Case Summaries

• Publication year: 1993
• Pages: 38
• Citation: Vol. 6 No. 7 Pg. 38

Case Summaries Vol. 6 No. 7 Pg. 38 Utah Bar Journal September, 1993

August, 1993

Clark R. Nielsen, J.

RELEASE

A release is to be construed according to ordinary principles of general contract interpretation. The court declined to adopt for all purposes the "four corners rule, " which provides that a general release always applies to parties not specifically named, or the "specific identity rule, " which provides that the release of one party does not discharge others unless the others are named in the release or are specifically identifiable from the face of the release. The court also declined to adopt the "intent" rule, which provides that the release is dependent on the intent of the parties that negotiated the release. Instead, these rules apply in various circumstances depending on ordinary contract principles. The court concluded that where the release is unambiguous as a matter of law, the "four corners role" is applied. However, where the release is ambiguous, the court must construe the contract consistently with the intent of the parties thereto, thus applying the "intent" rule.

In this case, the court held the release was ambiguous. The court also held that no evidence credited by the jury either supported or contradicted the jury verdict that the release was intended to cover the Utah Department of Transportation. Consequently, the court concluded that UDOT had failed to meet its burden of proof that it was an intended beneficiary of the release.

Krauss v. Utah State Dept. of Transportation, 211 Utah Adv. Rep. 25 (April 19, 1993) (Judge Orme)

SALES TAX

The court of appeals affirmed the decision of the Utah State Tax Commission that the sale of "modular housing units, " prior to their permanent attachment to real property, was a taxable sale because the units were tangible personal property subject to sales tax. Citing BJ-Titan Services v. State Tax Comm'n, 842 P.2d 822, 828 (Utah 1992), for the appropriate standard of review, the court affirmed the decision because it was neither unreasonable nor arbitrary.

Valgardson Housing Systems, Inc. v. State Tax Commission, 210 Utah Adv. Rep. 55 (March 12, 1993) (Judge Greenwood)

FORGERY

Construing Utah Code Ann. §76-6-501(3) & (4) (1990), the court held that forgery of a receipt for payment does not represent "an interest in or claim against property, or a pecuniary interest in or claim against any person or enterprise." §76-6-501(3). Consequently, forgery of a receipt...