Opinion ID: 2745634
Heading Depth: 1
Heading Rank: 2

Heading: facts

Text: ¶ 2 America West Bank (Bank) is wholly owned by its members, AWBM. On May 1, 2009, UDFI filed a petition in district court for an order approving the seizure of the Bank. That same day, the district court granted the petition without the presence or participation of AWBM. UDFI then appointed the Federal Deposit Insurance Corporation (FDIC) as receiver of the Bank. The FDIC announced publicly it had been appointed receiver of the Bank and immediately began winding down the affairs of the Bank and liquidating its assets. ¶ 3 On June 28, 2011, AWBM filed a complaint in district court against the State of Utah; UDFI; the commissioner of UDFI, Mr. G. Edward Leary; and UDFI‘s supervisor of banks, Mr. Tom Bay. AWBM also filed a notice of claim against Mr. Leary, as required by the Utah Governmental Immunity Act (Immunity Act).2 AWBM alleged various claims, including common law tort, breach of contract, breach of the covenant of good faith and fair dealing, constitutional takings, and due process violations. Liquidation of the Bank‘s assets was ongoing when AWBM filed its complaint. The State filed a motion to dismiss the complaint 1 AWBM initially included Mr. Tom Bay, the supervisor of banks for UDFI, as a party. However, Mr. Bay was not properly given notice of the claims as required by the Utah Governmental Immunity Act and was dismissed as a party. 2 See UTAH CODE § 63G–7–401 to -904. 2 Cite as: 2014 UT 49 ACJ NEHRING, opinion of the Court except as to Part II.B based on rules 12(b)(1) and 12(b)(6) of the Utah Rules of Civil Procedure. AWBM opposed the motion to dismiss. ¶ 4 In its opposition to the State‘s motion to dismiss, AWBM consented to the dismissal of some of its claims. AWBM acknowledged that it failed to file an appropriate notice of claim against Mr. Bay, as required by the Immunity Act, and as a result, all claims against Mr. Bay were dismissed.3 Additionally, AWBM conceded to the dismissal with prejudice of its claims of failure to disclose evidence at a hearing, negligent destruction of property, and negligence, based primarily on the existence of immunity enjoyed by the defendants.4 ¶ 5 The district court did not hold a hearing on the motion to dismiss, but ―reviewed and considered all Memoranda in support, opposition and reply‖ and granted the State‘s motion to dismiss ―in full as prayed for based upon all of the reasons . . . and legal authorities set forth in [the State‘s] [m]emoranda in support and reply, including [AWBM‘s] concessions.‖ Based on the minute entry and the State‘s motion to dismiss and accompanying memorandum, the district court dismissed AWBM‘s breach of contract, breach of the covenant of good faith and fair dealing, and unconstitutional taking claims all due to insufficient factual allegations in the complaint. The district court also dismissed AWBM‘s claims of denial of procedural and substantive due process with prejudice, because it found that the right to a pre- 3 UDFI moved to dismiss AWBM‘s claims under both rules 12(b)(1) and 12(b)(6) of the Utah Rules of Civil Procedure. The rule 12(b)(1) dismissal for lack of subject matter jurisdiction relates only to AWBM‘s ―fail[ure] to comply with the notice of claim provisions of the Utah Governmental Immunity Act‖ as it relates to Mr. Bay. Gurule v. Salt Lake Cnty., 2003 UT 25, ¶ 1, 69 P.3d 1287. AWBM conceded that proper notice was not given to Mr. Bay, and Mr. Bay is not a party to this appeal. Therefore, we address the dismissal of the remaining claims through the lens of rule 12(b)(6) of the Utah Rules of Civil Procedure. 4 As is noted by AWBM in its brief, the district court did not specify which claims were dismissed with prejudice and which claims were dismissed without prejudice. The court‘s minute entry simply stated that UDFI‘s motion was granted in full. We rely on the designations used in UDFI‘s motion to determine whether claims were dismissed with or without prejudice. 3 AMERICA WEST v. STATE ACJ NEHRING, opinion of the Court except as to Part II.B seizure hearing was not clearly established and, therefore, could not form the basis of a due process claim. ¶ 6 Following the district court‘s dismissal of AWBM‘s claims, AWBM filed a timely notice of appeal. AWBM appeals the dismissal of its claims for breach of contract, breach of the covenant of good faith and fair dealing, unconstitutional taking, denial of procedural due process, and denial of substantive due process.