Opinion ID: 2547977
Heading Depth: 2
Heading Rank: 3

Heading: application of the flexible and reasoned approach to this case

Text: ¶ 27 Having decided that it is appropriate to apply the flexible and reasoned approach to the instant case, we turn our attention to whether the court of appeals correctly affirmed the trial court's application of that approach. The trial court explained its primary reason for awarding no attorney fees as follows: The Court feels where plaintiff was claiming roughly $13,000 on the Thayne's Canyon property (allowing for the $17,000 already paid), and where defendant was claiming roughly $25,000 in damages for the negligence of the plaintiff, and further where the net recovery is only $527, the Court is of the opinion that this is essentially a draw and no attorney's fees should be awarded. The Appellate Courts in our state have acknowledged that the net recovery rule is essentially a starting point and need not be applied strictly under all circumstances. ¶ 28 Although lacking in detail, the trial court's explanation of its rationale is adequate because it demonstrates that the court correctly considered common sense factors in addition to the net judgment. It is apparent from the trial court's reasoning that it believed Aspen's net recovery of only two percent (2%) of its claimed damages was insufficient to make it the successful party. ¶ 29 As noted above, Aspen insists that both the trial court and the court of appeals mistakenly believed that Whipple sought only $13,000, when it appears that Whipple actually sought $30,641.35. See supra note 3. Nevertheless, the trial court's conclusion is bolstered by the fact that Whipple was not completely defeated in its attempt to foreclose the Thayne's Canyon mechanic's lien. One of the recurring themes in Aspen's briefing is that Whipple was not successful in obtaining a mechanic's lien foreclosure as to the Thayne[']s Canyon property. That statement is misleading, however, because while Whipple did not win one hundred percent (100%) of what it claimed under the Thayne's Canyon mechanic's lien, it did win much of what it sought, including the largest single element of that lien: the plumbing work. Whipple claimed $14,158 for plumbing work, and won $12,158 after the court deducted $2,000 in offsets. Additionally, Whipple claimed and recovered $10,200 for the value of sewer laterals that it added to the property. Finally, Whipple recovered $100 of the $780 it sought for backhoe services at the Thayne's Canyon property. Thus, Whipple prevailed on over $24,000 of the approximately $30,000 in claims under the Thayne's Canyon mechanic's lien. ¶ 30 There is a lot more to this story than just the net judgment or the fact that Whipple did not recover everything that it sought through its mechanic's lien. Aspen had only partial success defending itself from Whipple's claimed mechanic's lien on the Thayne's Canyon property, and it also had only partial success on its counterclaim for negligence. Whipple likewise had only partial success, both in seeking to foreclose its mechanic's lien and in defending itself from Aspen's counterclaims. The mere fact that, once the dust settled, Aspen walked away with a net judgment of $527, does not convince us that Aspen was the successful party as we interpret that term in section 38-1-18 of the Utah Code. Thus, we find that the court of appeals correctly affirmed the trial court's finding of a draw in this case.