Young H2ORE LLC v. J&M Transmission LLC
Young H2ORE LLC v. J&M Transmission LLC, 2024 UT App 10 (Harris, J.)
A lessor claimed that a lessee owed $23,000 in unpaid rent and other damages, and the parties signed a settlement agreement where the lessee agreed to move out on a certain date. The lessee moved out 19 days late. The lessor sought to collect the damages it had waived in the settlement agreement, arguing the late move-out breached the agreement, and the district court denied that request. The Utah Court of Appeals reversed the district court’s decision, holding:
- In some circumstances, when a party materially breaches a contract, the nonbreaching party may seek recission of the contract rather than damages for the breach. This rule is adopted from the Restatement (Third) of Restitution and Unjust Enrichment. The case is remanded for the court to determine whether the late move-out was material breach and whether recession was proper.
- Judicial Tip: A court may determine that there are two prevailing parties for purposes of awarding attorney fees based on the outcome of various motions and that decision is review for an abuse of discretion.
- Judicial Tip: Parties are not entitled to attorney fees if the award given for prevailing in court is not more favorable than the corresponding offer of judgment the opposing party offers.