Court Opinion

ID: 9538799
Source: CourtListenerOpinion
Date Created: 2023-08-07 07:41:53.700466+00
Date Added: 2024-06-11T14:58:10.262045
License: Public Domain

RUSSON, Justice,
concurring in the result:
I concur in the result only. In my opinion, the agreement is ambiguous inasmuch as it is susceptible to two different interpretations. The agreement reads:
AGREEMENT
Upon payment of $4901.27, receipt of which is hereby acknowledged ($900.00 check and $4001.27 credit to my account), I, Earl H. Ward, hereby agree to release and hold harmless Intermountain Farmers Association for any and all damages caused by the spraying of my approximate nineteen acres of safflower.
This agreement can be reasonably read to release Intermountain Farmers Association (IFA) for any and all damages caused by the spraying of the nineteen acres which happened to be planted in safflower. Alternatively, it could be reasonably read to release IFA for any and all damages caused by the spraying of the safflower, which happened to cover approximately nineteen acres. Either interpretation is reasonable. Therefore, the provision is ambiguous and requires extrinsic evidence to establish the intent of the parties. See Faulkner v. Farnsworth, 665 P.2d 1292, 1293 (Utah 1983). This reason and this reason alone is sufficient to reverse and remand this matter to the trial court for further proceedings.
I disagree, however, with the imprudent and disruptive rule of construction enunciated in the majority’s opinion. The proposed rule would allow litigants to present extrinsic evidence to establish ambiguity in an otherwise clear contract provision. This rule contravenes the maxim consistently applied by this court:
In interpreting a contract, the intentions of the parties are controlling. If the contract is in writing and the language is not ambiguous, the intention of the parties must be determined from the words of the agreement. A court may only consider extrinsic evidence if, after careful consideration, the contract language ‘is ambiguous or uncertain.
Winegar v. Froerer Corp., 813 P.2d 104, 108 (Utah 1991) (citations omitted) (emphasis added). While the majority cites to this passage in Winegar, it misconstrues its meaning by stating that it stands for the *270permissive proposition that “a court may consider extrinsic evidence if the meaning of the contract is ambiguous or uncertain.” (Emphasis added.) However, the rule established by this court in Winegar is not simply permissive; rather, it states that a court may consider extrinsic evidence only if the contract is ambiguous or uncertain. Id. In holding that a court may consider extrinsic evidence to determine if a contract is ambiguous, the majority ignores well-settled precedent in favor of an approach that invites parties to create ambiguity in even the clearest contract provisions.
Moreover, the rule espoused by the majority is not necessary. This court has previously held that whether a contract is ambiguous is a question of law, Fitzgerald v. Corbett, 793 P.2d 356, 358 (Utah 1990), and it will be found to be ambiguous “if it is capable of more than one reasonable interpretation because of ‘uncertain meanings of terms, missing terms, or other facial deficiencies.’ ” Winegar, 813 P.2d at 108 (quoting Faulkner v. Farnsworth, 665 P.2d 1292, 1293 (Utah 1983)). These rules are sufficient to give the trial courts ample guidance in determining whether a contract provision is ambiguous or uncertain, while also providing for appellate review to protect against bias resulting from “the judge’s own linguistic education and experience.” Pacific Gas & Elec. Co. v. G.W. Thomas Drayage & Rigging Co., 69 Cal.2d 33, 69 Cal.Rptr. 561, 563, 442 P.2d 641, 643 (1968) (citation omitted).
Not only does the rule set forth in the majority opinion conflict with established canons of contract interpretation, but it also upsets the expectations of contracting parties and litigation practices in contract disputes. Under the proposed rule, written instruments containing clear provisions could be varied or controlled by extrinsic evidence, making reliance upon such contracts a risky proposition. Further, under the majority’s rule, IFA’s motion for summary judgment may be the last such motion filed in any contract dispute. When a motion for summary judgment can be defeated merely by the opposing party’s affidavit averring that an otherwise clear contract provision was intended to mean something different, attorneys will discontinue the futility of composing summary judgment motions, and every contract dispute will be formally resolved only through trial.