of Res Judicata

Application: Fadel's claims were barred by res judicata as they were previously adjudicated in a quiet title case, preventing him from relitigating issues resolved in the settlement agreement.

Reasoning: The court noted that Fadel's inability to assert claims related to the Trust had been previously determined in a quiet title case, rendering the claim barred by res judicata.

Enforceability of Attorney's Lien on Real Property

Application: The court ruled that Fadel's attorney's lien was unenforceable against Deseret First as it was filed after the Trust conveyed the property, thus lacking priority.

Reasoning: Fadel's notice of attorney's lien was filed after Deseret First recorded its deed, and since Fadel's former client no longer owned the property, the district court determined that the lien 'is not enforceable at law' and did not attach to the property before it was conveyed to Deseret First.

Procedural Requirements for Attorney's Lien

Application: The court concluded that Fadel's lien was void ab initio due to procedural errors and non-compliance with statutory requirements, although not wrongful under the wrongful lien statute.

Reasoning: Judge Hamilton ruled Fadel's notice of attorney’s lien was void ab initio due to errors and non-compliance with statutory requirements, although he found the lien itself was not wrongful under the wrongful lien statute.

Sanctions for Frivolous Legal Actions

Application: The court imposed sanctions, including attorney fees, on Fadel for filing claims deemed without merit and not brought in good faith, as he acted in bad faith by pursuing claims precluded by previous rulings.

Reasoning: The court found Fadel's claims to be without merit and not brought in good faith, awarding $2,000 in attorney fees to Deseret First under the bad faith statute.

Treatment of Motion to Dismiss as Summary Judgment

Application: The court appropriately treated Deseret First's motion to dismiss as a summary judgment because it considered additional materials beyond the pleadings, consistent with Rule 12 of the Utah Rules of Civil Procedure.

Reasoning: Rule 12 allows for a motion to be treated as one for summary judgment if outside matters are presented and not excluded by the court.