Court Opinion

ID: 9542227
Source: CourtListenerOpinion
Date Created: 2023-08-07 16:32:08.334494+00
Date Added: 2024-06-11T15:07:09.538883
License: Public Domain

RUSSON, Justice,
dissenting:
I dissent. I disagree with the majority that the TSFA serves to toll the statutes of limitations applicable in this case.
The TSFA contains no provision tolling the statutes of limitations. Indeed it provides:
This chapter is not intended to reduce or eliminate any discretion and control that the court in the depositor class action may have under Rule 23 of the Utah Rules of Civil Procedure or any other rule of law over the process and substantive outcome of the depositor class action.
Utah Code Ann. § 7-21-1(4). Moreover, the act is replete with language indicating that its purpose is to expedite the litigation of all claims arising out of the failure of the thrifts “so that the entire matter may be put to rest for the benefit of the public.” Utah Code Ann. § 7-21-1(6); see also Utah Code Ann. § 7-21-1(1) (stating that purpose of chapter is to avoid further “unnecessary delay and expense”).
Clearly, the TSFA’s plain language indicates that it was not intended to supplant any substantive or procedural rule of law, including statutes of limitations. Statutes of limitations are designed to compel the exercise of a right of action within a reasonable time. If a party fails to bring his or her action within the prescribed limitations period, that party’s action is subject to dismissal because of the defending party’s vested right to an affirmative defense of statutes of limitation. Roark v. Crabtree, 893 P.2d 1058, 1062-63 (Utah 1995). Consequently, to conclude that this act tolls the limitations periods would affect the court’s control over the action, in direct contradiction of the act’s plain language. See Bonham v. Morgan, 788 P.2d 497, 500 (Utah 1989) (per curiam) (“Un*852ambiguous language in the statute may not be interpreted to contradict its plain meaning.”).
Furthermore, “statutes of limitation are intended to compel the exercise of a right of action within a reasonable time and to suppress stale and fraudulent claims so that claims are advanced while evidence to rebut them is still fresh.” Horton v. Goldminer’s Daughter, 785 P.2d 1087, 1091 (Utah 1989). Ten years have passed since the events giving rise to the causes of action in this case transpired. Under the majority’s opinion, however, claims could be filed ten, twenty, or even thirty years after those events occurred. In that time, corporations change, documents are lost or destroyed, and memories fade, which is the very purpose for which statutes of limitations are enacted.
The majority’s claim that the applicable statutes of limitations were tolled by the TSFA is based upon the unfounded assertion that all pending claims were barred under section 7—21—4(5)(e) of the Act. This section merely requires that “claims ... arising from or related to the thrift institutions, the guaranty corporation, or their insolvencies, regardless of whether or when the claims or actions are filed or asserted” are “subject to the approval of the Thrifts Panel as provided in Section 7-21-7.” Utah Code Ann. § 7-21-4(5), (5)(e). Furthermore, section 7-21-7 only provides, “This panel shall have binding power to authorize or refuse to authorize any litigation in these claims.” Id § 7-21-7(1). Nothing in these sections can be construed as requiring such authorization prior to the filing of a lawsuit in district court. To the contrary, in stating that these claims are subject to the panel’s approval “regardless of whether or when the claims or actions are filed,” id. § 7-21^1(5) (emphasis added), the legislature clearly instructed that panel review could take place after an action was filed. If the legislature intended otherwise, it could have expressed such an intention in plain language. See Johnson v. State Tax Comm’n, 17 Utah 2d 337, 341-42, 411 P.2d 831, 834 (1966).
Indeed, had the legislature desired to create a prelitigation panel whose review would toll the applicable statutes of limitations, a ready model exists in the Utah Health Care Malpractice Act. Utah Code Ann. §§ 78-14-1 to -16. As part of this Act, the legislature created a panel to determine whether malpractice claims against health care providers have merit. Id. §§ 78-14-12, -14. In section 78-14-12, the legislature made clear that panel review is to be a precondition to the commencement of a malpractice action: “The proceedings are informal, nonbinding, ... but are compulsory as a condition precedent to commencing litigation.” Id. § 78-14-12(l)(e) (emphasis added). In addition, to remove any doubt that panel review is to occur prior to any litigation; the legislature used the term “prelitigation” to describe the panel or its activities no less than ten times. Id. § 78—14—12(l)(b), (2)(a), (3), (5)(a), (7), (8)(b). Finally, the legislature unambiguously provided that panel review would toll the applicable statute of limitations: “The filing of a request for prelitigation panel review under this section tolls the applicable statute of limitations until 60 days following the division’s issuance of an opinion by the prelitigation panel.” Id. § 78-14-12(3). Thus, a cursory examination of this section reveals that the legislature is quite adept at both mandating panel review of claims as a precondition to litigation and tolling applicable statutes of limitations.
A comparison of the Utah Health Care Malpractice Act with the TSFA reveals that the legislature purposefully did not exercise its drafting proficiency to toll statutes of limitations in the thrifts context. The TSFA provides no evidence either that the thrifts panel review is to take place prior to the filing of a complaint or, more to the point, that panel review should toll the applicable limitations period. To the contrary, as discussed above, the TSFA’s language expressly provides that procedural rules such as statutes of limitations are not to be “reduee[d] or eliminate[d].” See id. § 7-21-1(4).
Furthermore, the majority’s position that the TSFA triggers the tolling statute calls into question the constitutionality of the TSFA. Article VI, section 26 of the Utah Constitution states, “No private or special law shall be enacted where a general law can be applicable.” Interpreting the TSFA as *853tolling the claims of only those who were party to the settlement would raise a serious question as to whether the TSFA was a “special law” under the Utah Constitution. The majority opinion would toll the statutes of limitations for those who were party to the settlement while others who had claims against one or more of the defendants would be subject to the general provisions of Utah law.
The legislature was obviously concerned over the constitutionality of the TSFA wherein it specifically stated, “This chapter is not intended to reduce or eliminate ... any ... rule of law over the process and substantive outcome of the depositor class action.” Utah Code Ann. § 7-21-1(4). This certainly includes statutes of limitations.
Finally, there was adequate time to convene a panel and screen claims between the passage of the TSFA and the running of the applicable statutes of limitations. The TSFA was passed on October 7, 1988, leaving over nine months until certain claims expired on July 31, 1989, and over twenty-one months until certain claims expired on July 31, 1990. The majority opines that “under the trial court’s ruling, the panel engaged in a totally meaningless charade because it was literally impossible for plaintiffs to litigate any claim authorized by the Panel if the limitations period expired before a claim could be asserted.” However, the panel could have been formed, claims reviewed, and complaints filed well within the period allowed by the statutes of limitations. In the alternative, plaintiffs could have filed their complaints immediately and then asked the trial court to stay further proceedings until the panel completed its review and approval process.
In conclusion, as to the depositor class action claims against defendants Touche, Peat, Deloitte, C & L, Moore, Bean, Framp-ton, and Miller, I would hold that the trial court correctly determined that the applicable statutes of limitations were not tolled by the passage of the TSFA. Accordingly, I would affirm the trial court’s dismissal of these claims. I do agree with the majority, however, that the trial court erred in determining that the claims in the receiver/liquidator action required panel approval.
ZIMMERMAN, C.J., concurs in the dissenting opinion of RUSSON, J.