628 Park Avenue v. Miller
CourtCourt of Appeals of Utah
Date FiledJuly 30, 2026
DocketCase No. 20240378-CA
StatusPublished
📰 News Coverage: Read the LAWS.com news report on this case
Full Opinion
2026 UT App 113
THE UTAH COURT OF APPEALS
628 PARK AVENUE LLC,
Appellant,
v.
ROBERT A. MILLER,
Appellee.
Opinion
No. 20240378-CA
Filed July 30, 2026
Third District Court, Silver Summit Department
The Honorable Richard E. Mrazik
No. 190500384
Troy L. Booher, LaShel Shaw, Taylor P. Webb, and
Tal S. Madanes, Attorneys for Appellant
Craig A. Hoggan and Matthew M. Kaufmann,
Attorneys for Appellee
JUDGE JOHN D. LUTHY authored this Opinion, in which
JUDGES RYAN M. HARRIS and RYAN D. TENNEY concurred.
LUTHY, Judge:
¶1 628 Park Avenue LLC (Park Avenue) leased a commercial
property (the Premises) to Church LLC dba Church Public House
(Church), with Robert A. Miller personally guaranteeing Church’s
performance under the lease. After Church failed to pay rent and
other amounts it owed, Park Avenue sued Miller under the
guaranty, attempting to collect Church’s unpaid rent and other
damages from him. Miller moved for summary judgment on—as
relevant here—four issues.
¶2 First, Miller requested a ruling as a matter of law that
Church had surrendered the Premises to Park Avenue and that
Park Avenue had accepted the surrender. The district court
628 Park Avenue, LLC v. Miller
granted Miller’s request, ruling as a matter of law that Park
Avenue had accepted a surrender of the Premises, thereby
precluding Park Avenue from claiming damages that accrued
after the date of the surrender and acceptance.
¶3 Second, Miller asked the court to rule as a matter of law
that the guarantee he signed did not obligate him to pay treble
damages Church might owe under the unlawful detainer statute.
The court granted this request as well.
¶4 Third, Miller moved for a ruling that Park Avenue had
failed to adequately disclose a computation of its damages and,
thus, that it should be prohibited from presenting evidence of its
damages. On this issue, the court granted Miller’s motion in part
and denied it in part. The court determined that Park Avenue’s
disclosure was adequate as to the damages it claimed for unpaid
rent during the five months preceding its acceptance of Church’s
surrender of the Premises. But the court ruled that Park Avenue’s
disclosure was otherwise inadequate and that Park Avenue was
therefore barred from presenting evidence of other damages.
¶5 Finally, Miller moved for summary judgment on the basis
that Park Avenue had received payments from Church in excess
of the amount Park Avenue claimed in unpaid rent during the five
months preceding its acceptance of the surrender of the Premises.
The court granted this motion, ruling that the undisputed
evidence showed that Park Avenue had received payments in
excess of the only damages it was still permitted to pursue and,
thus, that Park Avenue could not maintain a claim against Miller.
The court then dismissed Park Avenue’s action against Miller.
¶6 Park Avenue appeals. It argues that there remain genuine
disputes of material fact on the issues of surrender and acceptance
and of Miller’s obligation to pay treble damages and, therefore,
that summary judgment was inappropriate on these issues. This
argument is well taken, and we reverse the grant of summary
judgment on these issues. Park Avenue also argues that its
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damages disclosure was adequate and, accordingly, that the
court’s summary judgment rulings related thereto were in error.
We are not persuaded that Park Avenue’s overall damages
disclosure was adequate. Hence, we affirm in part the district
court’s rulings related to Park Avenue’s damages disclosure.
However, we determine that certain components of Park
Avenue’s disclosure were adequate. Thus, we reverse in part the
summary judgment related to Park Avenue’s damages disclosure
and hold that to the extent Park Avenue is otherwise permitted to
pursue its claims related to those components of its claimed
damages, it may present evidence of the amount of those
damages. Finally, because we determine that Park Avenue may
present evidence of amounts allegedly owed by Church in
addition to unpaid rent during the five months preceding
Church’s purported surrender of the Premises, we reverse the
district court’s final summary judgment ruling and ultimate
dismissal of Park Avenue’s action. We remand this case for
further proceedings consistent with this opinion.
BACKGROUND 1
The Lease
¶7 Park Avenue owns the Premises, which are located at 628
Park Avenue in Park City. At the time of the events giving rise to
this case, the Premises had previously “been used as a restaurant
and bar,” and Church desired to lease and use the Premises for
that same purpose. Miller was a “passive investor” in Church and
apparently had no significant involvement in its management.
1. “In reviewing a district court’s grant of summary judgment, we
view the facts and all reasonable inferences drawn therefrom in
the light most favorable to the nonmoving party and recite the
facts accordingly.” M.A. v. Regence BlueCross BlueShield of Utah,
2020 UT App 177, n.1, 479 P.3d 1152 (cleaned up).
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¶8 In November 2016, Church and Park Avenue entered a
lease agreement (the Lease). Under the Lease, Church agreed to
rent the Premises from November 1, 2016, through October 31,
2021, “or such earlier date on which [the] Lease [might be]
terminated pursuant to any of the terms, conditions or covenants
of [the] Lease or pursuant to law.” The Lease required a security
deposit of $60,000. The minimum annual rent was $360,000 (or
$30,000 per month), together with taxes, an annual inflation
increase, and a portion of Church’s gross annual proceeds over
$3.6 million.
¶9 The Lease defined the failure to timely pay rent as a breach
and default. If Church defaulted, Park Avenue was entitled to
various remedies, including termination of the Lease “by written
notice.” Section 14.03 of the Lease provided that if Church
breached the Lease or if Park Avenue terminated the Lease for any
breach, or otherwise took action on account of Church’s breach or
default under the Lease, then “in addition to any other remedies”
Park Avenue might have in the event of a breach or default, Park
Avenue could “recover from [Church] all damages incurred by
reason of such breach or default, including all of the following”:
(a) The worth at the time of award of any unpaid
Rent that was due and payable for periods prior to
and at the time of such termination;
(b) The worth at the time of award of the amount by
which the unpaid Rent (other than Percentage Rent)
that would have been earned after termination until
the time of award exceeds the amount of such Rent
loss [Church] proves could have been reasonably
avoided and any savings [Church] proves [Park
Avenue] realized as a result of [Church’s] breach or
default;
(c) The worth at the time of award of the amount by
which the unpaid Rent (other than Percentage Rent)
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for the balance of the Lease Term after the time of
award exceeds the amount of such Rent loss that
[Church] proves could be reasonably avoided and
any savings [Church] proves [Park Avenue]
realized as a result of [Church’s] breach or default;
(d) Any other amount necessary to compensate
[Park Avenue] for [Church’s] failure to perform its
obligations under [the] Lease, including, without
limitation, any costs or expense incurred by [Park
Avenue] in: (i) retaking possession of the Premises,
including reasonable attorneys’ fees therefor;
(ii) maintaining or preserving the Premises after
such default; (iii) preparing the Premises for
reletting to a new tenant, including repairs or
alterations to the Premises for such reletting; (iv)
leasing commissions; and (v) any other costs
necessary or appropriate to relet the Premises LESS
any savings [Church] proves [Park Avenue]
realized as a result of [Church’s] breach or default;
(e) At [Park Avenue’s] election, such other amounts
in addition to or in lieu of the foregoing as may be
permitted from time to time by the laws of the State
where the Premises [are] located.
¶10 Under the Lease, interest accrued on any past due amounts
at 18% per annum compounded monthly, and Park Avenue was
entitled to recover attorney fees incurred in any successful action
against Church “relating to the provisions of [the] Lease or any
default [there]under beyond any applicable notice and cure
periods.” The Lease also provided that if Church were in default,
“all payments made by [Church] and received by [Park Avenue]”
could “be applied, in [Park Avenue’s] sole and absolute
discretion, to any outstanding arrearages owed by [Church] to
[Park Avenue], irrespective of any payment characterization
[Church might] designate for any such payment.”
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The Guaranty
¶11 Prior to execution of the Lease by Church and Park
Avenue, Miller signed a lease guaranty (the Guaranty). By signing
the Guaranty, Miller guaranteed “the payment of . . . any losses,
damages, or liabilities of any kind or nature incurred by [Park
Avenue] as a result of [Church’s] . . . . failure to perform any term,
provision, obligation or requirement of the Lease,” as well as “the
payment of all costs, attorney fees, and other expenses that
[might] be incurred by [Park Avenue] in enforcing” Church’s
performance under the Lease. The Guaranty was included as an
attachment to the Lease.
Church’s Default and the Forbearance Agreement
¶12 In April and May 2017, Church failed to make timely rent
payments. Park Avenue served Church with a three-day notice to
pay or quit. When Church failed to come current on its rent, Park
Avenue sued for unlawful detainer. Church and Park Avenue
then entered into a forbearance agreement (the Forbearance
Agreement) that was effective June 2, 2017. The Forbearance
Agreement required Park Avenue to refrain from taking further
action in the lawsuit. In return, Church acknowledged that it had
fallen behind on its rent payments, and it agreed to make a series
of monthly installment payments—beginning in June 2017 and
running through July 2018—to cover the amounts the parties
agreed Church owed under the Lease.
¶13 The Forbearance Agreement stated that the Lease would
“remain in full force and effect” and that “nothing in [the
Forbearance Agreement] replace[d], supersede[d] or cancel[ed]
any term, condition or obligation contained in the Lease.” Under
the Forbearance Agreement, Church agreed that its “failure to
make any single installment payment” would constitute “a breach
of [the] entire” Forbearance Agreement and that upon such a
breach, the total amount of the installment payments would
become due and Park Avenue could continue its suit against
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Church. Section 4(c) of the Forbearance Agreement provided that
if Church failed “to make any single installment payment,” then
the “[t]reble damages described in [Utah Code section] 78B-6-
811(3), including but not limited to treble rent payments and other
payments due under the [Lease], [would] begin to accrue on the
date of any such breach and [would] continue until [Church]
vacate[d] the [P]remises.”
The Return of Possession and the License Agreement
¶14 In July 2017, Church again failed to pay rent. It also fell
behind on the payments it owed under the Forbearance
Agreement. Accordingly, Park Avenue served Church with
another three-day notice to pay or quit, and it amended its
complaint to update its unlawful detainer cause of action and add
a claim for breach of the Forbearance Agreement. Church then
also missed its August 2017 rent payment. On August 9, 2017, the
court entered an order of restitution requiring Church to vacate
the Premises within three days.
¶15 Over the next few days, Church and Park Avenue
exchanged emails, trying to find a “resolution” agreeable to both
parties. On August 12, 2017, Park Avenue wrote that it was
“amenable” to “Church relinquish[ing] possession of the
[P]remises” but receiving a “license” to use the Premises for
several days in exchange for a cash payment of $35,000. Park
Avenue’s email also discussed the possibility of “reviv[ing] the
[L]ease” and listed some additional terms that would need to be
included in “[t]he revived lease.”
¶16 Later in the day on August 12, 2017, Church signed a return
of possession (the Return of Possession), under which it
“COMPLETELY RETURN[ED] POSSESSION OF THE
PREMISES” to Park Avenue. The Return of Possession stated that
Church understood that Park Avenue was “not waiv[ing] any
rights or remedies afforded to [Park Avenue] under the Lease . . .
[or] under any applicable Federal, State and/or Local law” and
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that Church’s “return of possession [did] not relieve [Church] of
any outstanding obligations under the Lease.”
¶17 Also on August 12, 2017, Church and Park Avenue
executed a temporary license (the License Agreement). The
License Agreement stated that
• as a tenant, Church had “failed to pay rent, was in unlawful
detainer and was evicted from the [Premises]”;
• Church “expressly acknowledge[d], admit[ted] and
agree[d]” that absent the License Agreement, it had “no
interest in or right to enter or use [the Premises]”;
• Church owed Park Avenue “past due payments arising out
of a forbearance agreement, the terminated lease
agreement, and the unlawful detainer action”;
• Church “desire[d] to use the [Premises] while it
attempt[ed] to raise funds to pay [the] money [it] owed to
[Park Avenue]”;
• Park Avenue “refuse[d] to enter a lease agreement with”
Church, and Church “under[stood] and agree[d] that [the
License Agreement] in no way create[d] a lease
agreement”;
• the License Agreement “in no way alter[ed] or amend[ed]
any obligation owed by [Church] to [Park Avenue] under
the previously existing and now terminated lease
agreement”; and
• the License Agreement gave Church a “[l]icense” to
continue using the Premises through August 18, 2017, in
exchange for a cash payment of $35,000.
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¶18 Park Avenue never served Church with written notice
stating that it was terminating the Lease. In a written declaration,
Park Avenue’s manager later stated that Park Avenue “never
intended the Return of Possession . . . or the [License Agreement]
to be a surrender of the Lease” and “never intended to accept the
surrender of the Lease.” He averred that Park Avenue “requested
a return of the Premises only, not a surrender of the [L]ease itself.”
He stated that Park Avenue “thought the [o]rder of [r]estituion
issued on August 9, 2017[,] ordering Church to vacate the
Premises for failure to pay rent terminated the Lease.” He also
said, “[Park Avenue] considered the Lease suspended during the
licensing period and would [have] revive[d] it if Church met its
obligations.”
¶19 Church was not successful in meeting its obligations to
Park Avenue, and it eventually vacated the Premises. Park
Avenue was thereafter able to rent the Premises for two events,
but the Premises otherwise remained vacant for the remaining
term of the Lease.
Park Avenue’s Lawsuit Against Miller and Damages Disclosure
¶20 In August 2019, Park Avenue sued Miller, seeking to
enforce the Guaranty and obtain $2,043,978.26 in damages. In its
initial disclosures, Park Avenue provided the following statement
regarding its claimed damages:
[Park Avenue] seeks damages for amounts
due and owing pursuant to the [Guaranty]. [Park
Avenue’s] damages amount of $2,043,978.26 (“[Park
Avenue’s] Damages”) is based on the amount
[Church] owes [Park Avenue] arising out of
[Church’s] repeated failure to pay rent.
[Park Avenue’s] Damages amount consists of
unpaid rent, statutory damages for unlawful
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detainer, and breach of contract damages plus
interest, attorney fees, and court costs.
[Park Avenue’s] Damages amount was
computed pursuant to Section 14.03 of the [Lease],
pursuant to the [F]orbearance [A]greement
(including Section 4(c)) . . . , and pursuant to [Utah
Code section] 78B-6-811(3).
A copy of [Park Avenue’s amended
complaint against Church] with all damages
claimed by [Park Avenue] against [Church], the
[Lease], the [F]orbearance [A]greement, and the
[Guaranty] are all attached hereto. As for additional
amounts, [Park Avenue] reserves the right to
supplement this disclosure as additional
information becomes known.
As it indicated, Park Avenue attached to its initial disclosures a
copy of its amended complaint against Church, the Lease, the
Guaranty, and the Forbearance Agreement.
¶21 Park Avenue’s amended complaint against Church had
sought unlawful detainer damages for breach of the Lease as
follows:
a. Except for May . . . 2017 and June . . . 2017 rent,
any rent due and unpaid by [Church] through the
end of the [Lease], including any fees, rent payment,
and additional rent that comes due while [Church]
remains in unlawful detainer (such as August . . .
2017 rent);
b. damages caused because [Church] remained in
possession of [the Premises];
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c. physical damages beyond normal wear and tear
(waste) caused by [Church] to [the Premises] during
the time [Church was] in possession of the
[Premises]; and
d. damages for the abatement (termination) of any
nuisance caused by [Church] as provided in [Utah
Code sections] 78B-6-1107 through 1114.
Park Avenue’s amended complaint against Church had also
sought attorney fees, costs, and “treble damages in accordance
with [Utah Code section] 78B-6-811 at the rate of $3,000 for each
day [Church] remained in unlawful detainer prior to executing
the Forbearance Agreement, beginning on May 15, 2017[,] until
June 2, 2017, and for each day [Church] remain[ed] in unlawful
detainer, beginning on July 13, 2017.”
¶22 As for its claim against Church for breach of the
Forbearance Agreement, Park Avenue’s amended complaint
against Church had alleged that $73,354.91 was due under the
Forbearance Agreement as of July 3, 2017; that on July 13, 2017,
Church made a payment of $33,267.48; that on July 14, 2017,
Church made a payment of $4,604.52; and, thus, that “$35,482.91
remain[ed] due and owing” under the Forbearance Agreement.
Accordingly, for breach of the Forbearance Agreement, Park
Avenue’s amended complaint against Church had sought
damages of $35,482.91. It had also sought—for breach of the
Forbearance Agreement—attorney fees, costs, and treble damages
under Section 4(c) of the Forbearance Agreement and section 78B-
6-811(3) of the Utah Code “in the amount of $3,000 for each day
[Church] remain[ed] in possession of the [P]remises beginning
July 4, 2017.”
¶23 In sum, Park Avenue’s initial disclosures in its lawsuit
against Miller—the case from which this appeal arises—indicated
that Park Avenue sought from Miller all of the damages Park
Avenue had claimed in its earlier lawsuit against Church.
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628 Park Avenue, LLC v. Miller
Miller’s Summary Judgment Motions
¶24 Following discovery in this case, Miller filed a motion for
summary judgment, asking the court to rule as a matter of law
that (1) Park Avenue accepted a surrender of the Premises on
August 12, 2017, and was thus “barred from recovering any
amount that was not already due by” that date; (2) “Miller did not
agree to pay treble damages under Utah’s unlawful detainer
statute,” so Park Avenue’s “damage claims against Miller based
on unlawful detainer fail[ed]”; and (3) Park Avenue did not
comply with its “obligation to provide a damages computation”
under rule 26(a)(1)(C) of the Utah Rules of Civil Procedure and
should therefore be precluded from offering evidence of its
damages.
¶25 The district court granted Miller’s motion in part and
denied it in part. First, the court ruled as a matter of law that Park
Avenue accepted a surrender of the Premises on August 12, 2017,
and that to the extent Park Avenue sought damages that accrued
after that date, Park Avenue’s claim was dismissed with
prejudice. In support of this ruling, the court pointed to the Return
of Possession generally and the following specific statements in
the License Agreement:
• “[Church] owes [Park Avenue] past due payments arising
out of . . . the terminated lease agreement,”
• “[Park Avenue] refuses to enter a lease agreement with
[Church],”
• “[Church] understands and agrees that [the License
Agreement] in no way creates a lease agreement,”
• “[Church] expressly acknowledges, admits and agrees
[that] . . . [a]bsent the [License Agreement], [it] has no
interest in or right to enter or use [the Premises],” and
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• “[The License Agreement] in no way alters or amends any
obligation owed by [Church] to [Park Avenue] under the
previously existing and now terminated lease agreement.”
In further support of its ruling, the court stated that it was
“undisputed that the parties corresponded in writing about a
resolution regarding relinquishing possession of the [Premises]
and reviving the [L]ease with new and additional terms.” In short,
the court concluded that “the Return of Possession and the
subsequent [License Agreement] constitute[d] a surrender and
acceptance under the Utah Supreme Court’s decision in Reid v.
Mutual of Omaha Ins. Co., 776 P.2d 896 (Utah 1989).”
¶26 Second, the court ruled as a matter of law that under the
plain language of the Guaranty, Miller was “not liable for any
treble damages that [might] be awarded to [Park Avenue] against
[Church] under the Lease.” The court noted that Miller had
guaranteed to Park Avenue the payment of “losses, damages, or
liabilities of any kind or nature incurred by [Park Avenue] as a
result of” Church’s breach. (Emphasis added.) It then reasoned
that statutory treble damages are not “‘losses, damages, or
liability’ that are ‘incurred’” but are, rather, “statutory damage[s]
awarded against a holdover tenant to provide an economic
incentive for the tenant to leave the property and return
possession to the landlord.” (Emphasis added.) The court
concluded that because the statutory treble damages that could
have been assessed against Church were not damages incurred by
Park Avenue, those damages were “not properly subject to the
Guaranty.”
¶27 Finally, the court determined that Park Avenue had not
“provide[d] a sufficient computation” in its damages disclosure
“because it provided a bare number ($2,043,978.26) while
referring to multiple documents and damages theories” and
leaving many questions unanswered. Specifically, the court said,
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[Park Avenue] did not explain whether it was
calculating damages under subsections 14.03(a), (b),
(c), or (d) of the Lease or a combination of those
subsections, and, if it was, [Park Avenue] did not
explain what figures it was deriving from its
application of those subsections. [Park Avenue] did
not state the number of days of unlawful detainer,
confirm the total amount of treble damages claimed,
or state whether it was applying the trebling
provision of the unlawful detainer statutes to any
amounts in addition to daily rent. [Park Avenue]
did not identify the missed payments under the
Forbearance Agreement and the amount of those
missed payments. [Park Avenue] did not explain
how it was applying payments that may have been
made by [Church] or payments that may have been
received from third parties, such as other tenants.
[Park Avenue] did not explain how any amounts
due and owing under the Forbearance Agreement
affected, overlapped, or superseded any amounts
owing under the Lease for the months of April, May,
June, July, and August of 2017. This failure to
provide information regarding these issues
constitutes a failure to provide a computation of
damages.
The court then determined that the deficient disclosure was not
harmless or the result of good cause and, thus, that Park Avenue
was generally barred from putting on evidence of its damages.
Nevertheless, the court ruled that Park Avenue was “not barred
from presenting evidence supporting its claimed breach of
contract damages for unpaid rent for April, May, June, July, and
August of 2017.” As to this ruling, the court explained, “[I]t was
readily apparent that [Park Avenue] was claiming unpaid rent for
those months, and these amounts are readily ascertainable from
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the face of the Lease, which was referenced in the initial
disclosures.”
¶28 Later, Miller filed another summary judgment motion. In
this motion, he noted that in the court’s prior summary judgment
order, the court had “held that the Lease was rescinded and
terminated under the doctrine of surrender and acceptance and,
therefore, . . . that ‘to the extent [Park Avenue sought] damages
from [Miller] for rent payments after August 12, 2017, . . . the claim
[was] dismissed with prejudice.’” He further observed that the
court had “ruled that ‘[Park Avenue was] barred from presenting
any evidence of damages except for evidence of unpaid rent for
the months of April, May, June, July, and August of 2017.’” Based
on those rulings, Miller asserted that to establish “any liability
against [Miller] based on the Guaranty,” Park Avenue had to
“prove that Church owe[d] rent under the Lease for those five
months,” and he argued that Park Avenue could not “meet this
burden because Church actually paid [Park Avenue] nearly
$45,000 more than” the amount Church owed for those five
months. According to Miller, the undisputed facts showed that
while Church owed Park Avenue $150,000 in unpaid rent for the
five months from April to August 2017, Church had made “six
payments to [Park Avenue] totaling $194,605.48,” namely,
1. $60,000 on or about September 21, 2016, as a
security deposit;
2. $30,000 on June 9, 2017;
3. $31,733.48 on June 12, 2017;
4. $33,267.48 on July 13, 2017;
5. $4,604.52 on July 14, 2017; and
6. $35,000 on or about August 14, 2017.
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Miller contended that because Church had paid Park Avenue
more than the amount of damages Park Avenue had admissible
evidence to support, the court should enter summary judgment
on the “entirety” of Park Avenue’s claim against him and award
him his attorney fees as the prevailing party.
¶29 The court agreed with Miller. It stated that “the undisputed
evidentiary record” showed that Park Avenue could “only show
admissible evidence of $150,000 owing under the Lease and/or
[the] Forbearance Agreement” and that Church had “paid over
$155,000” to Park Avenue. The court therefore determined that
there was no genuine dispute that Park Avenue could not “show
any triggering of the Guaranty.” Thus, the court dismissed Park
Avenue’s claim against Miller and awarded him his reasonable
attorney fees and costs.
ISSUES AND STANDARDS OF REVIEW
¶30 Park Avenue now appeals, challenging each of the district
court’s summary judgment rulings described above. “Appellate
courts review a district court’s legal conclusions and ultimate
grant or denial of summary judgment for correctness, viewing the
facts and all reasonable inferences drawn therefrom in the light
most favorable to the nonmoving party.” Fleming v. Dullanty, 2025
UT App 128, ¶ 28, 579 P.3d 365 (cleaned up). To the extent that the
court’s summary judgment rulings rely on the interpretation of a
contract, “the determination of whether a contract is facially
ambiguous is a question of law, which we review for correctness,”
KB Squared LLC v. Memorial Bldg. LLC, 2019 UT App 61, ¶ 17, 442
P.3d 1168 (cleaned up), and the “interpretation of unambiguous
contracts is also a question of law,” which we review for
correctness, Ward v. IHC Health Services, Inc., 2007 UT App 362,
¶ 7, 173 P.3d 186. To the extent that the court’s summary
judgment rulings relied on its imposition of discovery sanctions
under rule 26 of the Utah Rules of Civil Procedure, we review for
abuse of discretion a district court’s determination regarding the
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sufficiency of a disclosure, see Bad Ass Coffee Co. of Hawaii Inc. v.
Royal Aloha Int’l LLC, 2020 UT App 122, ¶ 37, 473 P.3d 624, and we
also “review a district court’s ruling on sanctions under rule 26 of
the Utah Rules of Civil Procedure using an abuse of discretion
standard.” Cougar Canyon Loan LLC v. Walker, 2020 UT App 176,
¶ 14, 482 P.3d 227.
ANALYSIS
I. Surrender and Acceptance
¶31 Park Avenue contends that the district court erred by
concluding as a matter of law that Church surrendered the
Premises and Park Avenue accepted the surrender.
¶32 Surrender and acceptance is a common law doctrine. See
Reid v. Mutual of Omaha Ins. Co., 776 P.2d 896, 900 (Utah 1989).
“Under that doctrine, when a tenant surrenders the premises to a
landlord before a lease term expires and the landlord accepts that
surrender, the tenant is no longer in privity of estate with the
landlord and therefore has no obligation to pay any rents accruing
after the date of the acceptance.” Id. “Phrased in contract law
parlance, the lease is treated as having been rescinded or
terminated by mutual agreement.” Id. “[T]he critical issue in
applying the doctrine . . . is determining whether the landlord
intended to accept the surrender. This intention may be express
or implied.” Id. It may be implied if it is “manifested by [the
parties’] acts.” Brookside Mobile Home Park, Ltd. v. Peebles, 2000 UT
App 314, ¶ 20, 14 P.3d 105 (cleaned up), aff’d, 2002 UT 48, 48 P.3d
968.
¶33 “The party who relies on [surrender and acceptance] has
the burden of proving it,” and “the proof must be clear where the
surrender is to be inferred from circumstances inconsistent with
the intention to perform.” Id. ¶ 21 (cleaned up). “[A]cceptance of
the keys and attempting to re-let the premises are not alone
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sufficient to constitute a surrender and acceptance,” but “[s]uch
acts may of course be considered with other circumstances.” John
C. Cutler Ass’n v. De Jay Stores, 279 P.2d 700, 702 (Utah 1955). Given
the “fact-intensive nature” of the inquiry, the “question of
whether the acts and circumstances constituted a surrender and
acceptance is one for the fact finder.” Brookside, 2000 UT App 314,
¶¶ 21, 24 (cleaned up). And because this is an issue of fact,
“summary judgment should be granted with great caution.”
iDrive Logistics LLC v. IntegraCore LLC, 2018 UT App 40, ¶ 64, 424
P.3d 970 (cleaned up). Indeed, summary judgment should not be
granted on a factual issue unless the evidence “is so one-sided that
a reasonable factfinder could reach but one conclusion.” Ocean 18
LLC v. Overage Refund Specialists LLC (In re Excess Proceeds from
Foreclosure of 1107 Snowberry St.), 2020 UT App 54, ¶ 29, 474 P.3d
481.
¶34 Here, the district court determined that the Return of
Possession together with several specific provisions of the License
Agreement and correspondence between the parties collectively
supported the conclusion that as a matter of law Church
surrendered the Premises on August 12, 2017, and Park Avenue
accepted the surrender. And indeed, there is language in those
sources that suggests a surrender and acceptance. In the Return of
Possession, Church said that it was “COMPLETELY
RETURN[ING] POSSESSION OF THE PREMISES” to Park
Avenue. In the License Agreement, the parties repeatedly referred
to the Lease as having been “terminated” and said that the License
Agreement “in no way create[d] a lease agreement” because at
that point, Park Avenue “refuse[d] to enter a lease agreement”
with Church. Instead, the License Agreement purported to create
only a “[l]icense,” and Church “expressly acknowledge[d],
admit[ted] and agree[d]” that absent the License Agreement, it
had “no interest in or right to enter or use [the Premises].”
Moreover, in a nearly contemporaneous email, Park Avenue
referred to “reviv[ing] the [L]ease,” from which a factfinder might
infer that Park Avenue understood the Lease to have been
terminated. See Revive, Merriam-Webster, https://www.merriam-
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628 Park Avenue, LLC v. Miller
webster.com/dictionary/revive [https://perma.cc/H7GA-JZAM]
(defining “revive” to include “restor[ing] to . . . life”).
¶35 However, other language from these same sources
suggests that Park Avenue and Church did not intend a surrender
and acceptance. The Return of Possession stated that Park Avenue
was “not waiv[ing] any rights or remedies afforded to [Park
Avenue] under the Lease” and that Church’s “return of
possession [did] not relieve [Church] of any outstanding
obligations under the Lease.” The License Agreement similarly
stated that it “in no way alter[ed] or amend[ed] any obligation
owed by [Church] to [Park Avenue] under the” Lease. And Park
Avenue’s email reference to “reviv[ing] the lease” could also
support an inference that the parties viewed the Lease as not
having been terminated but only having been rendered dormant
while Church attempted to “raise funds to pay [the] money [it]
owed to [Park Avenue].” See id. (defining “revive” to include
“restor[ing] to consciousness . . . or healthy condition”).
Additionally, Park Avenue never served Church with written
notice stating that it was terminating the Lease, and its manager
declared that Park Avenue “never intended the Return of
Possession . . . or the [License Agreement] to be a surrender of the
Lease” and “never intended to accept the surrender of the Lease.”
The manager further declared that Park Avenue considered the
Lease to be merely “suspended during the licensing period.”
¶36 Given the conflicting evidence on this issue, a reasonable
factfinder could resolve this issue in favor of either party, and
because the evidence is not “so one-sided that a reasonable
factfinder could reach but one conclusion,” Ocean 18, 2020 UT
App 54, ¶ 29, the district court erred in concluding as a matter of
law that Church surrendered the Premises and that Park Avenue
accepted that surrender.
¶37 Miller resists this conclusion primarily by pointing to the
evidence we have identified that supports a finding in his favor.
But the fact that evidence exists to support a finding in his favor
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628 Park Avenue, LLC v. Miller
does not make summary judgment appropriate where there is
also evidence to support a contrary finding. See Bridge v. Backman,
353 P.2d 909, 910 (Utah 1960) (“[U]nless there is a showing that
the disfavored parties cannot produce evidence which would
reasonably support a finding in their favor on a material or
determinative issue of fact, a summary judgment is erroneous.”).
¶38 Miller also asserts that the declaration of Park Avenue’s
manager cannot create a genuine issue of fact regarding Park
Avenue’s intent to accept a surrender of the Premises because the
declaration lacks “the detail necessary to create a dispute of fact.”
See generally Heslop v. Bear River Mutual Ins. Co., 2017 UT 5, ¶ 23,
390 P.3d 314 (stating that an “affidavit must set forth specific facts
showing there is a genuine issue for trial” and that the “mere
assertion that an issue of fact exists without a proper evidentiary
foundation to support that assertion is insufficient” (cleaned up)).
But because there is evidence in addition to Park Avenue’s
manager’s declaration to support a finding in Park Avenue’s
favor, this assertion is unavailing. Moreover, even if the existence
of a genuine issue of material fact depended on the manager’s
declaration, that declaration contained more than a mere assertion
regarding Park Avenue’s intent. It included sufficient information
regarding the manager’s role in communicating with Miller on
behalf of Park Avenue to provide a foundation for the manager’s
statements.
¶39 In short, Miller’s arguments do not persuade us that
summary judgment was properly granted on the issue of
surrender and acceptance, and we reverse that summary
judgment ruling.
II. Miller’s Responsibility for Treble Damages
¶40 Park Avenue also asserts that the district court erred by
concluding as a matter of law that Miller did not guarantee the
payment of treble damages that could be imposed against Church
under the unlawful detainer statute. We conclude that a genuine
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dispute of material fact exists on this issue as well and, thus, that
the court again erred in granting summary judgment.
¶41 Utah’s unlawful detainer statute states that in the event the
court or a jury finds there has been an unlawful detainer, “[t]he
court shall enter the judgment against the defendant for the rent
and for three times the amount of the damages.” Utah Code § 78B-
6-811(3). The district court determined that the Guaranty did not
require Miller to pay the treble damages that could have been
assessed against Church under this statute. It reasoned that Miller
was obligated to pay only for “losses, damages, or liabilities of any
kind or nature incurred by [Park Avenue] as a result of [Church’s]
breach of the Lease” and that “treble damages are not ‘losses,
damages, or liabilities’ that are ‘incur