Smargon v. Grand Lodge Partners

288 P.3d 1063 (2012)

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Smargon v. Grand Lodge Partners

Utah Court of Appeals
288 P.3d 1063 (2012)

RW

Facts

Prior to contracting with Grand Lodge Partners, LLC (GLP) (defendant) for the purchase of a new resort condominium unit, Daniel Smargon and Audrey Viterbi (the Smargons) (plaintiffs) expressed concern that the unit could be affected by noise from a nearby mechanical room. Despite GLP’s promise to address the issue, the Smargons’ preclosing walk-through inspection of the completed unit was disrupted by noise and vibration from the mechanical room. The Smargons called off the closing. Over the next two weeks, GLP sent the Smargons three letters that (1) vaguely referred to measures GLP had taken or might take to correct the noise problem; (2) downplayed the noise problem’s magnitude; (3) assured the Smargons that the noise problem could be handled as a punch-list item; (4) gave the Smargons no more than two weeks to decide whether to close on the sale, ask GLP to release them from the contract, or forfeit their down payment on the unit; and (5) hinted at GLP’s willingness to sue the Smargons. The Smargons rejected GLP’s deadline as unreasonable and sued GLP for breach of contract. The trial court dismissed GLP’s counterclaim for damages, entered summary judgment for the Smargons, and ordered restitution of the Smargons’ down payment. GLP appealed to the Utah Court of Appeals.

Rule of Law

Issue

Holding and Reasoning (Roth, J.)

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