Osguthorpe v. ASC Utah, Inc.
Annotate this CaseFor several years ASC Utah, Inc. operated a ski resort on land adjacent to that owned by Plaintiffs. Plaintiffs authorized ASC to use their land in exchange for an annual payment. Plaintiffs filed this action asserting that ASC breached the contract by mismanaging the property. Plaintiffs asserted claims for breach of the covenant of good faith and fair dealing, for injunctive relief, and for equitable rescission or reformation of the agreement. A jury resolved the first claim against Plaintiffs. The district court resolved the remaining claims after a bench trial in a decision that denied injunctive relief and refused to terminate the agreement but reformed it in part. The Supreme Court vacated the portion of the portion of the trial court’s order purporting to dispose of the rights of Plaintiffs to payments tendered by ASC but rejected by Plaintiffs and otherwise affirmed, holding (1) because Plaintiffs failed to file a notice of appeal as to the jury verdict, the Court lacked jurisdiction over matters resolved in the course of the jury; (2) the trial court did not abuse its discretion in refusing to award injunctive relief; and (3) the trial court did not err in deciding to reform the contract prospectively in part.
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