Opinion ID: 2514037
Heading Depth: 1
Heading Rank: 1

Heading: facts

Text: ¶ 2 On November 24, 1998, in a prior appeal of this case this court entered a decision affirming the district court's dismissal of the Gildeas' claims against Guardian for breach of fiduciary duty, conspiracy to defraud, and negligent misrepresentation. See Gildea I, 970 P.2d at 1272. In doing so, this court determined that there was a total lack of basis in fact for the [Gildeas'] claims against Guardian, and therefore awarded Guardian its costs and reasonable attorney fees on appeal pursuant to rule 33(a) of the Utah Rules of Appellate Procedure in an amount to be determined by the district court. Id. On December 22, 1998, the Gildeas filed a petition for rehearing asking this court to reconsider our award of costs and attorney fees to Guardian under rule 33. This court denied the Gildeas' petition for rehearing on January 13, 1999. ¶ 3 On remand, Guardian filed a motion with the district court for a determination of the amount of attorney fees and costs it was entitled to recover in accordance with this court's decision in Gildea I. In its motion, which was supported by an affidavit of fees, Guardian argued that it had incurred costs and attorney fees in connection with the appeal in the amount of $5136.02. The Gildeas opposed the motion, arguing that an award of $5136.02 would be excessive and punitive. After considering the parties' motions, the district court entered an order on July 16, 1999, awarding Guardian the full amount of attorney fees and costs it sought in its motion, together with interest due thereon as provided by law, against the Gildeas and Marsh. ¶ 4 Subsequently, on July 30, 1999, the Gildeas moved for a new hearing or, in the alternative, to vacate the award of attorney fees. In the motion, Marsh and the Gildeas principally argued that [t]he Supreme Court erred in awarding attorney's fees under rule 33 and that, therefore, the district court's award of attorney fees on remand must be vacated in its entirety. In response, Guardian argued that the Gildeas' motion to vacate was frivolous and should be rejected on its face because the district court could not over-rule this court's previous decision in Gildea I. ¶ 5 In addition to filing a memorandum in opposition to the Gildeas' motion to vacate, Guardian, on August 11, 1999, sent Marsh a copy of a motion for sanctions under rule 11 of the Utah Rules of Civil Procedure, notifying him, as required by rule 11, that unless the Gildeas' motion to vacate was withdrawn within twenty days, Guardian would file its motion for rule 11 sanctions with the district court. When the Gildeas' motion to vacate was not withdrawn, Guardian, on September 1, 1999, filed its rule 11 motion with the district court, but did not give Marsh additional notice that the motion had been filed. Moreover, Guardian never filed a notice to submit its rule 11 motion for decision as required by rule 4-501 of the Utah Rules of Judicial Administration. ¶ 6 On September 1, 1999, Guardian filed a notice to submit for decision the Gildeas' motion to vacate, making no reference to its request for rule 11 sanctions. Thereafter, on October 14, 1999, the district court denied the Gildeas' motion to vacate, affirming its earlier award of $5136.02 in attorney fees and costs against the Gildeas and Marsh. The district court further determined, on its own initiative, that the Gildeas' motion to vacate violated rule 11, in that it was frivolous and not brought in good faith, and therefore awarded Guardian its costs and attorney fees incurred in responding to the Gildeas' motion to vacate as sanctions against Marsh. In accordance with the trial court's ruling, Guardian submitted an affidavit of attorney fees and a proposed judgment to the district court with regard to the amount of additional fees it incurred in opposing the Gildeas' frivolous motion. On November 15, 1999, the district court entered a judgment against Marsh, awarding $768.75 in costs and attorney fees as rule 11 sanctions. ¶ 7 In this appeal, the Gildeas and Marsh argue that the district court erred in awarding Guardian $5136.02 in attorney fees and costs in accordance with this court's decision in Gildea I, and subsequently erred in awarding Guardian $768.75 in attorney fees and costs under rule 11. In this regard, the parties raise three arguments. First, the Gildeas and Marsh argue that the former appeal of this case Gildea I did not merit imposition of attorney fees and costs under rule 33 of the Utah Rules of Appellate Procedure and that, therefore, the district court's award of attorney fees on remand should be reversed. Second, Marsh argues that the award of sanctions against him in the amount of $768.75 must be reversed because he did not receive adequate notice and opportunity to respond to the district court's imposition of rule 11 sanctions. Finally, Marsh argues that the district court's award of rule 11 sanctions against him must also be reversed because it was not supported by adequate findings.